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GE Vernova (GEV) Stock Analysis

This is a peer-relative look at GE Vernova (GEV): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Capital Goods peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for GE Vernova (GEV)
Profile ItemGEV
NameGE Vernova Inc.
Country/RegionUnited States
GICS SectorIndustrials
GICS Industry GroupCapital Goods
GICS IndustryElectrical Equipment
GICS Sub-IndustryHeavy Electrical Equipment
Market Capitalization254.95 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateMarch 27, 2024
Security TypeCommon Stock

Price Performance

Cumulative Growth

GEV
GSPC
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GE Vernova (GEV) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for GE Vernova (GEV) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for GE Vernova (GEV) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

GE Vernova (GEV) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: GEVIndustry group median
Total Return (1Y)51.30%7.86%
Total Return (3Y, Annualized)--15.33%
Total Return (5Y, Annualized)--10.92%

Risk Profile

Drawdown History

GEV
GSPC
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GE Vernova (GEV) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for GE Vernova (GEV) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

GE Vernova (GEV) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: GEVIndustry group median
Volatility (1Y, Annualized)51.91%44.10%
Beta (5Y)0.961.21
Max Drawdown (5Y)-38.29%-49.28%

Risk-Adjusted Performance

Risk-Return Positioning

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Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. GEV is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

GE Vernova (GEV) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: GEVIndustry group median
Sharpe Ratio (1Y)0.910.10
Sortino Ratio (1Y)1.410.15

Profitability

ROE (TTM)

GE Vernova (GEV) posts ROE of 82.58%, above the industry benchmark range. Equity is being turned into profit at an exceptional rate, but very high ROE should still be checked against leverage, buybacks, and the size of the equity base.

GEV

Capital Goods industry group

82.58%

Group distribution
GEV
82.58%
Max
40.35%
Q3
18.69%
Median
11.55%
Q1
2.89%
Min
-19.86%
Largest peers
BA
173.54%
GEV
82.58%
CAT
56.97%
GE
48.23%
ETN
19.68%
DE
18.24%
RTX
12.27%
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Where GE Vernova (GEV) stands on ROE within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

GE Vernova (GEV) keeps 23.04% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.

GEV

Capital Goods industry group

23.04%

Group distribution
Max
27.47%
GEV
23.04%
Q3
11.71%
Median
5.78%
Q1
0.77%
Min
-14.15%
Largest peers
GEV
23.04%
GE
17.72%
CAT
14.51%
ETN
12.75%
DE
10.17%
RTX
8.28%
BA
2.59%
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Where GE Vernova (GEV) stands on net margin within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

GE Vernova (GEV) turns 7.47% of revenue into operating profit, roughly in line with the peer group’s normal operating margin range. Its core cost structure looks typical for the industry.

GEV

Capital Goods industry group

7.47%

Group distribution
Max
35.46%
Q3
17.39%
Median
10.58%
GEV
7.47%
Q1
4.59%
Min
-12.63%
Largest peers
CAT
22.18%
GE
20.57%
DE
17.48%
ETN
16.56%
RTX
12.70%
GEV
7.47%
BA
0.00%
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Where GE Vernova (GEV) stands on operating margin within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

GE Vernova (GEV) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: GEVIndustry group median
ROE (TTM)82.58%11.55%
ROA (TTM)2.54%5.06%
Net Margin (TTM)23.04%5.78%
Operating Margin (TTM)7.47%10.58%
Gross Margin (TTM)20.57%29.56%

Growth

Revenue Growth

GE Vernova (GEV) grew revenue 8.97%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.

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GE Vernova (GEV): Revenue Growth across different time periods, set against Capital Goods industry-group medians.

EPS Growth

GE Vernova (GEV) grew earnings per share 217.03%, above the industry benchmark range. Profits are compounding faster than at any typical peer, though a depressed base year can inflate the percentage, so the level of earnings matters alongside the rate.

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GE Vernova (GEV): EPS Growth across different time periods, set against Capital Goods industry-group medians.

Growth Metrics

GE Vernova (GEV) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: GEVIndustry group median
Revenue Growth (YoY)8.97%8.23%
Revenue Growth (3Y CAGR)8.68%6.36%
EPS Growth (YoY)217.03%4.97%
EPS Growth (3Y CAGR)--6.34%

Financial Strength

Current Ratio (MRQ)

GE Vernova (GEV) has current ratio of 0.85, in the tighter-liquidity quartile for its industry. The short-term cushion is thinner than most peers carry, even if the absolute comfort level still depends on the business model.

GEV

Capital Goods industry group

0.85

Group distribution
Max
5.28
Q3
2.99
Median
2.09
Q1
1.45
GEV
0.85
Min
0.76
Largest peers
DE
2.13
CAT
1.37
ETN
1.24
BA
1.14
RTX
1.01
GE
0.98
GEV
0.85
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Where GE Vernova (GEV) stands on current ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

GE Vernova (GEV) has debt-to-equity ratio of 0.28, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.

GEV

Capital Goods industry group

0.28

Group distribution
Max
2.15
Q3
1.09
Median
0.57
GEV
0.28
Q1
0.27
Min
0.00
Largest peers
BA
7.91
DE
3.76
CAT
2.33
GE
1.13
ETN
1.05
RTX
0.57
GEV
0.28
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Where GE Vernova (GEV) stands on debt-to-equity ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

GE Vernova (GEV) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: GEVIndustry group median
Current Ratio (MRQ)0.852.09
Debt / Equity (MRQ)0.280.57
Net Debt / EBITDA-2.291.93

Dividends

Dividend Yield (TTM)

GE Vernova (GEV) has dividend yield of 0.19%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.

GEV

Capital Goods industry group

0.19%

Group distribution
Max
2.75%
Q3
1.11%
GEV
0.19%
Median
0.18%
Q1
0.00%
Min
0.00%
Largest peers
RTX
1.40%
ETN
1.05%
DE
0.96%
CAT
0.77%
GE
0.51%
GEV
0.19%
BA
0.00%
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Where GE Vernova (GEV) stands on dividend yield within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

GE Vernova (GEV) has payout ratio of 5.73%, within the industry’s typical payout band. The dividend shares profits with investors while leaving earnings coverage that looks normal for the peer group.

GEV

Capital Goods industry group

5.73%

Group distribution
Max
72.00%
Q3
28.86%
Median
6.13%
GEV
5.73%
Q1
0.00%
Min
0.00%
Largest peers
RTX
48.77%
ETN
43.58%
DE
36.02%
CAT
26.01%
GE
19.58%
GEV
5.73%
BA
0.00%
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Where GE Vernova (GEV) stands on payout ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

GE Vernova (GEV) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: GEVIndustry group median
Dividend Yield (TTM)0.19%0.18%
Dividend Payout Ratio (TTM)5.73%6.13%

Valuation

P/E Ratio (TTM)

GE Vernova (GEV) trades at P/E ratio of 27.48, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

GEV

Capital Goods industry group

27.48

Group distribution
Max
66.10
Q3
40.43
Median
29.30
GEV
27.48
Q1
21.19
Min
1.09
Largest peers
BA
75.70
ETN
43.27
GE
38.17
DE
37.60
CAT
35.21
RTX
34.86
GEV
27.48
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Where GE Vernova (GEV) stands on P/E ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

GE Vernova (GEV) trades at 6.16 on P/S ratio, in the higher sales-valuation quartile. Investors are paying up for each dollar of revenue, so stronger margins, growth, or revenue quality need to carry that price.

GEV

Capital Goods industry group

6.16

Group distribution
Max
9.06
GEV
6.16
Q3
4.40
Median
2.41
Q1
1.19
Min
0.05
Largest peers
GE
6.63
GEV
6.16
ETN
5.50
CAT
5.04
DE
3.80
RTX
2.85
BA
1.77
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Where GE Vernova (GEV) stands on P/S ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

GE Vernova (GEV) trades at 21.32 on P/B ratio, above the industry benchmark range. Investors are putting an unusually rich price on each dollar of book equity relative to peers.

GEV

Capital Goods industry group

21.32

Group distribution
GEV
21.32
Max
11.10
Q3
5.63
Median
3.31
Q1
1.94
Min
-3.52
Largest peers
BA
27.27
GEV
21.32
CAT
19.40
GE
19.04
ETN
8.16
DE
6.51
RTX
4.01
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Where GE Vernova (GEV) stands on P/B ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

GE Vernova (GEV) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: GEVIndustry group median
P/E Ratio (TTM)27.4829.30
P/S Ratio (TTM)6.162.41
P/B Ratio (MRQ)21.323.31
Free Cash Flow Yield (TTM)6.17%2.67%