GE Vernova GEV
What does GE Vernova do?
GE Vernova is an energy technology group that offers products and services for the generation, transmission, conversion and storage of electricity. The company emerged from General Electric's energy business and operates in the segments Power, Wind and Electrification. Customers are mainly utilities, grid operators, industrial companies and government bodies worldwide.
The Power segment includes gas, steam, hydropower and nuclear technologies and generates a significant share of revenue from long-term maintenance and service contracts for the installed base. Wind supplies onshore and offshore turbines as well as rotor blades. Electrification bundles grid solutions, power electronics, software, and solar and storage technology. Competitively, GE Vernova benefits from a large installed fleet of turbines, long-standing customer relationships and high technological barriers to entry, but faces large international competitors in wind and grid technology.
Score profile
Rank vs. Specialty Industrial Machinery (49 companies). 10 = top of the group, 5 = middle. Calculated from the metrics below, without AI.
Metrics compared with the industry
On profitability and quality, GE Vernova ranks in the middle in the group Specialty Industrial Machinery (5.7/10). On growth, the company ranks among the best in the group Specialty Industrial Machinery (9.1/10). On valuation (higher = cheaper), the stock ranks below average in the group Specialty Industrial Machinery (2.3/10). On financial strength, GE Vernova ranks in the middle in the group Specialty Industrial Machinery (5.9/10).
| Metric | Stock | Group median | Ranking |
|---|---|---|---|
| Forward P/E | 30.8x | 18.4x | better than 1 % |
| Trailing P/E | 20.9x | 26.2x | better than 76 % |
| PEG ratio | 1.4x | 1.7x | better than 66 % |
| EV/EBITDA | 41.2x | 16.5x | better than 3 % |
| Price/sales | 4.8x | 3.0x | better than 21 % |
| Price/book | 18.5x | 4.1x | better than 3 % |
| Revenue growth | 26.8% | 7.1% | better than 91 % |
| Earnings growth | 193.3% | 12.9% | better than 91 % |
| Gross margin | 21.8% | 40.2% | better than 3 % |
| Operating margin | 12.8% | 16.5% | better than 30 % |
| Net margin | 23.5% | 10.3% | better than 99 % |
| Return on equity | 93.0% | 13.5% | better than 97 % |
| Debt/equity | 29.9% | 47.2% | better than 79 % |
| Current ratio | 0.8x | 1.9x | better than 1 % |
| Free cash flow yield | 10.5% | 3.1% | better than 97 % |
| Dividend yield | 0.3% | 1.2% | – |
| Payout ratio | 4.6% | 32.4% | – |
| Beta | 1.06 | 1.06 | – |
Valuation: what is GE Vernova worth?
Two valuation approaches – a discounted cash flow model and a valuation at the industry’s median multiples – give GE Vernova a model range of 325.69 USD to 475.80 USD per share.
33 analysts, average rating “Strong buy”, average price target 1,182.83 USD (+48.5%).
The full DCF matrix, the reverse DCF (what growth the price implies) and scenarios are part of the Pro analysis.
What the business depends on
- Investments by utilities and grid operators in new generation capacity and grid expansion determine order intake across the segments.
- Recurring service and maintenance revenue from the installed base of turbines provides more stable and higher-margin earnings.
- Electricity demand, energy policy and the regulatory framework influence demand for gas, wind and grid technology.
Risks
- The wind business, particularly offshore, is prone to project delays, quality problems and cost overruns on large projects.
- Changes in subsidy policy, permitting procedures or trade rules can delay or raise the cost of customers' investment decisions.
- Supply chain bottlenecks, commodity prices and limited manufacturing capacity can weigh on delivery capability and profitability.
What to look for with GE Vernova
Backlog relative to revenue is informative because, given long project cycles, it reflects revenue visibility and demand for equipment and services.