GEV GE Vernova Inc. - Fundamental Analysis
NEUTRAL
GEV Stock | Fundamental Analysis & Investment Insights
NYSE
•
Industrials
•
Specialty Industrial Machinery
Current Price
$578.31
Analyst Target
$679.3
+17.5% Upside
52W High
$677.29
52W Low
$252.25
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
65%
Analysis Accuracy
GE Vernova Inc. (GEV) trades at a significant premium to both the industrials sector and its closest peers, with a P/E of 94.34 versus a sector average of 27.54, raising valuation concerns despite strong 5-year price appreciation of +341.7%. The company exhibits solid revenue growth at 11.8% YoY and improving profitability trends, including a ROE of 16.72% and low leverage (Debt/Equity: 0.11), but erratic earnings performance and negative Q/Q EPS growth (-23.7%) undermine confidence in sustained momentum. Analysts are bullish with a $679.30 target price implying ~17% upside, yet insider selling—particularly a $2.05M CFO sale—contradicts this optimism. While financial health is stable and growth fundamentals show promise, stretched valuations and inconsistent earnings delivery create a conflicted outlook, warranting caution despite favorable sector positioning.
Key Strengths
Revenue growth of 11.8% YoY outpaces the industrials sector average of 7.13% and exceeds key peers like UNP (2.5%) and DE (-8.6%)
Strong ROE of 16.72% indicates effective equity utilization, supported by improving operating leverage and margin expansion
Exceptionally low Debt/Equity ratio of 0.11 suggests conservative capital structure and minimal refinancing risk relative to sector average of 1.80
Analyst target price of $679.30 implies 17.5% upside, backed by 27 analysts maintaining a 'buy' consensus
Impressive 5-year total return of +341.7%, outperforming most peers including ETN, UNP, and DE over the same horizon
Key Risks
Valuation multiples are extremely elevated: P/E of 94.34 vs sector avg 27.54 and closest peer ETN at 35.34, increasing downside risk in a rising rate environment
Highly volatile earnings performance with 4 out of last 8 quarters missing estimates, including two massive negative surprises (-232.7%, -254.7%)
Most recent Q/Q EPS decline of -23.7% signals near-term earnings deterioration despite strong YoY comp (+505.7%)
Insider activity is bearish: CFO sold $2.05M in shares with no offsetting insider buys in the past six months
Liquidity metrics are weak: Quick ratio of 0.65 and current ratio of 1.03 indicate potential working capital pressure, below sector resilience norms
AI Fair Value Estimate
Based on comprehensive analysis
$575.0
-0.6% below current price
Performance Snowflake
Multi-dimensional AI analysis across 5 key categories
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Historical Performance Trends
Long-term financial metrics and growth patterns
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability, Growth & Financial Health
Detailed profit margins, ROE, debt ratios, and liquidity metrics
Sector Comparison & Peer Analysis
Compare GEV against industry averages and similar companies
Insider Trading & Analyst Ratings
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