GE Vernova Inc. (NYSE: GEV)

Sector: Industrials Industry: Specialty Industrial Machinery CIK: 0001996810
Market Cap 224.93 Bn
P/B 25.34
P/E 194.57
P/S 6.14
ROIC (Qtr) 46.72
Div Yield % 0.15
Rev 1y % (Qtr) 3.76
Total Debt (Qtr) 0.00
Debt/Equity (Qtr) 0.00
Add ratio to table...

About

Investment thesis

Bull case

  • Robust free cash flow of 3.75B exceeds capital expenditure of 1.24B by 3.03x, indicating strong organic growth funding capability.
  • Cash reserves of 8.85B provide ample 147.47x coverage of acquisition spending 60M, enabling strategic growth opportunities.
  • Strong free cash flow of 3.75B provides 62.48x coverage of acquisition spending 60M, indicating disciplined M&A strategy.
  • Free cash flow of 3.75B provides robust 3.13x coverage of R&D expenses 1.20B, enabling sustainable innovation investment.
  • Operating cash flow of 4.99B provides strong 4.29x coverage of tax liabilities 1.16B, showing excellent fiscal position.

Bear case

  • Operating cash flow of 4.99B barely covers its investment activities of (755M), with a coverage ratio of -6.61, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 4.99B provides thin coverage of dividend payments of (275M) with a -18.13 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Investment activities of (755M) provide weak support for R&D spending of 1.20B, which is -0.63x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 4.99B provides insufficient coverage of deferred revenue obligations of 25.77B, which is 0.19x, raising concerns about future service delivery capabilities.
  • Operating cash flow of 4.99B provides minimal -2.43x coverage of tax expenses of (2.05B), suggesting potential tax planning inefficiencies or unsustainable tax positions.

Segments Breakdown of Revenue (2025)

Geographical Breakdown of Revenue (2025)

Peer comparison

Companies in the Specialty Industrial Machinery
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GEV GE Vernova Inc. 224.93 Bn 194.57 6.14 0.00 Bn
2 ETN Eaton Corp plc 153.13 Bn 38.99 5.75 11.22 Bn
3 PH Parker-Hannifin Corp 135.87 Bn 165.29 12.09 9.87 Bn
4 EMR Emerson Electric Co 111.68 Bn 47.10 4.65 13.41 Bn
5 ITW Illinois Tool Works Inc 86.68 Bn 28.27 5.40 8.97 Bn
6 CMI Cummins Inc 82.13 Bn 28.89 2.44 7.55 Bn
7 AME Ametek Inc/ 53.79 Bn 36.34 7.27 2.28 Bn
8 ROK Rockwell Automation, Inc 43.80 Bn 44.24 5.11 3.68 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 3.44 2.28
EV to Cash from Ops. EV/CFO 60.63 37.14
EV to Debt EV to Debt 0.00 34.39
EV to EBIT EV/EBIT 119.72 27.71
EV to EBITDA EV/EBITDA 125.18 25.34
EV to Free Cash Flow [EV/FCF] EV/FCF 78.73 133.36
EV to Market Cap EV to Market Cap 0.96 1.04
EV to Revenue EV/Rev 5.92 39.88
Price to Book Value [P/B] P/B 25.34 6.22
Price to Earnings [P/E] P/E 194.57 143.63
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 17.76 2.57
Dividend Payout Ratio % Div Payout % (Qtr) 4.20 15.73
Dividend per Basic Share Div per Share (Qtr) 1.25 0.91
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 9.07 82.53
Interest Coverage Int. cover (Qtr) -14.23 12.34
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -44.29 -45.99
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 7.84 118.48
Dividend Growth (1y) % Div 1y % (Qtr) 400.00 10.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 208.91 -283.03
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 36.46 -36.87
EBIT Growth (1y) % EBIT 1y % (Qtr) 11.64 -80.72
EBT Growth (1y) % EBT 1y % (Qtr) 13.73 -120.93
EPS Growth (1y) % EPS 1y % (Qtr) 217.17 -39.22
FCF Growth (1y) % FCF 1y % (Qtr) 117.33 85.55
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 23.83 0.87
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.60 0.62
Cash Payout Ratio Cash Payout (Qtr) 0.04 0.10
Cash Ratio Cash Ratio (Qtr) 0.22 3.01
Current Ratio Curr Ratio (Qtr) 0.98 4.97
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 0.38
Interest Cover Ratio Int Coverage (Qtr) -14.23 12.34
Times Interest Earned Times Interest Earned (Qtr) -14.23 12.34
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 9.20 -7,291.27
EBIT Margin % EBIT Margin % (Qtr) 6.95 -7,413.30
EBT Margin % EBT Margin % (Qtr) 7.44 -9,015.79
Gross Margin % Gross Margin % (Qtr) 19.80 -32.61
Net Profit Margin % Net Margin % (Qtr) 12.80 -7,962.06