GE Vernova Inc. (GEV) AI Stock Analysis

• Market Cap: $148.67B
• Dividend Yield: 0.18%
• Average Volume (3M): 3.00M
• Price to Earnings (P/E): 88.8
• Beta (1Y): 1.45
• Revenue Growth: 9.43%
• EPS Growth: 35.56%
• Country: US
• Employees: 76,800
• Sector: Industrials
• Sector Strength: 72
• Industry: Renewable Utilities
• EPS (TTM): 1.68
• Shares Outstanding: 271,320,470
• 10 Day Avg. Volume: 3,811,982
• 30 Day Avg. Volume: 3,004,260
• PEG Ratio: -0.15
• Price to Book (P/B): 9.48
• Price to Sales (P/S): 2.59
• P/FCF Ratio: 53.21
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 4.31
• Enterprise Value/Gross Profit: 22.11
• Enterprise Value/Ebitda: 60.18
• 1Y Price Target: $676.76
• Price Target Upside: 15.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 19
• EPS Forecast (FY): 7.3
• Revenue Forecast (FY): $37.29B

• Rating: 66 Neutral
• Price Target: $631.00 ▲(7.84% Upside)

GE Vernova's overall stock score is driven by strong financial performance and a positive outlook from strategic acquisitions, despite cash flow challenges and overvaluation concerns. The earnings call highlights significant growth potential, particularly in the electrification and gas power segments, while technical indicators suggest caution due to bearish momentum.

Positive Factors

Strong Financial Performance

The company's robust financial performance, marked by significant revenue growth and margin expansion, indicates a strong market position and operational efficiency, supporting long-term profitability.

Prolec GE Acquisition

The acquisition of Prolec GE enhances GE Vernova's capabilities in the grid equipment market, promising synergies and strengthening its competitive position in North America.

Electrification Segment Growth

Significant growth in the electrification segment underscores GE Vernova's ability to capitalize on increasing demand for energy solutions, bolstering its market presence and revenue base.

Negative Factors

Cash Flow Challenges

Negative free cash flow highlights operational cash generation issues, which could hinder the company's ability to fund growth and maintain financial health over the long term.

Challenges in Onshore Wind

Persistent challenges in the onshore wind segment, driven by external factors, could impact revenue growth and hinder the company's renewable energy expansion plans.

Tariff Impact

Tariff-related costs pose a financial burden, potentially affecting profitability and competitiveness, especially in the wind segment, over the medium term.

GE Vernova Inc. Business Overview & Revenue Model

Company Description

GE Vernova Inc. (GEV) is a subsidiary of General Electric focused on delivering innovative solutions in the energy sector, particularly in renewable energy and digital technologies. The company operates in three primary sectors: power generation, renewable energy, and energy management. GEV's core products and services include advanced wind turbine technologies, gas and steam turbines, grid solutions, and digital software that enhances operational efficiency and sustainability for its clients. The company aims to support the global transition to cleaner energy sources while providing reliable and efficient energy solutions.

How the Company Makes Money

GE Vernova generates revenue through multiple streams, primarily by selling and leasing energy generation equipment such as wind turbines, gas turbines, and technology solutions for grid management. The company also earns income from maintenance and service contracts associated with its products, which provide ongoing support and enhancements to energy systems. Additionally, GEV has established partnerships with various utility companies and governments to develop large-scale renewable energy projects, resulting in significant project-based revenue. The growing demand for clean energy solutions and digital transformation in the energy sector further contributes to GEV's financial performance.

GE Vernova Inc. Financial Statement Overview

Summary

GE Vernova Inc. demonstrates resilience with improving revenue and profitability metrics, reflecting a positive turnaround. The balance sheet is strong, with zero debt and rising equity, providing a stable foundation for growth. However, cash flow challenges remain, requiring strategic focus on enhancing cash generation from operations to ensure long-term financial health and support expansion in the renewable energy sector.

Income Statement

GE Vernova Inc. shows a positive trajectory in revenue growth with a 5.10% increase from 2023 to 2024. The company improved its net income from a loss in 2023 to a profit in 2024, indicating a turnaround. Gross profit margin improved from 14.94% in 2023 to 17.41% in 2024, reflecting better cost management. However, the EBIT margin remains low at 1.35% in 2024, suggesting room for improvement in operational efficiency.

Balance Sheet

GE Vernova Inc. has a strong equity position with an increasing stockholders' equity from 2023 to 2024. The equity ratio improved to 18.54% in 2024, indicating a solid capital structure. With no total debt in 2024, the company has eliminated its debt burden, enhancing financial stability. Return on Equity (ROE) improved significantly to 16.26% in 2024 from negative figures, showcasing strong profitability for shareholders.

Cash Flow

The cash flow statement reveals challenges, as free cash flow turned negative in 2024. Free cash flow growth rate is negative, indicating cash constraints despite the improvement in net income. The operating cash flow to net income ratio was zero in 2024, suggesting reliance on non-operational sources for cash. The company needs to enhance its operational cash generation to support sustainable growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	37.67B	34.94B	33.24B	29.65B
Gross Profit	7.34B	6.08B	4.82B	3.46B
EBITDA	2.70B	1.64B	932.00M	-526.00M
Net Income	1.70B	1.55B	-438.00M	-2.74B
Balance Sheet
Total Assets	54.40B	51.48B	46.12B	44.47B
Cash, Cash Equivalents and Short-Term Investments	7.95B	8.21B	1.55B	2.07B
Total Debt	0.00	1.06B	1.18B	1.17B
Total Liabilities	44.67B	40.89B	37.74B	32.86B
Stockholders Equity	8.65B	9.55B	7.42B	10.65B
Cash Flow
Free Cash Flow	-35.00M	1.70B	442.00M	-627.00M
Operating Cash Flow	921.00M	2.58B	1.19B	-114.00M
Investing Cash Flow	-556.00M	-37.00M	-734.00M	-322.00M
Financing Cash Flow	-2.47B	3.65B	-408.00M	811.00M

GE Vernova Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 585.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GEV, the sentiment is Negative. The current price of 585.14 is below the 20-day moving average (MA) of 589.01, below the 50-day MA of 603.51, and above the 200-day MA of 482.79, indicating a neutral trend. The MACD of -14.00 indicates Positive momentum. The RSI at 37.76 is Neutral, neither overbought nor oversold. The STOCH value of 17.07 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GEV.

GE Vernova Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NEE	73 Outperform	$170.13B	25.94	12.48%	2.66%	26.96%	-6.80%
CWEN	70 Neutral	$6.50B	13.89	13.20%	5.35%	2.54%	124.89%
GEV	66 Neutral	$148.67B	88.80	18.78%	0.18%	9.43%	35.56%
CEG	66 Neutral	$113.48B	37.91	24.20%	0.40%	13.41%	27.49%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
RNW	61 Neutral	$2.72B	24.95	8.27%	―	33.19%	486.74%
BEPC	56 Neutral	$7.86B	―	-38.17%	3.32%	5.93%	-39.88%

GE Vernova Inc. Corporate Events

GE Vernova’s Earnings Call: Optimism Amid Challenges

The recent earnings call for GE Vernova Inc. painted a picture of optimism, underscored by strategic acquisitions and strong financial performance across various segments. Despite the positive outlook, the company acknowledged challenges in the wind segment and tariff uncertainties that could pose some obstacles moving forward.

GE Vernova Reports Strong Q3 2025 Results

GE Vernova Inc. is a global energy company that specializes in Power, Wind, and Electrification segments, aiming to lead the energy transition by electrifying and decarbonizing the world. The company is headquartered in Cambridge, Massachusetts, and operates in approximately 100 countries.