GE Vernova Profitability Analysis
| GEV Stock | 339.04 21.35 6.72% |
Net Income | First Reported 2010-12-31 | Previous Quarter 1.6 B | Current Value 1.6 B | Quarterly Volatility 964.4 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.12 | 0.1742 |
|
|
For GE Vernova profitability analysis, we use financial ratios and fundamental drivers that measure the ability of GE Vernova to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well GE Vernova LLC utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between GE Vernova's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of GE Vernova LLC over time as well as its relative position and ranking within its peers.
GEV |
GE Vernova's Revenue Breakdown by Earning Segment
Check out Risk vs Return Analysis.
Is Independent Power and Renewable Electricity Producers space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of GE Vernova. If investors know GEV will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about GE Vernova listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of GE Vernova LLC is measured differently than its book value, which is the value of GEV that is recorded on the company's balance sheet. Investors also form their own opinion of GE Vernova's value that differs from its market value or its book value, called intrinsic value, which is GE Vernova's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because GE Vernova's market value can be influenced by many factors that don't directly affect GE Vernova's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between GE Vernova's value and its price as these two are different measures arrived at by different means. Investors typically determine if GE Vernova is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, GE Vernova's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
GE Vernova LLC Operating Margin vs. Profit Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining GE Vernova's current stock value. Our valuation model uses many indicators to compare GE Vernova value to that of its competitors to determine the firm's financial worth. GE Vernova LLC is one of the top stocks in profit margin category among its peers. It also is one of the top stocks in operating margin category among its peers . At this time, GE Vernova's Net Profit Margin is fairly stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value GE Vernova by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.GEV Operating Margin vs. Profit Margin
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
GE Vernova |
| = | 0.04 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
GE Vernova |
| = | (0) % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
GEV Operating Margin Comparison
GE Vernova is currently under evaluation in operating margin category among its peers.
GE Vernova Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in GE Vernova, profitability is also one of the essential criteria for including it into their portfolios because, without profit, GE Vernova will eventually generate negative long term returns. The profitability progress is the general direction of GE Vernova's change in net profit over the period of time. It can combine multiple indicators of GE Vernova, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -1.8 B | -1.8 B | |
| Net Interest Income | 186 M | 195.3 M | |
| Interest Income | 186 M | 99.5 M | |
| Operating Income | 471 M | 494.6 M | |
| Net Income From Continuing Ops | 1.6 B | 1.6 B | |
| Income Before Tax | 2.5 B | 2.6 B | |
| Total Other Income Expense Net | 2 B | 2.1 B | |
| Net Income | 1.6 B | 1.6 B | |
| Income Tax Expense | 939 M | 986 M | |
| Net Income Per Share | 5.64 | 5.93 | |
| Income Quality | 1.66 | 1.74 | |
| Net Income Per E B T | 0.62 | 1.17 |
GEV Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on GE Vernova. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of GE Vernova position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the GE Vernova's important profitability drivers and their relationship over time.
GE Vernova Profitability Trends
GE Vernova profitability trend refers to the progression of profit or loss within a business. An upward trend means that GE Vernova's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is GE Vernova's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.
GE Vernova Profitability Drivers Correlations
One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between GE Vernova different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards GE Vernova in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down GE Vernova's future profitability.
Click cells to compare fundamentals
Use GE Vernova in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if GE Vernova position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in GE Vernova will appreciate offsetting losses from the drop in the long position's value.GE Vernova Pair Trading
GE Vernova LLC Pair Trading Analysis
The ability to find closely correlated positions to GE Vernova could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace GE Vernova when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back GE Vernova - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling GE Vernova LLC to buy it.
The correlation of GE Vernova is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as GE Vernova moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if GE Vernova LLC moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for GE Vernova can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your GE Vernova position
In addition to having GE Vernova in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Robots And Drones Thematic Idea Now
Robots And Drones
Large technology companies that are involved in development and manufacturing of drones, robots, or robotic equipment across mechanical engineering, electrical engineering, mathematics and computer science fields. Drones and robotics are projected to significantly grow in demand in the next 5 years. The Robots And Drones theme has 34 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Robots And Drones Theme or any other thematic opportunities.
| View All Next | Launch |
Additional Tools for GEV Stock Analysis
When running GE Vernova's price analysis, check to measure GE Vernova's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy GE Vernova is operating at the current time. Most of GE Vernova's value examination focuses on studying past and present price action to predict the probability of GE Vernova's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move GE Vernova's price. Additionally, you may evaluate how the addition of GE Vernova to your portfolios can decrease your overall portfolio volatility.