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1. Company Snapshot

1.a. Company Description

GE Vernova LLC, an energy business company, generates electricity.It operates under three segments: Power, Wind, and Electrification.The Power segments generates and sells electricity through hydro, gas, nuclear, and steam power.


Wind segment engages in the manufacturing and sale of wind turbine blades; and Electrification segment provides grid solutions, power conversion, solar, and storage solutions.The company was incorporated in 2023 and is based in Cambridge, Massachusetts.

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1.b. Last Insights on GEV

Breaking News: GE Vernova Inc has seen a 3.5% rise in its stock over the past month, driven by increasing demand from data centers and growth in wind, gas, and power services. Despite supply-chain pressures, the company's momentum remains strong. GE Vernova is also ramping up its R&D and capital investments to drive the energy transition, with rising earnings estimates. The company's focus on clean energy and a modernized energy grid position it well for future growth. Analysts at various firms have recommended a buy on the stock citing its potential for long term growth.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Stocks Mixed as Market-Moving Catalysts Dry Up

Dec -04

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Can GE Vernova's R&D Pipeline Boost Its Clean-Energy Position?

Dec -04

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5 Energy Stocks That Could Benefit From the Genesis Mission

Dec -04

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GEV Stock Rises 3.5% in a Month: What's the Best Move for Investors?

Dec -03

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Why GE Venova Stock Topped the Market on Tuesday

Dec -02

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GE Vernova Celebrates The Season of Giving with Holiday ‘Innovators Toy Land' Pop-Up at Rockefeller Center and Launch of Global STEM Toy Drive

Dec -02

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The Best Stocks to Buy With $1,000 Right Now

Nov -29

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Berry Wealth Group LP Takes $268,000 Position in GE Vernova Inc. $GEV

Nov -29

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.90%)

6. Segments

Power

Expected Growth: 7.5%

The Power segment's growth is expected to be slightly lower than the global average due to the increasing competition from renewable energy sources. However, the ongoing demand for reliable power generation and the need for upgrading existing infrastructure will drive growth. The segment's mature market status also contributes to the relatively lower growth rate.

Wind

Expected Growth: 12.0%

The Wind segment is expected to experience higher growth than the global average due to the increasing demand for renewable energy sources. Government policies and incentives supporting wind energy are driving the growth of the market. GE Vernova's strong presence in the wind energy market and its commitment to innovation will enable the segment to capitalize on this trend.

Electrification

Expected Growth: 9.5%

The Electrification segment is expected to experience growth slightly above the global average due to the increasing demand for smart grid solutions and grid modernization. The need for efficient transmission and distribution of electricity is driving the growth of this segment. GE Vernova's strong presence in the electrical grid management and transmission systems market will enable the segment to capitalize on this trend.

Eliminations and Other

Expected Growth: 8.9%

The Eliminations and Other segment is expected to grow at the global average rate, as it is not directly related to the performance of the other segments. The growth of this segment is largely driven by the overall performance of the company, and the global average growth rate is a reasonable assumption.

7. Detailed Products

Wind turbines

Onshore and offshore wind turbines for renewable energy generation

Gas Power Systems

Gas turbines and power generation systems for industrial and power generation applications

Grid Solutions

High-voltage transmission and distribution systems for efficient and reliable power delivery

8. GE Vernova Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

While GE Vernova's products in renewable energy, power conversion, and electrification have some substitutes, the shift towards sustainable solutions somewhat limits immediate substitution. However, alternatives like fossil fuels for energy generation still pose a threat.

Bargaining Power Of Customers

Large industrial and utility customers of GE Vernova have significant negotiating power due to the volume of their purchases. However, for smaller customers or those highly dependent on GE Vernova's technology, bargaining power is reduced.

Bargaining Power Of Suppliers

GE Vernova, being a large and diversified company, likely has multiple sourcing options for its components and materials. This reduces the bargaining power of individual suppliers.

Threat Of New Entrants

The energy and electrification sectors are attracting new entrants, especially those focusing on sustainable and digital solutions. However, GE Vernova's established brand and technological expertise create significant barriers to entry.

Intensity Of Rivalry

The industry is highly competitive with major players like Siemens, ABB, and Schneider Electric. Competition is intense across pricing, innovation, and service offerings, especially in renewable energy and grid solutions.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 9.85%
Debt Cost 4.55%
Equity Weight 90.15%
Equity Cost 10.54%
WACC 9.95%
Leverage 10.93%

11. Quality Control: GE Vernova Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Caterpillar

A-Score: 5.6/10

Value: 2.0

Growth: 7.0

Quality: 7.0

Yield: 3.0

Momentum: 7.5

Volatility: 7.3

1-Year Total Return ->

Stock-Card
Siemens

A-Score: 5.5/10

Value: 3.6

Growth: 5.0

Quality: 5.6

Yield: 5.0

Momentum: 7.5

Volatility: 6.3

1-Year Total Return ->

Stock-Card
Quanta Services

A-Score: 5.0/10

Value: 1.2

Growth: 8.8

Quality: 5.0

Yield: 0.0

Momentum: 8.0

Volatility: 7.0

1-Year Total Return ->

Stock-Card
GE Vernova Inc.

A-Score: 4.5/10

Value: 2.4

Growth: 6.9

Quality: 4.9

Yield: 0.0

Momentum: 10.0

Volatility: 2.7

1-Year Total Return ->

Stock-Card
Schneider Electric

A-Score: 4.3/10

Value: 1.3

Growth: 5.6

Quality: 6.3

Yield: 2.5

Momentum: 5.0

Volatility: 5.0

1-Year Total Return ->

Stock-Card
Vestas Wind Systems

A-Score: 3.9/10

Value: 4.2

Growth: 7.6

Quality: 4.9

Yield: 1.2

Momentum: 4.0

Volatility: 1.3

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

631.32$

Current Price

631.32$

Potential

-0.00%

Expected Cash-Flows