Added to YB: 2024-05-27
Pitch date: 2024-05-23
GEV [neutral]
GE Vernova Inc.
+313.55%
current return
Author Info
Stock Spin-Off Investing is a former equity and PE researcher who shares spin-off related content. Visit the website.
Company Info
GE Vernova Inc., an energy company, engages in the provision of various products and services that generate, transfer, orchestrate, convert, and store electricity in the United States, Europe, Asia, the Americas, the Middle East, and Africa.
Market Cap
$169.7B
Pitch Price
$162.43
Price Target
N/A
Dividend
0.16%
EV/EBITDA
48.37
P/E
101.87
EV/Sales
4.36
Sector
Electrical Equipment
Category
value
GE Vernova Spin-off Deep Dive
GEV: Spun off from GE in Apr '24, global leader in power gen, trading at $47B mkt cap, $41B EV. Mgmt expects $36B rev, 7.5% EBITDA margins, $1.5B FCF in '25 - inline w/ peers at 30x FCF, 15.9x EBITDA. Bull case: benefits from demand for power & grid electrification. 3 segments: Power (gas, nuclear, hydro, steam - 55% rev), Wind (22%), Electrification (grid solutions, power conversion, solar/storage - 23%). Power seeing strong growth (+6% rev, +95% EBITDA in Q1 '24), Wind challenged (-6% rev but +33% EBITDA on cost cuts), Electrification booming (+24% rev, expanding margins). No debt, $3.6B cash at spin-off. Risks: quality/safety issues, cost savings, supply chain, credit ratings, decarbonization shifts. Fairly valued, no obvious opportunity currently.
Read full article (11 min)