GE Vernova Inc. (NYSE:GEV) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. 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. The US$50b market-cap company posted a loss in its most recent financial year of US$438m and a latest trailing-twelve-month loss of US$253m shrinking the gap between loss and breakeven. Many investors are wondering about the rate at which GE Vernova will turn a profit, with the big question being "when will the company breakeven?" In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
According to the 14 industry analysts covering GE Vernova, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$944m in 2024. Therefore, the company is expected to breakeven roughly 12 months from now or less. At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 44%, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
NYSE:GEV Earnings Per Share Growth June 27th 2024
We're not going to go through company-specific developments for GE Vernova given that this is a high-level summary, though, keep in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
Before we wrap up, there's one aspect worth mentioning. GE Vernova currently has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which usually has a high level of debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.
Next Steps:
There are too many aspects of GE Vernova to cover in one brief article, but the key fundamentals for the company can all be found in one place – GE Vernova's company page on Simply Wall St. We've also put together a list of essential aspects you should look at:
Valuation: What is GE Vernova worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether GE Vernova is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on GE Vernova's board and the CEO's background.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
GE Vernova Inc. (NYSE:GEV)は、ビジネスにおいて大きな成果に近づいている可能性があるため、当社ではこれについて詳しく説明したいと思います。GE Vernova Inc.は、エネルギー会社であり、米州、ヨーロッパ、アジア、中東、アフリカで、電気を生成、転送、オーケストレーション、変換、貯蔵する様々な製品およびサービスを提供しています。時価総額500億ドルの同社は、前の財務年度に4億3800万ドルの損失を計上し、最新の過去12か月間の損失は2億5300万ドルで、損失と財務の均衡点との差は縮小しています。多くの投資家がGE Vernovaがいつ利益を上げるようになるのかということについて疑問を持っています。この記事では、同社の成長期待とアナリストによる利益が出始める時期について述べます。
GE Vernovaをカバーする14の業界アナリストによると、財務の均衡点は近づいているとのことです。彼らは、同社が2023年に最終的な損失を計上した後、2024年にUS $ 944mnの利益を上げることを予測しています。つまり、同社は今から約12か月以内に財務の均衡点に達することが期待されています。アナリストによって予想された12か月未満での財務均衡点を予測する合意見解を実現するためには、どのような速度で成長する必要がありますか?最適な直線を使用して、年平均成長率は44%と計算されました。これは、アナリストから非常に高い信頼が寄せられていることを示しています。もしこの速度があまりにも過大評価されている場合、同社はアナリストが予測するよりもはるかに遅れて利益を上げ始める可能性があります。
オーストラリアでは、moomooの投資商品及びサービスはMoomoo Securities Australia Limitedによって提供され、オーストラリア証券投資委員会(ASIC)の管理を受けております(AFSL No. 224663)。「金融サービスガイド」、「利用規約」、「プライバシーポリシー」などの詳細は、Moomoo Securities Australia Limitedのウェブサイトhttps://www.moomoo.com/auでご確認いただけます。
オーストラリアでは、moomooの投資商品及びサービスはMoomoo Securities Australia Limitedによって提供され、オーストラリア証券投資委員会(ASIC)の管理を受けております(AFSL No. 224663)。「金融サービスガイド」、「利用規約」、「プライバシーポリシー」などの詳細は、Moomoo Securities Australia Limitedのウェブサイトhttps://www.moomoo.com/auでご確認いただけます。