Is GEV a high-quality business?

AlphaMadera's AlphaQuality grade scores GE Vernova Inc. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how GEV compares to a Buffett-style quality bar.

What is GE Vernova Inc.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to GEV based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes GEV a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

GEV - GE Vernova Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $1,256.29 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

F 30.0 / 100 pillar composite

Composite Grade

Composite of six pillars weighted for stable earnings power businesses. Purely quantitative — the six pillars score only reported financials, no analyst input.

⚠ 3 of the last 5 fiscal years showed negative net income — AlphaQuality will not grade above F for persistent unprofitability in a stable earnings power business.

Grade overrides the 30.0 pillar composite because hard gates always win. Use the pillar breakdown below to see where the underlying numbers sit.

Profitability

Weight: 20%

C+ 61.9

5yr Avg ROIC 7.1% 46/100
Operating Margin Trend +2.46 pp/yr 100/100

Capital Efficiency

Weight: 15%

C- 45.4

5yr Avg ROE 7.1% 45/100

Growth Quality

Weight: 15%

C+ 60.0

Revenue-Growth Years (5) 3/5 60/100

Cash Generation

Weight: 15%

C+ 59.4

5yr FCF Margin 1.4% 32/100
5yr FCF/NI Conversion 0.93x 93/100

Balance Sheet

Weight: 20%

A+ 98.3

Net Debt / EBITDA -2.40x 100/100
Interest Coverage (EBIT/Int) 30.00x 100/100
Altman Z-Score 3.89 93/100

Stability

Weight: 15%

B+ 78.8

Negative-Revenue Years (5) 1/5 80/100
Piotroski F-Score 7 78/100

6 of 6 gurus held; 1 new buy; 2 added; 3 trimmed; 1 full exit.

Holders: 6 +1
Avg Δ position: +130.1%
New buys: 1
Full exits: 1

Druckenmiller sold -100%
Smith new
Cooperman increased +711%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (20%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE
Growth Quality (15%) — Revenue-Growth Years (5)
Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (20%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (15%) — Negative-Revenue Years (5), Piotroski F-Score

The six pillars read only reported financial-statement fields — no analyst targets or consensus ratings. The archetype that picks which pillar formulas apply is not fully price-free, though: it can route a company to the distressed/ungradable archetype based on price vs. its 52-week high, and beta affects one classification check. A minimum of 5 fiscal years of audited statements is required. Insurers and banks are graded on their own methodology — insurers on loss ratio, its trend and stability, and premiums-to-surplus; banks on the efficiency ratio, its trend and stability, and equity-to-assets — rather than on industrial margin/ROIC signals. Distressed, highly leveraged infrastructure, asset-manager, and other financial businesses are declared ungradable rather than forced into a numeric score.