VERTIV HOLDINGS CO-A (VRT)
US92537N1081 - Common Stock
Overall VRT gets a fundamental rating of 5 out of 10. We evaluated VRT against 86 industry peers in the Electrical Equipment industry. VRT has an excellent profitability rating, but there are some minor concerns on its financial health. VRT is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year VRT was profitable.
In the past year VRT had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: VRT reported negative net income in multiple years.
Of the past 5 years VRT 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of VRT (5.32%) is better than 77.65% of its industry peers.
With an excellent Return On Equity value of 28.99%, VRT belongs to the best of the industry, outperforming 94.12% of the companies in the same industry.
VRT's Return On Invested Capital of 13.21% is amongst the best of the industry. VRT outperforms 90.59% of its industry peers.
VRT had an Average Return On Invested Capital over the past 3 years of 5.70%. This is significantly below the industry average of 10.94%.
The last Return On Invested Capital (13.21%) for VRT is above the 3 year average (5.70%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.32% | ||
| ROE | 28.99% | ||
| ROIC | 13.21% |
ROA(3y)2.85%
ROA(5y)-3.55%
ROE(3y)12.2%
ROE(5y)-9.62%
ROIC(3y)5.7%
ROIC(5y)9.13%
1.3 Margins
Looking at the Profit Margin, with a value of 5.79%, VRT is in the better half of the industry, outperforming 75.29% of the companies in the same industry.
With an excellent Operating Margin value of 13.99%, VRT belongs to the best of the industry, outperforming 85.88% of the companies in the same industry.
In the last couple of years the Operating Margin of VRT has grown nicely.
With an excellent Gross Margin value of 35.40%, VRT belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.
VRT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.99% | ||
| PM (TTM) | 5.79% | ||
| GM | 35.4% |
OM growth 3Y20.45%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.23%
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), VRT is creating some value.
The number of shares outstanding for VRT has been increased compared to 1 year ago.
The number of shares outstanding for VRT has been increased compared to 5 years ago.
Compared to 1 year ago, VRT has an improved debt to assets ratio.
2.2 Solvency
VRT has an Altman-Z score of 4.87. This indicates that VRT is financially healthy and has little risk of bankruptcy at the moment.
VRT has a better Altman-Z score (4.87) than 83.53% of its industry peers.
The Debt to FCF ratio of VRT is 3.44, which is a good value as it means it would take VRT, 3.44 years of fcf income to pay off all of its debts.
VRT has a better Debt to FCF ratio (3.44) than 76.47% of its industry peers.
VRT has a Debt/Equity ratio of 2.09. This is a high value indicating a heavy dependency on external financing.
VRT has a Debt to Equity ratio of 2.09. This is amonst the worse of the industry: VRT underperforms 84.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.09 | ||
| Debt/FCF | 3.44 | ||
| Altman-Z | 4.87 |
ROIC/WACC1.25
WACC10.58%
2.3 Liquidity
VRT has a Current Ratio of 1.34. This is a normal value and indicates that VRT is financially healthy and should not expect problems in meeting its short term obligations.
VRT has a worse Current ratio (1.34) than 77.65% of its industry peers.
VRT has a Quick Ratio of 1.34. This is a bad value and indicates that VRT is not financially healthy enough and could expect problems in meeting its short term obligations.
VRT's Quick ratio of 0.98 is on the low side compared to the rest of the industry. VRT is outperformed by 69.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 131.76% over the past year.
The Earnings Per Share has been growing by 81.80% on average over the past years. This is a very strong growth
Looking at the last year, VRT shows a quite strong growth in Revenue. The Revenue has grown by 15.27% in the last year.
Measured over the past years, VRT shows a quite strong growth in Revenue. The Revenue has been growing by 16.23% on average per year.
EPS 1Y (TTM)131.76%
EPS 3Y30.55%
EPS 5Y81.8%
EPS growth Q2Q79.17%
Revenue 1Y (TTM)15.27%
Revenue growth 3Y16.23%
Revenue growth 5YN/A
Revenue growth Q2Q7.76%
3.2 Future
Based on estimates for the next years, VRT will show a very strong growth in Earnings Per Share. The EPS will grow by 27.21% on average per year.
Based on estimates for the next years, VRT will show a quite strong growth in Revenue. The Revenue will grow by 8.99% on average per year.
EPS Next Y29.78%
EPS Next 2Y27.34%
EPS Next 3Y25.97%
EPS Next 5Y27.21%
Revenue Next Year10.66%
Revenue Next 2Y10.6%
Revenue Next 3Y10.27%
Revenue Next 5Y8.99%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
VRT is valuated quite expensively with a Price/Earnings ratio of 49.14.
Based on the Price/Earnings ratio, VRT is valued a bit cheaper than the industry average as 67.06% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.60. VRT is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 33.54, VRT can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, VRT is valued a bit cheaper than 63.53% of the companies in the same industry.
VRT's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 20.15.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.14 | ||
| Fwd PE | 33.54 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VRT is valued a bit cheaper than the industry average as 64.71% of the companies are valued more expensively.
70.59% of the companies in the same industry are more expensive than VRT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.4 | ||
| EV/EBITDA | 31.13 |
4.3 Compensation for Growth
VRT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of VRT may justify a higher PE ratio.
A more expensive valuation may be justified as VRT's earnings are expected to grow with 25.97% in the coming years.
PEG (NY)1.65
PEG (5Y)0.6
EPS Next 2Y27.34%
EPS Next 3Y25.97%
5. Dividend
5.1 Amount
With a yearly dividend of 0.03%, VRT is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.22, VRT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, VRT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.03% |
5.2 History
VRT has been paying a dividend for over 5 years, so it has already some track record.
VRT has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years3
5.3 Sustainability
VRT pays out 4.65% of its income as dividend. This is a sustainable payout ratio.
DP4.65%
EPS Next 2Y27.34%
EPS Next 3Y25.97%
VERTIV HOLDINGS CO-A
NYSE:VRT (5/17/2024, 7:04:00 PM)
After market: 96.6 -0.21 (-0.22%)96.81
-0.48 (-0.49%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap36.24B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.03% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.14 | ||
| Fwd PE | 33.54 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.65
PEG (5Y)0.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.32% | ||
| ROE | 28.99% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.99% | ||
| PM (TTM) | 5.79% | ||
| GM | 35.4% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.09 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)131.76%
EPS 3Y30.55%
EPS 5Y
EPS growth Q2Q
EPS Next Y29.78%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)15.27%
Revenue growth 3Y16.23%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y