Despite its growth, VERTIV HOLDINGS CO-A (NYSE:VRT) remains within the realm of affordability.

Our stock screener has spotted VERTIV HOLDINGS CO-A (NYSE:VRT) as a growth stock which is not overvalued. VRT is scoring great on several growth aspects while it also shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

Evaluating Growth: VRT

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. VRT boasts a 7 out of 10:

• The Earnings Per Share has grown by an impressive 60.11% over the past year.
• VRT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 55.36% yearly.
• Looking at the last year, VRT shows a quite strong growth in Revenue. The Revenue has grown by 16.74% in the last year.
• The Revenue has been growing by 12.57% on average over the past years. This is quite good.
• The Earnings Per Share is expected to grow by 19.62% on average over the next years. This is quite good.
• The Revenue is expected to grow by 12.85% on average over the next years. This is quite good.

How do we evaluate the Valuation for VRT?

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of VRT, the assigned 5 reflects its valuation:

• Based on the Price/Earnings ratio, VRT is valued a bit cheaper than 70.97% of the companies in the same industry.
• Based on the Price/Forward Earnings ratio, VRT is valued a bit cheaper than 73.12% of the companies in the same industry.
• 70.97% of the companies in the same industry are more expensive than VRT, based on the Enterprise Value to EBITDA ratio.
• VRT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. VRT is cheaper than 74.19% of the companies in the same industry.
• The excellent profitability rating of VRT may justify a higher PE ratio.
• VRT's earnings are expected to grow with 24.79% in the coming years. This may justify a more expensive valuation.

Health Assessment of VRT

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. VRT was assigned a score of 5 for health:

• VRT has an Altman-Z score of 4.65. This indicates that VRT is financially healthy and has little risk of bankruptcy at the moment.
• With an excellent Altman-Z score value of 4.65, VRT belongs to the best of the industry, outperforming 87.10% of the companies in the same industry.
• The Debt to FCF ratio of VRT is 2.58, which is a good value as it means it would take VRT, 2.58 years of fcf income to pay off all of its debts.
• VRT's Debt to FCF ratio of 2.58 is fine compared to the rest of the industry. VRT outperforms 79.57% of its industry peers.

What does the Profitability looks like for VRT

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. VRT was assigned a score of 8 for profitability:

• The Return On Assets of VRT (5.43%) is better than 82.80% of its industry peers.
• VRT's Return On Equity of 20.37% is amongst the best of the industry. VRT outperforms 92.47% of its industry peers.
• VRT's Return On Invested Capital of 17.29% is amongst the best of the industry. VRT outperforms 95.70% of its industry peers.
• With an excellent Profit Margin value of 6.19%, VRT belongs to the best of the industry, outperforming 83.87% of the companies in the same industry.
• In the last couple of years the Profit Margin of VRT has grown nicely.
• The Operating Margin of VRT (17.25%) is better than 92.47% of its industry peers.
• In the last couple of years the Operating Margin of VRT has grown nicely.
• Looking at the Gross Margin, with a value of 36.62%, VRT belongs to the top of the industry, outperforming 82.80% of the companies in the same industry.
• In the last couple of years the Gross Margin of VRT has grown nicely.

More Affordable Growth stocks can be found in our Affordable Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of VRT

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.