For those who appreciate growth without the sticker shock, VERTIV HOLDINGS CO-A (NYSE:VRT) is worth considering.

VERTIV HOLDINGS CO-A (NYSE:VRT) was identified as an affordable growth stock by our stock screener. VRT is showing great growth, but also scores well on profitability, solvency and liquidity. At the same time it seems to be priced reasonably. We'll explore this a bit deeper below.

Growth Insights: VRT

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. VRT has achieved a 7 out of 10:

• VRT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 60.11%, which is quite impressive.
• 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.
• Based on estimates for the next years, VRT will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.62% on average per year.
• The Revenue is expected to grow by 12.85% on average over the next years. This is quite good.

Understanding VRT's Valuation

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:

• VRT's Price/Earnings ratio is a bit cheaper when compared to the industry. VRT is cheaper than 73.20% of the companies in the same industry.
• 76.29% of the companies in the same industry are more expensive than VRT, based on the Price/Forward Earnings ratio.
• Based on the Enterprise Value to EBITDA ratio, VRT is valued a bit cheaper than 73.20% of the companies in the same industry.
• Based on the Price/Free Cash Flow ratio, VRT is valued a bit cheaper than 75.26% of the companies in the same industry.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• The excellent profitability rating of VRT may justify a higher PE ratio.
• VRT's earnings are expected to grow with 24.84% in the coming years. This may justify a more expensive valuation.

Health Assessment of VRT

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. VRT scores a 5 out of 10:

• VRT has an Altman-Z score of 4.09. This indicates that VRT is financially healthy and has little risk of bankruptcy at the moment.
• With an excellent Altman-Z score value of 4.09, VRT belongs to the best of the industry, outperforming 84.54% of the companies in the same industry.
• VRT has a debt to FCF ratio of 2.58. This is a good value and a sign of high solvency as VRT would need 2.58 years to pay back of all of its debts.
• Looking at the Debt to FCF ratio, with a value of 2.58, VRT is in the better half of the industry, outperforming 79.38% of the companies in the same industry.

Analyzing Profitability Metrics

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For VRT, the assigned 8 is a significant indicator of profitability:

• Looking at the Return On Assets, with a value of 5.43%, VRT belongs to the top of the industry, outperforming 83.51% of the companies in the same industry.
• Looking at the Return On Equity, with a value of 20.37%, VRT belongs to the top of the industry, outperforming 92.78% of the companies in the same industry.
• VRT has a better Return On Invested Capital (17.29%) than 95.88% of its industry peers.
• VRT has a better Profit Margin (6.19%) than 82.47% of its industry peers.
• In the last couple of years the Profit Margin of VRT has grown nicely.
• VRT has a better Operating Margin (17.25%) than 92.78% of its industry peers.
• In the last couple of years the Operating Margin of VRT has grown nicely.
• VRT's Gross Margin of 36.62% is amongst the best of the industry. VRT outperforms 81.44% of its industry peers.
• VRT's Gross Margin has improved in the last couple of years.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

Check the latest full fundamental report of VRT for a complete fundamental analysis.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.