VERTIV HOLDINGS CO-A (NYSE:VRT) – A Strong Growth Stock with Reasonable Valuation

VERTIV HOLDINGS CO-A (NYSE:VRT) was identified as an affordable growth stock by our stock screener. VRT demonstrates strong growth potential while maintaining solid profitability and financial health. Despite a slightly elevated valuation, the company’s fundamentals suggest it could be a compelling choice for investors seeking growth at a reasonable price.

Growth Prospects

VRT has shown impressive growth metrics, making it stand out in its industry:

• Earnings Per Share (EPS) grew by 55.33% over the past year, with an average annual growth rate of 55.36% over the past few years.
• Revenue increased by 20.45% in the last year, with a steady annual growth rate of 12.57%.
• Analysts expect future EPS growth of 19.62% and revenue growth of 12.85%, indicating sustained momentum.

Valuation Considerations

While VRT is not the cheapest stock in its sector, its valuation remains reasonable relative to its growth and profitability:

• The P/E ratio of 34.03 is slightly above the S&P 500 average but below the industry average, with 70.53% of peers trading at higher multiples.
• The forward P/E of 23.78 is in line with the broader market and more attractive than many industry competitors.
• The PEG ratio, which accounts for growth, suggests the stock is fairly valued.

Profitability & Financial Health

VRT excels in profitability and financial stability:

• Profitability Rating: 9/10 – Strong margins, including a 17.49% operating margin (better than 91.58% of peers).
• Health Rating: 8/10 – Solid solvency with an Altman-Z score of 5.19, indicating low bankruptcy risk.
• Free cash flow comfortably covers debt obligations, reinforcing financial resilience.

For a deeper look at VRT’s fundamentals, review the full fundamental analysis report.

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

Disclaimer

This is not investing advice! The article highlights observations at the time of writing, but you should conduct your own analysis before making investment decisions.