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 screener. The company combines solid growth with strong profitability and financial health, while its valuation remains reasonable. Below, we break down why VRT stands out in these areas.

Growth Prospects

VRT has demonstrated impressive growth, with key metrics supporting its high Growth Rating of 8/10:

• Revenue Growth: Increased by 20.45% over the past year, with an average annual growth rate of 12.57% in recent years.
• Earnings Per Share (EPS): Surged by 55.33% year-over-year, reflecting strong operational performance.
• Future Expectations: Analysts project EPS growth of 19.13% and revenue growth of 13.30% annually, indicating sustained momentum.

Valuation Assessment

Despite its strong growth, VRT remains reasonably priced, earning a Valuation Rating of 5/10:

• P/E Ratio: At 36.26, it trades below 71% of its industry peers, suggesting relative affordability.
• Forward P/E: 25.34 aligns closely with the S&P 500 average, indicating fair pricing.
• PEG Ratio: Supports a balanced valuation when accounting for expected earnings growth.

Profitability & Financial Health

VRT excels in profitability and financial stability:

• Profitability Rating (9/10): High margins, including a 17.49% Operating Margin (better than 92.55% of peers).
• Return on Equity (ROE): 24.98%, outperforming 94.68% of competitors.
• Financial Health (7/10): Strong solvency with an Altman-Z score of 5.42, well above industry averages.

For a deeper look, review the full fundamental analysis of VRT.

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

Disclaimer

This is not investing advice. Always conduct your own research before making investment decisions.