VERTIV HOLDINGS CO-A (NYSE:VRT) – A Strong Growth Stock with Solid Fundamentals

VERTIV HOLDINGS CO-A (NYSE:VRT) was recently flagged by our Affordable Growth stock screener. The company, which specializes in critical digital infrastructure technology, demonstrates strong growth potential while maintaining reasonable valuation metrics. Its financial health and profitability further reinforce its appeal for investors seeking growth at a sensible price.

Growth Prospects

VRT has delivered impressive growth in recent years, with key highlights including:

• Earnings Per Share (EPS) growth of 55.33% over the past year and an average annual growth of 55.36% in recent years.
• Revenue growth of 20.45% in the last year, with a steady 12.57% annual increase over multiple years.
• Analysts expect future EPS growth of 19.13% and revenue growth of 13.30%, indicating sustained momentum.

These figures place VRT well above industry averages, making it a standout in the Electrical Equipment sector.

Valuation Assessment

While VRT trades at a P/E ratio of 41.62, which may appear high at first glance, several factors mitigate concerns:

• It is cheaper than 70.97% of its industry peers based on P/E.
• The forward P/E of 29.00 is in line with the S&P 500 average.
• The PEG ratio, which accounts for growth, suggests the stock is fairly valued.
• Strong profitability and growth prospects justify a premium valuation.

Financial Health & Profitability

VRT excels in financial stability and earnings quality:

• Profitability Rating: 9/10 – High margins, with a 7.92% net profit margin and 17.49% operating margin, both ranking near the top of the industry.
• Health Rating: 8/10 – A solid Altman-Z score of 5.97 indicates low bankruptcy risk, and debt levels are manageable despite a slightly elevated debt-to-equity ratio.
• Strong cash flow generation supports its financial position.

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

Our Affordable Growth screener provides more stocks with similar characteristics, updated daily.

Disclaimer

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