VERTIV HOLDINGS CO-A (1VRT.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1VRT - US92537N1081 - Common Stock
154.94 EUR
+10.64 (+7.37%)
Overall 1VRT gets a fundamental rating of 7 out of 10. We evaluated 1VRT against 75 industry peers in the Electrical Equipment industry. Both the health and profitability get an excellent rating, making 1VRT a very profitable company, without any liquidiy or solvency issues. 1VRT is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings would make 1VRT suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
- In the past year 1VRT was profitable.
- In the past year 1VRT had a positive cash flow from operations.
- Of the past 5 years 1VRT 4 years were profitable.
- Of the past 5 years 1VRT 4 years had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of 1VRT (9.56%) is better than 90.67% of its industry peers.
- With an excellent Return On Equity value of 29.48%, 1VRT belongs to the best of the industry, outperforming 94.67% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 18.23%, 1VRT belongs to the best of the industry, outperforming 97.33% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for 1VRT is in line with the industry average of 9.57%.
- The last Return On Invested Capital (18.23%) for 1VRT is above the 3 year average (10.93%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.56% | ||
| ROE | 29.48% | ||
| ROIC | 18.23% |
ROA(3y)4.09%
ROA(5y)1.51%
ROE(3y)16.17%
ROE(5y)-1.39%
ROIC(3y)10.93%
ROIC(5y)8.89%
1.3 Margins
- 1VRT has a Profit Margin of 10.67%. This is amongst the best in the industry. 1VRT outperforms 84.00% of its industry peers.
- In the last couple of years the Profit Margin of 1VRT has grown nicely.
- The Operating Margin of 1VRT (18.03%) is better than 88.00% of its industry peers.
- In the last couple of years the Operating Margin of 1VRT has grown nicely.
- With a Gross Margin value of 35.73%, 1VRT perfoms like the industry average, outperforming 49.33% of the companies in the same industry.
- In the last couple of years the Gross Margin of 1VRT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.03% | ||
| PM (TTM) | 10.67% | ||
| GM | 35.73% |
OM growth 3Y46.77%
OM growth 5Y27.72%
PM growth 3Y37.26%
PM growth 5YN/A
GM growth 3Y6.33%
GM growth 5Y2.24%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1VRT is creating value.
- Compared to 1 year ago, 1VRT has less shares outstanding
- 1VRT has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, 1VRT has an improved debt to assets ratio.
2.2 Solvency
- 1VRT has an Altman-Z score of 7.64. This indicates that 1VRT is financially healthy and has little risk of bankruptcy at the moment.
- 1VRT has a better Altman-Z score (7.64) than 96.00% of its industry peers.
- The Debt to FCF ratio of 1VRT is 2.14, which is a good value as it means it would take 1VRT, 2.14 years of fcf income to pay off all of its debts.
- 1VRT has a better Debt to FCF ratio (2.14) than 81.33% of its industry peers.
- 1VRT has a Debt/Equity ratio of 0.83. This is a neutral value indicating 1VRT is somewhat dependend on debt financing.
- 1VRT's Debt to Equity ratio of 0.83 is on the low side compared to the rest of the industry. 1VRT is outperformed by 69.33% of its industry peers.
- Even though the debt/equity ratio score it not favorable for 1VRT, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 2.14 | ||
| Altman-Z | 7.64 |
ROIC/WACC2.11
WACC8.63%
2.3 Liquidity
- A Current Ratio of 1.83 indicates that 1VRT should not have too much problems paying its short term obligations.
- 1VRT has a better Current ratio (1.83) than 68.00% of its industry peers.
- 1VRT has a Quick Ratio of 1.43. This is a normal value and indicates that 1VRT is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 1.43, 1VRT is in the better half of the industry, outperforming 77.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
- 1VRT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 57.85%, which is quite impressive.
- The Earnings Per Share has been growing by 55.36% on average over the past years. This is a very strong growth
- Looking at the last year, 1VRT shows a very strong growth in Revenue. The Revenue has grown by 28.76%.
- 1VRT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.57% yearly.
EPS 1Y (TTM)57.85%
EPS 3Y55.36%
EPS 5YN/A
EPS Q2Q%63.16%
Revenue 1Y (TTM)28.76%
Revenue growth 3Y17.03%
Revenue growth 5Y12.57%
Sales Q2Q%29.05%
3.2 Future
- 1VRT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.14% yearly.
- Based on estimates for the next years, 1VRT will show a quite strong growth in Revenue. The Revenue will grow by 18.03% on average per year.
EPS Next Y46.06%
EPS Next 2Y37.33%
EPS Next 3Y33.54%
EPS Next 5Y26.14%
Revenue Next Year30.59%
Revenue Next 2Y25.79%
Revenue Next 3Y22.82%
Revenue Next 5Y18.03%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 48.42, the valuation of 1VRT can be described as expensive.
- The rest of the industry has a similar Price/Earnings ratio as 1VRT.
- 1VRT's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.82.
- A Price/Forward Earnings ratio of 34.39 indicates a quite expensive valuation of 1VRT.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of 1VRT is on the same level as its industry peers.
- The average S&P500 Price/Forward Earnings ratio is at 25.95. 1VRT is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.42 | ||
| Fwd PE | 34.39 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1VRT is on the same level as its industry peers.
- 1VRT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.76 | ||
| EV/EBITDA | 34.86 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- 1VRT has an outstanding profitability rating, which may justify a higher PE ratio.
- 1VRT's earnings are expected to grow with 33.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.05
PEG (5Y)N/A
EPS Next 2Y37.33%
EPS Next 3Y33.54%
5. Dividend
5.1 Amount
- 1VRT has a yearly dividend return of 0.14%, which is pretty low.
- 1VRT's Dividend Yield is comparable with the industry average which is at 0.79.
- With a Dividend Yield of 0.14, 1VRT pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.14% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
- 1VRT pays out 5.48% of its income as dividend. This is a sustainable payout ratio.
DP5.48%
EPS Next 2Y37.33%
EPS Next 3Y33.54%
VERTIV HOLDINGS CO-A / 1VRT.MI FAQ
What is the fundamental rating for 1VRT stock?
ChartMill assigns a fundamental rating of 7 / 10 to 1VRT.MI.
Can you provide the valuation status for VERTIV HOLDINGS CO-A?
ChartMill assigns a valuation rating of 4 / 10 to VERTIV HOLDINGS CO-A (1VRT.MI). This can be considered as Fairly Valued.
How profitable is VERTIV HOLDINGS CO-A (1VRT.MI) stock?
VERTIV HOLDINGS CO-A (1VRT.MI) has a profitability rating of 8 / 10.
How financially healthy is VERTIV HOLDINGS CO-A?
The financial health rating of VERTIV HOLDINGS CO-A (1VRT.MI) is 7 / 10.
What is the expected EPS growth for VERTIV HOLDINGS CO-A (1VRT.MI) stock?
The Earnings per Share (EPS) of VERTIV HOLDINGS CO-A (1VRT.MI) is expected to grow by 46.06% in the next year.