VERTIV HOLDINGS CO-A (VRT) Stock Fundamental Analysis
USA - NYSE:VRT - US92537N1081 - Common Stock
138.21 USD
-1.56 (-1.12%)
VRT gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 92 industry peers in the Electrical Equipment industry. VRT gets an excellent profitability rating and is at the same time showing great financial health properties. VRT is growing strongly while it is still valued neutral. This is a good combination! With these ratings, VRT could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
In the past year VRT was profitable.
In the past year VRT had a positive cash flow from operations.
VRT had positive earnings in 4 of the past 5 years.
Of the past 5 years VRT 4 years had a positive operating cash flow.
1.2 Ratios
VRT has a Return On Assets of 7.81%. This is amongst the best in the industry. VRT outperforms 85.87% of its industry peers.
VRT has a Return On Equity of 25.99%. This is amongst the best in the industry. VRT outperforms 94.57% of its industry peers.
The Return On Invested Capital of VRT (17.60%) is better than 96.74% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VRT is in line with the industry average of 9.86%.
The 3 year average ROIC (10.93%) for VRT is below the current ROIC(17.60%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.81% | ||
| ROE | 25.99% | ||
| ROIC | 17.6% |
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
Looking at the Profit Margin, with a value of 8.93%, VRT belongs to the top of the industry, outperforming 83.70% of the companies in the same industry.
In the last couple of years the Profit Margin of VRT has grown nicely.
VRT has a Operating Margin of 17.41%. This is amongst the best in the industry. VRT outperforms 93.48% of its industry peers.
VRT's Operating Margin has improved in the last couple of years.
VRT has a Gross Margin of 35.29%. This is amongst the best in the industry. VRT outperforms 80.43% of its industry peers.
In the last couple of years the Gross Margin of VRT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.41% | ||
| PM (TTM) | 8.93% | ||
| GM | 35.29% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), VRT is creating value.
Compared to 1 year ago, VRT has less shares outstanding
VRT has more shares outstanding than it did 5 years ago.
The debt/assets ratio for VRT has been reduced compared to a year ago.
2.2 Solvency
VRT has an Altman-Z score of 6.11. This indicates that VRT is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 6.11, VRT belongs to the best of the industry, outperforming 86.96% of the companies in the same industry.
VRT has a debt to FCF ratio of 2.35. This is a good value and a sign of high solvency as VRT would need 2.35 years to pay back of all of its debts.
VRT has a better Debt to FCF ratio (2.35) than 86.96% of its industry peers.
VRT has a Debt/Equity ratio of 0.93. This is a neutral value indicating VRT is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.93, VRT is not doing good in the industry: 66.30% of the companies in the same industry are doing better.
Although VRT does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 2.35 | ||
| Altman-Z | 6.11 |
ROIC/WACC2.06
WACC8.55%
2.3 Liquidity
VRT has a Current Ratio of 1.74. This is a normal value and indicates that VRT is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.74, VRT perfoms like the industry average, outperforming 48.91% of the companies in the same industry.
A Quick Ratio of 1.35 indicates that VRT should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.35, VRT perfoms like the industry average, outperforming 57.61% of the companies in the same industry.
The current and quick ratio evaluation for VRT is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.74 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 53.21% over the past year.
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 very strong growth in Revenue. The Revenue has grown by 26.31%.
Measured over the past years, VRT shows a quite strong growth in Revenue. The Revenue has been growing by 12.57% on average per year.
EPS 1Y (TTM)53.21%
EPS 3Y55.36%
EPS 5YN/A
EPS Q2Q%41.79%
Revenue 1Y (TTM)26.31%
Revenue growth 3Y17.03%
Revenue growth 5Y12.57%
Sales Q2Q%35.09%
3.2 Future
The Earnings Per Share is expected to grow by 25.17% on average over the next years. This is a very strong growth
Based on estimates for the next years, VRT will show a quite strong growth in Revenue. The Revenue will grow by 16.01% on average per year.
EPS Next Y34.67%
EPS Next 2Y29.87%
EPS Next 3Y26.28%
EPS Next 5Y25.17%
Revenue Next Year28.03%
Revenue Next 2Y21.41%
Revenue Next 3Y18.6%
Revenue Next 5Y16.01%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 41.38, VRT can be considered very expensive at the moment.
Based on the Price/Earnings ratio, VRT is valued a bit cheaper than 69.57% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.06. VRT is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 28.75, the valuation of VRT can be described as expensive.
VRT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. VRT is cheaper than 71.74% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.64, VRT is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.38 | ||
| Fwd PE | 28.75 |
4.2 Price Multiples
69.57% of the companies in the same industry are more expensive than VRT, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VRT indicates a somewhat cheap valuation: VRT is cheaper than 72.83% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.48 | ||
| EV/EBITDA | 29.15 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
VRT has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as VRT's earnings are expected to grow with 26.28% in the coming years.
PEG (NY)1.19
PEG (5Y)N/A
EPS Next 2Y29.87%
EPS Next 3Y26.28%
5. Dividend
5.1 Amount
VRT has a yearly dividend return of 0.11%, which is pretty low.
VRT's Dividend Yield is a higher than the industry average which is at 3.08.
With a Dividend Yield of 0.11, VRT pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.11% |
5.2 History
VRT has been paying a dividend for over 5 years, so it has already some track record.
VRT has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years4
5.3 Sustainability
6.39% of the earnings are spent on dividend by VRT. This is a low number and sustainable payout ratio.
DP6.39%
EPS Next 2Y29.87%
EPS Next 3Y26.28%
NYSE:VRT (9/26/2025, 2:47:58 PM)
138.21
-1.56 (-1.12%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners80.87%
Inst Owner Change2.12%
Ins Owners0.33%
Ins Owner Change0%
Market Cap52.78B
Analysts80.63
Price Target156.73 (13.4%)
Short Float %2.75%
Short Ratio1.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.11% |
Yearly Dividend0.11
Dividend Growth(5Y)N/A
DP6.39%
Div Incr Years2
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.87%
Min EPS beat(2)3.02%
Max EPS beat(2)12.72%
EPS beat(4)4
Avg EPS beat(4)11.09%
Min EPS beat(4)3.02%
Max EPS beat(4)19.49%
EPS beat(8)8
Avg EPS beat(8)12.39%
EPS beat(12)11
Avg EPS beat(12)16.34%
EPS beat(16)14
Avg EPS beat(16)10.59%
Revenue beat(2)2
Avg Revenue beat(2)7.76%
Min Revenue beat(2)3.93%
Max Revenue beat(2)11.59%
Revenue beat(4)4
Avg Revenue beat(4)6.82%
Min Revenue beat(4)3.86%
Max Revenue beat(4)11.59%
Revenue beat(8)5
Avg Revenue beat(8)2.94%
Revenue beat(12)7
Avg Revenue beat(12)2.79%
Revenue beat(16)9
Avg Revenue beat(16)2.2%
PT rev (1m)2.36%
PT rev (3m)31.04%
EPS NQ rev (1m)-0.17%
EPS NQ rev (3m)2.63%
EPS NY rev (1m)0%
EPS NY rev (3m)6.6%
Revenue NQ rev (1m)0.39%
Revenue NQ rev (3m)6.43%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)5.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.38 | ||
| Fwd PE | 28.75 | ||
| P/S | 5.8 | ||
| P/FCF | 42.48 | ||
| P/OCF | 36.92 | ||
| P/B | 16.89 | ||
| P/tB | 177.59 | ||
| EV/EBITDA | 29.15 |
EPS(TTM)3.34
EY2.42%
EPS(NY)4.81
Fwd EY3.48%
FCF(TTM)3.25
FCFY2.35%
OCF(TTM)3.74
OCFY2.71%
SpS23.81
BVpS8.18
TBVpS0.78
PEG (NY)1.19
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.81% | ||
| ROE | 25.99% | ||
| ROCE | 23.31% | ||
| ROIC | 17.6% | ||
| ROICexc | 23.66% | ||
| ROICexgc | 53.74% | ||
| OM | 17.41% | ||
| PM (TTM) | 8.93% | ||
| GM | 35.29% | ||
| FCFM | 13.66% |
ROA(3y)4.09%
ROA(5y)1.51%
ROE(3y)16.17%
ROE(5y)-1.39%
ROIC(3y)10.93%
ROIC(5y)8.89%
ROICexc(3y)13.11%
ROICexc(5y)10.56%
ROICexgc(3y)32.65%
ROICexgc(5y)28.78%
ROCE(3y)14.48%
ROCE(5y)11.77%
ROICexcg growth 3Y43.97%
ROICexcg growth 5YN/A
ROICexc growth 3Y69.81%
ROICexc growth 5YN/A
OM growth 3Y46.77%
OM growth 5Y27.72%
PM growth 3Y37.26%
PM growth 5YN/A
GM growth 3Y6.33%
GM growth 5Y2.24%
F-Score6
Asset Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 2.35 | ||
| Debt/EBITDA | 1.55 | ||
| Cap/Depr | 65.77% | ||
| Cap/Sales | 2.06% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.53% | ||
| Profit Quality | 152.94% | ||
| Current Ratio | 1.74 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | 6.11 |
F-Score6
WACC8.55%
ROIC/WACC2.06
Cap/Depr(3y)50.95%
Cap/Depr(5y)43.21%
Cap/Sales(3y)2.07%
Cap/Sales(5y)1.82%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)53.21%
EPS 3Y55.36%
EPS 5YN/A
EPS Q2Q%41.79%
EPS Next Y34.67%
EPS Next 2Y29.87%
EPS Next 3Y26.28%
EPS Next 5Y25.17%
Revenue 1Y (TTM)26.31%
Revenue growth 3Y17.03%
Revenue growth 5Y12.57%
Sales Q2Q%35.09%
Revenue Next Year28.03%
Revenue Next 2Y21.41%
Revenue Next 3Y18.6%
Revenue Next 5Y16.01%
EBIT growth 1Y45.55%
EBIT growth 3Y71.77%
EBIT growth 5Y43.78%
EBIT Next Year43.13%
EBIT Next 3Y26.78%
EBIT Next 5Y21.9%
FCF growth 1Y246.53%
FCF growth 3Y107.92%
FCF growth 5YN/A
OCF growth 1Y197.4%
OCF growth 3Y84.26%
OCF growth 5Y87.13%