VERTIV HOLDINGS CO-A (VRT) Stock Fundamental Analysis
NYSE:VRT - New York Stock Exchange, Inc. - US92537N1081 - Common Stock - Currency: USD
Overall VRT gets a fundamental rating of 8 out of 10. We evaluated VRT against 93 industry peers in the Electrical Equipment industry. VRT scores excellent points on both the profitability and health parts. This is a solid base for a good stock. VRT is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! This makes VRT very considerable 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.
VRT had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 7.81%, VRT belongs to the best of the industry, outperforming 86.02% of the companies in the same industry.
The Return On Equity of VRT (25.99%) is better than 94.62% of its industry peers.
VRT has a Return On Invested Capital of 17.60%. This is amongst the best in the industry. VRT outperforms 96.77% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VRT is in line with the industry average of 9.56%.
The last Return On Invested Capital (17.60%) for VRT is above the 3 year average (10.93%), which is a sign of increasing profitability.
| 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 84.95% of the companies in the same industry.
In the last couple of years the Profit Margin of VRT has grown nicely.
VRT has a better Operating Margin (17.41%) than 92.47% of its industry peers.
In the last couple of years the Operating Margin of VRT has grown nicely.
With an excellent Gross Margin value of 35.29%, VRT belongs to the best of the industry, outperforming 81.72% of the companies in the same industry.
VRT's Gross Margin has improved in the last couple of years.
| 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
VRT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, VRT has less shares outstanding
Compared to 5 years ago, VRT has more shares outstanding
Compared to 1 year ago, VRT has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.88 indicates that VRT is not in any danger for bankruptcy at the moment.
VRT's Altman-Z score of 5.88 is amongst the best of the industry. VRT outperforms 86.02% of its industry peers.
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.
With an excellent Debt to FCF ratio value of 2.35, VRT belongs to the best of the industry, outperforming 84.95% of the companies in the same industry.
A Debt/Equity ratio of 0.93 indicates that VRT is somewhat dependend on debt financing.
The Debt to Equity ratio of VRT (0.93) is worse than 64.52% of its industry peers.
Even though the debt/equity ratio score it not favorable for VRT, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 2.35 | ||
| Altman-Z | 5.88 |
ROIC/WACC2.04
WACC8.61%
2.3 Liquidity
A Current Ratio of 1.74 indicates that VRT should not have too much problems paying its short term obligations.
VRT has a Current ratio (1.74) which is in line with its industry peers.
VRT has a Quick Ratio of 1.35. This is a normal value and indicates that VRT is financially healthy and should not expect problems in meeting its short term obligations.
VRT's Quick ratio of 1.35 is in line compared to the rest of the industry. VRT outperforms 56.99% of its industry peers.
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
VRT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 53.21%, which is quite impressive.
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%.
VRT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.57% yearly.
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
VRT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.13% yearly.
Based on estimates for the next years, VRT will show a quite strong growth in Revenue. The Revenue will grow by 13.30% on average per year.
EPS Next Y26.34%
EPS Next 2Y24.14%
EPS Next 3Y24.12%
EPS Next 5Y19.13%
Revenue Next Year21.02%
Revenue Next 2Y17.26%
Revenue Next 3Y15.78%
Revenue Next 5Y13.3%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 39.62, which means the current valuation is very expensive for VRT.
69.89% of the companies in the same industry are more expensive than VRT, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.93, VRT is valued a bit more expensive.
The Price/Forward Earnings ratio is 30.13, which means the current valuation is very expensive for VRT.
Based on the Price/Forward Earnings ratio, VRT is valued a bit cheaper than the industry average as 69.89% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 35.31. VRT is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.62 | ||
| Fwd PE | 30.13 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VRT indicates a somewhat cheap valuation: VRT is cheaper than 69.89% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VRT indicates a somewhat cheap valuation: VRT is cheaper than 74.19% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.6 | ||
| EV/EBITDA | 27.62 |
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 24.12% in the coming years.
PEG (NY)1.5
PEG (5Y)N/A
EPS Next 2Y24.14%
EPS Next 3Y24.12%
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 3.82.
Compared to an average S&P500 Dividend Yield of 2.39, VRT's dividend is way lower than the S&P500 average.
| 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 2Y24.14%
EPS Next 3Y24.12%
NYSE:VRT (8/15/2025, 3:01:08 PM)
132.335
-0.19 (-0.14%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners80.87%
Inst Owner Change-0.85%
Ins Owners0.33%
Ins Owner Change-0.28%
Market Cap50.43B
Analysts81.38
Price Target153.11 (15.7%)
Short Float %2.54%
Short Ratio1.47
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)28.01%
PT rev (3m)31.2%
EPS NQ rev (1m)1.76%
EPS NQ rev (3m)2.18%
EPS NY rev (1m)0%
EPS NY rev (3m)0.57%
Revenue NQ rev (1m)4.21%
Revenue NQ rev (3m)5.77%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.62 | ||
| Fwd PE | 30.13 | ||
| P/S | 5.55 | ||
| P/FCF | 40.6 | ||
| P/OCF | 35.28 | ||
| P/B | 16.14 | ||
| P/tB | 169.7 | ||
| EV/EBITDA | 27.62 |
EPS(TTM)3.34
EY2.52%
EPS(NY)4.39
Fwd EY3.32%
FCF(TTM)3.26
FCFY2.46%
OCF(TTM)3.75
OCFY2.83%
SpS23.86
BVpS8.2
TBVpS0.78
PEG (NY)1.5
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 | 5.88 |
F-Score6
WACC8.61%
ROIC/WACC2.04
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 Y26.34%
EPS Next 2Y24.14%
EPS Next 3Y24.12%
EPS Next 5Y19.13%
Revenue 1Y (TTM)26.31%
Revenue growth 3Y17.03%
Revenue growth 5Y12.57%
Sales Q2Q%35.09%
Revenue Next Year21.02%
Revenue Next 2Y17.26%
Revenue Next 3Y15.78%
Revenue Next 5Y13.3%
EBIT growth 1Y45.55%
EBIT growth 3Y71.77%
EBIT growth 5Y43.78%
EBIT Next Year43.13%
EBIT Next 3Y26.78%
EBIT Next 5Y20.2%
FCF growth 1Y246.53%
FCF growth 3Y107.92%
FCF growth 5YN/A
OCF growth 1Y197.4%
OCF growth 3Y84.26%
OCF growth 5Y87.13%