VERTIV HOLDINGS CO-A (VRT) Stock Fundamental Analysis
NYSE:VRT - US92537N1081 - Common Stock
123.835 USD
-1.87 (-1.48%)
VRT gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 92 industry peers in the Electrical Equipment industry. VRT has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. VRT is not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, VRT could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
VRT had positive earnings in the past year.
In the past year VRT had a positive cash flow from operations.
Of the past 5 years VRT 4 years were profitable.
VRT had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
VRT has a better Return On Assets (7.81%) than 85.87% of its industry peers.
VRT's Return On Equity of 25.99% is amongst the best of the industry. VRT outperforms 94.57% of its industry peers.
VRT has a better Return On Invested Capital (17.60%) than 96.74% 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 9.86%.
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
VRT's Profit Margin of 8.93% is amongst the best of the industry. VRT outperforms 83.70% of its industry peers.
In the last couple of years the Profit Margin of VRT has grown nicely.
With an excellent Operating Margin value of 17.41%, VRT belongs to the best of the industry, outperforming 93.48% of the companies in the same industry.
VRT's Operating Margin has improved in the last couple of years.
VRT has a Gross Margin of 35.29%. This is in the better half of the industry: VRT outperforms 79.35% 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
VRT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for VRT has been reduced compared to 1 year ago.
Compared to 5 years ago, VRT has more shares outstanding
The debt/assets ratio for VRT has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.67 indicates that VRT is not in any danger for bankruptcy at the moment.
The Altman-Z score of VRT (5.67) is better than 85.87% 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.
VRT has a better Debt to FCF ratio (2.35) than 85.87% 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.
The Debt to Equity ratio of VRT (0.93) is worse than 66.30% of its industry peers.
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 | 5.67 |
ROIC/WACC2.05
WACC8.58%
2.3 Liquidity
A Current Ratio of 1.74 indicates that VRT should not have too much problems paying its short term obligations.
With a Current ratio value of 1.74, VRT perfoms like the industry average, outperforming 46.74% 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 56.52% 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
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.
Measured over the past years, VRT shows a very strong growth in Earnings Per Share. The EPS has been growing by 55.36% on average per year.
VRT shows a strong growth in Revenue. In the last year, 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 15.51% on average per year.
EPS Next Y34.67%
EPS Next 2Y29.87%
EPS Next 3Y26.28%
EPS Next 5Y19.13%
Revenue Next Year27.91%
Revenue Next 2Y21.37%
Revenue Next 3Y17.84%
Revenue Next 5Y15.51%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
A Price/Earnings ratio of 37.08 indicates a quite expensive valuation of VRT.
Based on the Price/Earnings ratio, VRT is valued a bit cheaper than the industry average as 70.65% of the companies are valued more expensively.
VRT is valuated rather expensively when we compare the Price/Earnings ratio to 27.03, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 25.76, VRT can be considered very expensive at the moment.
VRT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. VRT is cheaper than 73.91% of the companies in the same industry.
VRT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.63.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.08 | ||
| Fwd PE | 25.76 |
4.2 Price Multiples
VRT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. VRT is cheaper than 69.57% of the companies 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 72.83% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.07 | ||
| EV/EBITDA | 26.28 |
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.
VRT's earnings are expected to grow with 26.28% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.07
PEG (5Y)N/A
EPS Next 2Y29.87%
EPS Next 3Y26.28%
5. Dividend
5.1 Amount
With a yearly dividend of 0.11%, VRT is not a good candidate for dividend investing.
VRT's Dividend Yield is a higher than the industry average which is at 3.36.
Compared to an average S&P500 Dividend Yield of 2.32, 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
VRT pays out 6.39% of its income as dividend. This is a sustainable payout ratio.
DP6.39%
EPS Next 2Y29.87%
EPS Next 3Y26.28%
NYSE:VRT (9/5/2025, 2:59:04 PM)
123.835
-1.87 (-1.48%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners80.87%
Inst Owner Change2.17%
Ins Owners0.33%
Ins Owner Change0%
Market Cap47.29B
Analysts81.38
Price Target156.73 (26.56%)
Short Float %2.56%
Short Ratio1.34
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)21.7%
PT rev (3m)34.29%
EPS NQ rev (1m)1.27%
EPS NQ rev (3m)2.53%
EPS NY rev (1m)6.59%
EPS NY rev (3m)6.78%
Revenue NQ rev (1m)3.22%
Revenue NQ rev (3m)7.64%
Revenue NY rev (1m)5.7%
Revenue NY rev (3m)5.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.08 | ||
| Fwd PE | 25.76 | ||
| P/S | 5.2 | ||
| P/FCF | 38.07 | ||
| P/OCF | 33.08 | ||
| P/B | 15.13 | ||
| P/tB | 159.11 | ||
| EV/EBITDA | 26.28 |
EPS(TTM)3.34
EY2.7%
EPS(NY)4.81
Fwd EY3.88%
FCF(TTM)3.25
FCFY2.63%
OCF(TTM)3.74
OCFY3.02%
SpS23.81
BVpS8.18
TBVpS0.78
PEG (NY)1.07
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 | 5.67 |
F-Score6
WACC8.58%
ROIC/WACC2.05
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 5Y19.13%
Revenue 1Y (TTM)26.31%
Revenue growth 3Y17.03%
Revenue growth 5Y12.57%
Sales Q2Q%35.09%
Revenue Next Year27.91%
Revenue Next 2Y21.37%
Revenue Next 3Y17.84%
Revenue Next 5Y15.51%
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%