VERTIV HOLDINGS CO-A (VRT)
US92537N1081 - Common Stock
Overall VRT gets a fundamental rating of 6 out of 10. We evaluated VRT against 87 industry peers in the Electrical Equipment industry. While VRT has a great profitability rating, there are some minor concerns on its financial health. VRT is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year VRT was profitable.
VRT had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: VRT reported negative net income in multiple years.
VRT had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.32%, VRT is in the better half of the industry, outperforming 78.82% of the companies in the same industry.
VRT has a Return On Equity of 28.99%. This is amongst the best in the industry. VRT outperforms 95.29% of its industry peers.
VRT has a Return On Invested Capital of 13.21%. This is amongst the best in the industry. VRT outperforms 90.59% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VRT is below the industry average of 10.39%.
The 3 year average ROIC (5.70%) for VRT is below the current ROIC(13.21%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.32% | ||
| ROE | 28.99% | ||
| ROIC | 13.21% |
ROA(3y)2.85%
ROA(5y)-3.55%
ROE(3y)12.2%
ROE(5y)-9.62%
ROIC(3y)5.7%
ROIC(5y)9.13%
1.3 Margins
With a decent Profit Margin value of 5.79%, VRT is doing good in the industry, outperforming 78.82% of the companies in the same industry.
VRT has a Operating Margin of 13.99%. This is amongst the best in the industry. VRT outperforms 83.53% of its industry peers.
In the last couple of years the Operating Margin of VRT has grown nicely.
With a decent Gross Margin value of 35.40%, VRT is doing good in the industry, outperforming 80.00% of the companies in the same industry.
In the last couple of years the Gross Margin of VRT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.99% | ||
| PM (TTM) | 5.79% | ||
| GM | 35.4% |
OM growth 3Y20.45%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.23%
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so VRT is still creating some value.
Compared to 1 year ago, VRT has more shares outstanding
The number of shares outstanding for VRT has been increased compared to 5 years ago.
The debt/assets ratio for VRT has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.70 indicates that VRT is not in any danger for bankruptcy at the moment.
VRT's Altman-Z score of 4.70 is amongst the best of the industry. VRT outperforms 82.35% of its industry peers.
VRT has a debt to FCF ratio of 3.44. This is a good value and a sign of high solvency as VRT would need 3.44 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.44, VRT is doing good in the industry, outperforming 78.82% of the companies in the same industry.
A Debt/Equity ratio of 2.09 is on the high side and indicates that VRT has dependencies on debt financing.
VRT has a Debt to Equity ratio of 2.09. This is amonst the worse of the industry: VRT underperforms 82.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.09 | ||
| Debt/FCF | 3.44 | ||
| Altman-Z | 4.7 |
ROIC/WACC1.31
WACC10.06%
2.3 Liquidity
VRT has a Current Ratio of 1.34. This is a normal value and indicates that VRT is financially healthy and should not expect problems in meeting its short term obligations.
VRT has a worse Current ratio (1.34) than 75.29% of its industry peers.
A Quick Ratio of 0.98 indicates that VRT may have some problems paying its short term obligations.
With a Quick ratio value of 0.98, VRT is not doing good in the industry: 67.06% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 131.76% over the past year.
VRT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 81.80% yearly.
The Revenue has grown by 15.27% in the past year. This is quite good.
VRT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.23% yearly.
EPS 1Y (TTM)131.76%
EPS 3Y30.55%
EPS 5Y81.8%
EPS growth Q2Q79.17%
Revenue 1Y (TTM)15.27%
Revenue growth 3Y16.23%
Revenue growth 5YN/A
Revenue growth Q2Q7.76%
3.2 Future
VRT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.97% yearly.
VRT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.27% yearly.
EPS Next Y29.78%
EPS Next 2Y27.34%
EPS Next 3Y25.97%
EPS Next 5YN/A
Revenue Next Year10.66%
Revenue Next 2Y10.6%
Revenue Next 3Y10.27%
Revenue Next 5YN/A
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 estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 47.46, which means the current valuation is very expensive for VRT.
Based on the Price/Earnings ratio, VRT is valued a bit cheaper than 65.88% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.92, VRT is valued quite expensively.
Based on the Price/Forward Earnings ratio of 32.39, the valuation of VRT can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VRT indicates a somewhat cheap valuation: VRT is cheaper than 69.41% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.49. VRT is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.46 | ||
| Fwd PE | 32.39 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VRT is valued a bit cheaper than the industry average as 64.71% of the companies are valued more expensively.
72.94% of the companies in the same industry are more expensive than VRT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.78 | ||
| EV/EBITDA | 29.75 |
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 a very decent 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 25.97% in the coming years.
PEG (NY)1.59
PEG (5Y)0.58
EPS Next 2Y27.34%
EPS Next 3Y25.97%
5. Dividend
5.1 Amount
VRT has a yearly dividend return of 0.03%, which is pretty low.
Compared to an average industry Dividend Yield of 2.50, VRT pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.03, VRT pays less dividend than the S&P500 average, which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.03% |
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 Years1
Div Non Decr Years3
5.3 Sustainability
4.65% of the earnings are spent on dividend by VRT. This is a low number and sustainable payout ratio.
DP4.65%
EPS Next 2Y27.34%
EPS Next 3Y25.97%
VERTIV HOLDINGS CO-A
NYSE:VRT (4/26/2024, 7:23:08 PM)
After market: 93.49 0 (0%)93.49
+3.14 (+3.48%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap35.71B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.03% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.46 | ||
| Fwd PE | 32.39 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.59
PEG (5Y)0.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.32% | ||
| ROE | 28.99% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.99% | ||
| PM (TTM) | 5.79% | ||
| GM | 35.4% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.09 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)131.76%
EPS 3Y30.55%
EPS 5Y
EPS growth Q2Q
EPS Next Y29.78%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)15.27%
Revenue growth 3Y16.23%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y