VERTIV HOLDINGS CO-A (VRT) Stock Fundamental Analysis
NYSE:VRT - New York Stock Exchange, Inc. - US92537N1081 - Common Stock - Currency: USD
We assign a fundamental rating of 8 out of 10 to VRT. VRT was compared to 95 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings could make VRT a good candidate 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
The Return On Assets of VRT (7.05%) is better than 87.37% of its industry peers.
VRT has a Return On Equity of 24.98%. This is amongst the best in the industry. VRT outperforms 94.74% of its industry peers.
VRT has a Return On Invested Capital of 17.71%. This is amongst the best in the industry. VRT outperforms 95.79% 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 10.08%.
The last Return On Invested Capital (17.71%) for VRT is above the 3 year average (10.93%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.05% | ||
| ROE | 24.98% | ||
| ROIC | 17.71% |
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
The Profit Margin of VRT (7.92%) is better than 84.21% of its industry peers.
VRT's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 17.49%, VRT belongs to the best of the industry, outperforming 91.58% of the companies in the same industry.
In the last couple of years the Operating Margin of VRT has grown nicely.
With an excellent Gross Margin value of 36.32%, VRT belongs to the best of the industry, outperforming 81.05% of the companies in the same industry.
VRT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.49% | ||
| PM (TTM) | 7.92% | ||
| GM | 36.32% |
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.
VRT has more shares outstanding than it did 5 years ago.
VRT has a better debt/assets ratio than last year.
2.2 Solvency
VRT has an Altman-Z score of 5.17. This indicates that VRT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of VRT (5.17) is better than 86.32% of its industry peers.
The Debt to FCF ratio of VRT is 2.25, which is a good value as it means it would take VRT, 2.25 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 2.25, VRT belongs to the best of the industry, outperforming 85.26% of the companies in the same industry.
VRT has a Debt/Equity ratio of 1.09. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of VRT (1.09) is worse than 68.42% 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 | 1.09 | ||
| Debt/FCF | 2.25 | ||
| Altman-Z | 5.17 |
ROIC/WACC2.02
WACC8.77%
2.3 Liquidity
VRT has a Current Ratio of 1.72. 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 Current ratio of 1.72 is in line compared to the rest of the industry. VRT outperforms 48.42% of its industry peers.
VRT has a Quick Ratio of 1.28. 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 Quick ratio (1.28) which is comparable to the rest of the 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 | 1.72 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
VRT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 55.33%, 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, VRT shows a very strong growth in Revenue. The Revenue has grown by 20.45%.
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)55.33%
EPS 3Y55.36%
EPS 5YN/A
EPS Q2Q%48.84%
Revenue 1Y (TTM)20.45%
Revenue growth 3Y17.03%
Revenue growth 5Y12.57%
Sales Q2Q%24.21%
3.2 Future
Based on estimates for the next years, VRT will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.62% on average per year.
Based on estimates for the next years, VRT will show a quite strong growth in Revenue. The Revenue will grow by 12.85% on average per year.
EPS Next Y26.12%
EPS Next 2Y23.95%
EPS Next 3Y24.14%
EPS Next 5Y19.62%
Revenue Next Year20.89%
Revenue Next 2Y17.05%
Revenue Next 3Y15.45%
Revenue Next 5Y12.85%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 33.80, VRT can be considered very expensive at the moment.
70.53% of the companies in the same industry are more expensive than VRT, based on the Price/Earnings ratio.
VRT's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.03.
VRT is valuated rather expensively with a Price/Forward Earnings ratio of 23.62.
VRT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. VRT is cheaper than 71.58% 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 21.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.8 | ||
| Fwd PE | 23.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VRT is valued a bit cheaper than 72.63% 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 73.68% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.35 | ||
| EV/EBITDA | 23.39 |
4.3 Compensation for Growth
VRT's 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 24.14% in the coming years.
PEG (NY)1.29
PEG (5Y)N/A
EPS Next 2Y23.95%
EPS Next 3Y24.14%
5. Dividend
5.1 Amount
With a yearly dividend of 0.14%, VRT is not a good candidate for dividend investing.
VRT's Dividend Yield is a higher than the industry average which is at 4.57.
With a Dividend Yield of 0.14, VRT pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.14% |
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
7.07% of the earnings are spent on dividend by VRT. This is a low number and sustainable payout ratio.
DP7.07%
EPS Next 2Y23.95%
EPS Next 3Y24.14%
NYSE:VRT (5/22/2025, 10:22:04 AM)
103.43
-0.18 (-0.17%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners83.09%
Inst Owner Change-5.46%
Ins Owners0.88%
Ins Owner Change-0.33%
Market Cap39.42B
Analysts82.14
Price Target116.71 (12.84%)
Short Float %4.5%
Short Ratio1.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.14% |
Yearly Dividend0.11
Dividend Growth(5Y)N/A
DP7.07%
Div Incr Years2
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.26%
Min EPS beat(2)3.02%
Max EPS beat(2)19.49%
EPS beat(4)4
Avg EPS beat(4)11.89%
Min EPS beat(4)3.02%
Max EPS beat(4)19.49%
EPS beat(8)8
Avg EPS beat(8)18.03%
EPS beat(12)11
Avg EPS beat(12)15.46%
EPS beat(16)14
Avg EPS beat(16)11.64%
Revenue beat(2)2
Avg Revenue beat(2)5.91%
Min Revenue beat(2)3.93%
Max Revenue beat(2)7.88%
Revenue beat(4)3
Avg Revenue beat(4)3.84%
Min Revenue beat(4)-0.32%
Max Revenue beat(4)7.88%
Revenue beat(8)5
Avg Revenue beat(8)2.27%
Revenue beat(12)7
Avg Revenue beat(12)2.2%
Revenue beat(16)9
Avg Revenue beat(16)1.63%
PT rev (1m)-15.51%
PT rev (3m)-20.31%
EPS NQ rev (1m)-6.91%
EPS NQ rev (3m)-6.67%
EPS NY rev (1m)0.39%
EPS NY rev (3m)0.12%
Revenue NQ rev (1m)3.31%
Revenue NQ rev (3m)3.49%
Revenue NY rev (1m)2.92%
Revenue NY rev (3m)3.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.8 | ||
| Fwd PE | 23.62 | ||
| P/S | 4.69 | ||
| P/FCF | 30.35 | ||
| P/OCF | 26.54 | ||
| P/B | 14.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.39 |
EPS(TTM)3.06
EY2.96%
EPS(NY)4.38
Fwd EY4.23%
FCF(TTM)3.41
FCFY3.29%
OCF(TTM)3.9
OCFY3.77%
SpS22.06
BVpS7
TBVpS-0.36
PEG (NY)1.29
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.05% | ||
| ROE | 24.98% | ||
| ROCE | 23.46% | ||
| ROIC | 17.71% | ||
| ROICexc | 23.13% | ||
| ROICexgc | 55.58% | ||
| OM | 17.49% | ||
| PM (TTM) | 7.92% | ||
| GM | 36.32% | ||
| FCFM | 15.44% |
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-Score7
Asset Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 2.25 | ||
| Debt/EBITDA | 1.66 | ||
| Cap/Depr | 66.6% | ||
| Cap/Sales | 2.22% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.85% | ||
| Profit Quality | 194.94% | ||
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.28 | ||
| Altman-Z | 5.17 |
F-Score7
WACC8.77%
ROIC/WACC2.02
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)55.33%
EPS 3Y55.36%
EPS 5YN/A
EPS Q2Q%48.84%
EPS Next Y26.12%
EPS Next 2Y23.95%
EPS Next 3Y24.14%
EPS Next 5Y19.62%
Revenue 1Y (TTM)20.45%
Revenue growth 3Y17.03%
Revenue growth 5Y12.57%
Sales Q2Q%24.21%
Revenue Next Year20.89%
Revenue Next 2Y17.05%
Revenue Next 3Y15.45%
Revenue Next 5Y12.85%
EBIT growth 1Y50.58%
EBIT growth 3Y71.77%
EBIT growth 5Y43.78%
EBIT Next Year39.07%
EBIT Next 3Y24.55%
EBIT Next 5Y19.46%
FCF growth 1Y1383.3%
FCF growth 3Y107.92%
FCF growth 5YN/A
OCF growth 1Y6839.72%
OCF growth 3Y84.26%
OCF growth 5Y87.13%