VERTIV HOLDINGS CO-A (VRT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VRT - US92537N1081 - Common Stock
175.61 USD
+13.6 (+8.39%)
176.785 USD
+1.17 (+0.67%)
Taking everything into account, VRT scores 7 out of 10 in our fundamental rating. VRT was compared to 91 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
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.
Of the past 5 years VRT 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.56%, VRT belongs to the top of the industry, outperforming 90.11% of the companies in the same industry.
With an excellent Return On Equity value of 29.48%, VRT belongs to the best of the industry, outperforming 97.80% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 18.23%, VRT belongs to the top of the industry, outperforming 96.70% of the companies in the same industry.
VRT had an Average Return On Invested Capital over the past 3 years of 10.93%. This is in line with the industry average of 9.90%.
The last Return On Invested Capital (18.23%) for VRT is above the 3 year average (10.93%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.56% | ||
| ROE | 29.48% | ||
| ROIC | 18.23% |
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 10.67%, VRT belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
VRT's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 18.03%, VRT belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
In the last couple of years the Operating Margin of VRT has grown nicely.
Looking at the Gross Margin, with a value of 35.73%, VRT is in the better half of the industry, outperforming 79.12% of the companies in the same industry.
In the last couple of years the Gross Margin of VRT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.03% | ||
| PM (TTM) | 10.67% | ||
| GM | 35.73% |
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.
VRT has less shares outstanding than it did 1 year ago.
The number of shares outstanding for VRT has been increased compared to 5 years ago.
VRT has a better debt/assets ratio than last year.
2.2 Solvency
VRT has an Altman-Z score of 7.35. This indicates that VRT is financially healthy and has little risk of bankruptcy at the moment.
VRT's Altman-Z score of 7.35 is amongst the best of the industry. VRT outperforms 92.31% of its industry peers.
The Debt to FCF ratio of VRT is 2.14, which is a good value as it means it would take VRT, 2.14 years of fcf income to pay off all of its debts.
VRT has a Debt to FCF ratio of 2.14. This is amongst the best in the industry. VRT outperforms 89.01% of its industry peers.
A Debt/Equity ratio of 0.83 indicates that VRT is somewhat dependend on debt financing.
VRT's Debt to Equity ratio of 0.83 is in line compared to the rest of the industry. VRT outperforms 40.66% 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 | 0.83 | ||
| Debt/FCF | 2.14 | ||
| Altman-Z | 7.35 |
ROIC/WACC2.11
WACC8.63%
2.3 Liquidity
A Current Ratio of 1.83 indicates that VRT should not have too much problems paying its short term obligations.
VRT has a Current ratio (1.83) which is in line with its industry peers.
VRT has a Quick Ratio of 1.43. 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 1.43 is fine compared to the rest of the industry. VRT outperforms 62.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
VRT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 57.85%, 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
The Revenue has grown by 28.76% in the past year. This is a very strong growth!
The Revenue has been growing by 12.57% on average over the past years. This is quite good.
EPS 1Y (TTM)57.85%
EPS 3Y55.36%
EPS 5YN/A
EPS Q2Q%63.16%
Revenue 1Y (TTM)28.76%
Revenue growth 3Y17.03%
Revenue growth 5Y12.57%
Sales Q2Q%29.02%
3.2 Future
The Earnings Per Share is expected to grow by 26.08% 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 17.99% on average per year.
EPS Next Y46.03%
EPS Next 2Y36.67%
EPS Next 3Y32.64%
EPS Next 5Y26.08%
Revenue Next Year30.49%
Revenue Next 2Y25.41%
Revenue Next 3Y22.29%
Revenue Next 5Y17.99%
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.
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 45.97, VRT can be considered very expensive at the moment.
68.13% of the companies in the same industry are more expensive than VRT, based on the Price/Earnings ratio.
VRT is valuated expensively when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 32.99, which means the current valuation is very expensive for VRT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VRT indicates a somewhat cheap valuation: VRT is cheaper than 68.13% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of VRT to the average of the S&P500 Index (23.23), we can say VRT is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.97 | ||
| Fwd PE | 32.99 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VRT is valued a bit cheaper than 70.33% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VRT is valued a bit cheaper than 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.18 | ||
| EV/EBITDA | 33.13 |
4.3 Compensation for Growth
VRT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of VRT may justify a higher PE ratio.
VRT's earnings are expected to grow with 32.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)1
PEG (5Y)N/A
EPS Next 2Y36.67%
EPS Next 3Y32.64%
5. Dividend
5.1 Amount
VRT has a yearly dividend return of 0.15%, which is pretty low.
Compared to an average industry Dividend Yield of 0.28, VRT pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.15, VRT pays less dividend than the S&P500 average, which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.15% |
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 5.48% of its income as dividend. This is a sustainable payout ratio.
DP5.48%
EPS Next 2Y36.67%
EPS Next 3Y32.64%
175.61
+13.6 (+8.39%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners80.61%
Inst Owner Change0.01%
Ins Owners0.27%
Ins Owner Change-0.05%
Market Cap67.14B
Revenue(TTM)9.70B
Net Income(TTM)1.03B
Analysts82.58
Price Target196.66 (11.99%)
Short Float %2.66%
Short Ratio1.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.15% |
Yearly Dividend0.11
Dividend Growth(5Y)N/A
DP5.48%
Div Incr Years2
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.52%
Min EPS beat(2)12.72%
Max EPS beat(2)24.32%
EPS beat(4)4
Avg EPS beat(4)14.89%
Min EPS beat(4)3.02%
Max EPS beat(4)24.32%
EPS beat(8)8
Avg EPS beat(8)13.32%
EPS beat(12)11
Avg EPS beat(12)17.63%
EPS beat(16)14
Avg EPS beat(16)11.81%
Revenue beat(2)2
Avg Revenue beat(2)7.49%
Min Revenue beat(2)3.39%
Max Revenue beat(2)11.59%
Revenue beat(4)4
Avg Revenue beat(4)6.7%
Min Revenue beat(4)3.39%
Max Revenue beat(4)11.59%
Revenue beat(8)6
Avg Revenue beat(8)3.54%
Revenue beat(12)8
Avg Revenue beat(12)3.12%
Revenue beat(16)10
Avg Revenue beat(16)2.49%
PT rev (1m)1.86%
PT rev (3m)25.37%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)3.39%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)8.24%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)3.09%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)1.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.97 | ||
| Fwd PE | 32.99 | ||
| P/S | 6.92 | ||
| P/FCF | 49.18 | ||
| P/OCF | 43.04 | ||
| P/B | 19.14 | ||
| P/tB | 120.61 | ||
| EV/EBITDA | 33.13 |
EPS(TTM)3.82
EY2.18%
EPS(NY)5.32
Fwd EY3.03%
FCF(TTM)3.57
FCFY2.03%
OCF(TTM)4.08
OCFY2.32%
SpS25.36
BVpS9.18
TBVpS1.46
PEG (NY)1
PEG (5Y)N/A
Graham Number28.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.56% | ||
| ROE | 29.48% | ||
| ROCE | 24.15% | ||
| ROIC | 18.23% | ||
| ROICexc | 24.91% | ||
| ROICexgc | 56.24% | ||
| OM | 18.03% | ||
| PM (TTM) | 10.67% | ||
| GM | 35.73% | ||
| FCFM | 14.08% |
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%
ROICexgc growth 3Y43.97%
ROICexgc 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 Turnover0.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 2.14 | ||
| Debt/EBITDA | 1.42 | ||
| Cap/Depr | 66.87% | ||
| Cap/Sales | 2.01% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.49% | ||
| Profit Quality | 132.01% | ||
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.43 | ||
| Altman-Z | 7.35 |
F-Score7
WACC8.63%
ROIC/WACC2.11
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)57.85%
EPS 3Y55.36%
EPS 5YN/A
EPS Q2Q%63.16%
EPS Next Y46.03%
EPS Next 2Y36.67%
EPS Next 3Y32.64%
EPS Next 5Y26.08%
Revenue 1Y (TTM)28.76%
Revenue growth 3Y17.03%
Revenue growth 5Y12.57%
Sales Q2Q%29.02%
Revenue Next Year30.49%
Revenue Next 2Y25.41%
Revenue Next 3Y22.29%
Revenue Next 5Y17.99%
EBIT growth 1Y43.77%
EBIT growth 3Y71.77%
EBIT growth 5Y43.78%
EBIT Next Year50.3%
EBIT Next 3Y34.96%
EBIT Next 5Y24.6%
FCF growth 1Y127.47%
FCF growth 3Y107.92%
FCF growth 5YN/A
OCF growth 1Y115.19%
OCF growth 3Y84.26%
OCF growth 5Y87.13%
VERTIV HOLDINGS CO-A / VRT FAQ
What is the fundamental rating for VRT stock?
ChartMill assigns a fundamental rating of 7 / 10 to VRT.
Can you provide the valuation status for VERTIV HOLDINGS CO-A?
ChartMill assigns a valuation rating of 5 / 10 to VERTIV HOLDINGS CO-A (VRT). This can be considered as Fairly Valued.
Can you provide the profitability details for VERTIV HOLDINGS CO-A?
VERTIV HOLDINGS CO-A (VRT) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for VRT stock?
The Price/Earnings (PE) ratio for VERTIV HOLDINGS CO-A (VRT) is 45.97 and the Price/Book (PB) ratio is 19.14.
What is the earnings growth outlook for VERTIV HOLDINGS CO-A?
The Earnings per Share (EPS) of VERTIV HOLDINGS CO-A (VRT) is expected to grow by 46.03% in the next year.