VERTIV HOLDINGS CO-A (VRT) Stock Fundamental Analysis
USA - NYSE:VRT - US92537N1081 - Common Stock
174 USD
-3.82 (-2.15%)
174.997 USD
+1 (+0.57%)
VRT gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals 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 not overvalued while it is showing excellent growth. This is an interesting combination. 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.
VRT had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
VRT's Return On Assets of 7.81% is amongst the best of the industry. VRT outperforms 86.02% of its industry peers.
With an excellent Return On Equity value of 25.99%, VRT belongs to the best of the industry, outperforming 94.62% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 17.60%, VRT belongs to the top of the industry, outperforming 96.77% 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 10.15%.
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
VRT has a better Profit Margin (8.93%) than 83.87% of its industry peers.
VRT's Profit Margin has improved in the last couple of years.
VRT has a Operating Margin of 17.41%. This is amongst the best in the industry. VRT outperforms 92.47% of its industry peers.
VRT's Operating Margin has improved in the last couple of years.
VRT's Gross Margin of 35.29% is fine compared to the rest of the industry. VRT outperforms 79.57% 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.
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.
Compared to 1 year ago, VRT has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 7.31 indicates that VRT is not in any danger for bankruptcy at the moment.
VRT has a better Altman-Z score (7.31) than 88.17% 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 Debt to FCF ratio of 2.35. This is amongst the best in the industry. VRT outperforms 87.10% of its industry peers.
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 65.59% 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 | 7.31 |
ROIC/WACC2.09
WACC8.43%
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 has a Quick ratio of 1.35. This is in the better half of the industry: VRT outperforms 60.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.74 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 53.21% over the past year.
VRT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 55.36% yearly.
VRT shows a strong growth in Revenue. In the last year, the Revenue has grown by 26.31%.
The Revenue has been growing by 12.57% on average over the past years. This is quite good.
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 a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.17% yearly.
The Revenue is expected to grow by 16.01% on average over the next years. This is quite good.
EPS Next Y34.91%
EPS Next 2Y29.87%
EPS Next 3Y26.59%
EPS Next 5Y25.17%
Revenue Next Year28.1%
Revenue Next 2Y21.48%
Revenue Next 3Y18.66%
Revenue Next 5Y16.01%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 52.10, the valuation of VRT can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of VRT indicates a somewhat cheap valuation: VRT is cheaper than 69.89% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.40. VRT is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 36.20, the valuation of VRT can be described as expensive.
Based on the Price/Forward Earnings ratio, VRT is valued a bit cheaper than 67.74% of the companies in the same industry.
VRT is valuated expensively when we compare the Price/Forward Earnings ratio to 22.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.1 | ||
| Fwd PE | 36.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VRT is valued a bit cheaper than 70.97% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VRT is valued a bit cheaper than 70.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.49 | ||
| EV/EBITDA | 36.93 |
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 26.59% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.49
PEG (5Y)N/A
EPS Next 2Y29.87%
EPS Next 3Y26.59%
5. Dividend
5.1 Amount
With a yearly dividend of 0.09%, VRT is not a good candidate for dividend investing.
VRT's Dividend Yield is a higher than the industry average which is at 3.06.
Compared to an average S&P500 Dividend Yield of 2.38, VRT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.09% |
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 3Y26.59%
174
-3.82 (-2.15%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners81.44%
Inst Owner Change0.13%
Ins Owners0.33%
Ins Owner Change0%
Market Cap66.45B
Analysts80.65
Price Target156.87 (-9.84%)
Short Float %2.98%
Short Ratio1.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.09% |
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)0.09%
PT rev (3m)31.15%
EPS NQ rev (1m)0.1%
EPS NQ rev (3m)2.21%
EPS NY rev (1m)0.18%
EPS NY rev (3m)6.78%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)6.38%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)5.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.1 | ||
| Fwd PE | 36.2 | ||
| P/S | 7.31 | ||
| P/FCF | 53.49 | ||
| P/OCF | 46.48 | ||
| P/B | 21.26 | ||
| P/tB | 223.57 | ||
| EV/EBITDA | 36.93 |
EPS(TTM)3.34
EY1.92%
EPS(NY)4.81
Fwd EY2.76%
FCF(TTM)3.25
FCFY1.87%
OCF(TTM)3.74
OCFY2.15%
SpS23.81
BVpS8.18
TBVpS0.78
PEG (NY)1.49
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 | 7.31 |
F-Score6
WACC8.43%
ROIC/WACC2.09
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 Y34.91%
EPS Next 2Y29.87%
EPS Next 3Y26.59%
EPS Next 5Y25.17%
Revenue 1Y (TTM)26.31%
Revenue growth 3Y17.03%
Revenue growth 5Y12.57%
Sales Q2Q%35.09%
Revenue Next Year28.1%
Revenue Next 2Y21.48%
Revenue Next 3Y18.66%
Revenue Next 5Y16.01%
EBIT growth 1Y45.55%
EBIT growth 3Y71.77%
EBIT growth 5Y43.78%
EBIT Next Year45.43%
EBIT Next 3Y28.61%
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%