VERTIV HOLDINGS CO-A (VRT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VRT - US92537N1081 - Common Stock
162.01 USD
-2.33 (-1.42%)
162.1 USD
+0.09 (+0.06%)
Overall VRT gets a fundamental rating of 7 out of 10. We evaluated VRT against 91 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. This makes VRT very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
VRT had positive earnings in the past year.
VRT had a positive operating cash flow in the past year.
VRT had positive earnings in 4 of the past 5 years.
Of the past 5 years VRT 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of VRT (9.56%) is better than 90.11% of its industry peers.
VRT has a better Return On Equity (29.48%) than 97.80% of its industry peers.
The Return On Invested Capital of VRT (18.23%) is better than 96.70% 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 9.90%.
The 3 year average ROIC (10.93%) for VRT is below the current ROIC(18.23%), indicating increased profibility in the last year.
| 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
With an excellent Profit Margin value of 10.67%, VRT belongs to the best 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.
Looking at the Operating Margin, with a value of 18.03%, VRT belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
VRT's Operating Margin has improved in the last couple of years.
VRT has a better Gross Margin (35.73%) than 79.12% of its industry peers.
VRT's Gross Margin has improved in the last couple of years.
| 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.
The debt/assets ratio for VRT has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.92 indicates that VRT is not in any danger for bankruptcy at the moment.
VRT's Altman-Z score of 6.92 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 better Debt to FCF ratio (2.14) than 89.01% of its industry peers.
VRT has a Debt/Equity ratio of 0.83. This is a neutral value indicating VRT is somewhat dependend on debt financing.
VRT has a Debt to Equity ratio of 0.83. This is comparable 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 | 6.92 |
ROIC/WACC2.12
WACC8.6%
2.3 Liquidity
A Current Ratio of 1.83 indicates that VRT should not have too much problems paying its short term obligations.
VRT's Current ratio of 1.83 is in line compared to the rest of the industry. VRT outperforms 52.75% of 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.
With a decent Quick ratio value of 1.43, VRT is doing good in the industry, outperforming 62.64% of the companies in the same industry.
| 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.
VRT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 55.36% yearly.
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
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
VRT is valuated quite expensively with a Price/Earnings ratio of 42.41.
VRT's Price/Earnings ratio is a bit cheaper when compared to the industry. VRT is cheaper than 68.13% of the companies in the same industry.
VRT's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.51.
Based on the Price/Forward Earnings ratio of 30.43, the valuation of VRT can be described as expensive.
69.23% of the companies in the same industry are more expensive than VRT, based on the Price/Forward Earnings ratio.
VRT is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.41 | ||
| Fwd PE | 30.43 |
4.2 Price Multiples
70.33% of the companies in the same industry are more expensive than VRT, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VRT indicates a somewhat cheap valuation: VRT is cheaper than 69.23% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.37 | ||
| EV/EBITDA | 30.58 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap 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 32.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.92
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.
VRT's Dividend Yield is a higher than the industry average which is at 0.27.
Compared to an average S&P500 Dividend Yield of 2.00, VRT's dividend is way lower than the S&P500 average.
| 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%
162.01
-2.33 (-1.42%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners80.25%
Inst Owner Change-0.93%
Ins Owners0.28%
Ins Owner Change-0.05%
Market Cap61.94B
Revenue(TTM)9.70B
Net Income(TTM)1.03B
Analysts82.58
Price Target196.66 (21.39%)
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)25.48%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)3.47%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)8.24%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)3.23%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)1.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.41 | ||
| Fwd PE | 30.43 | ||
| P/S | 6.39 | ||
| P/FCF | 45.37 | ||
| P/OCF | 39.7 | ||
| P/B | 17.65 | ||
| P/tB | 111.27 | ||
| EV/EBITDA | 30.58 |
EPS(TTM)3.82
EY2.36%
EPS(NY)5.32
Fwd EY3.29%
FCF(TTM)3.57
FCFY2.2%
OCF(TTM)4.08
OCFY2.52%
SpS25.36
BVpS9.18
TBVpS1.46
PEG (NY)0.92
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 | 6.92 |
F-Score7
WACC8.6%
ROIC/WACC2.12
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 42.41 and the Price/Book (PB) ratio is 17.65.
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.