VERTIV HOLDINGS CO-A (VRT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VRT - US92537N1081 - Common Stock
179.73 USD
+7.71 (+4.48%)
181.4 USD
+1.67 (+0.93%)
Overall VRT gets a fundamental rating of 7 out of 10. We evaluated VRT against 90 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! 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.
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 90.00% of the companies in the same industry.
The Return On Equity of VRT (29.48%) is better than 97.78% of its industry peers.
With an excellent Return On Invested Capital value of 18.23%, VRT belongs to the best of the industry, outperforming 96.67% 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 10.41%.
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
VRT has a better Profit Margin (10.67%) than 85.56% of its industry peers.
VRT's Profit Margin has improved in the last couple of years.
The Operating Margin of VRT (18.03%) is better than 92.22% of its industry peers.
In the last couple of years the Operating Margin of VRT has grown nicely.
VRT has a Gross Margin of 35.73%. This is in the better half of the industry: VRT outperforms 80.00% of its industry peers.
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
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.
VRT has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, VRT has an improved debt to assets ratio.
2.2 Solvency
VRT has an Altman-Z score of 7.23. This indicates that VRT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of VRT (7.23) is better than 90.00% of its industry peers.
VRT has a debt to FCF ratio of 2.14. This is a good value and a sign of high solvency as VRT would need 2.14 years to pay back of all of its debts.
VRT has a Debt to FCF ratio of 2.14. This is amongst the best in the industry. VRT outperforms 87.78% of its industry peers.
A Debt/Equity ratio of 0.83 indicates that VRT is somewhat dependend on debt financing.
VRT has a worse Debt to Equity ratio (0.83) than 63.33% 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 | 0.83 | ||
| Debt/FCF | 2.14 | ||
| Altman-Z | 7.23 |
ROIC/WACC2.16
WACC8.45%
2.3 Liquidity
VRT has a Current Ratio of 1.83. This is a normal value and indicates that VRT is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of VRT (1.83) is comparable to the rest of the industry.
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.
The Quick ratio of VRT (1.43) is better than 63.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 57.85% over the past year.
The Earnings Per Share has been growing by 55.36% on average over the past years. This is a very strong growth
VRT shows a strong growth in Revenue. In the last year, the Revenue has grown by 28.76%.
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
Based on estimates for the next years, VRT will show a very strong growth in Earnings Per Share. The EPS will grow by 26.08% 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 17.99% on average per year.
EPS Next Y46.14%
EPS Next 2Y35.9%
EPS Next 3Y32.09%
EPS Next 5Y26.08%
Revenue Next Year30.48%
Revenue Next 2Y25.01%
Revenue Next 3Y22%
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
A Price/Earnings ratio of 47.05 indicates a quite expensive valuation of VRT.
Compared to the rest of the industry, the Price/Earnings ratio of VRT indicates a somewhat cheap valuation: VRT is cheaper than 67.78% of the companies listed in the same industry.
VRT is valuated expensively when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 34.14, VRT can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VRT indicates a somewhat cheap valuation: VRT is cheaper than 68.89% of the companies listed in the same industry.
VRT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 36.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.05 | ||
| Fwd PE | 34.14 |
4.2 Price Multiples
68.89% 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 70.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.27 | ||
| EV/EBITDA | 32.42 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of VRT may justify a higher PE ratio.
VRT's earnings are expected to grow with 32.09% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.02
PEG (5Y)N/A
EPS Next 2Y35.9%
EPS Next 3Y32.09%
5. Dividend
5.1 Amount
With a yearly dividend of 0.08%, VRT is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.48, VRT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, VRT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.08% |
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
5.48% of the earnings are spent on dividend by VRT. This is a low number and sustainable payout ratio.
DP5.48%
EPS Next 2Y35.9%
EPS Next 3Y32.09%
179.73
+7.71 (+4.48%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners81.44%
Inst Owner Change-1.02%
Ins Owners0.33%
Ins Owner Change0%
Market Cap68.63B
Revenue(TTM)9.70B
Net Income(TTM)1.03B
Analysts82.58
Price Target193.07 (7.42%)
Short Float %2.13%
Short Ratio1.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.08% |
Yearly Dividend0.11
Dividend Growth(5Y)N/A
DP5.48%
Div Incr Years2
Div Non Decr Years4
Ex-Date
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)23.07%
PT rev (3m)23.18%
EPS NQ rev (1m)3%
EPS NQ rev (3m)3.17%
EPS NY rev (1m)8.1%
EPS NY rev (3m)8.52%
Revenue NQ rev (1m)3.31%
Revenue NQ rev (3m)3.35%
Revenue NY rev (1m)1.7%
Revenue NY rev (3m)2.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.05 | ||
| Fwd PE | 34.14 | ||
| P/S | 7.08 | ||
| P/FCF | 50.27 | ||
| P/OCF | 43.99 | ||
| P/B | 19.56 | ||
| P/tB | 123.29 | ||
| EV/EBITDA | 32.42 |
EPS(TTM)3.82
EY2.13%
EPS(NY)5.26
Fwd EY2.93%
FCF(TTM)3.58
FCFY1.99%
OCF(TTM)4.09
OCFY2.27%
SpS25.39
BVpS9.19
TBVpS1.46
PEG (NY)1.02
PEG (5Y)N/A
Graham Number28.1
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 | 7.23 |
F-Score7
WACC8.45%
ROIC/WACC2.16
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 Y46.14%
EPS Next 2Y35.9%
EPS Next 3Y32.09%
EPS Next 5Y26.08%
Revenue 1Y (TTM)28.76%
Revenue growth 3Y17.03%
Revenue growth 5Y12.57%
Sales Q2Q%29.02%
Revenue Next Year30.48%
Revenue Next 2Y25.01%
Revenue Next 3Y22%
Revenue Next 5Y17.99%
EBIT growth 1Y43.77%
EBIT growth 3Y71.77%
EBIT growth 5Y43.78%
EBIT Next Year45.43%
EBIT Next 3Y28.61%
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.
What is the valuation status of VERTIV HOLDINGS CO-A (VRT) stock?
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.
What is the financial health of VERTIV HOLDINGS CO-A (VRT) stock?
The financial health rating of VERTIV HOLDINGS CO-A (VRT) is 7 / 10.
How sustainable is the dividend of VERTIV HOLDINGS CO-A (VRT) stock?
The dividend rating of VERTIV HOLDINGS CO-A (VRT) is 3 / 10 and the dividend payout ratio is 5.48%.