VERTIV HOLDINGS CO-A (VRT) Stock Fundamental Analysis
USA - NYSE:VRT - US92537N1081 - Common Stock
190.71 USD
+9.89 (+5.47%)
191.35 USD
+0.64 (+0.34%)
Overall VRT gets a fundamental rating of 7 out of 10. We evaluated VRT against 92 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 growing strongly while it is still valued neutral. This is a good 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.
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
With an excellent Return On Assets value of 9.56%, VRT belongs to the best of the industry, outperforming 91.30% of the companies in the same industry.
VRT has a Return On Equity of 29.48%. This is amongst the best in the industry. VRT outperforms 96.74% of its industry peers.
VRT has a better Return On Invested Capital (18.23%) than 96.74% of its industry peers.
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 10.26%.
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
VRT's Profit Margin of 10.67% is amongst the best of the industry. VRT outperforms 84.78% of its industry peers.
In the last couple of years the Profit Margin of VRT has grown nicely.
VRT has a Operating Margin of 18.03%. This is amongst the best in the industry. VRT outperforms 92.39% of its industry peers.
In the last couple of years the Operating Margin of VRT has grown nicely.
VRT has a better Gross Margin (35.73%) than 80.43% 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.
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
VRT has an Altman-Z score of 7.51. This indicates that VRT is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.51, VRT belongs to the top of the industry, outperforming 89.13% of the companies in the same industry.
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.
The Debt to FCF ratio of VRT (2.14) is better than 86.96% 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 worse Debt to Equity ratio (0.83) than 63.04% 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 | 7.51 |
ROIC/WACC2.13
WACC8.56%
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.
VRT has a Current ratio of 1.83. This is comparable to the rest of the industry: VRT outperforms 52.17% of its industry peers.
A Quick Ratio of 1.43 indicates that VRT should not have too much problems paying its short term obligations.
VRT has a Quick ratio (1.43) which is in line with its industry peers.
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 | 1.83 | ||
| 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.
VRT shows a strong growth in Revenue. In the last year, the Revenue has grown by 28.76%.
Measured over the past years, VRT shows a quite strong growth in Revenue. The Revenue has been growing by 12.57% on average per year.
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 25.17% 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 16.01% on average per year.
EPS Next Y35.19%
EPS Next 2Y30.45%
EPS Next 3Y27.46%
EPS Next 5Y25.17%
Revenue Next Year28.3%
Revenue Next 2Y21.87%
Revenue Next 3Y19.16%
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
With a Price/Earnings ratio of 49.92, VRT can be considered very expensive at the moment.
Based on the Price/Earnings ratio, VRT is valued a bit cheaper than the industry average as 69.57% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.13. VRT is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 39.32 indicates a quite expensive valuation of VRT.
67.39% of the companies in the same industry are more expensive than VRT, based on the Price/Forward Earnings ratio.
VRT is valuated expensively when we compare the Price/Forward Earnings ratio to 22.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.92 | ||
| Fwd PE | 39.32 |
4.2 Price Multiples
70.65% 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 71.74% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.34 | ||
| EV/EBITDA | 34.07 |
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 27.46% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.42
PEG (5Y)N/A
EPS Next 2Y30.45%
EPS Next 3Y27.46%
5. Dividend
5.1 Amount
VRT has a yearly dividend return of 0.08%, which is pretty low.
Compared to an average industry Dividend Yield of 3.00, VRT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, 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 2Y30.45%
EPS Next 3Y27.46%
190.71
+9.89 (+5.47%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners81.44%
Inst Owner Change-1.21%
Ins Owners0.33%
Ins Owner Change0%
Market Cap72.83B
Revenue(TTM)9.70B
Net Income(TTM)1.03B
Analysts80.65
Price Target192.4 (0.89%)
Short Float %2.16%
Short Ratio1.13
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)22.76%
PT rev (3m)49.4%
EPS NQ rev (1m)3.35%
EPS NQ rev (3m)6.56%
EPS NY rev (1m)0.21%
EPS NY rev (3m)7%
Revenue NQ rev (1m)2.8%
Revenue NQ rev (3m)5.88%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)6.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.92 | ||
| Fwd PE | 39.32 | ||
| P/S | 7.51 | ||
| P/FCF | 53.34 | ||
| P/OCF | 46.68 | ||
| P/B | 20.76 | ||
| P/tB | 130.82 | ||
| EV/EBITDA | 34.07 |
EPS(TTM)3.82
EY2%
EPS(NY)4.85
Fwd EY2.54%
FCF(TTM)3.58
FCFY1.87%
OCF(TTM)4.09
OCFY2.14%
SpS25.39
BVpS9.19
TBVpS1.46
PEG (NY)1.42
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 | 7.51 |
F-Score7
WACC8.56%
ROIC/WACC2.13
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 Y35.19%
EPS Next 2Y30.45%
EPS Next 3Y27.46%
EPS Next 5Y25.17%
Revenue 1Y (TTM)28.76%
Revenue growth 3Y17.03%
Revenue growth 5Y12.57%
Sales Q2Q%29.02%
Revenue Next Year28.3%
Revenue Next 2Y21.87%
Revenue Next 3Y19.16%
Revenue Next 5Y16.01%
EBIT growth 1Y43.77%
EBIT growth 3Y71.77%
EBIT growth 5Y43.78%
EBIT Next Year45.43%
EBIT Next 3Y28.61%
EBIT Next 5Y21.9%
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 4 / 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 9 / 10.
What is the financial health of VERTIV HOLDINGS CO-A (VRT) stock?
The financial health rating of VERTIV HOLDINGS CO-A (VRT) is 8 / 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%.