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 gets an excellent profitability rating and is at the same time showing great financial health properties. VRT is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings would make VRT suitable 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
The Return On Assets of VRT (9.56%) is better than 90.00% of its industry peers.
With an excellent Return On Equity value of 29.48%, VRT belongs to the best of the industry, outperforming 97.78% of the companies in the same industry.
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.
Measured over the past 3 years, the Average Return On Invested Capital for VRT is in line with the industry average of 10.41%.
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 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.
VRT's Operating Margin has improved in the last couple of years.
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.
Compared to 1 year ago, VRT has less shares outstanding
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 7.48 indicates that VRT is not in any danger for bankruptcy at the moment.
VRT's Altman-Z score of 7.48 is amongst the best of the industry. VRT outperforms 90.00% 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 87.78% 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 on the low side compared to the rest of the industry. VRT is outperformed by 63.33% 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 | 7.48 |
ROIC/WACC2.15
WACC8.47%
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.
A Quick Ratio of 1.43 indicates that VRT should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.43, VRT is in the better half of the industry, outperforming 63.33% 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.
Measured over the past years, VRT shows a very strong growth in Earnings Per Share. The EPS has been growing by 55.36% on average per year.
Looking at the last year, VRT shows a very strong growth in Revenue. The Revenue has grown by 28.76%.
VRT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.57% yearly.
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
VRT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.99% yearly.
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
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
The Price/Earnings ratio is 47.05, which means the current valuation is very expensive for VRT.
68.89% of the companies in the same industry are more expensive than VRT, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.31, VRT is valued quite expensively.
With a Price/Forward Earnings ratio of 34.14, VRT can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, VRT is valued a bit cheaper than the industry average as 67.78% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 36.59. VRT is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.05 | ||
| Fwd PE | 34.14 |
4.2 Price Multiples
VRT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. VRT is cheaper than 68.89% of the companies in the same industry.
VRT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. VRT is cheaper than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.33 | ||
| EV/EBITDA | 33.9 |
4.3 Compensation for Growth
VRT's 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.
A more expensive valuation may be justified as VRT's earnings are expected to grow with 32.09% in the coming years.
PEG (NY)1.02
PEG (5Y)N/A
EPS Next 2Y35.9%
EPS Next 3Y32.09%
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 3.45, 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 2.34.
| 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
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 Cap68.72B
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 | 0.15% |
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)0.35%
PT rev (3m)23.18%
EPS NQ rev (1m)-0.04%
EPS NQ rev (3m)3.39%
EPS NY rev (1m)8.1%
EPS NY rev (3m)8.52%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)3.27%
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 | 7.09 | ||
| P/FCF | 50.33 | ||
| P/OCF | 44.05 | ||
| P/B | 19.59 | ||
| P/tB | 123.44 | ||
| EV/EBITDA | 33.9 |
EPS(TTM)3.82
EY2.13%
EPS(NY)5.26
Fwd EY2.93%
FCF(TTM)3.57
FCFY1.99%
OCF(TTM)4.08
OCFY2.27%
SpS25.36
BVpS9.18
TBVpS1.46
PEG (NY)1.02
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 | 7.48 |
F-Score7
WACC8.47%
ROIC/WACC2.15
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%.