NYSE:VRT, a growth stock which is not overvalued.

Last update: Jul 26, 2024

Take a closer look at VERTIV HOLDINGS CO-A (NYSE:VRT), an affordable growth stock uncovered by our stock screener. NYSE:VRT boasts strong growth prospects and excels in financial health indicators, all while maintaining a reasonable valuation. Let's break it down further.

Exploring NYSE:VRT's Growth

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:VRT has earned a 7 for growth:

VRT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 80.17%, 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 81.80% on average per year.
Looking at the last year, VRT shows a quite strong growth in Revenue. The Revenue has grown by 12.66% in the last year.
Measured over the past years, VRT shows a quite strong growth in Revenue. The Revenue has been growing by 16.23% on average per year.
Based on estimates for the next years, VRT will show a very strong growth in Earnings Per Share. The EPS will grow by 27.21% 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 8.99% on average per year.

Valuation Examination for NYSE:VRT

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:VRT scores a 5 out of 10:

Compared to the rest of the industry, the Price/Earnings ratio of VRT indicates a somewhat cheap valuation: VRT is cheaper than 69.57% of the companies listed in the same industry.
Based on the Price/Forward Earnings ratio, VRT is valued a bit cheaper than 70.65% of the companies in the same industry.
VRT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. VRT is cheaper than 70.65% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VRT is valued a bit cheaper than 73.91% of the companies in the same industry.
VRT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of VRT may justify a higher PE ratio.
VRT's earnings are expected to grow with 31.75% in the coming years. This may justify a more expensive valuation.

How We Gauge Health for NYSE:VRT

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:VRT, the assigned 5 reflects its health status:

VRT has an Altman-Z score of 4.02. This indicates that VRT is financially healthy and has little risk of bankruptcy at the moment.
VRT has a Altman-Z score of 4.02. This is in the better half of the industry: VRT outperforms 75.00% of its industry peers.
VRT has a debt to FCF ratio of 3.05. This is a good value and a sign of high solvency as VRT would need 3.05 years to pay back of all of its debts.
VRT has a better Debt to FCF ratio (3.05) than 81.52% of its industry peers.

What does the Profitability looks like for NYSE:VRT

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:VRT, the assigned 7 is noteworthy for profitability:

VRT has a Return On Assets of 6.15%. This is amongst the best in the industry. VRT outperforms 80.43% of its industry peers.
Looking at the Return On Equity, with a value of 32.45%, VRT belongs to the top of the industry, outperforming 95.65% of the companies in the same industry.
VRT's Return On Invested Capital of 14.29% is amongst the best of the industry. VRT outperforms 94.57% of its industry peers.
The last Return On Invested Capital (14.29%) for VRT is above the 3 year average (5.70%), which is a sign of increasing profitability.
The Profit Margin of VRT (6.93%) is better than 81.52% of its industry peers.
Looking at the Operating Margin, with a value of 15.11%, VRT belongs to the top of the industry, outperforming 88.04% of the companies in the same industry.
VRT's Operating Margin has improved in the last couple of years.
The Gross Margin of VRT (36.37%) is better than 85.87% of its industry peers.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of VRT

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.