NYSE:VRT is not too expensive for the growth it is showing.

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.

Understanding NYSE:VRT's Growth

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:VRT was assigned a score of 7 for growth:

• VRT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 61.33%, 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 13.20% in the last year.
• The Revenue has been growing by 16.23% on average over the past years. This is quite good.
• VRT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.21% yearly.
• 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.

How do we evaluate the Valuation for NYSE:VRT?

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NYSE:VRT was assigned a score of 5 for valuation:

• 68.54% of the companies in the same industry are more expensive than VRT, based on the Price/Earnings ratio.
• VRT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. VRT is cheaper than 67.42% of the companies in the same industry.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VRT indicates a somewhat cheap valuation: VRT is cheaper than 67.42% of the companies listed in the same industry.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of VRT indicates a somewhat cheap valuation: VRT is cheaper than 73.03% of the companies listed in the same industry.
• The 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.
• A more expensive valuation may be justified as VRT's earnings are expected to grow with 34.76% in the coming years.

Health Insights: NYSE:VRT

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:VRT scores a 5 out of 10:

• An Altman-Z score of 4.89 indicates that VRT is not in any danger for bankruptcy at the moment.
• VRT has a better Altman-Z score (4.89) than 87.64% of its industry peers.
• The Debt to FCF ratio of VRT is 2.72, which is a good value as it means it would take VRT, 2.72 years of fcf income to pay off all of its debts.
• VRT has a Debt to FCF ratio of 2.72. This is in the better half of the industry: VRT outperforms 79.78% of its industry peers.

How do we evaluate the Profitability for NYSE:VRT?

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:VRT scores a 7 out of 10:

• The Return On Assets of VRT (6.54%) is better than 84.27% of its industry peers.
• VRT has a Return On Equity of 32.06%. This is amongst the best in the industry. VRT outperforms 96.63% of its industry peers.
• VRT has a better Return On Invested Capital (14.87%) than 94.38% of its industry peers.
• The 3 year average ROIC (5.70%) for VRT is below the current ROIC(14.87%), indicating increased profibility in the last year.
• Looking at the Profit Margin, with a value of 7.72%, VRT belongs to the top of the industry, outperforming 83.15% of the companies in the same industry.
• VRT has a Operating Margin of 16.15%. This is amongst the best in the industry. VRT outperforms 91.01% of its industry peers.
• VRT's Operating Margin has improved in the last couple of years.
• VRT's Gross Margin of 36.48% is amongst the best of the industry. VRT outperforms 88.76% of its industry peers.

More Affordable Growth stocks can be found in our Affordable Growth screener.

Check the latest full fundamental report of VRT for a complete fundamental analysis.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.