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

Our stock screener has singled out VERTIV HOLDINGS CO-A (NYSE:VRT) as an attractive growth opportunity. NYSE:VRT is demonstrating remarkable growth potential while maintaining strong financial indicators, making it a reasonably priced option. We'll explore this further.

Growth Analysis for NYSE:VRT

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:VRT scores a 7 out of 10:

• 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.
• VRT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 81.80% yearly.
• The Revenue has grown by 13.20% in the past year. This is quite good.
• The Revenue has been growing by 16.23% on average over the past years. This is quite good.
• 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.
• The Revenue is expected to grow by 8.99% on average over the next years. This is quite good.

Valuation Assessment of 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 70.79% of the companies listed in the same industry.
• Based on the Price/Forward Earnings ratio, VRT is valued a bit cheaper than the industry average as 69.66% of the companies are valued more expensively.
• 68.54% of the companies in the same industry are more expensive than VRT, based on the Enterprise Value to EBITDA ratio.
• Based on the Price/Free Cash Flow ratio, VRT is valued a bit cheaper than 73.03% of the companies in the same industry.
• VRT has a very decent profitability rating, which may justify a higher PE ratio.
• A more expensive valuation may be justified as VRT's earnings are expected to grow with 34.16% in the coming years.

A Closer Look at 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:

• An Altman-Z score of 5.62 indicates that VRT is not in any danger for bankruptcy at the moment.
• The Altman-Z score of VRT (5.62) is better than 85.39% 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.
• Looking at the Debt to FCF ratio, with a value of 2.72, VRT is in the better half of the industry, outperforming 77.53% of the companies in the same industry.

Exploring NYSE:VRT's Profitability

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:VRT has earned a 7 out of 10:

• With an excellent Return On Assets value of 6.54%, VRT belongs to the best of the industry, outperforming 86.52% of the companies in the same industry.
• The Return On Equity of VRT (32.06%) is better than 97.75% of its industry peers.
• The Return On Invested Capital of VRT (14.87%) is better than 96.63% of its industry peers.
• The last Return On Invested Capital (14.87%) for VRT is above the 3 year average (5.70%), which is a sign of increasing profitability.
• VRT's Profit Margin of 7.72% is amongst the best of the industry. VRT outperforms 83.15% of its industry peers.
• VRT has a Operating Margin of 16.15%. This is amongst the best in the industry. VRT outperforms 91.01% of its industry peers.
• In the last couple of years the Operating Margin of VRT has grown nicely.
• The Gross Margin of VRT (36.48%) is better than 83.15% of its industry peers.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

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.