In the world of growth stocks, NYSE:VRT shines as a value proposition.

Discover VERTIV HOLDINGS CO-A (NYSE:VRT), an undervalued growth gem identified by our stock screener. NYSE:VRT is shining in terms of growth metrics, and it's also displaying strong financial health and profitability. What's more, it retains an appealing valuation. We'll break it down further.

Looking at the Growth

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:VRT has achieved a 8 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.
• 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.
• VRT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.20%.
• 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 27.85% yearly.
• VRT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.76% yearly.

Understanding NYSE:VRT's Valuation Score

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NYSE:VRT has received a 5 out of 10:

• Based on the Price/Earnings ratio, VRT is valued a bit cheaper than 69.32% of the companies in the same industry.
• Based on the Price/Forward Earnings ratio, VRT is valued a bit cheaper than the industry average as 69.32% of the companies are valued more expensively.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VRT indicates a somewhat cheap valuation: VRT is cheaper than 67.05% of the companies listed in the same industry.
• 70.45% of the companies in the same industry are more expensive than VRT, based on the Price/Free Cash Flow ratio.
• VRT has a very decent profitability rating, which may justify a higher PE ratio.
• VRT's earnings are expected to grow with 36.04% in the coming years. This may justify a more expensive valuation.

What does the Health looks like for NYSE:VRT

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:VRT, the assigned 5 for health provides valuable insights:

• An Altman-Z score of 5.57 indicates that VRT is not in any danger for bankruptcy at the moment.
• The Altman-Z score of VRT (5.57) is better than 86.36% 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 77.27% of its industry peers.

Profitability Examination for NYSE:VRT

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:VRT has achieved a 7:

• VRT's Return On Assets of 6.54% is amongst the best of the industry. VRT outperforms 85.23% of its industry peers.
• With an excellent Return On Equity value of 32.06%, VRT belongs to the best of the industry, outperforming 96.59% of the companies in the same industry.
• VRT has a Return On Invested Capital of 14.87%. This is amongst the best in the industry. VRT outperforms 95.45% 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.
• Looking at the Profit Margin, with a value of 7.72%, VRT belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
• VRT's Operating Margin of 16.15% is amongst the best of the industry. VRT outperforms 90.91% 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 82.95% of its industry peers.

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

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

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.