Investors should take note of NYSE:VRT, a growth stock that remains attractively priced.

Last update: Jan 30, 2025

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.

A Closer Look at Growth for NYSE:VRT

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:

The Earnings Per Share has grown by an impressive 61.33% over the past year.
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.
The Revenue has grown by 13.20% in the past year. This is quite good.
VRT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.23% yearly.
VRT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.85% yearly.
Based on estimates for the next years, VRT will show a quite strong growth in Revenue. The Revenue will grow by 12.76% 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 6 out of 10:

Based on the Price/Earnings ratio, VRT is valued a bit cheaper than 70.33% of the companies in the same industry.
70.33% of the companies in the same industry are more expensive than VRT, based on the Price/Forward Earnings ratio.
VRT is valuated cheaply when we compare the Price/Forward Earnings ratio to 91.29, which is the current average of the S&P500 Index.
68.13% of the companies in the same industry are more expensive than VRT, based on the Enterprise Value to EBITDA ratio.
72.53% of the companies in the same industry are more expensive than VRT, based on the Price/Free Cash Flow ratio.
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.
A more expensive valuation may be justified as VRT's earnings are expected to grow with 36.04% 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:

VRT has an Altman-Z score of 4.93. This indicates that VRT is financially healthy and has little risk of bankruptcy at the moment.
VRT's Altman-Z score of 4.93 is amongst the best of the industry. VRT outperforms 84.62% of its industry peers.
VRT has a debt to FCF ratio of 2.72. This is a good value and a sign of high solvency as VRT would need 2.72 years to pay back of all of its debts.
VRT's Debt to FCF ratio of 2.72 is fine compared to the rest of the industry. VRT outperforms 76.92% of its industry peers.

Assessing Profitability for NYSE:VRT

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 85.71% of the companies in the same industry.
Looking at the Return On Equity, with a value of 32.06%, VRT belongs to the top of the industry, outperforming 96.70% of the companies in the same industry.
VRT's Return On Invested Capital of 14.87% is amongst the best of the industry. VRT outperforms 95.60% 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 has a Profit Margin of 7.72%. This is amongst the best in the industry. VRT outperforms 82.42% of its industry peers.
VRT's Operating Margin of 16.15% is amongst the best of the industry. VRT outperforms 91.21% of its industry peers.
In the last couple of years the Operating Margin of VRT has grown nicely.
VRT has a better Gross Margin (36.48%) than 83.52% of its industry peers.

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

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

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.