Don't overlook NYSE:VRT—a stock with solid growth prospects and a reasonable valuation.

Our stock screening tool has pinpointed VERTIV HOLDINGS CO-A (NYSE:VRT) as a growth stock that isn't overvalued. NYSE:VRT is excelling in various growth indicators while maintaining a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Growth Assessment of 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 60.11% 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 55.36% on average per year.
• The Revenue has grown by 16.74% 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 12.57% yearly.
• Based on estimates for the next years, VRT will show a very strong growth in Earnings Per Share. The EPS will grow by 20.23% on average per year.
• The Revenue is expected to grow by 12.91% on average over the next years. This is quite good.

Understanding NYSE:VRT's Valuation Score

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:VRT has earned a 5 for valuation:

• VRT's Price/Earnings ratio is a bit cheaper when compared to the industry. VRT is cheaper than 71.74% of the companies in the same industry.
• 75.00% of the companies in the same industry are more expensive than VRT, based on the Price/Forward Earnings ratio.
• VRT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. VRT is cheaper than 71.74% of the companies in the same industry.
• Based on the Price/Free Cash Flow ratio, VRT is valued a bit cheaper than 75.00% of the companies in the same industry.
• VRT has an outstanding 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 24.79% in the coming years.

Evaluating Health: NYSE:VRT

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:VRT has achieved a 6 out of 10:

• VRT has an Altman-Z score of 4.66. This indicates that VRT is financially healthy and has little risk of bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 4.66, VRT belongs to the top of the industry, outperforming 84.78% of the companies in the same industry.
• VRT has a debt to FCF ratio of 2.58. This is a good value and a sign of high solvency as VRT would need 2.58 years to pay back of all of its debts.
• The Debt to FCF ratio of VRT (2.58) is better than 80.43% of its industry peers.

Looking at the Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:VRT, the assigned 8 is a significant indicator of profitability:

• With an excellent Return On Assets value of 5.43%, VRT belongs to the best of the industry, outperforming 82.61% of the companies in the same industry.
• With an excellent Return On Equity value of 20.37%, VRT belongs to the best of the industry, outperforming 93.48% of the companies in the same industry.
• VRT has a better Return On Invested Capital (17.29%) than 95.65% of its industry peers.
• VRT has a better Profit Margin (6.19%) than 81.52% of its industry peers.
• In the last couple of years the Profit Margin of VRT has grown nicely.
• VRT has a better Operating Margin (17.25%) than 91.30% of its industry peers.
• VRT's Operating Margin has improved in the last couple of years.
• VRT has a better Gross Margin (36.62%) than 82.61% of its industry peers.
• VRT's Gross Margin has improved in the last couple of years.

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

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

Disclaimer

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.