NYSE:VST is probably undervalued for the fundamentals it is displaying.

Last update: Oct 5, 2023

Our stock screener has singled out VISTRA CORP (NYSE:VST) as a stellar value proposition. NYSE:VST not only scores well in profitability, solvency, and liquidity but also maintains a very reasonable price point. We'll explore this further.

Deciphering NYSE:VST's Valuation Rating

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NYSE:VST, the assigned 9 reflects its valuation:

A Price/Earnings ratio of 8.58 indicates a reasonable valuation of VST.
Compared to the rest of the industry, the Price/Earnings ratio of VST indicates a rather cheap valuation: VST is cheaper than 95.24% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.33. VST is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 9.22 indicates a reasonable valuation of VST.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VST indicates a rather cheap valuation: VST is cheaper than 95.24% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of VST to the average of the S&P500 Index (18.56), we can say VST is valued rather cheaply.
95.24% of the companies in the same industry are more expensive than VST, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, VST is valued cheaper than 80.95% of the companies in the same industry.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
VST's earnings are expected to grow with 49.77% in the coming years. This may justify a more expensive valuation.

Analyzing Profitability Metrics

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:VST, the assigned 5 is a significant indicator of profitability:

VST's Return On Assets of 4.75% is amongst the best of the industry. VST outperforms 100.00% of its industry peers.
With an excellent Return On Equity value of 27.00%, VST belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
VST's Return On Invested Capital of 9.12% is amongst the best of the industry. VST outperforms 100.00% of its industry peers.
VST has a better Profit Margin (8.70%) than 76.19% of its industry peers.
VST has a Gross Margin of 82.54%. This is amongst the best in the industry. VST outperforms 85.71% of its industry peers.

Health Examination for NYSE:VST

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:VST, the assigned 5 reflects its health status:

Looking at the Altman-Z score, with a value of 1.03, VST belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
The Debt to FCF ratio of VST (8.90) is better than 90.48% of its industry peers.

Unpacking NYSE:VST's Growth Rating

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:VST has received a 5 out of 10:

VST shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 247.58%, which is quite impressive.
The Revenue has grown by 50.93% in the past year. This is a very strong growth!
VST shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.38% yearly.
Based on estimates for the next years, VST will show a very strong growth in Earnings Per Share. The EPS will grow by 32.78% on average per year.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

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

Disclaimer

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.