In a market where value is scarce, NYSE:VST offers a refreshing opportunity with its solid fundamentals.

Last update: Oct 9, 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.

Exploring NYSE:VST's Valuation

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:VST has earned a 9 for valuation:

Based on the Price/Earnings ratio of 8.62, the valuation of VST can be described as reasonable.
Based on the Price/Earnings ratio, VST is valued cheaply inside the industry as 95.24% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of VST to the average of the S&P500 Index (25.46), we can say VST is valued rather cheaply.
A Price/Forward Earnings ratio of 9.27 indicates a reasonable valuation of VST.
95.24% of the companies in the same industry are more expensive than VST, based on the Price/Forward Earnings ratio.
VST's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 18.67.
Based on the Enterprise Value to EBITDA ratio, VST is valued cheaply inside the industry as 95.24% of the companies are valued more expensively.
VST's Price/Free Cash Flow ratio is rather cheap when compared to the industry. VST is cheaper than 80.95% of the companies in the same industry.
VST's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as VST's earnings are expected to grow with 49.77% in the coming years.

Profitability Assessment of NYSE:VST

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.
The Return On Equity of VST (27.00%) is better than 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 9.12%, VST belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
VST's Profit Margin of 8.70% is fine compared to the rest of the industry. VST outperforms 71.43% of its industry peers.
The Gross Margin of VST (82.54%) is better than 85.71% of its industry peers.

Understanding NYSE:VST's Health Score

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:VST was assigned a score of 5 for health:

The Altman-Z score of VST (1.03) is better than 80.95% of its industry peers.
VST's Debt to FCF ratio of 8.90 is amongst the best of the industry. VST outperforms 90.48% of its industry peers.
Looking at the Debt to Equity ratio, with a value of 2.19, VST is in the better half of the industry, outperforming 61.90% of the companies in the same industry.

Growth Assessment of NYSE:VST

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:VST was assigned a score of 5 for growth:

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!
The Revenue has been growing by 20.38% on average over the past years. This is a very strong growth!
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.

More Decent Value stocks can be found in our Decent Value screener.

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

Keep in mind

This article should in no way be interpreted as advice in any way. 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.