NYSE:VST: good value for what you're paying.

Last update: Oct 11, 2023

Our stock screener has spotted VISTRA CORP (NYSE:VST) as an undervalued stock with solid fundamentals. NYSE:VST shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

Valuation Assessment of NYSE:VST

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:VST has achieved a 9 out of 10:

The Price/Earnings ratio is 8.77, which indicates a very decent valuation of VST.
VST's Price/Earnings ratio is rather cheap when compared to the industry. VST is cheaper than 95.24% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.88, VST is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.43, the valuation of VST can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VST indicates a rather cheap valuation: VST is cheaper than 90.48% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 18.97. VST is valued rather cheaply when compared to this.
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 cheaply inside the industry as 80.95% of the companies are valued more expensively.
VST's 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.

How do we evaluate the Profitability for NYSE:VST?

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:VST has achieved a 5:

VST's Return On Assets of 4.75% is amongst the best of the industry. VST outperforms 100.00% of its industry peers.
Looking at the Return On Equity, with a value of 27.00%, VST belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 9.12%, VST belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
With a decent Profit Margin value of 8.70%, VST is doing good in the industry, outperforming 71.43% of the companies in the same industry.
VST's Gross Margin of 82.54% is amongst the best of the industry. VST outperforms 85.71% of its industry peers.

Understanding NYSE:VST's Health Score

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:VST has earned a 5 out of 10:

VST has a better Altman-Z score (1.04) 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.
VST has a better Debt to Equity ratio (2.19) than 61.90% of its industry peers.

Understanding NYSE:VST's Growth

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:VST scores 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.
Looking at the last year, VST shows a very strong growth in Revenue. The Revenue has grown by 50.93%.
Measured over the past years, VST shows a very strong growth in Revenue. The Revenue has been growing by 20.38% on average per year.
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.

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

Disclaimer

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.