NYSE:VST, an undervalued stock with good fundamentals.

Last update: Oct 13, 2023

Our stock screening tool has pinpointed VISTRA CORP (NYSE:VST) as an undervalued stock. NYSE:VST maintains a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

What does the Valuation looks like for NYSE:VST

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:VST boasts a 9 out of 10:

VST is valuated reasonably with a Price/Earnings ratio of 8.69.
Based on the Price/Earnings ratio, VST is valued cheaply inside the industry as 95.24% of the companies are valued more expensively.
VST is valuated cheaply when we compare the Price/Earnings ratio to 25.71, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 9.34 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 90.48% of the companies listed in the same industry.
VST is valuated cheaply when we compare the Price/Forward Earnings ratio to 18.80, which is the current average of the S&P500 Index.
VST's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VST is cheaper than 95.24% of the companies in the same industry.
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.

Profitability Analysis for NYSE:VST

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:VST scores a 5 out of 10:

VST has a better Return On Assets (4.75%) than 100.00% of its industry peers.
VST has a better Return On Equity (27.00%) than 100.00% of its industry peers.
VST has a better Return On Invested Capital (9.12%) than 100.00% of its industry peers.
VST has a better Profit Margin (8.70%) than 71.43% of its industry peers.
VST's Gross Margin of 82.54% is amongst the best of the industry. VST outperforms 85.71% of its industry peers.

Assessing Health Metrics for NYSE:VST

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:

Looking at the Altman-Z score, with a value of 1.04, VST belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
With an excellent Debt to FCF ratio value of 8.90, VST belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
VST's Debt to Equity ratio of 2.19 is fine compared to the rest of the industry. VST outperforms 61.90% of its industry peers.

Analyzing Growth Metrics

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.
VST shows a strong growth in Revenue. In the last year, the Revenue has grown by 50.93%.
VST shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.38% yearly.
VST is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 32.78% yearly.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

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

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.