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

Last update: Nov 3, 2023

Discover VISTRA CORP (NYSE:VST)—an undervalued stock our stock screener has picked out. NYSE:VST demonstrates solid fundamentals, including health and profitability, all while staying attractively priced. Let's explore the details.

Valuation Assessment of 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:

Based on the Price/Earnings ratio of 9.47, the valuation of VST can be described as reasonable.
100.00% of the companies in the same industry are more expensive than VST, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 23.73. VST is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 9.08, which indicates a very decent 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.
VST's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 18.67.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VST indicates a rather cheap valuation: VST is cheaper than 95.24% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VST indicates a rather cheap valuation: VST is cheaper than 80.95% of the companies listed 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 50.24% in the coming years.

Analyzing Profitability Metrics

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:VST has earned a 5 out of 10:

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

What does the Health looks like 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:

VST has a Altman-Z score of 1.06. This is amongst the best in the industry. VST outperforms 85.71% of its industry peers.
Looking at the Debt to FCF ratio, with a value of 8.90, VST belongs to the top of the industry, outperforming 90.48% of the companies in the same industry.
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.

Looking at the Growth

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:

The Earnings Per Share has grown by an impressive 247.58% over the past year.
Looking at the last year, VST shows a very strong growth in Revenue. 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.
The Earnings Per Share is expected to grow by 31.16% on average over the next years. This is a very strong growth

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.