VERTIV HOLDINGS CO-A (VRT)
US92537N1081 - Common Stock
Overall VRT gets a fundamental rating of 6 out of 10. We evaluated VRT against 88 industry peers in the Electrical Equipment industry. VRT has an excellent profitability rating, but there are some minor concerns on its financial health. VRT is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings would make VRT suitable for growth investing!
1. Profitability
1.1 Basic Checks
VRT had positive earnings in the past year.
In the past year VRT had a positive cash flow from operations.
In multiple years VRT reported negative net income over the last 5 years.
Of the past 5 years VRT 4 years had a positive operating cash flow.
1.2 Ratios
VRT has a better Return On Assets (6.54%) than 86.36% of its industry peers.
VRT has a better Return On Equity (32.06%) than 97.73% of its industry peers.
The Return On Invested Capital of VRT (14.87%) is better than 96.59% of its industry peers.
VRT had an Average Return On Invested Capital over the past 3 years of 5.70%. This is below the industry average of 9.38%.
The last Return On Invested Capital (14.87%) for VRT is above the 3 year average (5.70%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.54% | ||
| ROE | 32.06% | ||
| ROIC | 14.87% |
ROA(3y)2.85%
ROA(5y)-3.55%
ROE(3y)12.2%
ROE(5y)-9.62%
ROIC(3y)5.7%
ROIC(5y)9.13%
1.3 Margins
VRT has a Profit Margin of 7.72%. This is amongst the best in the industry. VRT outperforms 82.95% of its industry peers.
VRT has a Operating Margin of 16.15%. This is amongst the best in the industry. VRT outperforms 90.91% of its industry peers.
VRT's Operating Margin has improved in the last couple of years.
VRT has a better Gross Margin (36.48%) than 82.95% of its industry peers.
In the last couple of years the Gross Margin of VRT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.15% | ||
| PM (TTM) | 7.72% | ||
| GM | 36.48% |
OM growth 3Y20.45%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.23%
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), VRT is creating some value.
VRT has more shares outstanding than it did 1 year ago.
VRT has more shares outstanding than it did 5 years ago.
VRT has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.20 indicates that VRT is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.20, VRT belongs to the best of the industry, outperforming 84.09% of the companies in the same industry.
VRT has a debt to FCF ratio of 2.72. This is a good value and a sign of high solvency as VRT would need 2.72 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.72, VRT is doing good in the industry, outperforming 77.27% of the companies in the same industry.
VRT has a Debt/Equity ratio of 1.60. This is a high value indicating a heavy dependency on external financing.
VRT has a Debt to Equity ratio of 1.60. This is in the lower half of the industry: VRT underperforms 77.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | 2.72 | ||
| Altman-Z | 5.2 |
ROIC/WACC1.47
WACC10.08%
2.3 Liquidity
VRT has a Current Ratio of 1.38. This is a normal value and indicates that VRT is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.38, VRT is doing worse than 72.73% of the companies in the same industry.
A Quick Ratio of 1.02 indicates that VRT should not have too much problems paying its short term obligations.
The Quick ratio of VRT (1.02) is worse than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 61.33% over the past year.
Measured over the past years, VRT shows a very strong growth in Earnings Per Share. The EPS has been growing by 81.80% on average per year.
Looking at the last year, VRT shows a quite strong growth in Revenue. The Revenue has grown by 13.20% in the last year.
The Revenue has been growing by 16.23% on average over the past years. This is quite good.
EPS 1Y (TTM)61.33%
EPS 3Y30.55%
EPS 5Y81.8%
EPS Q2Q%46.15%
Revenue 1Y (TTM)13.2%
Revenue growth 3Y16.23%
Revenue growth 5YN/A
Sales Q2Q%19.02%
3.2 Future
The Earnings Per Share is expected to grow by 27.85% on average over the next years. This is a very strong growth
VRT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.76% yearly.
EPS Next Y53.43%
EPS Next 2Y42.07%
EPS Next 3Y36.04%
EPS Next 5Y27.85%
Revenue Next Year13.77%
Revenue Next 2Y15.46%
Revenue Next 3Y15.04%
Revenue Next 5Y12.76%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 49.07 indicates a quite expensive valuation of VRT.
Based on the Price/Earnings ratio, VRT is valued a bit cheaper than 70.45% of the companies in the same industry.
VRT's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.54.
A Price/Forward Earnings ratio of 33.05 indicates a quite expensive valuation of VRT.
VRT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. VRT is cheaper than 70.45% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.99. VRT is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.07 | ||
| Fwd PE | 33.05 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VRT indicates a somewhat cheap valuation: VRT is cheaper than 68.18% of the companies listed in the same industry.
72.73% of the companies in the same industry are more expensive than VRT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.32 | ||
| EV/EBITDA | 31.25 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of VRT may justify a higher PE ratio.
A more expensive valuation may be justified as VRT's earnings are expected to grow with 36.04% in the coming years.
PEG (NY)0.92
PEG (5Y)0.6
EPS Next 2Y42.07%
EPS Next 3Y36.04%
5. Dividend
5.1 Amount
With a yearly dividend of 0.13%, VRT is not a good candidate for dividend investing.
VRT's Dividend Yield is a higher than the industry average which is at 3.42.
With a Dividend Yield of 0.13, VRT pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.13% |
5.2 History
VRT has been paying a dividend for over 5 years, so it has already some track record.
VRT has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years4
5.3 Sustainability
6.47% of the earnings are spent on dividend by VRT. This is a low number and sustainable payout ratio.
DP6.47%
EPS Next 2Y42.07%
EPS Next 3Y36.04%
VERTIV HOLDINGS CO-A
NYSE:VRT (12/24/2024, 7:44:42 PM)
After market: 118.53 -0.21 (-0.18%)118.74
+1 (+0.85%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners85.04%
Inst Owner Change1.7%
Ins Owners0.91%
Ins Owner Change-0.07%
Market Cap44.57B
Analysts85.45
Price Target141.26 (18.97%)
Short Float %4.08%
Short Ratio2.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.13% |
Dividend Growth(5Y)N/A
DP6.47%
Div Incr Years2
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.53%
Min EPS beat(2)9.14%
Max EPS beat(2)15.92%
EPS beat(4)4
Avg EPS beat(4)11.76%
Min EPS beat(4)3.67%
Max EPS beat(4)18.29%
EPS beat(8)7
Avg EPS beat(8)19%
EPS beat(12)10
Avg EPS beat(12)10.78%
EPS beat(16)13
Avg EPS beat(16)15.05%
Revenue beat(2)1
Avg Revenue beat(2)1.77%
Min Revenue beat(2)-0.32%
Max Revenue beat(2)3.86%
Revenue beat(4)2
Avg Revenue beat(4)0.38%
Min Revenue beat(4)-2.03%
Max Revenue beat(4)3.86%
Revenue beat(8)4
Avg Revenue beat(8)1.33%
Revenue beat(12)6
Avg Revenue beat(12)1.08%
Revenue beat(16)9
Avg Revenue beat(16)1.3%
PT rev (1m)20.02%
PT rev (3m)33.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)11.73%
EPS NY rev (1m)0.64%
EPS NY rev (3m)8.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.6%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)1.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.07 | ||
| Fwd PE | 33.05 | ||
| P/S | 5.92 | ||
| P/FCF | 41.32 | ||
| P/OCF | 35.65 | ||
| P/B | 24.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 31.25 |
EPS(TTM)2.42
EY2.04%
EPS(NY)3.59
Fwd EY3.03%
FCF(TTM)2.87
FCFY2.42%
OCF(TTM)3.33
OCFY2.81%
SpS20.06
BVpS4.83
TBVpS-2.95
PEG (NY)0.92
PEG (5Y)0.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.54% | ||
| ROE | 32.06% | ||
| ROCE | 22.51% | ||
| ROIC | 14.87% | ||
| ROICexc | 17.87% | ||
| ROICexgc | 51.1% | ||
| OM | 16.15% | ||
| PM (TTM) | 7.72% | ||
| GM | 36.48% | ||
| FCFM | 14.32% |
ROA(3y)2.85%
ROA(5y)-3.55%
ROE(3y)12.2%
ROE(5y)-9.62%
ROIC(3y)5.7%
ROIC(5y)9.13%
ROICexc(3y)6.42%
ROICexc(5y)N/A
ROICexgc(3y)18.42%
ROICexgc(5y)N/A
ROCE(3y)8.62%
ROCE(5y)13.82%
ROICexcg growth 3Y8.46%
ROICexcg growth 5YN/A
ROICexc growth 3Y16.04%
ROICexc growth 5YN/A
OM growth 3Y20.45%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.23%
GM growth 5YN/A
F-Score7
Asset Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | 2.72 | ||
| Debt/EBITDA | 1.95 | ||
| Cap/Depr | 62.5% | ||
| Cap/Sales | 2.28% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.86% | ||
| Profit Quality | 185.5% | ||
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | 5.2 |
F-Score7
WACC10.08%
ROIC/WACC1.47
Cap/Depr(3y)41.21%
Cap/Depr(5y)36.85%
Cap/Sales(3y)1.87%
Cap/Sales(5y)1.68%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)61.33%
EPS 3Y30.55%
EPS 5Y81.8%
EPS Q2Q%46.15%
EPS Next Y53.43%
EPS Next 2Y42.07%
EPS Next 3Y36.04%
EPS Next 5Y27.85%
Revenue 1Y (TTM)13.2%
Revenue growth 3Y16.23%
Revenue growth 5YN/A
Sales Q2Q%19.02%
Revenue Next Year13.77%
Revenue Next 2Y15.46%
Revenue Next 3Y15.04%
Revenue Next 5Y12.76%
EBIT growth 1Y54.18%
EBIT growth 3Y40%
EBIT growth 5YN/A
EBIT Next Year50.05%
EBIT Next 3Y35.29%
EBIT Next 5Y26.93%
FCF growth 1Y370.64%
FCF growth 3Y69.89%
FCF growth 5YN/A
OCF growth 1Y520.98%
OCF growth 3Y62.75%
OCF growth 5YN/A