VERTIV HOLDINGS CO-A (VRT) Stock Fundamental Analysis
NYSE:VRT - New York Stock Exchange, Inc. - US92537N1081 - Common Stock - Currency: USD
Taking everything into account, VRT scores 6 out of 10 in our fundamental rating. VRT was compared to 93 industry peers in the Electrical Equipment industry. While VRT has a great profitability rating, there are some minor concerns on its financial health. VRT is growing strongly while it is still valued neutral. This is a good combination! With these ratings, VRT could be worth investigating further 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.
VRT had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
VRT has a better Return On Assets (6.54%) than 85.71% of its industry peers.
VRT's Return On Equity of 32.06% is amongst the best of the industry. VRT outperforms 96.70% of its industry peers.
VRT's Return On Invested Capital of 14.87% is amongst the best of the industry. VRT outperforms 95.60% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VRT is below the industry average of 10.24%.
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
With an excellent Profit Margin value of 7.72%, VRT belongs to the best of the industry, outperforming 82.42% of the companies in the same industry.
VRT has a Operating Margin of 16.15%. This is amongst the best in the industry. VRT outperforms 91.21% of its industry peers.
In the last couple of years the Operating Margin of VRT has grown nicely.
The Gross Margin of VRT (36.48%) is better than 83.52% of its industry peers.
VRT's Gross Margin has been stable in the last couple of years.
| 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
VRT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for VRT has been increased compared to 1 year ago.
The number of shares outstanding for VRT has been increased compared to 5 years ago.
VRT has a better debt/assets ratio than last year.
2.2 Solvency
VRT has an Altman-Z score of 4.93. This indicates that VRT is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.93, VRT belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
The Debt to FCF ratio of VRT is 2.72, which is a good value as it means it would take VRT, 2.72 years of fcf income to pay off all of its debts.
VRT's Debt to FCF ratio of 2.72 is fine compared to the rest of the industry. VRT outperforms 76.92% of its industry peers.
VRT has a Debt/Equity ratio of 1.60. This is a high value indicating a heavy dependency on external financing.
VRT has a worse Debt to Equity ratio (1.60) than 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | 2.72 | ||
| Altman-Z | 4.93 |
ROIC/WACC1.46
WACC10.17%
2.3 Liquidity
A Current Ratio of 1.38 indicates that VRT should not have too much problems paying its short term obligations.
VRT has a worse Current ratio (1.38) than 69.23% of its industry peers.
A Quick Ratio of 1.02 indicates that VRT should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.02, VRT is not doing good in the industry: 60.44% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
VRT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 61.33%, which is quite impressive.
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.
Measured over the past years, VRT shows a quite strong growth in Revenue. The Revenue has been growing by 16.23% on average per year.
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
VRT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.85% yearly.
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 Year13.79%
Revenue Next 2Y15.32%
Revenue Next 3Y14.97%
Revenue Next 5Y12.76%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
VRT is valuated quite expensively with a Price/Earnings ratio of 47.36.
70.33% of the companies in the same industry are more expensive than VRT, based on the Price/Earnings ratio.
VRT's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.51.
A Price/Forward Earnings ratio of 31.90 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 70.33% of the companies in the same industry.
VRT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 93.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.36 | ||
| Fwd PE | 31.9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VRT is valued a bit cheaper than 68.13% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VRT is valued a bit cheaper than 72.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.88 | ||
| EV/EBITDA | 29.17 |
4.3 Compensation for Growth
VRT's 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)0.89
PEG (5Y)0.58
EPS Next 2Y42.07%
EPS Next 3Y36.04%
5. Dividend
5.1 Amount
VRT has a yearly dividend return of 0.10%, which is pretty low.
Compared to an average industry Dividend Yield of 3.41, VRT pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.10, VRT pays less dividend than the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.1% |
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 (1/30/2025, 7:59:56 PM)
After market: 116.28 +1.68 (+1.47%)114.6
+4.14 (+3.75%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners85.04%
Inst Owner Change1.49%
Ins Owners0.91%
Ins Owner Change-0.07%
Market Cap43.01B
Analysts83.33
Price Target142.67 (24.49%)
Short Float %3.54%
Short Ratio2.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.1% |
Yearly Dividend0.03
Dividend Growth(5Y)N/A
DP6.47%
Div Incr Years2
Div Non Decr Years4
Ex-DateN/A
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)1%
PT rev (3m)21.23%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.52%
EPS NY rev (1m)0%
EPS NY rev (3m)8.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.09%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.36 | ||
| Fwd PE | 31.9 | ||
| P/S | 5.71 | ||
| P/FCF | 39.88 | ||
| P/OCF | 34.4 | ||
| P/B | 23.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 29.17 |
EPS(TTM)2.42
EY2.11%
EPS(NY)3.59
Fwd EY3.14%
FCF(TTM)2.87
FCFY2.51%
OCF(TTM)3.33
OCFY2.91%
SpS20.06
BVpS4.83
TBVpS-2.95
PEG (NY)0.89
PEG (5Y)0.58
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 | 4.93 |
F-Score7
WACC10.17%
ROIC/WACC1.46
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 Year13.79%
Revenue Next 2Y15.32%
Revenue Next 3Y14.97%
Revenue Next 5Y12.76%
EBIT growth 1Y54.18%
EBIT growth 3Y40%
EBIT growth 5YN/A
EBIT Next Year53.48%
EBIT Next 3Y35.69%
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