VERTIV HOLDINGS CO-A (VRT)
US92537N1081 - Common Stock
We assign a fundamental rating of 6 out of 10 to VRT. VRT was compared to 90 industry peers in the Electrical Equipment industry. While VRT belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. VRT is growing strongly while it is still valued neutral. This is a good combination! 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.
The reported net income has been mixed in the past 5 years: VRT reported negative net income in multiple years.
VRT had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.54%, VRT belongs to the top of the industry, outperforming 86.52% of the companies in the same industry.
VRT has a Return On Equity of 32.06%. This is amongst the best in the industry. VRT outperforms 97.75% of its industry peers.
The Return On Invested Capital of VRT (14.87%) is better than 96.63% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VRT is below the industry average of 9.55%.
The 3 year average ROIC (5.70%) for VRT is below the current ROIC(14.87%), indicating increased profibility in the last year.
| 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 better Profit Margin (7.72%) than 83.15% of its industry peers.
VRT has a better Operating Margin (16.15%) than 92.13% of its industry peers.
In the last couple of years the Operating Margin of VRT has grown nicely.
VRT's Gross Margin of 36.48% is amongst the best of the industry. VRT outperforms 84.27% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), VRT is creating some value.
The number of shares outstanding for VRT has been increased compared to 1 year ago.
VRT has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, VRT has an improved debt to assets ratio.
2.2 Solvency
VRT has an Altman-Z score of 5.92. 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 5.92, VRT belongs to the top of the industry, outperforming 86.52% 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 has a Debt to FCF ratio of 2.72. This is in the better half of the industry: VRT outperforms 77.53% 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's Debt to Equity ratio of 1.60 is on the low side compared to the rest of the industry. VRT is outperformed by 76.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | 2.72 | ||
| Altman-Z | 5.92 |
ROIC/WACC1.53
WACC9.72%
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 70.79% of the companies in the same industry.
VRT has a Quick Ratio of 1.02. This is a normal value and indicates that VRT is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.02, VRT is not doing good in the industry: 60.67% 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
The Earnings Per Share has grown by an impressive 61.33% over the past year.
VRT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 81.80% yearly.
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
Based on estimates for the next years, VRT will show a very strong growth in Earnings Per Share. The EPS will grow by 27.21% on average per year.
VRT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.99% yearly.
EPS Next Y52.45%
EPS Next 2Y39.8%
EPS Next 3Y34.16%
EPS Next 5Y27.21%
Revenue Next Year13.67%
Revenue Next 2Y14.59%
Revenue Next 3Y13.91%
Revenue Next 5Y8.99%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 57.91, VRT can be considered very expensive at the moment.
68.54% of the companies in the same industry are more expensive than VRT, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 29.20, VRT is valued quite expensively.
VRT is valuated quite expensively with a Price/Forward Earnings ratio of 40.29.
Based on the Price/Forward Earnings ratio, VRT is valued a bit cheaper than the industry average as 69.66% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.00, VRT is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 57.91 | ||
| Fwd PE | 40.29 |
4.2 Price Multiples
67.42% of the companies in the same industry are more expensive than VRT, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VRT indicates a somewhat cheap valuation: VRT is cheaper than 70.79% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.78 | ||
| EV/EBITDA | 36.98 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of VRT may justify a higher PE ratio.
VRT's earnings are expected to grow with 34.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.1
PEG (5Y)0.71
EPS Next 2Y39.8%
EPS Next 3Y34.16%
5. Dividend
5.1 Amount
With a yearly dividend of 0.02%, VRT is not a good candidate for dividend investing.
VRT's Dividend Yield is a higher than the industry average which is at 1.75.
Compared to an average S&P500 Dividend Yield of 2.23, VRT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.02% |
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 2Y39.8%
EPS Next 3Y34.16%
VERTIV HOLDINGS CO-A
NYSE:VRT (11/22/2024, 8:12:10 PM)
After market: 140.3 +0.15 (+0.11%)140.15
-1.34 (-0.95%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap52.60B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.02% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 57.91 | ||
| Fwd PE | 40.29 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.1
PEG (5Y)0.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.54% | ||
| ROE | 32.06% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 16.15% | ||
| PM (TTM) | 7.72% | ||
| GM | 36.48% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)61.33%
EPS 3Y30.55%
EPS 5Y
EPS Q2Q%
EPS Next Y52.45%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)13.2%
Revenue growth 3Y16.23%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y