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VRT

Vertiv Holdings CoNYSE:VRT Stock Report

Last Price

US$22.73

Market Cap

US$8.5b

7D

-5.2%

1Y

10.3%

Updated

19 Jan, 2022

Data

Company Financials +
VRT fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance3/6
Financial Health3/6
Dividends0/6

VRT Stock Overview

Vertiv Holdings Co, together with its subsidiaries, designs, manufactures, and services critical digital infrastructure technologies and life cycle services for data centers, communication networks, and commercial and industrial environments in the Americas, the Asia Pacific, Europe, the Middle East, and Africa.

Vertiv Holdings Co Competitors

Eaton

NYSE:ETN

US$66.4b

Schneider Electric

ENXTPA:SU

€88.5b

SolarEdge Technologies

NasdaqGS:SEDG

US$12.5b

Price History & Performance

Summary of all time highs, changes and price drops for Vertiv Holdings Co
Historical stock prices
Current Share PriceUS$22.73
52 Week HighUS$28.80
52 Week LowUS$18.53
Beta0
1 Month Change-5.09%
3 Month Change-3.15%
1 Year Change10.29%
3 Year Changen/a
5 Year Changen/a
Change since IPO74.85%

Recent News & Updates

Dec 16
Vertiv Holdings Co (NYSE:VRT) Has A Pretty Healthy Balance Sheet

Vertiv Holdings Co (NYSE:VRT) Has A Pretty Healthy Balance Sheet

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Nov 25
Is Vertiv Holdings Co (NYSE:VRT) Trading At A 30% Discount?

Is Vertiv Holdings Co (NYSE:VRT) Trading At A 30% Discount?

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Vertiv Holdings Co...

Nov 03
Vertiv Holdings Co's (NYSE:VRT) Earnings Are Weaker Than They Seem

Vertiv Holdings Co's (NYSE:VRT) Earnings Are Weaker Than They Seem

Unsurprisingly, Vertiv Holdings Co's ( NYSE:VRT ) stock price was strong on the back of its healthy earnings report. We...

Sep 15

Vertiv To Acquire The E&I Engineering Group

On Sept. 8 2021, Vertiv announced it has entered into a definitive agreement to acquire E&I Engineering Ireland Limited. This news release was coupled with an update on current business conditions and a downward revision in guidance for 3Q21 and FY21, due to supply chain challenges. The stock price has come down approx. 17% since its 52-week high. Let’s take a closer look at this dual announcement.

Shareholder Returns

VRTUS ElectricalUS Market
7D-5.2%-3.5%-3.5%
1Y10.3%-5.2%10.2%

Return vs Industry: VRT exceeded the US Electrical industry which returned -5.2% over the past year.

Return vs Market: VRT matched the US Market which returned 10.2% over the past year.

Price Volatility

Is VRT's price volatile compared to industry and market?
VRT volatility
VRT Average Weekly Movement5.0%
Electrical Industry Average Movement9.4%
Market Average Movement6.6%
10% most volatile stocks in US Market15.8%
10% least volatile stocks in US Market2.4%

Stable Share Price: VRT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: VRT's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/a20,972Rob Johnsonhttps://www.vertiv.com

Vertiv Holdings Co, together with its subsidiaries, designs, manufactures, and services critical digital infrastructure technologies and life cycle services for data centers, communication networks, and commercial and industrial environments in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. It offers power management products, uninterruptible power systems, thermal management products, integrated rack systems, modular solutions, and management systems for monitoring and controlling digital infrastructure that are integral to the technologies used for various services, including e-commerce, online banking, file sharing, video on-demand, energy storage, wireless communications, Internet of Things, and online gaming. The company also provides lifecycle management services, predictive analytics, and professional services for deploying, maintaining, and optimizing these products and their related systems.

Vertiv Holdings Co Fundamentals Summary

How do Vertiv Holdings Co's earnings and revenue compare to its market cap?
VRT fundamental statistics
Market CapUS$8.54b
Earnings (TTM)US$138.10m
Revenue (TTM)US$4.89b

61.8x

P/E Ratio

1.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
VRT income statement (TTM)
RevenueUS$4.89b
Cost of RevenueUS$3.32b
Gross ProfitUS$1.58b
ExpensesUS$1.44b
EarningsUS$138.10m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.37
Gross Margin32.21%
Net Profit Margin2.82%
Debt/Equity Ratio273.7%

How did VRT perform over the long term?

See historical performance and comparison

Dividends

0.04%

Current Dividend Yield

3%

Payout Ratio

Valuation

Is Vertiv Holdings Co undervalued compared to its fair value and its price relative to the market?

31.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VRT ($22.73) is trading below our estimate of fair value ($33.27)

Significantly Below Fair Value: VRT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: VRT is poor value based on its PE Ratio (61.8x) compared to the US Electrical industry average (23.8x).

PE vs Market: VRT is poor value based on its PE Ratio (61.8x) compared to the US market (17x).


Price to Earnings Growth Ratio

PEG Ratio: VRT is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: VRT is overvalued based on its PB Ratio (10.9x) compared to the US Electrical industry average (2.6x).


Future Growth

How is Vertiv Holdings Co forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

43.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VRT's forecast earnings growth (43.6% per year) is above the savings rate (2%).

Earnings vs Market: VRT's earnings (43.6% per year) are forecast to grow faster than the US market (13% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: VRT's revenue (7.9% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: VRT's revenue (7.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VRT's Return on Equity is forecast to be high in 3 years time (33.8%)


Past Performance

How has Vertiv Holdings Co performed over the past 5 years?

18.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VRT has high quality earnings.

Growing Profit Margin: VRT became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: VRT has become profitable over the past 5 years, growing earnings by 18.3% per year.

Accelerating Growth: VRT has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: VRT has become profitable in the last year, making it difficult to compare its past year earnings growth to the Electrical industry (56.7%).


Return on Equity

High ROE: VRT's Return on Equity (17.6%) is considered low.


Financial Health

How is Vertiv Holdings Co's financial position?


Financial Position Analysis

Short Term Liabilities: VRT's short term assets ($2.9B) exceed its short term liabilities ($1.6B).

Long Term Liabilities: VRT's short term assets ($2.9B) exceed its long term liabilities ($2.8B).


Debt to Equity History and Analysis

Debt Level: VRT's net debt to equity ratio (179.1%) is considered high.

Reducing Debt: Insufficient data to determine if VRT's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: VRT's debt is not well covered by operating cash flow (17.2%).

Interest Coverage: VRT's interest payments on its debt are well covered by EBIT (5.8x coverage).


Balance Sheet


Dividend

What is Vertiv Holdings Co current dividend yield, its reliability and sustainability?

0.042%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VRT's dividend (0.042%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: VRT's dividend (0.042%) is low compared to the top 25% of dividend payers in the US market (3.48%).


Stability and Growth of Payments

Stable Dividend: VRT is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: VRT is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: VRT is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of VRT's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.9yrs

Average management tenure


CEO

Rob Johnson (54 yo)

1.92yrs

Tenure

US$19,627,189

Compensation

Dr. Robert J. Johnson, also known as Rob, Ph D., has been Chief Executive Officer and Director of Vertiv Holdings Co. since February 07, 2020. Dr. Johnson served as the Director of GS Acquisition Holdings...


CEO Compensation Analysis

Compensation vs Market: Rob's total compensation ($USD19.63M) is above average for companies of similar size in the US market ($USD6.41M).

Compensation vs Earnings: Rob's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: VRT's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: VRT's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: VRT insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 14.4%.


Top Shareholders

Company Information

Vertiv Holdings Co's employee growth, exchange listings and data sources


Key Information

  • Name: Vertiv Holdings Co
  • Ticker: VRT
  • Exchange: NYSE
  • Founded: NaN
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Implied Market Cap: US$8.539b
  • Shares outstanding: 375.67m
  • Website: https://www.vertiv.com

Number of Employees


Location

  • Vertiv Holdings Co
  • 1050 Dearborn Drive
  • Columbus
  • Ohio
  • 43085
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/19 00:13
End of Day Share Price2022/01/18 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.