Vertiv Holdings Co. carries a debt of $3.32 billion, with a debt-to-equity (D/E) ratio of 2.68. This indicates that the company significantly depends on borrowed funds for its operations.
Advanced assessment of Vertiv
The recent surge in analysts' confidence in Vertiv Holdings Co (USA Stocks:VRT) has sparked a renewed interest in the stock. With a quote price of
$34.29, the company's stock appears to be on a promising trajectory, underpinned by a robust operating margin of 6.94%. The company's strong
financial performance, as evidenced by an operating income of
$223.4M, suggests a potential for solid returns on investment. However, investors should not overlook the company's risk profile. The coefficient of variation stands at 326.6, suggesting a high level of volatility. Additionally, the company's standard deviation is 4.42, indicating a significant level of risk associated with the investment. Despite this, the company's risk-adjusted performance is 0.2107, indicating that the company has been relatively efficient in managing risk. It's also worth noting that Vertiv Holdings Co operates in the Electrical Equipment & Parts industry, which is known for its cyclical nature. The company's net interest income stands at a loss of
$147.3M, which is a potential red flag. However, with a return on equity of 7.88%, the company's management has demonstrated an ability to generate profits for its shareholders. Overall, while Vertiv Holdings Co presents a high-risk, high-reward scenario, the soaring confidence among analysts suggests that it may be a lucrative investment opportunity for those with a high risk tolerance.
What is the right price you would pay to acquire a share of Vertiv Holdings? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the
future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our
stock advisor page.
What is happening with Vertiv Holdings Co this year
Annual and quarterly reports issued by Vertiv Holdings Co are formal
financial statements that are published yearly and quarterly and sent to Vertiv stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the
Securities and Exchange Commission (SEC) for businesses owned by the public since 1934.
Companies such as Vertiv Holdings often view their annual report as an effective marketing tool to disseminate their perspective on company
future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.
Vertiv Holdings Gross Profit
Vertiv Holdings Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Vertiv Holdings previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Vertiv Holdings Gross Profit growth over the last 10 years. Please check Vertiv Holdings'
gross profit and other
fundamental indicators for more details.
Is Vertiv a risky opportunity?
Let's check the volatility. Vertiv is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Vertiv (USA Stocks:VRT) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. acquiring a share of a Vertiv Holdings stock makes you a part-owner of that company.
Vertiv Holdings Co Current Consensus
Here is the newest trade recommendation based on an ongoing consensus estimate among financial analysis covering Vertiv Holdings. The Vertiv consensus assessment is calculated by taking the average estimates from all of the analysts covering Vertiv Holdings
| Strong Buy | 7 | 77.78 |
| Buy | 0 | 0.0 |
| Hold | 1 | 11.11 |
| Sell | 1 | 11.11 |
| Strong Sell | 0 | 0.0 |
As we delve into Vertiv Holdings Co (VRT), a player in the Electrical Equipment & Parts industry, its recent performance metrics are sparking interest among analysts. With a robust quarterly revenue growth of 31.5% and an annual total revenue of
$5.7 billion, Vertiv is making its mark. The company's EBITDA stands at $530.2 million, contributing to a profit margin of 0.0196%. Despite a high total debt of
$3.32 billion, Vertiv maintains a healthy current ratio of 1.62X and a working capital of $1.26 billion, indicating its ability to meet short-term obligations. The company's shares are primarily owned by institutions at 89.20%, while insiders hold 9.05%, reflecting trust in the company's
future performance. Vertiv's risk adjusted performance sits at 0.2107, with a beta of 1.9, indicating a higher volatility compared to the market. However, the company's Sortino ratio of 0.7081 and a positive Jensen Alpha of 1.34 suggest that Vertiv has been providing a good risk-adjusted return. The company's EPS estimate for next year is $1.52, and with a target price of $26.33, there seems to be a potential upside of 6.35%. Given these data points, Vertiv Holdings Co presents a lucrative investment opportunity for those looking to capitalize on the company's strong growth potential and solid
financial health.
Our take on today Vertiv Holdings gain
Vertiv Holdings Co's stock showcased a promising performance today, bolstered by a significant decrease in the coefficient of variation to 326.6. This drop could potentially indicate a decrease in volatility, potentially providing a more stable landscape for investors. Given this trend, we posit that the company's stock may offer an appealing opportunity for those aiming to capitalize on its recent upticks. However, as always, investors are strongly advised to conduct their own thorough analysis before making any investment decisions. Vertiv Holdings Co exhibits relatively low volatility, with a skewness of 4.29 and kurtosis of 24.91. Nonetheless, we recommend that all investors independently research Vertiv Holdings Co to ensure all available information aligns with their expectations regarding its upside potential and future expected returns. Understanding different
market volatility trends often assists investors in timing the market accurately. Proper utilization of volatility indicators enables traders to gauge Vertiv Holdings' stock risk against market volatility during both bullish and bearish trends.
The heightened level of volatility that accompanies bear markets can directly affect
Vertiv Holdings' stock price, adding stress to investors as they witness their share values drop. This typically compels investors to rebalance their portfolios by purchasing different stocks as prices decline. In conclusion, Vertiv Holdings Co has demonstrated a strong performance in the market today, despite a modest market drop. The overall consensus among analysts is a 'Buy' with seven out of nine analysts giving a 'Strong Buy' recommendation. The estimated target price is valued at
$22.111, with the highest estimated target price reaching
$30. Even with a possible downside price of $29.09, the company's valuation market value stands at a robust $34.29, indicating a potential upside price of $38.12. With an EPS estimate of $1.52 for the next fiscal year ending in December, Vertiv Holdings Co presents a promising investment opportunity. However, investors should also consider the company's valuation real value of $28.89 and the naive expected forecast value of $33.6. .
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Vertiv Holdings Co. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
editors@macroaxis.com
