We view Vertiv as a pure-play on data center spending as it derives over 80% of revenue from the end market. Listed on the New York Stock Exchange in 2020, Vertiv has had a brief public history after being acquired by Platinum Equity from Emerson Electric in 2016. However, Vertiv originated in the mid-1900s when computer rooms first required precision cooling solutions.
Data center spending should be strong regardless of the development of AI as the runway remains vast for companies moving their data to the cloud for the first time.
Spending on data centers has become more volatile and less predictable. Estimating Vertiv’s growth is therefore a highly erroneous exercise.
|
Metric
|
VRT
|
SU
|
JCI
|
|---|---|---|---|
Price/Earnings (Normalized) | 64.27 | 31.31 | 33.08 |
Price/Book Value | 27.46 | 6.35 | 6.56 |
Price/Sales | 10.95 | 3.88 | 3.74 |
Price/Cash Flow | 59.21 | 23.09 | 24.92 |
|
Metric
|
VRT
|
SU
|
JCI
|
|---|---|---|---|
Quick Ratio | 1.06 | 0.85 | 0.69 |
Current Ratio | 1.49 | 1.19 | 1.04 |
Interest Coverage | 34.95 | 12.16 | 13.08 |
|
Metric
|
VRT
|
SU
|
JCI
|
|---|---|---|---|
Return on Assets (Normalized) | 16.42% | 7.61% | 6.92% |
Return on Equity (Normalized) | 52.86% | 17.75% | 19.42% |
Return on Invested Capital (Normalized) | 28.26% | 11.66% | 11.86% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
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CYATY
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ABLZF
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ABBNY
| LOCK|k&PGFZt | LOCK|kf | $190B | |||
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DLEGF
| — | LOCK|$bD | $116B | |||
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BE
| LOCK|?zJ%#f | LOCK|%hz | $69B | |||
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NVT
| LOCK|^@%Skd | LOCK|>>?? | $26B | |||
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HUBB
| LOCK|vs%#F$ | LOCK|#Xy | $26B | |||
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AYI
| LOCK|Y!d<z%pY | LOCK|^#!y@ | $10B | |||
| Hayward Holdings Inc
HAYW
| LOCK|sjY%rsH | LOCK|!CW<r | $3B |
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United States