Here's Why Vertiv Is a No-Brainer Growth Stock
Data center equipment company Vertiv (NYSE: VRTV) is one of the most intriguing stocks in the industrial sector. The company has made significant progress in recovering from a difficult 2021 when it found itself significantly behind the pricing increases needed to offset surging cost inflation. 2022 marked a year of improvement, and based on management's guidance for 2023, the company is set for a substantial increase in earnings and cash flow. Here's the lowdown.
The following chart shows the improvement in pricing through 2022. As you can see, the benefits of price increases grew throughout the year and contributed significantly to profit improvement and margin expansion. In February 2022, management told investors to expect $360 million of benefit from pricing as "actions have all been implemented and price realization accelerates through 2022 as the proportion of sales at the new higher pricing replaces sales from existing backlog."
The good news is that the pricing benefit came in slightly ahead at $365 million for the full year, and management is addressing the supply chain issues that hurt it in the last couple of years.
Source Fool.com
