Attractive P/E Ratio
Low EV/EBITDA Ratio
Strong Profit Margins
High Return on Equity
Zero Debt Levels
Excellent Liquidity Ratios
🏆 Strong Financial Performance
🌱 Strategic Acquisitions and Growth
🔋 Integrated Business Model
🔮 Positive Load Growth Trends
🌍 Commitment to Zero-Carbon Growth
📈 Strong Cash Flow Outlook
High Price to Sales Ratio
Zero Price to Book Ratio
⚖️ Regulatory Challenges
⏳ Uncertain Regulatory Environment
Overall, Vistra Corp. demonstrates strong business quality through its solid financial performance and strategic growth initiatives. However, regulatory uncertainties pose challenges that could impact future opportunities. The company is well-positioned to benefit from anticipated load growth and its commitment to zero-carbon projects, although it must navigate ongoing regulatory complexities.
Analysis Date: February 27, 2025
Last Updated: March 12, 2025
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$161.32
Current Market Price: $96.75
IV/P Ratio: 1.67x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
40.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for VST
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (12.72)
P/B ratio ≤ 1.5 (6.07)
Current ratio ≥ 2.0 (0.96x)
Long-term debt < Net current assets (-50.27x)
Margin of safety (40.0%)
VST does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
The company demonstrates high net profit margin of 21.2%, indicating effective cost management and strong profitability compared to industry standards.
With a return on equity (ROE) of 64.9%, the company shows exceptional efficiency in generating profits from its equity investments.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
47.78%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-16)
Return on Assets (ROA)
Measures how efficiently a company uses its assets to generate profits
1.17%
Higher values indicate better asset utilization
TTM (as of 2025-04-16)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
43.69%
Higher values indicate better efficiency in production
TTM (as of 2025-04-16)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
15.44%
Higher values indicate better overall profitability
TTM (as of 2025-04-16)
The debt-to-equity and debt-to-assets ratios of 0.0 indicate that the company has no debt, reflecting solid financial health and low financial risk.
The current ratio of 225.79 and quick ratio of 227.42 suggest that the company has more than enough short-term assets to cover its liabilities, which is an excellent sign of liquidity.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
3.11x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
0.96x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
Vistra Corp. achieved a remarkable full-year adjusted EBITDA of $5.656 billion, exceeding the top end of their guidance. This performance showcases the effectiveness of their diversified business model despite challenging market conditions.
The company completed a strategic acquisition, adding three nuclear sites and one million retail customers, enhancing its market position and operational capabilities.
Vistra's diversified portfolio of generation assets, including nuclear and gas, combined with a robust retail business, positions it well to navigate volatile power markets.
The company faces regulatory uncertainties that could impact their ability to respond to market demands, particularly concerning the approval of new capacity auctions and colocation deals.
Vistra is observing accelerating load growth in key markets, including PJM and ERCOT. This growth, driven by factors such as AI data centers and onshoring, presents significant opportunities for future capacity additions.
Vistra's ongoing development of solar and battery projects reflects its commitment to expanding its zero-carbon revenue streams, enhancing its long-term sustainability and market relevance.
The company has reaffirmed its adjusted free cash flow guidance for 2025 and 2026, indicating confidence in its ability to generate cash and support future growth investments.
Delays and uncertainty regarding new legislative measures in Texas and FERC's capacity auction may hinder the company's ability to capitalize on emerging market opportunities.