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Vertiv Holdings (VRT)
NYSE:VRT
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Vertiv Holdings (VRT) AI Stock Analysis

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VRT

Vertiv Holdings

(NYSE:VRT)

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Outperform 78 (OpenAI - 4o)
Rating:78Outperform
Price Target:
$199.00
▲(13.84% Upside)
Vertiv Holdings receives a strong overall score driven by robust financial performance and positive earnings call highlights. The company's strategic investments and improved financial stability position it well for future growth. However, high valuation metrics and potential overbought technical indicators suggest caution. Challenges in the EMEA region and tariff impacts also present risks.
Positive Factors
Revenue Growth
Strong revenue growth in key regions indicates robust market demand and effective sales strategies, supporting long-term business expansion.
Cash Flow Generation
Improved cash flow generation enhances financial flexibility, allowing for reinvestment in growth initiatives and debt reduction, strengthening long-term stability.
Strategic Investments
Strategic investments in supply chain and services enhance operational efficiency and capacity, positioning the company for sustained growth and competitive advantage.
Negative Factors
EMEA Sales Decline
Sales decline in EMEA highlights regional challenges that could impact overall revenue growth and profitability, requiring strategic adjustments to mitigate risks.
Tariff and Supply Chain Challenges
Ongoing tariff and supply chain issues could lead to cost pressures and operational inefficiencies, potentially impacting margins and competitiveness.
Leadership Transition
Leadership changes in key regions like EMEA may disrupt strategic continuity and execution, affecting regional performance and overall company stability.

Vertiv Holdings (VRT) vs. SPDR S&P 500 ETF (SPY)

Vertiv Holdings Business Overview & Revenue Model

Company DescriptionVertiv 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. It offers AC and DC power management products, 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 its products and their related systems; and preventative maintenance, acceptance testing, engineering and consulting, performance assessments, remote monitoring, training, spare parts, and critical digital infrastructure software services. It offers its products primarily under the Liebert, NetSure, Geist, E&I, Powerbar, and Avocent brands. The company serves social media, financial services, healthcare, transportation, retail, education, and government industries through a network of direct sales professionals, independent sales representatives, channel partners, and original equipment manufacturers in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. Vertiv Holdings Co is headquartered in Columbus, Ohio.
How the Company Makes MoneyVertiv generates revenue through multiple streams including the sale of equipment, solutions, and services for data centers and communication networks. Key revenue sources include the direct sale of hardware products such as UPS systems, cooling equipment, and power distribution units. Additionally, Vertiv offers maintenance and support services, which provide recurring revenue. The company also benefits from strategic partnerships with major technology firms and telecommunications providers, enhancing its market reach and allowing for bundled service offerings. Factors contributing to its earnings include the increasing demand for reliable digital infrastructure, growth in cloud computing, and the rising importance of data center efficiency and uptime.

Vertiv Holdings Key Performance Indicators (KPIs)

Any
Any
Revenue by Offering
Revenue by Offering
Analyzes revenue generated from different products or services, highlighting which offerings drive growth and which may need strategic adjustments.
Chart InsightsVertiv Holdings is experiencing robust growth in its Products and Services segments, with significant revenue increases in recent quarters. The discontinuation of Integrated Rack Solutions appears strategic, aligning with the acquisition of Great Lakes to enhance high-end rack offerings. The earnings call highlights a 34% organic sales growth and increased revenue guidance, reflecting strong market demand and strategic positioning. However, challenges in the EMEA region and tariff impacts pose risks, though management is optimistic about resolving these by year-end, supported by strong cash flow and order growth.
Data provided by:Main Street Data

Vertiv Holdings Earnings Call Summary

Earnings Call Date:Oct 22, 2025
(Q3-2025)
|
Next Earnings Date:Feb 25, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance with significant growth in sales and profitability, alongside increased guidance and strategic investments for future growth. However, challenges in the EMEA region and tariff impacts were noted as areas of concern.
Q3-2025 Updates
Positive Updates
Record Q3 Performance
Adjusted diluted EPS of $1.24, up 63% year over year, driven by higher adjusted operating profit. Organic sales grew 28% with the Americas up 43% and APAC up 21%. Adjusted operating profit reached $596 million, up 43% year on year.
Strong Order Momentum
Trailing twelve-month organic orders growth of about 21% with Q3 orders up 60% year over year and 20% sequentially. The book-to-bill ratio was 1.4 times, showcasing competitive advantages.
Raised Full-Year Guidance
Full-year guidance raised for adjusted EPS, net sales, adjusted operating profit, and adjusted free cash flow. Adjusted operating profit expected to be $2.602 billion, up 33% from last year.
Robust Free Cash Flow
Generated $462 million of adjusted free cash flow, up 38% from last year, translating into approximately 95% free cash flow conversion.
Strategic Capacity Investments
Accelerating investments in supply chain and services capabilities, particularly in the Americas, to meet growing demand.
Technology and R&D Expansion
Engineering and R&D spending will grow 20% plus in 2026 to maintain technology leadership and expand capabilities.
Negative Updates
EMEA Sales Decline
EMEA sales declined 4% due to power availability and regulatory challenges, with a reacceleration not expected until the second half of 2026.
Tariff and Supply Chain Challenges
Tariffs remain dynamic but are being addressed with mitigation actions. Operational inefficiencies driven by supply chain actions are still being addressed.
EMEA Margin Pressure
EMEA adjusted operating margin significantly below prior year, driven by deleverage on lower sales and higher fixed costs.
Company Guidance
During Vertiv's Third Quarter 2025 Earnings Conference Call, the company reported robust financial performance, exceeding guidance across all metrics. Key highlights include an adjusted diluted EPS of $1.24, up 63% year-over-year, and Q3 organic sales growth of 28%, with notable increases in the Americas (43%) and APAC (21%), while EMEA saw a 4% decline. Vertiv achieved a 1.4 times book-to-bill ratio and a trailing twelve-month organic orders growth of 21%. The adjusted operating profit reached $596 million, marking a 43% increase, with a margin of 22.3%. The company also generated an adjusted free cash flow of $462 million, reflecting a 38% growth. With a solid backlog of $9.5 billion, Vertiv is well-positioned for continued growth, as indicated by its raised full-year guidance for adjusted EPS, net sales, adjusted operating profit, and adjusted free cash flow.

Vertiv Holdings Financial Statement Overview

Summary
Vertiv Holdings shows strong financial health with impressive revenue and cash flow growth, improved profitability margins, and a significantly strengthened balance sheet. The company has effectively managed its leverage, enhancing its financial stability. Minor concerns regarding cost pressures exist, but the overall trajectory is positive.
Income Statement
85
Very Positive
Vertiv Holdings has demonstrated strong revenue growth with an 8.15% increase in the TTM period. The company maintains healthy profitability margins, with a gross profit margin of 35.29% and a net profit margin of 8.93% in the TTM. The EBIT and EBITDA margins have improved over time, indicating efficient operations. However, the slight decline in gross profit margin from the previous year suggests potential cost pressures.
Balance Sheet
78
Positive
The company's balance sheet shows a significant improvement in financial stability, with a reduced debt-to-equity ratio of 0.07 in the TTM, down from 1.29 the previous year. Return on equity is strong at 32.36%, reflecting effective use of equity capital. The equity ratio is solid, indicating a balanced asset structure. However, the historical high leverage remains a potential risk.
Cash Flow
82
Very Positive
Vertiv Holdings has shown robust cash flow performance, with a 16.25% growth in free cash flow in the TTM. The operating cash flow to net income ratio is healthy at 0.48, and the free cash flow to net income ratio is strong at 0.87, indicating efficient cash generation relative to earnings. The company has successfully turned around from negative cash flows in prior years.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue9.09B8.01B6.86B5.69B5.00B4.37B
Gross Profit3.02B2.75B2.22B1.40B1.38B1.34B
EBITDA1.60B1.19B1.02B616.70M483.80M98.90M
Net Income812.30M495.80M460.20M76.60M119.60M-327.30M
Balance Sheet
Total Assets10.41B9.13B8.00B7.10B6.94B5.07B
Cash, Cash Equivalents and Short-Term Investments1.74B1.23B780.40M260.60M439.10M534.60M
Total Debt3.18B3.15B3.13B3.37B3.13B2.19B
Total Liabilities7.28B6.70B5.98B5.65B5.52B4.56B
Stockholders Equity3.13B2.43B2.01B1.44B1.42B512.10M
Cash Flow
Free Cash Flow1.24B1.14B765.90M-263.80M126.30M156.20M
Operating Cash Flow1.43B1.32B900.50M-152.80M210.90M208.90M
Investing Cash Flow-303.00M-201.70M-139.10M-112.10M-1.22B-45.70M
Financing Cash Flow-58.30M-652.10M-247.50M100.20M914.90M140.70M

Vertiv Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price174.80
Price Trends
50DMA
144.84
Positive
100DMA
135.18
Positive
200DMA
116.85
Positive
Market Momentum
MACD
9.82
Negative
RSI
65.41
Neutral
STOCH
60.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VRT, the sentiment is Positive. The current price of 174.8 is above the 20-day moving average (MA) of 163.08, above the 50-day MA of 144.84, and above the 200-day MA of 116.85, indicating a bullish trend. The MACD of 9.82 indicates Negative momentum. The RSI at 65.41 is Neutral, neither overbought nor oversold. The STOCH value of 60.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VRT.

Vertiv Holdings Risk Analysis

Vertiv Holdings disclosed 47 risk factors in its most recent earnings report. Vertiv Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Vertiv Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$4.63B14.1119.13%0.80%3.73%32.29%
80
Outperform
$16.13B28.527.53%0.80%-4.84%2.33%
78
Outperform
$67.11B83.9534.84%0.09%26.31%62.78%
77
Outperform
$22.94B28.0325.34%1.21%0.95%13.74%
69
Neutral
$25.52B22,208.514.65%22.72%
69
Neutral
$7.43B89.587.04%0.20%8.49%-7.65%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VRT
Vertiv Holdings
174.80
66.58
61.52%
AEIS
Advanced Energy
196.58
90.92
86.05%
ENS
EnerSys
122.60
24.46
24.92%
HUBB
Hubbell B
435.29
-3.79
-0.86%
NVT
nVent Electric
99.65
27.43
37.98%
BE
Bloom Energy
104.38
95.34
1054.65%

Vertiv Holdings Corporate Events

Dividends
Vertiv Holdings Declares Quarterly Cash Dividend
Positive
Sep 3, 2025

On September 3, 2025, Vertiv Holdings Co announced that its Board of Directors has declared a quarterly cash dividend of $0.0375 per share for its Class A common stock. This dividend will be payable on September 25, 2025, to shareholders of record as of September 15, 2025. This announcement underscores Vertiv’s commitment to providing value to its shareholders and reflects the company’s stable financial position and strategic focus on rewarding its investors.

The most recent analyst rating on (VRT) stock is a Buy with a $140.00 price target. To see the full list of analyst forecasts on Vertiv Holdings stock, see the VRT Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 22, 2025