Vertiv Holdings (VRT) AI Stock Analysis

• Market Cap: $93.05B
• Dividend Yield: 0.11%
• Average Volume (3M): 5.56M
• Price to Earnings (P/E): 71.3
• Beta (1Y): 2.59
• Revenue Growth: 28.76%
• EPS Growth: 76.31%
• Country: US
• Employees: 31,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 1.36
• Shares Outstanding: 382,598,450
• 10 Day Avg. Volume: 7,629,094
• 30 Day Avg. Volume: 5,563,454
• PEG Ratio: 0.28
• Price to Book (P/B): 15.69
• Price to Sales (P/S): 6.05
• P/FCF Ratio: 32.65
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 9.28
• Enterprise Value/Gross Profit: 26.69
• Enterprise Value/Ebitda: 44.01
• 1Y Price Target: $280.15
• Price Target Upside: 14.93% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): 5.99
• Revenue Forecast (FY): $13.57B

• Rating: 77 Outperform
• Price Target: $229.00 ▼(-6.05% Downside)

The score is driven by strong financial execution (improved margins and standout free cash flow) and a very upbeat earnings outlook supported by exceptional backlog/order momentum, reinforced by a clear positive price trend. Offsetting these strengths are an expensive valuation (high P/E, low yield) and execution/timing risks highlighted by recent revenue contraction and lumpier, elongated backlog conversion amid regional softness.

Positive Factors

Free Cash Flow Strength

Sustained, high free cash flow (FCF) and ~40% FCF growth underpin durable financial flexibility. Strong FCF conversion (about 88% of net income) supports reinvestment, capacity expansion, dividends and deleveraging, making execution on multi-year growth plans more credible.

Large Backlog and Order Momentum

A multi-billion backlog and a ~2.9x book-to-bill provide multi-quarter revenue visibility, enabling capacity planning and predictable revenue conversion over 12–18 months. This structural demand supports sustained top-line expansion and justifies stepped-up CapEx to capture growth.

Product Leadership & Strategic M&A

Acquiring PurgeRite and targeted product launches broaden Vertiv's thermal and liquid-cooling capabilities for AI/high-density data centers. This deepens technical differentiation, expands recurring services, and positions the company to capture structural AI-driven thermal-management demand long term.

Negative Factors

Sharp Recent Revenue Decline

A steep trailing‑twelve‑month revenue drop raises durability questions: margin recovery may prove sensitive to volume normalization and regional variability. Sustaining recent margin levels depends on converting backlog and stabilizing end-market demand over multiple quarters.

Regional Demand Imbalance

Material weakness in China/APAC and EMEA creates structural revenue concentration risk: Americas are driving growth while other regions lag. Prolonged regional softness can depress global margins and complicate capacity utilization and pricing power across product lines.

Order Lumpiness & Reduced Transparency

Elongated, lumpy order conversion and the decision to stop reporting orders/backlog reduce visibility into demand timing. Less transparency elevates forecasting and execution risk, making it harder to assess whether current backlog-driven guidance reflects sustainable end-market strength.

Vertiv Holdings Business Overview & Revenue Model

Company Description

Vertiv 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 Money

Vertiv generates revenue through multiple streams, primarily by selling its hardware products such as uninterruptible power supplies (UPS), thermal management equipment, and modular data centers. Additionally, the company offers services including installation, maintenance, and consulting, which provide recurring revenue through service contracts. Key revenue streams also include software solutions that enhance the management and efficiency of data centers. Vertiv benefits from significant partnerships with major technology firms and service providers, which help expand its market reach and enhance its product offerings. The growing demand for data center infrastructure and the increasing reliance on cloud computing contribute to the company's earnings potential.

Vertiv Holdings Financial Statement Overview

Summary

Strong turnaround in profitability and cash generation: TTM net margin ~10.7%, operating margin ~15.7%, and free cash flow ~$1.92B with ~40% growth and solid earnings quality. Balance sheet leverage has improved (debt-to-equity ~0.92), but the sharp TTM revenue decline (-24.2%) and prior leverage history add sustainability and durability risk.

Income Statement

Profitability has improved materially versus earlier years, with TTM (Trailing-Twelve-Months) net income of ~$1.33B and net margin around 10.7% versus low-single-digit margins in 2021–2022 and a loss in 2020. Operating profitability is also stronger, with TTM operating margin ~15.7% and EBITDA margin ~18.7%. The key drawback is the sharp TTM revenue decline (-24.2%) after solid growth in 2023–2024, which raises questions on demand normalization and sustainability of recent margin gains.

Balance Sheet

Leverage and returns have improved meaningfully over time: debt-to-equity has come down from very high levels in 2020–2022 to ~0.92 in TTM (Trailing-Twelve-Months), while return on equity increased to ~35% in TTM, reflecting stronger earnings. However, the balance sheet still carries notable leverage history (above 1x debt-to-equity in 2023–2024) and the step-change in total debt between 2024 and TTM suggests the capital structure may be in transition, which can add uncertainty when evaluating durability.

Cash Flow

Cash generation is a standout: TTM (Trailing-Twelve-Months) operating cash flow is ~$2.14B and free cash flow is ~$1.92B, with free cash flow growth of ~40% versus the prior period. Free cash flow is well-supported by earnings (free cash flow at ~88% of net income), indicating good earnings quality. The main watch item is that operating cash flow relative to operating profit is not especially high (coverage around ~0.44), suggesting working-capital or timing effects can still meaningfully influence near-term cash conversion.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	10.23B	8.01B	6.86B	5.69B	5.00B
Gross Profit	3.51B	2.75B	2.22B	1.40B	1.38B
EBITDA	2.21B	1.19B	1.02B	616.70M	483.80M
Net Income	1.33B	495.80M	460.20M	76.60M	119.60M
Balance Sheet
Total Assets	12.21B	9.13B	8.00B	7.10B	6.94B
Cash, Cash Equivalents and Short-Term Investments	1.83B	1.23B	788.60M	273.20M	447.10M
Total Debt	3.40B	3.32B	3.13B	3.37B	3.13B
Total Liabilities	8.27B	6.70B	5.98B	5.65B	5.52B
Stockholders Equity	3.94B	2.43B	2.01B	1.44B	1.42B
Cash Flow
Free Cash Flow	1.89B	1.14B	765.90M	-263.80M	126.30M
Operating Cash Flow	2.11B	1.32B	900.50M	-152.80M	210.90M
Investing Cash Flow	-1.50B	-201.70M	-139.10M	-112.10M	-1.22B
Financing Cash Flow	-72.30M	-652.10M	-247.50M	100.20M	914.90M

Vertiv Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 243.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 243.75 is above the 20-day moving average (MA) of 207.94, above the 50-day MA of 184.51, and above the 200-day MA of 152.07, indicating a bullish trend. The MACD of 17.91 indicates Negative momentum. The RSI at 71.73 is Negative, neither overbought nor oversold. The STOCH value of 82.90 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VRT.

Vertiv Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HUBB	79 Outperform	$27.77B	31.55	25.07%	1.18%	0.82%	16.05%
ETN	79 Outperform	$147.74B	36.40	21.57%	1.29%	8.24%	6.21%
VRT	77 Outperform	$93.05B	71.29	41.81%	0.11%	28.76%	76.31%
ENS	77 Outperform	$6.48B	21.78	16.74%	0.67%	6.17%	20.86%
NVT	77 Outperform	$18.70B	44.42	12.30%	0.84%	5.31%	5.76%
AEIS	74 Outperform	$12.13B	83.58	11.64%	0.18%	17.18%	235.76%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Vertiv Holdings Corporate Events

Vertiv Holdings Completes $1 Billion Acquisition of Purge Rite

On December 4, 2025, Vertiv Corporation, a subsidiary of Vertiv Holdings Co, completed the acquisition of Purge Rite Intermediate, LLC for approximately $1.0 billion in cash. This acquisition enhances Vertiv’s capabilities in specialized fluid management services for high-density computing and AI applications, strengthening its position as a leader in next-generation thermal chain services for liquid cooling systems. The integration of PurgeRite’s expertise is expected to improve system performance, reduce downtime risks, and expand service scale, benefiting Vertiv’s global operations and its stakeholders.

The most recent analyst rating on (VRT) stock is a Hold with a $181.00 price target. To see the full list of analyst forecasts on Vertiv Holdings stock, see the VRT Stock Forecast page.

Vertiv Holdings Announces 67% Dividend Increase

On November 14, 2025, Vertiv Holdings Co announced an increase in its regular annual dividend from $0.15 to $0.25 per share, effective starting with the fourth-quarter dividend declared on November 13, 2025. This 67% increase, payable on December 18, 2025, reflects the company’s strong financial performance and cash flow, signaling a positive outlook for stakeholders.

The most recent analyst rating on (VRT) stock is a Buy with a $182.00 price target. To see the full list of analyst forecasts on Vertiv Holdings stock, see the VRT Stock Forecast page.