Vertiv Holdings (VRT) AI Stock Analysis

• Market Cap: $62.54B
• Dividend Yield: 0.11%
• Average Volume (3M): 5.90M
• Price to Earnings (P/E): 61.7
• Beta (1Y): 2.73
• Revenue Growth: 28.76%
• EPS Growth: 76.31%
• Country: US
• Employees: 31,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 1.24
• Shares Outstanding: 382,338,320
• 10 Day Avg. Volume: 4,586,038
• 30 Day Avg. Volume: 5,899,272
• PEG Ratio: 9.49
• Price to Book (P/B): 17.57
• Price to Sales (P/S): 5.34
• P/FCF Ratio: 37.67
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 6.21
• Enterprise Value/Gross Profit: 18.13
• Enterprise Value/Ebitda: 33.16
• 1Y Price Target: $206.07
• Price Target Upside: 28.17% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 17
• EPS Forecast (FY): 5.29
• Revenue Forecast (FY): $12.38B

• Rating: 77 Outperform
• Price Target: $211.00 ▲(31.24% Upside)

Vertiv Holdings' strong financial performance and positive earnings call are the most significant factors driving the score. Technical analysis supports a positive outlook, though high valuation metrics and regional challenges in EMEA temper the overall score.

Positive Factors

Revenue Growth

Strong revenue growth in key regions indicates robust demand for Vertiv's solutions, supporting long-term market expansion and financial health.

Strategic Acquisition

The acquisition strengthens Vertiv's capabilities in high-density computing and AI applications, positioning it as a leader in next-gen thermal management.

Cash Flow Generation

Improved cash flow generation enhances liquidity, providing financial flexibility for strategic investments and debt management.

Negative Factors

EMEA Sales Decline

Declining sales in EMEA highlight regional challenges that could impact overall growth and profitability if not addressed.

Tariff and Supply Chain Challenges

Persistent tariff and supply chain issues could pressure margins and operational efficiency, affecting long-term competitiveness.

EMEA Margin Pressure

Margin pressure in EMEA due to lower sales and higher fixed costs could strain profitability and require strategic adjustments.

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

Vertiv Holdings shows strong financial health with robust revenue growth, improved profit margins, and enhanced cash flow generation. The company has effectively managed its leverage and maintained a solid capital structure, positioning it well for future growth.

Income Statement

Vertiv Holdings has demonstrated strong revenue growth with a 6.62% increase in TTM, supported by healthy gross and net profit margins of 34.24% and 10.67% respectively. The EBIT and EBITDA margins have also improved, indicating operational efficiency. The consistent upward trajectory in revenue and profitability highlights robust performance in the electrical equipment sector.

Balance Sheet

The company's balance sheet shows a significant improvement in financial stability, with a reduced debt-to-equity ratio of 0.07 in TTM, down from 1.29 in the previous year. Return on equity is strong at 35.25%, reflecting effective use of shareholder funds. The equity ratio indicates a solid capital structure, although past high leverage remains a consideration.

Cash Flow

Cash flow analysis reveals a positive trend with a 10.56% growth in free cash flow in TTM. The operating cash flow to net income ratio of 0.44 and a free cash flow to net income ratio of 0.88 suggest efficient cash generation relative to earnings. The improvement in cash flow metrics underscores the company's enhanced liquidity position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.70B	8.01B	6.86B	5.69B	5.00B	4.37B
Gross Profit	3.32B	2.75B	2.22B	1.40B	1.38B	1.34B
EBITDA	1.82B	1.19B	1.02B	616.70M	483.80M	98.90M
Net Income	1.03B	495.80M	460.20M	76.60M	119.60M	-327.30M
Balance Sheet
Total Assets	10.82B	9.13B	8.00B	7.10B	6.94B	5.07B
Cash, Cash Equivalents and Short-Term Investments	1.99B	1.23B	788.60M	273.20M	447.10M	542.60M
Total Debt	3.21B	3.15B	3.13B	3.37B	3.13B	2.30B
Total Liabilities	7.31B	6.70B	5.98B	5.65B	5.52B	4.56B
Stockholders Equity	3.51B	2.43B	2.01B	1.44B	1.42B	512.10M
Cash Flow
Free Cash Flow	1.37B	1.14B	765.90M	-263.80M	126.30M	156.20M
Operating Cash Flow	1.56B	1.32B	900.50M	-152.80M	210.90M	208.90M
Investing Cash Flow	-973.70M	-201.70M	-139.10M	-112.10M	-1.22B	-45.70M
Financing Cash Flow	-56.00M	-652.10M	-247.50M	100.20M	914.90M	140.70M

Vertiv Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 160.78
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 160.78 is below the 20-day moving average (MA) of 164.85, below the 50-day MA of 172.60, and above the 200-day MA of 135.39, indicating a neutral trend. The MACD of -0.87 indicates Negative momentum. The RSI at 51.11 is Neutral, neither overbought nor oversold. The STOCH value of 24.62 is Neutral, 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
ENS	79 Outperform	$5.84B	18.50	18.22%	0.67%	6.17%	20.86%
VRT	77 Outperform	$62.54B	61.66	38.86%	0.11%	28.76%	76.31%
HUBB	77 Outperform	$25.01B	29.18	25.08%	1.18%	0.82%	16.05%
NVT	76 Outperform	$17.00B	29.03	8.57%	0.84%	5.31%	5.76%
ETN	75 Outperform	$126.04B	32.45	20.69%	1.29%	8.24%	6.21%
AEIS	67 Neutral	$8.29B	57.77	11.80%	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.

Vertiv Holdings to Acquire Purge Rite for $1 Billion

On November 3, 2025, Vertiv Holdings Co announced its intention to acquire Purge Rite Intermediate, LLC, a leading provider of specialized fluid management services, for approximately $1.0 billion in cash, with an additional potential of $250 million based on performance metrics. This acquisition is aimed at enhancing Vertiv’s thermal management services and strengthening its position in next-generation thermal chain services for high-density and AI-driven environments. The acquisition is expected to be margin accretive and will expand Vertiv’s capabilities in liquid cooling systems, crucial for high-performance computing and AI data centers, thereby providing significant benefits such as improved heat transfer, reduced downtime risk, and expanded service scale.

The most recent analyst rating on (VRT) stock is a Buy with a $212.00 price target. To see the full list of analyst forecasts on Vertiv Holdings stock, see the VRT Stock Forecast page.