Vertiv Holdings (VRT) AI Stock Analysis

• Market Cap: $32.54B
• Dividend Yield: 0.14%
• Average Volume (3M): 12.02M
• Price to Earnings (P/E): 49.5
• Beta (1Y): 2.41
• Revenue Growth: 20.45%
• EPS Growth: 66.80%
• Country: US
• Employees: 31,000
• Sector: Industrials
• Sector Strength: 75
• Industry: Electrical Equipment & Parts
• EPS (TTM): 1.72
• Shares Outstanding: 381,105,160
• 10 Day Avg. Volume: 11,646,130
• 30 Day Avg. Volume: 12,021,023
• PEG Ratio: 0.74
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 10.17
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $104.29
• Price Target Upside: 22.15% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14

Vertiv Holdings demonstrates strong financial performance and positive earnings call insights, contributing to a favorable outlook. However, technical analysis indicates potential caution, and high valuation metrics suggest the stock might be overvalued. Key strengths include revenue growth, operational efficiency, and strategic advancements in AI infrastructure. Risks include high liabilities and tariff challenges, which need monitoring.

Positive Factors

Earnings Guidance

Vertiv reported upside 1Q25 results, strong 1Q25 orders, and raised 2025 revenue guidance.

Financial Performance

Vertiv Holdings Co showed strong financial performance with a significant increase in adjusted EPS, surpassing both analyst estimates and consensus.

Order Growth

Reacceleration in orders growth led to a significant rise in VRT shares, reflecting strong investor confidence.

Negative Factors

Hyperscaler Capex Concerns

Concerns exist around Hyperscaler capex slowing, with spend up significantly compared to 2019.

Investor Concerns

Investor concerns are heightened due to Microsoft not proceeding with pre-leasing deals and delaying construction projects.

Tariff Impacts

Tariffs are weighing on near-term margins, although the impact seems relatively limited.

Vertiv Holdings Business Overview & Revenue Model

Company Description

Vertiv Holdings Co (VRT) is a global provider of critical digital infrastructure and continuity solutions. The company designs, builds, and services mission-critical infrastructure technologies for vital applications in data centers, communication networks, and commercial and industrial environments. Vertiv's product portfolio includes power management, thermal management, IT management, and integrated solutions that ensure the operation of digital systems and data centers, enhancing efficiency and reliability.

How the Company Makes Money

Vertiv Holdings generates revenue through the sale of its products and services related to critical digital infrastructure. Key revenue streams include the sale of power management systems, thermal management solutions, IT management products, and integrated solutions. Vertiv also earns from providing maintenance, installation, and optimization services for data centers and other digital infrastructure. The company often engages in long-term contracts with large enterprises, data center operators, and telecom companies, which ensures a steady revenue flow. Partnerships with technology firms and involvement in large-scale infrastructure projects further contribute to Vertiv's earnings.

Vertiv Holdings Financial Statement Overview

Summary

Vertiv Holdings exhibits strong revenue growth with improved profit margins and operational efficiency. The balance sheet shows a stable financial position with better leverage management, though high total liabilities pose a moderate risk. Cash flow performance is robust, indicating efficient capital expenditure management and good cash generation ability. Overall, the financial trajectory is commendable, with positive outlook contingent on maintaining growth and stability.

Income Statement

Vertiv Holdings has demonstrated strong revenue growth over the years with a significant increase in total revenue from 2020 to TTM 2025. The gross profit margin and net profit margin have shown improvements, indicating effective cost management and profitability growth. EBIT and EBITDA margins have also strengthened, showcasing operational efficiency. However, fluctuations in net income and the revenue growth trajectory suggest potential volatility in earnings.

Balance Sheet

The balance sheet reflects a stable financial position with a healthy equity ratio and decreasing net debt levels over the years. The debt-to-equity ratio has improved, indicating better leverage management. Nonetheless, the relatively high total liabilities compared to stockholders' equity pose a moderate risk, which needs continuous monitoring to ensure financial stability.

Cash Flow

Cash flow performance is robust, with strong operating cash flow and free cash flow margins. The company exhibits a positive trend in free cash flow growth rate, indicating efficient capital expenditure management. The operating cash flow to net income ratio signifies good cash generation ability relative to reported earnings. However, past fluctuations in cash flow metrics highlight the importance of sustaining current positive trends.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
8.01B	6.86B	5.69B	5.00B	4.37B
	Gross Profit
2.93B	2.40B	1.62B	1.52B	1.47B
	EBIT
1.37B	872.20M	223.40M	259.90M	213.50M
	EBITDA
1.19B	1.02B	526.50M	500.20M	98.90M
	Net Income Common Stockholders
495.80M	460.20M	76.60M	119.60M	-183.60M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.23B	780.40M	260.60M	439.10M	534.60M
	Total Assets
9.13B	8.00B	7.10B	6.94B	5.07B
	Total Debt
3.15B	3.13B	3.32B	2.97B	2.15B
	Net Debt
1.92B	2.35B	3.06B	2.53B	1.62B
	Total Liabilities
6.70B	5.98B	5.65B	5.52B	4.41B
	Stockholders Equity
2.43B	2.01B	1.44B	1.42B	668.30M
Cash Flow		Free Cash Flow
1.15B	765.90M	-263.80M	126.30M	156.20M
	Operating Cash Flow
1.32B	900.50M	-152.80M	210.90M	208.90M
	Investing Cash Flow
-201.70M	-139.10M	-112.10M	-1.22B	-45.70M
	Financing Cash Flow
-652.10M	-247.50M	100.20M	914.90M	140.70M

Vertiv Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 85.38
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VRT, the sentiment is Neutral. The current price of 85.38 is above the 20-day moving average (MA) of 73.80, above the 50-day MA of 82.05, and below the 200-day MA of 100.04, indicating a neutral trend. The MACD of 0.85 indicates Negative momentum. The RSI at 57.08 is Neutral, neither overbought nor oversold. The STOCH value of 85.59 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for VRT.

Vertiv Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AYI	77 Outperform	$7.53B	18.47	17.86%	0.26%	2.78%	11.53%
HUBB	77 Outperform	$19.18B	24.90	25.26%	1.41%	4.76%	2.27%
VRT	70 Outperform	$32.54B	49.50	32.82%	0.14%	20.45%	66.80%
NVT	68 Neutral	$9.04B	27.84	8.73%	1.40%	0.78%	-41.54%
AEIS	67 Neutral	$3.67B	67.99	4.80%	0.41%	-10.49%	-57.78%
ENS	67 Neutral	$3.41B	10.69	18.36%	1.09%	-2.94%	22.32%
Sector *	63 Neutral	$4.23B	11.54	5.34%	209.77%	4.14%	-9.49%

Vertiv Holdings Corporate Events

Vertiv Holdings Boosts Annual Dividend by 50%

Vertiv Holdings Co has announced a 50% increase in its annual dividend, raising it from $0.10 to $0.15 per share, reflecting the company’s robust financial performance and cash flow. The quarterly dividend will start at $0.0375 per share for Class A common stock, payable on December 19, 2024. This announcement was made during an investor event in Atlanta, which coincided with Vertiv’s participation in the SC24 conference, where they showcased their latest technology.