Vertiv Holdings (VRT) AI Stock Analysis

• Market Cap: $57.29B
• Dividend Yield: 0.12%
• Average Volume (3M): 7.11M
• Price to Earnings (P/E): 56.5
• Beta (1Y): 2.78
• 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: 7,555,834
• 30 Day Avg. Volume: 7,112,389
• 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: 1.05
• Enterprise Value/Revenue: 6.21
• Enterprise Value/Gross Profit: 18.13
• Enterprise Value/Ebitda: 33.16
• 1Y Price Target: $203.47
• Price Target Upside: 35.80% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 18
• EPS Forecast (FY): 4.11
• Revenue Forecast (FY): $10.22B

• Rating: 77 Outperform
• Price Target: $211.00 ▲(40.83% 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 (VRT) is a global provider of critical digital infrastructure and continuity solutions, focusing on the data center, communication networks, and commercial and industrial markets. The company offers a wide range of products and services, including power management systems, thermal management solutions, IT infrastructure, and software solutions designed to ensure the reliability and efficiency of critical systems. Vertiv operates through various segments that cater to the diverse needs of its customers, helping them optimize performance and maintain uptime.

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: Negative
• Last Price: 149.83
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VRT, the sentiment is Negative. The current price of 149.83 is below the 20-day moving average (MA) of 172.43, below the 50-day MA of 176.62, and above the 200-day MA of 128.96, indicating a neutral trend. The MACD of -3.32 indicates Positive momentum. The RSI at 33.70 is Neutral, neither overbought nor oversold. The STOCH value of 9.47 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VRT.

Vertiv Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VRT	77 Outperform	$57.29B	56.48	38.86%	0.12%	28.76%	76.31%
ENS	77 Outperform	$5.17B	16.38	18.22%	0.72%	6.17%	20.86%
HUBB	77 Outperform	$22.84B	26.65	25.08%	1.25%	0.82%	16.05%
NVT	76 Outperform	$15.33B	26.17	8.57%	0.84%	5.31%	5.76%
ETN	75 Outperform	$122.66B	31.58	20.69%	1.32%	8.24%	6.21%
AEIS	67 Neutral	$7.72B	53.80	11.80%	0.20%	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.

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.

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.