Vertiv Holdings (VRT) AI Stock Analysis

• Market Cap: $66.29B
• Dividend Yield: 0.09%
• Average Volume (3M): 7.89M
• Price to Earnings (P/E): 65.3
• Beta (1Y): 2.68
• 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: 6,737,628
• 30 Day Avg. Volume: 7,886,655
• 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: 0.91
• Enterprise Value/Revenue: 6.21
• Enterprise Value/Gross Profit: 18.13
• Enterprise Value/Ebitda: 33.16
• 1Y Price Target: $191.00
• Price Target Upside: 10.17% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 19
• EPS Forecast (FY): 4.1
• Revenue Forecast (FY): $10.20B

• Rating: 78 Outperform
• Price Target: $212.00 ▲(22.28% Upside)

Vertiv Holdings receives a strong overall score driven by its robust financial performance and positive earnings call. The company's strategic investments and raised guidance support a positive outlook, despite valuation concerns and regional challenges in EMEA.

Positive Factors

Revenue Growth

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

Cash Flow Generation

Improved cash flow generation enhances liquidity and financial flexibility, enabling strategic investments and supporting sustainable growth initiatives.

Strategic Investments

Strategic investments in supply chain and R&D bolster Vertiv's market position and technological edge, ensuring readiness to meet future demand.

Negative Factors

EMEA Sales Decline

Declining sales in EMEA highlight regional challenges that could hinder growth and profitability, requiring strategic adjustments to address these issues.

Tariff and Supply Chain Challenges

Ongoing tariff and supply chain challenges may impact cost structures and operational efficiency, necessitating continued focus on mitigation strategies.

EMEA Margin Pressure

Margin pressure in EMEA due to lower sales and higher fixed costs could affect overall profitability, requiring operational improvements to stabilize margins.

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 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 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: Neutral
• Last Price: 173.37
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 173.37 is below the 20-day moving average (MA) of 183.93, above the 50-day MA of 162.68, and above the 200-day MA of 121.23, indicating a neutral trend. The MACD of 4.66 indicates Positive momentum. The RSI at 47.02 is Neutral, neither overbought nor oversold. The STOCH value of 32.23 is Neutral, 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
HUBB	79 Outperform	$24.57B	28.67	25.08%	1.22%	0.82%	16.05%
NVT	79 Outperform	$18.13B	30.95	8.57%	0.72%	5.31%	5.76%
VRT	78 Outperform	$66.29B	65.35	38.86%	0.09%	28.76%	76.31%
ENS	78 Outperform	$5.12B	16.23	18.22%	0.77%	6.17%	20.86%
AEIS	75 Outperform	$8.28B	57.69	11.80%	0.20%	17.18%	235.76%
BE	68 Neutral	$29.97B	―	2.82%	―	44.53%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Vertiv Holdings Corporate Events

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.

Vertiv Holdings Co Reports Strong Q3 Earnings

Vertiv Holdings Co’s recent earnings call painted a picture of robust financial health, marked by impressive growth in sales and profitability. The company reported significant achievements in its financial metrics, with a positive outlook for future growth. However, challenges in the EMEA region and the impact of tariffs were noted as areas of concern.

Vertiv Holdings Declares Quarterly Cash Dividend

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.

Vertiv Holdings Amends Term Loan Agreement with Citibank

On August 12, 2025, Vertiv Group Corporation, a subsidiary of Vertiv Holdings Co, amended its Term Loan Credit Agreement with Citibank, extending the maturity of the term loan to August 12, 2032, and increasing the debt basket size for the ABL Credit Agreement. The principal amount outstanding under the Credit Agreement was approximately $2.09 billion, with all other material provisions remaining unchanged, impacting the company’s financial structuring and potentially its market positioning.

The most recent analyst rating on (VRT) stock is a Buy with a $75.00 price target. To see the full list of analyst forecasts on Vertiv Holdings stock, see the VRT Stock Forecast page.