Vertiv Holdings (VRT) AI Stock Analysis

• Market Cap: $99.05B
• Dividend Yield: 0.11%
• Average Volume (3M): 7.20M
• Price to Earnings (P/E): 46.4
• Beta (1Y): 2.54
• 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: 8,380,529
• 30 Day Avg. Volume: 7,202,390
• 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: 9.85
• Enterprise Value/Gross Profit: 28.32
• Enterprise Value/Ebitda: 46.69
• 1Y Price Target: $280.42
• Price Target Upside: 8.32% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): 6.01
• Revenue Forecast (FY): $13.62B

• Rating: 77 Outperform
• Price Target: $300.00 ▲(15.88% Upside)
• Action: Reiterated Date: 03/10/26
• Date: Action: Reiterated 03/10/26

The score is driven primarily by strong financial performance (notably free cash flow strength and improved margins) and supportive technical momentum (price above key moving averages with positive MACD). This is tempered by premium valuation (P/E ~46) and execution/timing risks highlighted on the earnings call, including regional softness (APAC/EMEA), lumpy/elongated backlog conversion, and higher CapEx needs.

Positive Factors

Free Cash Flow Strength

Sustained, high free cash flow generation provides durable financial flexibility: it funds capital allocation (debt paydown, dividends, buybacks, acquisitions) and cushions cyclicality in end markets. High FCF conversion versus income signals underlying earnings quality and long-term resilience.

Robust Order Backlog & Demand

A large, multi-billion backlog and elevated book-to-bill ratio indicate multi-quarter revenue visibility and strong end-market demand for critical infrastructure. This supports medium-term revenue growth, capacity planning and pricing power as projects convert over the coming 12–18 months.

Improved Liquidity and Capital Structure

Refinancing to unsecured, longer-dated bonds and a larger revolver plus upgrades to investment-grade materially reduce refinancing risk and free collateral. This durable liquidity and lower funding cost profile supports planned CapEx, M&A optionality and continued deleveraging.

Negative Factors

Sharp Recent Revenue Decline

A significant year-over-year revenue contraction raises questions about the sustainability of recent margin gains and returns. If top-line recovery stalls, fixed-cost absorption and utilization could reverse operating leverage, pressuring margins and cash conversion over the medium term.

Order Lumpiness & Longer Conversion

An elongated, lumpy backlog increases forecasting uncertainty and working capital volatility. Longer conversion horizons make revenue timing less predictable, complicate capacity planning and can magnify the impact of regional demand swings on quarterly performance and margin realization.

Higher Near‑Term CapEx and Execution Risk

Elevated capex to scale manufacturing and prefabrication capacity is necessary to meet demand but raises near-term cash intensity and execution risk. If utilization lags or supply chains constrain ramp, incremental margins and FCF could be pressured before benefits accrue.

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 primarily makes money by selling equipment and related lifecycle services for critical digital infrastructure. A major revenue stream comes from product sales such as uninterruptible power supplies (UPS), switchgear and power distribution units, busway and other power infrastructure, precision cooling/thermal management systems, racks/enclosures, and related monitoring and control offerings that are deployed in data centers and network facilities. In addition to one-time hardware sales, Vertiv generates recurring and repeat revenue through its services business, which includes project services (e.g., design/engineering support, installation, commissioning, and upgrades) and aftermarket support (e.g., maintenance contracts, preventive service, emergency repairs, parts replacement, and equipment refurbishment). Vertiv’s earnings are influenced by demand from data center buildouts and expansions (including colocation and hyperscale deployments), telecom network investment, and customers’ needs to improve reliability, energy efficiency, and uptime; where specific partnership details are not provided in this response, they are null.

Vertiv Holdings Financial Statement Overview

Summary

Strong profitability and cash generation underpin the score: TTM net margin ~10.7%, operating margin ~15.7%, and free cash flow ~$1.92B with ~40% growth and ~88% of net income. Offsetting this is the sharp TTM revenue decline (-24.2%) and a balance sheet still carrying meaningful leverage history despite improvement (TTM debt-to-equity ~0.92).

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: 258.88
• 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 Positive. The current price of 258.88 is above the 20-day moving average (MA) of 252.74, above the 50-day MA of 211.78, and above the 200-day MA of 163.60, indicating a bullish trend. The MACD of 14.48 indicates Positive momentum. The RSI at 60.43 is Neutral, neither overbought nor oversold. The STOCH value of 70.03 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
HUBB	79 Outperform	$24.85B	26.65	25.00%	1.18%	0.82%	16.05%
VRT	77 Outperform	$99.05B	46.40	40.26%	0.11%	28.76%	76.31%
ENS	77 Outperform	$5.93B	15.10	16.61%	0.67%	6.17%	20.86%
NVT	77 Outperform	$17.78B	34.65	19.60%	0.84%	5.31%	5.76%
ETN	76 Outperform	$137.86B	30.24	21.67%	1.29%	8.24%	6.21%
AEIS	74 Outperform	$11.40B	53.05	11.51%	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 Declares Quarterly Dividend, Signaling Financial Confidence

On March 6, 2026, Vertiv Holdings Co announced that its board had declared a quarterly cash dividend of $0.0625 per share on its Class A common stock. The dividend will be paid on March 26, 2026, to shareholders of record as of the close of business on March 17, 2026.

The move underscores Vertiv’s ongoing capital return policy and may signal confidence in the company’s cash generation and financial stability. Regular dividend payments can enhance Vertiv’s appeal to income-focused investors and support its positioning as a mature player in the critical digital infrastructure market.

The most recent analyst rating on (VRT) stock is a Buy with a $294.00 price target. To see the full list of analyst forecasts on Vertiv Holdings stock, see the VRT Stock Forecast page.

Vertiv Strengthens Liquidity With New Investment-Grade Financing

On March 3, 2026, Vertiv completed its debut investment-grade senior unsecured notes offering, raising $2.1 billion across four tranches with maturities of 10, 20, 30, and 40 years, and closed a new $2.5 billion senior unsecured revolving credit facility. The company used roughly $2.08 billion in net proceeds, along with cash on hand, to fully repay its existing secured term loan and refinance its prior $800 million asset-based revolver, extending debt maturities, releasing associated guarantees and liens, and materially strengthening its liquidity profile.

The new five-year revolving facility, which can be upsized by up to $1 billion and is priced off Vertiv’s credit ratings, replaces the former ABL structure with a larger, ratings-linked unsecured line of credit. These transactions followed February 2026 rating upgrades by S&P and Moody’s that brought Vertiv to investment-grade status at Baa3 / BBB- / BBB-, reinforcing the company’s improved balance sheet, diversifying funding sources and enhancing financial flexibility to support its growth strategy while preserving a strong net leverage position.

The most recent analyst rating on (VRT) stock is a Buy with a $298.00 price target. To see the full list of analyst forecasts on Vertiv Holdings stock, see the VRT Stock Forecast page.