Vertiv Holdings (VRT) AI Stock Analysis

• Market Cap: $48.71B
• Dividend Yield: 0.11%
• Average Volume (3M): 7.15M
• Price to Earnings (P/E): 60.9
• Beta (1Y): 2.57
• Revenue Growth: 26.31%
• EPS Growth: 62.78%
• Country: US
• Employees: 31,000
• Sector: Industrials
• Sector Strength: 80
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.95
• Shares Outstanding: 381,866,670
• 10 Day Avg. Volume: 5,836,403
• 30 Day Avg. Volume: 7,147,473
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 5.66
• Enterprise Value/Gross Profit: 17.04
• Enterprise Value/Ebitda: 32.22
• 1Y Price Target: $152.38
• Price Target Upside: 19.47% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 18

• Rating: 70 Outperform
• Price Target: $140.00 ▲(9.76% Upside)

Vertiv Holdings' overall stock score is driven by strong financial performance and positive earnings call sentiment, indicating robust growth prospects. However, technical indicators suggest bearish short-term trends, and the high P/E ratio raises valuation concerns. Despite these challenges, the company's strategic initiatives and raised guidance provide a positive outlook.

Positive Factors

Earnings

Vertiv Holdings Co. posted a phenomenal first half of 2025 with organic growth accelerating to 30% and the company adding another $1.3 billion of backlog on top of this growth.

Industry Position

Vertiv stands out as one of the most concentrated AI infrastructure investment opportunities among public peers, with a synchronized offering of power and thermal management.

Market Demand

Management commentary on order pipeline growth aligns with recent channel checks pointing to accelerating hyperscale demand driven by Oracle/OpenAI.

Negative Factors

Disclosure Practices

Management plans to stop disclosing quarterly order growth in 4Q25 and beyond, opting for annual guidance instead.

External Factors

The introduction of a 50% tariff on imported copper by the US may affect VRT's margins.

Margins

Margins are flat-lining in 2025 due to inefficiencies in supporting urgent customer demand, new capacity ramping up, and a lag in price and cost adjustments.

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 specializes in the design, manufacture, and service of equipment and software that support data centers, communication networks, and commercial and industrial facilities. Vertiv operates primarily in the sectors of data center infrastructure, cooling solutions, power management, and IT management software, offering a wide range of products including uninterruptible power supplies (UPS), thermal management systems, and modular power systems.

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 exhibits strong financial health with impressive revenue and cash flow growth, improved profitability margins, and a significantly strengthened balance sheet. The company has effectively managed its leverage, enhancing its financial stability. While there are minor concerns regarding cost pressures, the overall trajectory is positive, positioning the company well for future growth.

Income Statement

Vertiv Holdings has demonstrated strong revenue growth with an 8.15% increase in the TTM period. The company maintains healthy profitability margins, with a gross profit margin of 35.29% and a net profit margin of 8.93% in the TTM. The EBIT and EBITDA margins have improved over time, indicating efficient operations. However, the slight decline in gross profit margin from the previous year suggests potential cost pressures.

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 the TTM, down from 1.29 the previous year. Return on equity is strong at 32.36%, reflecting effective use of equity capital. The equity ratio is solid, indicating a balanced asset structure. However, the historical high leverage remains a potential risk.

Cash Flow

Vertiv Holdings has shown robust cash flow performance, with a 16.25% growth in free cash flow in the TTM. The operating cash flow to net income ratio is healthy at 0.48, and the free cash flow to net income ratio is strong at 0.87, indicating efficient cash generation relative to earnings. The company has successfully turned around from negative cash flows in prior years.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.09B	8.01B	6.86B	5.69B	5.00B	4.37B
Gross Profit	3.02B	2.75B	2.22B	1.40B	1.38B	1.34B
EBITDA	1.60B	1.19B	1.02B	616.70M	483.80M	98.90M
Net Income	812.30M	495.80M	460.20M	76.60M	119.60M	-327.30M
Balance Sheet
Total Assets	10.41B	9.13B	8.00B	7.10B	6.94B	5.07B
Cash, Cash Equivalents and Short-Term Investments	1.74B	1.23B	780.40M	260.60M	439.10M	534.60M
Total Debt	3.18B	3.15B	3.13B	3.37B	3.13B	2.19B
Total Liabilities	7.28B	6.70B	5.98B	5.65B	5.52B	4.56B
Stockholders Equity	3.13B	2.43B	2.01B	1.44B	1.42B	512.10M
Cash Flow
Free Cash Flow	1.24B	1.14B	765.90M	-263.80M	126.30M	156.20M
Operating Cash Flow	1.43B	1.32B	900.50M	-152.80M	210.90M	208.90M
Investing Cash Flow	-303.00M	-201.70M	-139.10M	-112.10M	-1.22B	-45.70M
Financing Cash Flow	-58.30M	-652.10M	-247.50M	100.20M	914.90M	140.70M

Vertiv Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 127.55
• 50DMA: Negative
• 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 127.55 is below the 20-day moving average (MA) of 132.86, below the 50-day MA of 130.82, and above the 200-day MA of 112.37, indicating a neutral trend. The MACD of -1.47 indicates Positive momentum. The RSI at 40.67 is Neutral, neither overbought nor oversold. The STOCH value of 54.36 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
ENS	80 Outperform	$3.85B	11.71	19.13%	0.94%	3.73%	32.29%
NVT	80 Outperform	$14.55B	25.72	7.53%	0.88%	-4.84%	2.33%
HUBB	78 Outperform	$22.90B	27.98	25.34%	1.23%	0.95%	13.74%
AEIS	75 Outperform	$5.64B	67.91	7.04%	0.27%	8.49%	-7.65%
VRT	70 Outperform	$48.71B	60.94	34.84%	0.11%	26.31%	62.78%
Sector *	64 Neutral	$10.74B	15.62	8.14%	2.00%	2.79%	-14.82%
BE	63 Neutral	$12.39B	11,263.83	4.65%	―	22.72%	―

Vertiv Holdings Corporate Events

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.

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.

Vertiv Holdings Conducts Virtual Annual Stockholder Meeting

On June 18, 2025, Vertiv Holdings Co conducted its annual meeting of stockholders virtually, with 83.46% of shares represented. During the meeting, stockholders elected ten directors for a one-year term, approved executive compensation, and ratified Ernst & Young LLP as the independent auditor for 2025.

Vertiv Holdings Declares Quarterly Cash Dividend

On June 4, 2025, Vertiv Holdings Co announced that its Board of Directors declared a quarterly cash dividend of $0.0375 per share for its Class A common stock. This dividend will be payable to shareholders of record as of June 16, 2025, and is expected to be distributed on June 26, 2025. This announcement underscores Vertiv’s commitment to returning value to its shareholders and may positively impact the company’s market perception and investor relations.