Vertiv Holdings (VRT) AI Stock Analysis

• Market Cap: $54.73B
• Dividend Yield: 0.1%
• Average Volume (3M): 6.53M
• Price to Earnings (P/E): 68.5
• Beta (1Y): 2.62
• Revenue Growth: 26.31%
• EPS Growth: 62.78%
• Country: US
• Employees: 31,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.95
• Shares Outstanding: 381,866,670
• 10 Day Avg. Volume: 7,125,110
• 30 Day Avg. Volume: 6,526,728
• PEG Ratio: 9.49
• Price to Book (P/B): 17.57
• Price to Sales (P/S): 5.34
• P/FCF Ratio: 37.11
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 5.66
• Enterprise Value/Gross Profit: 17.04
• Enterprise Value/Ebitda: 32.22
• 1Y Price Target: $153.63
• Price Target Upside: 7.20% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 18

• Rating: 74 Outperform
• Price Target: $153.00 ▲(6.76% Upside)

Vertiv Holdings' strong financial performance and positive earnings call sentiment are the most significant factors driving its score. The company's robust revenue growth, improved profitability, and strategic guidance highlight its potential for future growth. However, the high P/E ratio and low dividend yield suggest overvaluation, and technical indicators show mixed signals, tempering the overall score.

Positive Factors

Revenue Growth

The significant organic sales growth across key regions indicates strong market demand and effective sales strategies, supporting long-term revenue expansion.

Balance Sheet Health

The substantial reduction in the debt-to-equity ratio enhances financial stability and provides greater flexibility for future investments and growth initiatives.

Strategic Acquisition

The acquisition of Great Lakes is expected to strengthen Vertiv's product offerings, potentially increasing market share in the high-end rack solutions segment.

Negative Factors

Tariff and Operational Challenges

Tariff impacts and operational challenges can pressure margins, affecting profitability and requiring strategic adjustments to mitigate long-term financial impacts.

EMEA Execution Challenges

Operational inefficiencies in the EMEA region may hinder growth and profitability, necessitating improved execution to capitalize on market opportunities.

Cost Pressures

Declining gross profit margins indicate rising costs, which could erode profitability if not managed effectively, impacting long-term financial performance.

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 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. Minor concerns regarding cost pressures exist, but the overall trajectory is positive.

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: Positive
• Last Price: 143.31
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 143.31 is above the 20-day moving average (MA) of 135.44, above the 50-day MA of 134.95, and above the 200-day MA of 112.92, indicating a bullish trend. The MACD of 3.16 indicates Negative momentum. The RSI at 57.99 is Neutral, neither overbought nor oversold. The STOCH value of 39.88 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
ENS	80 Outperform	$4.18B	12.74	18.85%	0.88%	3.73%	32.29%
NVT	80 Outperform	$15.61B	27.60	16.65%	0.81%	-4.84%	2.33%
HUBB	78 Outperform	$22.60B	27.61	23.81%	1.24%	0.95%	13.74%
VRT	74 Outperform	$54.73B	68.46	34.84%	0.10%	26.31%	62.78%
AEIS	69 Neutral	$6.27B	75.53	6.67%	0.24%	8.49%	-7.65%
BE	63 Neutral	$16.45B	14,961.70	3.98%	―	22.72%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

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.

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.