Vertiv Holdings (VRT) AI Stock Analysis

• Market Cap: $53.43B
• Dividend Yield: 0.1%
• Average Volume (3M): 7.75M
• Price to Earnings (P/E): 66.8
• Beta (1Y): 2.57
• Revenue Growth: 26.31%
• EPS Growth: 62.78%
• Country: US
• Employees: 31,000
• Sector: Industrials
• Sector Strength: 84
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.95
• Shares Outstanding: 381,866,670
• 10 Day Avg. Volume: 9,594,368
• 30 Day Avg. Volume: 7,749,028
• 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: 0.96
• Enterprise Value/Revenue: 5.66
• Enterprise Value/Gross Profit: 16.04
• Enterprise Value/Ebitda: 32.22
• 1Y Price Target: $156.73
• Price Target Upside: 12.09% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 17

• Rating: 79 Outperform
• Price Target: $160.00 ▲(14.42% Upside)

Vertiv Holdings demonstrates strong financial performance and positive earnings call outcomes, driving the overall score. Technical indicators support a bullish outlook, though the high P/E ratio suggests potential overvaluation. The company's proactive management of challenges and strategic investments position it well for sustained growth.

Positive Factors

Industry Position

Vertiv generates 80% of its revenue from the rapidly expanding data center industry, where the company holds strong collaboration moats with top chipmakers, hyperscalers, colocation providers, and enterprise customers.

Market Importance

Vertiv is positioned as a critical supplier in an industry that is expected to remain short on supply, enhancing its market importance.

Order Growth

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.

Negative Factors

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.

Tariffs

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

Transparency

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

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	3.21B	2.93B	2.40B	1.62B	1.52B	1.47B
EBITDA	1.60B	1.19B	1.02B	526.50M	500.20M	98.90M
Net Income	812.30M	495.80M	460.20M	76.60M	119.60M	-183.60M
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	1.52B	1.15B	765.90M	-263.80M	126.30M	156.20M
Operating Cash Flow	1.73B	1.32B	900.50M	-152.80M	210.90M	208.90M
Investing Cash Flow	-341.80M	-201.70M	-139.10M	-112.10M	-1.22B	-45.70M
Financing Cash Flow	-86.30M	-652.10M	-247.50M	100.20M	914.90M	140.70M

Vertiv Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 139.83
• 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 139.83 is above the 20-day moving average (MA) of 135.87, above the 50-day MA of 125.56, and above the 200-day MA of 111.13, indicating a bullish trend. The MACD of 4.73 indicates Positive momentum. The RSI at 61.62 is Neutral, neither overbought nor oversold. The STOCH value of 24.05 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	$3.57B	10.88	19.13%	1.01%	3.73%	32.29%
HUBB	80 Outperform	$22.25B	27.18	25.34%	1.24%	0.95%	13.74%
VRT	79 Outperform	$53.43B	66.85	34.84%	0.10%	26.31%	62.78%
NVT	77 Outperform	$14.27B	25.24	7.53%	0.89%	-4.84%	2.33%
AEIS	70 Neutral	$5.68B	68.43	7.04%	0.26%	8.49%	-7.65%
AYI	69 Neutral	$9.60B	24.68	16.60%	0.21%	9.16%	4.09%
Sector *	62 Neutral	C$7.21B	-0.65	-4.20%	2.36%	10.97%	-26.89%

Vertiv Holdings Corporate Events

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.

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.

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.

The most recent analyst rating on (VRT) stock is a Buy with a $100.00 price target. To see the full list of analyst forecasts on Vertiv Holdings stock, see the VRT Stock Forecast page.