tiprankstipranks
Trending News
More News >
Vertiv Holdings (VRT)
NYSE:VRT

Vertiv Holdings (VRT) AI Stock Analysis

Compare
5,784 Followers

Top Page

VR

Vertiv Holdings

(NYSE:VRT)

Rating:75Outperform
Price Target:
$143.00
â–²(11.36%Upside)
Vertiv Holdings receives a strong overall score driven by its robust financial performance and positive earnings call, reflecting significant growth and strategic positioning in AI infrastructure. The high valuation and technical indicators of overbought conditions temper the score.
Positive Factors
Demand and Visibility
Stronger demand and better visibility are leading to increased estimates for Vertiv.
Earnings Growth
Analysts have raised the price objective for Vertiv, indicating confidence in the company's growth prospects.
Market Positioning
Vertiv is well-positioned for growing complexity in AI deployments, with strong market shares in data center thermal and electrical equipment.
Negative Factors
Hyperscaler Expenditure
Concerns about hyperscaler capital expenditure slowing are already reflected in VRT shares.
Order Volatility
Quarter-to-quarter orders trends can be volatile due to large hyperscale orders.
Tariff Concerns
Tariff cost concerns pose challenges despite a guide suggesting a very healthy recovery.

Vertiv Holdings (VRT) vs. SPDR S&P 500 ETF (SPY)

Vertiv Holdings Business Overview & Revenue Model

Company DescriptionVertiv 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 MoneyVertiv Holdings generates revenue through the sale of its critical infrastructure products and services to a diverse customer base, including data centers, telecommunications carriers, and other commercial and industrial sectors. The company earns money by designing and manufacturing power and thermal management systems that help maintain the efficiency and reliability of critical digital infrastructure. Additionally, Vertiv provides installation, maintenance, and support services, which offer recurring revenue opportunities. The company's revenue streams are further supported by its global presence, strategic partnerships, and a strong focus on innovation, allowing it to address the evolving needs of its clients in maintaining and optimizing their critical infrastructure.

Vertiv Holdings Key Performance Indicators (KPIs)

Any
Any
Revenue by Offering
Revenue by Offering
Analyzes revenue generated from different products or services, highlighting which offerings drive growth and which may need strategic adjustments.
Chart InsightsVertiv Holdings is experiencing robust growth in its Products segment, with a significant surge in revenue, particularly in 2024, driven by strong market demand and strategic focus on AI infrastructure. The Services and Spares segment is also showing healthy growth, albeit at a slower pace. The discontinuation of Integrated Rack Solutions in 2024 suggests a strategic pivot. The latest earnings call highlights a 25% growth in organic net sales and increased sales guidance, reinforcing Vertiv's strong market position despite challenges from tariffs and regional performance in EMEA.
Data provided by:Main Street Data

Vertiv Holdings Earnings Call Summary

Earnings Call Date:Apr 23, 2025
(Q1-2025)
|
% Change Since: 78.84%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Positive
Vertiv's earnings call highlighted strong financial performance, significant growth in orders, and strategic advancements in AI infrastructure. Despite challenges related to tariffs and regional performance in EMEA, the company's overall outlook remains positive, supported by increased sales guidance and a strong balance sheet.
Q1-2025 Updates
Positive Updates
Strong Start to Fiscal Year 2025
Vertiv reported a strong start to FY2025 with significant growth and execution, indicating a robust position in the market and effective R&D investments.
Impressive Financial Performance
EPS increased by 49% to $0.64, and organic net sales were up 25%. Adjusted operating profit rose by 35% to $337 million, with adjusted free cash flow increasing by 162% to $265 million.
Record Book-to-Bill Ratio
The company achieved a book-to-bill ratio of 1.4x in Q1 with a 21% sequential and 13% year-over-year increase in orders.
Increased Full-Year Sales Guidance
Vertiv raised its full-year sales growth guidance to 18% and maintained its EPS guidance midpoint at $3.55.
Investment Grade Rating
Fitch rated Vertiv's debt at investment-grade BBB-, enhancing borrowing capabilities and credit profile.
Exciting AI Project with iGenius
Vertiv, in collaboration with NVIDIA, is delivering a prefabricated AI factory for iGenius, showcasing Vertiv’s innovation and partnership in advanced AI infrastructure.
Negative Updates
Impact of Tariffs
The tariff situation remains fluid and dynamic, presenting uncertainties and challenges. Adjusted operating margin was negatively impacted, with tariff costs expected to accelerate in Q2.
EMEA Regional Performance Lag
EMEA growth lagged due to slower AI infrastructure build; however, pipelines are expanding, offering future optimism.
Company Guidance
During Vertiv's First Quarter 2025 Earnings Conference Call, the company provided several key metrics and forward-looking guidance. Vertiv reported a 49% increase in EPS to $0.64, attributed to a 35% rise in adjusted operating profit to $337 million, and a 25% growth in organic net sales. The book-to-bill ratio was at a robust 1.4x, with trailing 12-month organic orders growth at 20%. Free cash flow reached $265 million, up 162% year-over-year. For the full year, Vertiv raised its sales growth guidance to 18%, maintaining EPS guidance at $3.55 despite tariff uncertainties. The company highlighted operational leverage and productivity as key drivers, alongside a strategic focus on tariff mitigation through supply chain adjustments and pricing actions. Vertiv emphasized its strong market position and capacity to capitalize on ongoing data center demand, particularly in AI infrastructure.

Vertiv Holdings Financial Statement Overview

Summary
Vertiv Holdings displays a commendable financial trajectory with strengthening revenue and profit margins, improved leverage, and robust cash flow generation. However, fluctuations in net income and the revenue growth trajectory suggest potential volatility in earnings.
Income Statement
80
Positive
Vertiv Holdings has demonstrated strong revenue growth over the years with a significant increase in total revenue from 2020 to TTM 2025. The gross profit margin and net profit margin have shown improvements, indicating effective cost management and profitability growth. EBIT and EBITDA margins have also strengthened, showcasing operational efficiency. However, fluctuations in net income and the revenue growth trajectory suggest potential volatility in earnings.
Balance Sheet
75
Positive
The balance sheet reflects a stable financial position with a healthy equity ratio and decreasing net debt levels over the years. The debt-to-equity ratio has improved, indicating better leverage management. Nonetheless, the relatively high total liabilities compared to stockholders' equity pose a moderate risk, which needs continuous monitoring to ensure financial stability.
Cash Flow
85
Very Positive
Cash flow performance is robust, with strong operating cash flow and free cash flow margins. The company exhibits a positive trend in free cash flow growth rate, indicating efficient capital expenditure management. The operating cash flow to net income ratio signifies good cash generation ability relative to reported earnings. However, past fluctuations in cash flow metrics highlight the importance of sustaining current positive trends.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue8.41B8.01B6.86B5.69B5.00B4.37B
Gross Profit3.05B2.93B2.40B1.62B1.52B1.47B
EBITDA1.46B1.19B1.02B526.50M500.20M98.90M
Net Income666.20M495.80M460.20M76.60M119.60M-183.60M
Balance Sheet
Total Assets9.45B9.13B8.00B7.10B6.94B5.07B
Cash, Cash Equivalents and Short-Term Investments1.47B1.23B780.40M260.60M439.10M534.60M
Total Debt3.14B3.15B3.13B3.32B2.97B2.15B
Total Liabilities6.78B6.70B5.98B5.65B5.52B4.41B
Stockholders Equity2.67B2.43B2.01B1.44B1.42B668.30M
Cash Flow
Free Cash Flow1.30B1.15B765.90M-263.80M126.30M156.20M
Operating Cash Flow1.49B1.32B900.50M-152.80M210.90M208.90M
Investing Cash Flow-204.00M-201.70M-139.10M-112.10M-1.22B-45.70M
Financing Cash Flow-73.90M-652.10M-247.50M100.20M914.90M140.70M

Vertiv Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price128.41
Price Trends
50DMA
103.91
Positive
100DMA
96.25
Positive
200DMA
106.48
Positive
Market Momentum
MACD
6.02
Negative
RSI
72.80
Negative
STOCH
91.57
Negative
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 128.41 is above the 20-day moving average (MA) of 116.43, above the 50-day MA of 103.91, and above the 200-day MA of 106.48, indicating a bullish trend. The MACD of 6.02 indicates Negative momentum. The RSI at 72.80 is Negative, neither overbought nor oversold. The STOCH value of 91.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VRT.

Vertiv Holdings Risk Analysis

Vertiv Holdings disclosed 47 risk factors in its most recent earnings report. Vertiv Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Vertiv Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
NVNVT
82
Outperform
$12.08B20.957.63%1.09%-5.12%1.69%
79
Outperform
$21.70B27.5025.78%1.30%1.97%10.22%
AYAYI
76
Outperform
$9.30B23.9016.60%0.22%9.16%4.09%
76
Outperform
$4.98B68.376.36%0.30%0.06%-28.32%
VRVRT
75
Outperform
$48.46B73.7232.82%0.12%20.45%66.80%
ENENS
73
Outperform
$3.35B9.6519.82%1.11%1.00%38.51%
65
Neutral
$10.56B15.515.57%1.96%2.71%-26.32%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VRT
Vertiv Holdings
128.41
40.53
46.12%
AYI
Acuity Brands
298.34
55.17
22.69%
AEIS
Advanced Energy
132.50
26.22
24.67%
ENS
EnerSys
85.77
-14.95
-14.84%
HUBB
Hubbell B
408.41
47.28
13.09%
NVT
nVent Electric
73.25
-1.50
-2.01%

Vertiv Holdings Corporate Events

Executive/Board ChangesShareholder Meetings
Vertiv Holdings Conducts Virtual Annual Stockholder Meeting
Neutral
Jun 20, 2025

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.

Dividends
Vertiv Holdings Declares Quarterly Cash Dividend
Positive
Jun 4, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 28, 2025