Vertiv Holdings (VRT) AI Stock Analysis

• Market Cap: $49.19B
• Dividend Yield: 0.13%
• Average Volume (3M): 6.83M
• Price to Earnings (P/E): 74.8
• Beta (1Y): 2.40
• Revenue Growth: 20.45%
• EPS Growth: 66.80%
• Country: US
• Employees: 31,000
• Sector: Industrials
• Sector Strength: 90
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.64
• Shares Outstanding: 381,105,160
• 10 Day Avg. Volume: 8,136,574
• 30 Day Avg. Volume: 6,832,445
• PEG Ratio: 2.15
• Price to Book (P/B): 18.34
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 37.54
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 1.61
• Enterprise Value/Gross Profit: 16.44
• Enterprise Value/Ebitda: 10.01
• 1Y Price Target: $134.53
• Price Target Upside: 4.24% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15

• Rating: 75 Outperform
• Price Target: $143.00 ▲(10.80%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

Analyst Confidence

Analyst raises the price objective by $10 to $150, indicating confidence in the stock's performance.

Orders Growth

VRT shares rallied after reporting 13% year-over-year orders growth.

Negative Factors

Competition

VRT shares fell on news that Amazon Web Services had designed proprietary cooling systems.

Tariffs

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

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 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 Financial Statement Overview

Summary

Vertiv Holdings exhibits strong financial performance with revenue growth, improved profit margins, effective cost management, and robust cash flow generation. However, fluctuations in net income and revenue growth suggest potential volatility.

Income Statement

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.01B	6.86B	5.69B	5.00B	4.37B
Gross Profit	2.93B	2.40B	1.62B	1.52B	1.47B
EBITDA	1.19B	1.02B	526.50M	500.20M	98.90M
Net Income	495.80M	460.20M	76.60M	119.60M	-183.60M
Balance Sheet
Total Assets	9.13B	8.00B	7.10B	6.94B	5.07B
Cash, Cash Equivalents and Short-Term Investments	1.23B	780.40M	260.60M	439.10M	534.60M
Total Debt	3.15B	3.13B	3.32B	2.97B	2.15B
Total Liabilities	6.70B	5.98B	5.65B	5.52B	4.41B
Stockholders Equity	2.43B	2.01B	1.44B	1.42B	668.30M
Cash Flow
Free Cash Flow	1.15B	765.90M	-263.80M	126.30M	156.20M
Operating Cash Flow	1.32B	900.50M	-152.80M	210.90M	208.90M
Investing Cash Flow	-201.70M	-139.10M	-112.10M	-1.22B	-45.70M
Financing Cash Flow	-652.10M	-247.50M	100.20M	914.90M	140.70M

Vertiv Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 129.06
• 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 129.06 is above the 20-day moving average (MA) of 125.15, above the 50-day MA of 115.37, and above the 200-day MA of 108.82, indicating a bullish trend. The MACD of 3.79 indicates Positive momentum. The RSI at 55.80 is Neutral, neither overbought nor oversold. The STOCH value of 79.87 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	79 Outperform	$3.42B	9.86	19.82%	1.34%	1.00%	38.51%
NVT	79 Outperform	$12.50B	21.68	7.63%	1.29%	-5.12%	1.69%
HUBB	78 Outperform	$22.97B	29.10	25.78%	1.49%	1.97%	10.22%
AEIS	76 Outperform	$5.39B	74.02	6.36%	0.35%	0.06%	-28.32%
VRT	75 Outperform	$49.19B	74.83	32.82%	0.13%	20.45%	66.80%
AYI	69 Neutral	$8.97B	23.06	16.60%	0.28%	9.16%	4.09%
Sector *	59 Neutral	AU$1.67B	10.16	11.24%	3.78%	6.75%	3.18%

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.