Vertiv Holdings (VRT) AI Stock Analysis

• Market Cap: $40.55B
• Dividend Yield: 0.12%
• Average Volume (3M): 9.99M
• Price to Earnings (P/E): 61.7
• Beta (1Y): 2.38
• 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: 7,168,893
• 30 Day Avg. Volume: 9,987,198
• PEG Ratio: 1.58
• Price to Book (P/B): 13.43
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 27.50
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 1.20
• Enterprise Value/Gross Profit: 12.29
• Enterprise Value/Ebitda: 7.48
• 1Y Price Target: $106.00
• Price Target Upside: 2.31% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14

• Rating: 74 Outperform
• Price Target: ―

Vertiv Holdings shows strong financial performance and positive momentum, supported by strategic growth initiatives and robust earnings. However, high valuation metrics and potential tariff impacts pose risks. The overall outlook is favorable, driven by its effective management and market positioning, especially in the AI sector.

Positive Factors

Growth Potential

Reacceleration in orders growth led to a significant rise in VRT shares, reflecting strong investor confidence.

Market Positioning

Vertiv's strong market positioning in the data center space is supported by competitive advantages such as scale, global service capability, and partnerships with chip manufacturers like Nvidia.

Negative Factors

Margin Pressures

Tariffs are weighing on near-term margins, although the impact seems relatively limited.

Market Concerns

Investor concerns are heightened due to Microsoft not proceeding with pre-leasing deals and delaying construction projects.

Vertiv Holdings Business Overview & Revenue Model

Company Description

Vertiv Holdings Co (VRT) is a global provider of critical digital infrastructure and continuity solutions, primarily serving the data center, communication networks, and commercial and industrial environments. The company offers a wide range of products and services, including power management systems, thermal management solutions, IT and edge infrastructure, and monitoring and management software, all designed to ensure the optimal operation and reliability of critical applications.

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 has demonstrated strong revenue growth, improved margins, and robust cash flow generation. Effective cost and leverage management have contributed to enhanced profitability and stability, though potential earnings volatility and high liabilities require attention.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
8.41B	8.01B	6.86B	5.69B	5.00B	4.37B
	Gross Profit
3.05B	2.93B	2.40B	1.62B	1.52B	1.47B
	EBIT
1.46B	1.37B	872.20M	223.40M	259.90M	213.50M
	EBITDA
1.46B	1.19B	1.02B	526.50M	500.20M	98.90M
	Net Income Common Stockholders
666.20M	495.80M	460.20M	76.60M	119.60M	-183.60M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
280.50M	1.23B	780.40M	260.60M	439.10M	534.60M
	Total Assets
7.59B	9.13B	8.00B	7.10B	6.94B	5.07B
	Total Debt
3.14B	3.15B	3.13B	3.32B	2.97B	2.15B
	Net Debt
2.85B	1.92B	2.35B	3.06B	2.53B	1.62B
	Total Liabilities
6.20B	6.70B	5.98B	5.65B	5.52B	4.41B
	Stockholders Equity
1.39B	2.43B	2.01B	1.44B	1.42B	668.30M
Cash Flow		Free Cash Flow
1.30B	1.15B	765.90M	-263.80M	126.30M	156.20M
	Operating Cash Flow
1.49B	1.32B	900.50M	-152.80M	210.90M	208.90M
	Investing Cash Flow
-204.00M	-201.70M	-139.10M	-112.10M	-1.22B	-45.70M
	Financing Cash Flow
-73.90M	-652.10M	-247.50M	100.20M	914.90M	140.70M

Vertiv Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 103.61
• 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 103.61 is above the 20-day moving average (MA) of 96.68, above the 50-day MA of 84.85, and above the 200-day MA of 101.52, indicating a bullish trend. The MACD of 6.74 indicates Negative momentum. The RSI at 63.03 is Neutral, neither overbought nor oversold. The STOCH value of 74.95 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
NVT	81 Outperform	$10.88B	18.88	7.63%	1.18%	-5.12%	1.69%
HUBB	78 Outperform	$20.77B	26.31	25.78%	1.30%	1.97%	10.22%
VRT	74 Outperform	$40.55B	61.68	32.82%	0.12%	20.45%	66.80%
AEIS	74 Outperform	$4.47B	61.30	6.36%	0.34%	0.06%	-28.32%
AYI	73 Outperform	$8.38B	20.55	17.86%	0.24%	2.78%	11.53%
ENS	67 Neutral	$3.87B	12.14	18.36%	0.96%	-2.94%	22.32%
Sector *	64 Neutral	$4.46B	11.94	5.17%	249.36%	4.00%	-12.35%

Vertiv Holdings Corporate Events

Vertiv Holdings Boosts Annual Dividend by 50%

Vertiv Holdings Co has announced a 50% increase in its annual dividend, raising it from $0.10 to $0.15 per share, reflecting the company’s robust financial performance and cash flow. The quarterly dividend will start at $0.0375 per share for Class A common stock, payable on December 19, 2024. This announcement was made during an investor event in Atlanta, which coincided with Vertiv’s participation in the SC24 conference, where they showcased their latest technology.