Recent News
Effective March 23, 2026 Vertiv entered the S&P 500 following S&P Dow Jones Indices’ March rebalancing announcement. The company completed roughly $2.1 billion of long‑dated senior unsecured notes and arranged a $2.5 billion revolving credit facility in March 2026.
Technical Analysis
Directional strength: ADX at 20.6 indicates an emerging trend. DI+ experienced a dip and reversal, which by definition signals bullish directional pressure; DI‑ showed a peak and reversal, which aligns with waning downside pressure. Together these directional moves create a near‑term bullish directional bias that supports the momentum noted in the introduction.
MACD: MACD sits at 7.46 and recently reversed upward, crossing above its 7.06 signal line; that crossing constitutes a bullish momentum signal and supports a continuation of the recent advance.
MRO: The Momentum/Regression Oscillator reads 28.44 and has been increasing; a positive MRO implies the price sits above the model target and carries a potential for mean reversion, which increases the odds of a corrective pullback from current levels given the valuation context.
RSI and volatility: RSI at 60.24 has completed a dip and reversal, indicating renewed buying interest without being overbought. Elevated 42‑day beta (2.6) and a higher than usual dispersion between 20‑ and 50‑day averages signal above‑average volatility, so upside momentum can produce sharp swings.
Price vs. averages and bands: Last close $287.64 sits above the 12‑day EMA ($265.54), the 20‑day average ($261.25), the 50‑day average ($243.54) and the 200‑day average ($177.11), confirming bullish price placement across horizons; Bollinger band upper bounds near $276–$292 indicate the current close trades at or modestly above the 2x band ceiling, consistent with stretched short‑term breadth.
Fundamental Analysis
Profitability: EBIT $579,900,000 and EBITDA $668,200,000 accompany an EBIT margin of 20.14%, which compares above the industry peer mean (13.628%) and just above the industry peer median (17.028%), and below the industry peer high (22.162%). QoQ EBIT margin expanded ~4.61% and YoY improved ~71.25%, supporting margin momentum despite revenue dynamics.
Revenue and cash flow: Total revenue totaled $2,880,000,000. Reported revenue growth YoY stands at −42.02% while the quarter‑over‑quarter series shows a sharp QoQ increase; free cash flow $883,900,000 yields 1.31% free cash flow yield, which sits above the industry peer mean free cash flow yield (~0.96%). Free cash flow growth shows substantial YoY expansion (12.57716 → reported as 1,257.72%), indicating large cash conversion improvements over the prior period.
Earnings and coverage: Reported EPS $1.36 versus an estimate $1.30 produced a $0.06 beat, an EPS surprise of ~4.62%. Interest coverage reads ~34.7×, reflecting strong capacity to service interest and supporting tolerance for leverage taken to fund long‑dated notes and the revolver.
Capital structure and liquidity: Total debt $3,227,900,000 with net debt $1,184,600,000, cash and short‑term investments $1,827,900,000. Debt to EBITDA ~4.83× while debt to assets ~26.43% sits slightly below the industry peer mean (~29.45%). Current ratio ~1.55 and quick ratio ~1.22 show adequate near‑term liquidity with sizable working capital at $2,412,500,000.
Valuation multiples: Trailing PE ~129.39× and P/B ~17.08× register well above the industry peer mean and median for those metrics; forward PE ~85.28× also sits above the industry peer mean forward PE. PS ratio ~23.37× slightly exceeds the industry peer mean. High multiples reflect market expectations embedded in price, consistent with the data labeling the stock as over‑valued.
WMDST valuation: The current valuation as determined by WMDST: over‑valued.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-12-31 |
| REPORT DATE: | 2026-02-11 |
| NEXT REPORT DATE: | 2026-05-13 |
| CASH FLOW | Begin Period Cash Flow | $ 1.4 B |
| Operating Cash Flow | $ 978.9 M | |
| Capital Expenditures | $ -95.00 M | |
| Change In Working Capital | $ 480.0 M | |
| Dividends Paid | $ -24.00 M | |
| Cash Flow Delta | $ 345.6 M | |
| End Period Cash Flow | $ 1.8 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 2.9 B | |
| Forward Revenue | $ 1.2 B | |
| COSTS | ||
| Cost Of Revenue | $ 1.8 B | |
| Depreciation | $ 26.2 M | |
| Depreciation and Amortization | $ 88.3 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 2.3 B | |
| PROFITABILITY | ||
| Gross Profit | $ 1.1 B | |
| EBITDA | $ 668.2 M | |
| EBIT | $ 579.9 M | |
| Operating Income | $ 606.9 M | |
| Interest Income | — | |
| Interest Expense | $ 16.7 M | |
| Net Interest Income | $ -16.70 M | |
| Income Before Tax | $ 563.2 M | |
| Tax Provision | $ 117.6 M | |
| Tax Rate | 20.881 % | |
| Net Income | $ 445.6 M | |
| Net Income From Continuing Operations | $ 445.6 M | |
| EARNINGS | ||
| EPS Estimate | $ 1.30 | |
| EPS Actual | $ 1.36 | |
| EPS Difference | $ 0.06 | |
| EPS Surprise | 4.615 % | |
| Forward EPS | $ 2.02 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 12.2 B | |
| Intangible Assets | $ 3.9 B | |
| Net Tangible Assets | $ 12.8 M | |
| Total Current Assets | $ 6.8 B | |
| Cash and Short-Term Investments | $ 1.8 B | |
| Cash | $ 1.7 B | |
| Net Receivables | $ 3.1 B | |
| Inventory | $ 1.5 B | |
| Long-Term Investments | $ 60.0 M | |
| LIABILITIES | ||
| Accounts Payable | $ 1.8 B | |
| Short-Term Debt | $ 20.9 M | |
| Total Current Liabilities | $ 4.4 B | |
| Net Debt | $ 1.2 B | |
| Total Debt | $ 3.2 B | |
| Total Liabilities | $ 8.3 B | |
| EQUITY | ||
| Total Equity | $ 3.9 B | |
| Retained Earnings | $ 1.0 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 10.30 | |
| Shares Outstanding | 382.554 M | |
| Revenue Per-Share | $ 7.53 | |
| VALUATION | Market Capitalization | $ 67.3 B |
| Enterprise Value | $ 68.7 B | |
| Enterprise Multiple | 102.84 | |
| Enterprise Multiple QoQ | 6.156 % | |
| Enterprise Multiple YoY | -20.58 % | |
| Enterprise Multiple IPRWA | high: 292.919 VRT: 102.84 median: 87.672 mean: 84.018 low: -68.969 |
|
| EV/R | 23.86 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 3.099 | |
| Asset To Liability | 1.477 | |
| Debt To Capital | 0.45 | |
| Debt To Assets | 0.264 | |
| Debt To Assets QoQ | -11.046 % | |
| Debt To Assets YoY | 11391.739 % | |
| Debt To Assets IPRWA | high: 0.68 mean: 0.294 VRT: 0.264 median: 0.255 low: 0.001 |
|
| Debt To Equity | 0.819 | |
| Debt To Equity QoQ | -10.589 % | |
| Debt To Equity YoY | 9390.035 % | |
| Debt To Equity IPRWA | high: 2.837 VRT: 0.819 median: 0.542 mean: 0.52 low: 0.002 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 17.08 | |
| Price To Book QoQ | 7.164 % | |
| Price To Book YoY | -9.86 % | |
| Price To Book IPRWA | VRT: 17.08 high: 14.021 median: 6.811 mean: 5.894 low: 0.371 |
|
| Price To Earnings (P/E) | 129.389 | |
| Price To Earnings QoQ | 9.671 % | |
| Price To Earnings YoY | 5.724 % | |
| Price To Earnings IPRWA | high: 265.806 VRT: 129.389 mean: 113.971 median: 102.422 low: -66.062 |
|
| PE/G Ratio | 13.371 | |
| Price To Sales (P/S) | 23.374 | |
| Price To Sales QoQ | 11.842 % | |
| Price To Sales YoY | 18.902 % | |
| Price To Sales IPRWA | high: 60.313 VRT: 23.374 mean: 21.103 median: 18.753 low: -26.375 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 85.28 | |
| Forward PE/G | 8.813 | |
| Forward P/S | 55.564 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 1.651 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.25 | |
| Asset Turnover Ratio QoQ | -0.813 % | |
| Asset Turnover Ratio YoY | -3.937 % | |
| Asset Turnover Ratio IPRWA | high: 0.501 VRT: 0.25 median: 0.172 mean: 0.171 low: -0.036 |
|
| Receivables Turnover | 0.973 | |
| Receivables Turnover Ratio QoQ | 2.576 % | |
| Receivables Turnover Ratio YoY | -2.731 % | |
| Receivables Turnover Ratio IPRWA | high: 2.9 mean: 1.45 median: 1.289 VRT: 0.973 low: 0.153 |
|
| Inventory Turnover | 1.216 | |
| Inventory Turnover Ratio QoQ | 4.038 % | |
| Inventory Turnover Ratio YoY | 2.909 % | |
| Inventory Turnover Ratio IPRWA | high: 3.385 VRT: 1.216 median: 0.955 mean: 0.937 low: 0.332 |
|
| Days Sales Outstanding (DSO) | 93.78 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 77.841 | |
| Cash Conversion Cycle Days QoQ | -7.099 % | |
| Cash Conversion Cycle Days YoY | -12.795 % | |
| Cash Conversion Cycle Days IPRWA | high: 282.34 mean: 110.285 median: 84.944 VRT: 77.841 low: -87.947 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 1.194 | |
| CapEx To Revenue | -0.033 | |
| CapEx To Depreciation | -3.626 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 6.8 B | |
| Net Invested Capital | $ 6.9 B | |
| Invested Capital | $ 6.9 B | |
| Net Tangible Assets | $ 12.8 M | |
| Net Working Capital | $ 2.4 B | |
| LIQUIDITY | ||
| Cash Ratio | 0.415 | |
| Current Ratio | 1.547 | |
| Current Ratio QoQ | -15.489 % | |
| Current Ratio YoY | -6.066 % | |
| Current Ratio IPRWA | high: 7.076 mean: 2.222 VRT: 1.547 median: 1.33 low: 0.602 |
|
| Quick Ratio | 1.217 | |
| Quick Ratio QoQ | -14.855 % | |
| Quick Ratio YoY | -2.296 % | |
| Quick Ratio IPRWA | high: 6.711 mean: 1.511 VRT: 1.217 median: 0.815 low: 0.434 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 4.831 | |
| Cost Of Debt | 0.578 % | |
| Interest Coverage Ratio | 34.725 | |
| Interest Coverage Ratio QoQ | 53.732 % | |
| Interest Coverage Ratio YoY | 286.388 % | |
| Interest Coverage Ratio IPRWA | high: 42.37 VRT: 34.725 median: 13.319 mean: 10.643 low: -57.382 |
|
| Operating Cash Flow Ratio | 0.058 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 95.226 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 18.567 | |
| Dividend Payout Ratio | 0.054 | |
| Dividend Rate | $ 0.06 | |
| Dividend Yield | 0.0 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 12.907 % | |
| Revenue Growth | 7.631 % | |
| Revenue Growth QoQ | 434.01 % | |
| Revenue Growth YoY | -42.018 % | |
| Revenue Growth IPRWA | high: 49.829 % VRT: 7.631 % mean: 3.466 % median: 0.959 % low: -78.064 % |
|
| Earnings Growth | 9.677 % | |
| Earnings Growth QoQ | -68.299 % | |
| Earnings Growth YoY | -68.024 % | |
| Earnings Growth IPRWA | high: 200.0 % mean: 25.03 % VRT: 9.677 % median: 8.203 % low: -128.571 % |
|
| MARGINS | ||
| Gross Margin | 38.938 % | |
| Gross Margin QoQ | 3.087 % | |
| Gross Margin YoY | 4.991 % | |
| Gross Margin IPRWA | high: 44.281 % VRT: 38.938 % median: 36.458 % mean: 34.504 % low: -27.164 % |
|
| EBIT Margin | 20.135 % | |
| EBIT Margin QoQ | 4.614 % | |
| EBIT Margin YoY | 71.245 % | |
| EBIT Margin IPRWA | high: 22.162 % VRT: 20.135 % median: 17.028 % mean: 13.628 % low: -317.168 % |
|
| Return On Sales (ROS) | 21.073 % | |
| Return On Sales QoQ | 2.84 % | |
| Return On Sales YoY | 79.223 % | |
| Return On Sales IPRWA | high: 22.855 % VRT: 21.073 % median: 17.028 % mean: 16.204 % low: -96.362 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 883.9 M | |
| Free Cash Flow Yield | 1.313 % | |
| Free Cash Flow Yield QoQ | 58.959 % | |
| Free Cash Flow Yield YoY | 67.474 % | |
| Free Cash Flow Yield IPRWA | high: 3.815 % VRT: 1.313 % median: 1.189 % mean: 0.957 % low: -14.429 % |
|
| Free Cash Growth | 91.32 % | |
| Free Cash Growth QoQ | 36.733 % | |
| Free Cash Growth YoY | 1257.716 % | |
| Free Cash Growth IPRWA | high: 198.504 % VRT: 91.32 % median: 34.101 % mean: 20.426 % low: -225.457 % |
|
| Free Cash To Net Income | 1.984 | |
| Cash Flow Margin | 8.809 % | |
| Cash Flow To Earnings | 0.569 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 3.87 % | |
| Return On Assets QoQ | 3.063 % | |
| Return On Assets YoY | 137.278 % | |
| Return On Assets IPRWA | high: 20.222 % VRT: 3.87 % median: 2.764 % mean: 1.387 % low: -56.16 % |
|
| Return On Capital Employed (ROCE) | 7.429 % | |
| Return On Equity (ROE) | 0.113 | |
| Return On Equity QoQ | -0.449 % | |
| Return On Equity YoY | 87.216 % | |
| Return On Equity IPRWA | high: 0.219 VRT: 0.113 median: 0.058 mean: 0.031 low: -0.485 |
|
| DuPont ROE | 11.962 % | |
| Return On Invested Capital (ROIC) | 6.694 % | |
| Return On Invested Capital QoQ | 3.143 % | |
| Return On Invested Capital YoY | -148.79 % | |
| Return On Invested Capital IPRWA | VRT: 6.694 % high: 5.627 % median: 4.077 % mean: 2.661 % low: -7.193 % |
|