Recent News
On March 2026 Vertiv announced a $50 million expansion of Ohio manufacturing capacity to increase liquid-cooling and chilled-water system output, targeting advanced thermal management for high-performance AI workloads. In February 2026 the company publicized a new high-fidelity Digital Twin platform for data-center deployment and related product/deployment initiatives that complement its thermal and power offerings. Analysts and market commentary since February continue to reference an expanded backlog and elevated hiring as demand signals.
Technical Analysis
Directional indicators (ADX/DI+/DI-): ADX at 20.46 signals an emerging trend. DI+ at 28.78 increasing and DI- at 21.83 decreasing defines a bullish directional setup, implying trend-following momentum favors higher prices for the near term.
MACD: MACD at 13.40 with the MACD signal at 10.62 and MACD_trend increasing shows bullish momentum; MACD currently trades above its signal line, which constitutes a bullish confirmation for short-to-intermediate momentum.
MRO: MRO at 30.76 combined with a peak-and-reversal pattern indicates price sits above the model target and cannot be ignored as a bearish pressure on near-term returns; the oscillator’s reading implies elevated potential for a corrective leg despite other bullish signals.
RSI and momentum breadth: RSI at 61.46 and rising indicates constructive buying without current overbought extremes; combined with a 42-day beta of 2.39, expect above-average directional moves and quick trend shifts.
Price vs. averages and volatility: Last close $307.34 sits above the 20-day average $278.81, 50-day average $256.95, and 200-day average $182.42, showing a clear uptrend. Narrow-to-moderate 20-day standard deviation ($26.88) and Bollinger bands (1x upper $305.69 / lower $251.93) position the stock near the upper band; short-term consolidation around $275–$310 is probable.
Fundamental Analysis
Profitability and cash flow: Operating margin stands at 21.07% and EBIT margin at 20.13%, both above the industry peer mean and near the higher end of the industry peer range, supporting the margin-expansion narrative. YoY operating margin improved ~79.22% and EBIT margin rose ~71.25% year-over-year, reflecting meaningful margin leverage versus prior periods.
Earnings and cash conversion: Reported EPS $1.36 exceeded the estimate $1.30 by $0.06, an EPS surprise ratio of 4.62%. Operating cash flow $978.9M and free cash flow $883.9M produce a free cash flow yield of 1.31%, while free cash growth shows strong positive momentum year-over-year; cash conversion metrics (cash conversion cycle ~78 days) improved YoY and QoQ.
Leverage and capital structure: Total debt $3,227.9M with net debt $1,184.6M yields debt/EBITDA ~4.83 and interest coverage ~34.72x, indicating solvency metrics supportive of growth investment yet leaving leverage elevated versus conservative benchmarks. Debt-to-assets at 26.43% and debt-to-equity ~0.82 demonstrate moderate leverage relative to total capital.
Valuation context: Trailing P/E ~129.39 sits above the industry peer mean and median but below the industry high; P/B at 17.08 remains materially above the industry peer mean. The current valuation as determined by WMDST classifies the stock as over-valued, which implies that future returns will need continued margin expansion and cash-flow growth to justify multiples.
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 | $ 1.3 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 | $ 2.03 | |
| 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: 265.515 VRT: 102.84 median: 87.672 mean: 82.531 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: 5.892 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: 113.935 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: 21.098 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: 0.27 |
|
| 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: 300.735 mean: 113.49 median: 84.944 VRT: 77.841 low: -74.579 |
|
| 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: 2.223 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: 0.059 |
|
| 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: 113.753 VRT: 34.725 median: 13.68 mean: 12.326 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: 56.341 % VRT: 7.631 % mean: 3.468 % 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: 25.012 % 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: 34.501 % 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: 13.608 % low: -555.833 % |
|
| 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: 16.193 % 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: 0.955 % 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: 316.709 % VRT: 91.32 % median: 34.101 % mean: 20.474 % 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: 1.352 % low: -59.684 % |
|
| 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 % |
|