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On March 3, 2026 the company completed a $2.1 billion senior unsecured notes offering and closed a new $2.5 billion senior unsecured revolving credit facility to replace prior term debt. On April 27, 2026 Vertiv announced the acquisition of Strategic Thermal Labs to expand liquid-cooling capabilities. The company scheduled a two-day investor conference on May 19–20, 2026, and on May 15, 2026 issued guidance to shareholders regarding an unsolicited mini‑tender offer.
Technical Analysis
ADX at 24.85 signals an emerging trend strength; the directional picture tilts bearish because DI+ registered a peak & reversal at 30.25 (bearish) while DI‑ showed a dip & reversal at 19.15 (bearish). These directional shifts imply diminishing upside momentum despite an active trend environment.
MACD sits at 16.36 with a peak & reversal and remains below its signal line (18.52), indicating bearish momentum and a recent momentum peak that failed to sustain a bullish crossover.
MRO reads 34.49 with a peak & reversal; the positive MRO indicates the market price sits above the model target and therefore carries measurable downside potential as momentum relaxes.
RSI at 60.49 with a peak & reversal suggests earlier overbought pressure has begun to unwind and increases the likelihood of a corrective move rather than immediate trend continuation.
Price sits below short-term exponential averages: the 12-day EMA at $346.63 and the 26-day EMA at $330.66, while below the 20-day average ($348.73) and above the 50-day average ($299.77). The 200-day average remains well below current levels at $204.98, indicating the medium-term uptrend intact but the short-term structure vulnerable to pullback.
Bollinger bands place the lower 1σ at $327.61 and lower 2σ at $306.48; the close at $322.63 trades beneath the 1σ band, implying elevated intraday downside risk but not an extreme volatility break. Ichimoku components show the price below Kijun‑sen ($334.62) and Tenkan‑sen ($346.14), reinforcing near-term resistance ahead of sustainable recovery. High 42‑day and 52‑week betas (~2.5) confirm above‑average volatility, consistent with larger intrarange swings ahead.
Fundamental Analysis
Vertiv reported operating income (EBIT) of $433.6M and EBITDA of $541.3M for the period ending 2026-03-31, with an EBIT margin of 16.37%. That EBIT margin sits above the industry peer mean (14.47%) and near the industry peer median (16.28%), indicating margin performance in line with comparable electrical equipment manufacturers. Operating margin improved year‑over‑year by 14.62% (YoY operating margin +14.62%).
Total revenue reached $2,649.5M while reported revenue growth shows a YoY decline of 39.50% and the headline revenueGrowth figure of -8.00% (period comparison); the sizable YoY revenue contraction materially compresses top‑line momentum despite healthy gross margins (37.73%, above the industry peer mean of 34.38%).
EPS came in at $1.17 versus an estimate of $1.01, producing an EPS surprise of +15.84% and signaling earnings resilience against top‑line pressure. Free cash flow totaled $652.8M, yielding 0.677% on market cap; that free cash flow yield exceeds the industry peer mean of 0.109%, lending credibility to cash generation despite lower revenue.
Balance‑sheet metrics show $2,150.6M in cash and $3,264.9M in total debt with net debt of $771.6M and debt/EBITDA of 6.03x. Interest coverage sits at 25.96x, reflecting ample coverage of interest expense. Current ratio of 1.49 and quick ratio 1.15 indicate adequate near‑term liquidity. Asset turnover at 0.2069 remains above the industry peer mean (0.1660), but asset growth of 9.73% accompanied by weakening receivables and inventory turns suggests working‑capital pressure contributed to the cash‑conversion cycle of 96.94 days.
Valuation context: price multiples show a trailing P/E of 214.69, P/S of 36.40 and an enterprise multiple of 179.58, high relative to medians but reflected in WMDST’s view. The current valuation as determined by WMDST: fair‑valued, reflecting a combination of robust margins, solid cash flow, elevated leverage metrics and compressed revenue growth.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2026-03-31 |
| REPORT DATE: | 2026-04-22 |
| NEXT REPORT DATE: | 2026-07-22 |
| CASH FLOW | Begin Period Cash Flow | $ 1.8 B |
| Operating Cash Flow | $ 766.8 M | |
| Capital Expenditures | $ -114.00 M | |
| Change In Working Capital | $ 227.8 M | |
| Dividends Paid | $ -23.90 M | |
| Cash Flow Delta | $ 401.4 M | |
| End Period Cash Flow | $ 2.2 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 2.6 B | |
| Forward Revenue | $ 1.4 B | |
| COSTS | ||
| Cost Of Revenue | $ 1.6 B | |
| Depreciation | $ 27.5 M | |
| Depreciation and Amortization | $ 107.7 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 2.2 B | |
| PROFITABILITY | ||
| Gross Profit | $ 999.7 M | |
| EBITDA | $ 541.3 M | |
| EBIT | $ 433.6 M | |
| Operating Income | $ 433.6 M | |
| Interest Income | $ 4.4 M | |
| Interest Expense | — | |
| Net Interest Income | $ 4.4 M | |
| Income Before Tax | $ 438.3 M | |
| Tax Provision | $ 48.2 M | |
| Tax Rate | 11.0 % | |
| Net Income | $ 390.1 M | |
| Net Income From Continuing Operations | $ 390.1 M | |
| EARNINGS | ||
| EPS Estimate | $ 1.01 | |
| EPS Actual | $ 1.17 | |
| EPS Difference | $ 0.16 | |
| EPS Surprise | 15.842 % | |
| Forward EPS | $ 2.20 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 13.4 B | |
| Intangible Assets | $ 3.8 B | |
| Net Tangible Assets | $ 415.2 M | |
| Total Current Assets | $ 8.0 B | |
| Cash and Short-Term Investments | $ 2.5 B | |
| Cash | $ 2.2 B | |
| Net Receivables | $ 3.1 B | |
| Inventory | $ 1.8 B | |
| Long-Term Investments | $ 79.7 M | |
| LIABILITIES | ||
| Accounts Payable | $ 2.0 B | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 5.3 B | |
| Net Debt | $ 771.6 M | |
| Total Debt | $ 3.3 B | |
| Total Liabilities | $ 9.2 B | |
| EQUITY | ||
| Total Equity | $ 4.2 B | |
| Retained Earnings | $ 1.4 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 11.06 | |
| Shares Outstanding | 383.954 M | |
| Revenue Per-Share | $ 6.90 | |
| VALUATION | Market Capitalization | $ 96.4 B |
| Enterprise Value | $ 97.2 B | |
| Enterprise Multiple | 179.584 | |
| Enterprise Multiple QoQ | 74.625 % | |
| Enterprise Multiple YoY | 83.978 % | |
| Enterprise Multiple IPRWA | high: 222.733 VRT: 179.584 median: 114.236 mean: 99.121 low: -72.033 |
|
| EV/R | 36.69 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 3.157 | |
| Asset To Liability | 1.464 | |
| Debt To Capital | 0.435 | |
| Debt To Assets | 0.244 | |
| Debt To Assets QoQ | -7.817 % | |
| Debt To Assets YoY | -26.757 % | |
| Debt To Assets IPRWA | high: 0.632 median: 0.396 mean: 0.373 VRT: 0.244 low: 0.002 |
|
| Debt To Equity | 0.769 | |
| Debt To Equity QoQ | -6.088 % | |
| Debt To Equity YoY | -34.771 % | |
| Debt To Equity IPRWA | high: 3.2 mean: 1.231 median: 1.107 VRT: 0.769 low: 0.003 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 22.72 | |
| Price To Book QoQ | 33.021 % | |
| Price To Book YoY | 79.829 % | |
| Price To Book IPRWA | VRT: 22.72 high: 10.313 median: 7.533 mean: 6.784 low: 0.603 |
|
| Price To Earnings (P/E) | 214.69 | |
| Price To Earnings QoQ | 65.926 % | |
| Price To Earnings YoY | 55.397 % | |
| Price To Earnings IPRWA | high: 374.411 VRT: 214.69 mean: 163.9 median: 136.151 low: -128.467 |
|
| PE/G Ratio | -15.367 | |
| Price To Sales (P/S) | 36.401 | |
| Price To Sales QoQ | 55.732 % | |
| Price To Sales YoY | 119.996 % | |
| Price To Sales IPRWA | high: 82.536 VRT: 36.401 mean: 25.94 median: 19.938 low: 2.312 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 112.133 | |
| Forward PE/G | -8.026 | |
| Forward P/S | 72.751 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 3.152 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.207 | |
| Asset Turnover Ratio QoQ | -17.284 % | |
| Asset Turnover Ratio YoY | -5.581 % | |
| Asset Turnover Ratio IPRWA | high: 0.268 VRT: 0.207 mean: 0.166 median: 0.155 low: 0.003 |
|
| Receivables Turnover | 0.847 | |
| Receivables Turnover Ratio QoQ | -12.972 % | |
| Receivables Turnover Ratio YoY | -2.817 % | |
| Receivables Turnover Ratio IPRWA | high: 2.698 mean: 1.495 median: 1.268 VRT: 0.847 low: 0.142 |
|
| Inventory Turnover | 1.003 | |
| Inventory Turnover Ratio QoQ | -17.518 % | |
| Inventory Turnover Ratio YoY | -2.384 % | |
| Inventory Turnover Ratio IPRWA | high: 3.465 mean: 1.004 VRT: 1.003 median: 0.973 low: 0.255 |
|
| Days Sales Outstanding (DSO) | 107.759 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 96.94 | |
| Cash Conversion Cycle Days QoQ | 24.537 % | |
| Cash Conversion Cycle Days YoY | -4.743 % | |
| Cash Conversion Cycle Days IPRWA | high: 158.008 VRT: 96.94 mean: 95.528 median: 80.044 low: -5.201 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 1.003 | |
| CapEx To Revenue | -0.043 | |
| CapEx To Depreciation | -4.145 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 7.2 B | |
| Net Invested Capital | $ 7.2 B | |
| Invested Capital | $ 7.2 B | |
| Net Tangible Assets | $ 415.2 M | |
| Net Working Capital | $ 2.6 B | |
| LIQUIDITY | ||
| Cash Ratio | 0.468 | |
| Current Ratio | 1.494 | |
| Current Ratio QoQ | -3.43 % | |
| Current Ratio YoY | -12.884 % | |
| Current Ratio IPRWA | high: 11.221 mean: 2.074 VRT: 1.494 median: 1.193 low: 1.072 |
|
| Quick Ratio | 1.151 | |
| Quick Ratio QoQ | -5.418 % | |
| Quick Ratio YoY | -10.137 % | |
| Quick Ratio IPRWA | high: 6.615 mean: 1.5 VRT: 1.151 median: 0.755 low: 0.329 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 6.032 | |
| Cost Of Debt | 0.458 % | |
| Interest Coverage Ratio | 25.964 | |
| Interest Coverage Ratio QoQ | -25.228 % | |
| Interest Coverage Ratio YoY | 125.969 % | |
| Interest Coverage Ratio IPRWA | high: 62.767 VRT: 25.964 median: 11.443 mean: 10.943 low: -35.645 |
|
| Operating Cash Flow Ratio | 0.052 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 96.203 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 16.322 | |
| Dividend Payout Ratio | 0.061 | |
| Dividend Rate | $ 0.06 | |
| Dividend Yield | 0.0 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 9.725 % | |
| Revenue Growth | -8.003 % | |
| Revenue Growth QoQ | -204.875 % | |
| Revenue Growth YoY | -39.504 % | |
| Revenue Growth IPRWA | high: 69.221 % median: 5.613 % mean: 4.946 % VRT: -8.003 % low: -53.346 % |
|
| Earnings Growth | -13.971 % | |
| Earnings Growth QoQ | -244.373 % | |
| Earnings Growth YoY | -60.483 % | |
| Earnings Growth IPRWA | high: 57.143 % mean: -6.626 % VRT: -13.971 % median: -15.616 % low: -95.658 % |
|
| MARGINS | ||
| Gross Margin | 37.732 % | |
| Gross Margin QoQ | -3.097 % | |
| Gross Margin YoY | 11.905 % | |
| Gross Margin IPRWA | high: 42.45 % VRT: 37.732 % median: 35.593 % mean: 34.379 % low: -19.184 % |
|
| EBIT Margin | 16.365 % | |
| EBIT Margin QoQ | -18.724 % | |
| EBIT Margin YoY | 14.617 % | |
| EBIT Margin IPRWA | high: 19.413 % VRT: 16.365 % median: 16.28 % mean: 14.467 % low: -76.293 % |
|
| Return On Sales (ROS) | 16.365 % | |
| Return On Sales QoQ | -22.341 % | |
| Return On Sales YoY | 14.617 % | |
| Return On Sales IPRWA | high: 19.413 % VRT: 16.365 % median: 15.729 % mean: 14.008 % low: -152.384 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 652.8 M | |
| Free Cash Flow Yield | 0.677 % | |
| Free Cash Flow Yield QoQ | -48.439 % | |
| Free Cash Flow Yield YoY | -13.758 % | |
| Free Cash Flow Yield IPRWA | high: 1.355 % VRT: 0.677 % median: 0.211 % mean: 0.109 % low: -8.817 % |
|
| Free Cash Growth | -26.145 % | |
| Free Cash Growth QoQ | -128.63 % | |
| Free Cash Growth YoY | -2.781 % | |
| Free Cash Growth IPRWA | high: 144.811 % VRT: -26.145 % mean: -75.148 % median: -80.038 % low: -133.472 % |
|
| Free Cash To Net Income | 1.673 | |
| Cash Flow Margin | 10.391 % | |
| Cash Flow To Earnings | 0.706 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 3.046 % | |
| Return On Assets QoQ | -21.292 % | |
| Return On Assets YoY | 72.09 % | |
| Return On Assets IPRWA | high: 4.035 % VRT: 3.046 % median: 1.798 % mean: 1.578 % low: -31.926 % |
|
| Return On Capital Employed (ROCE) | 5.382 % | |
| Return On Equity (ROE) | 0.092 | |
| Return On Equity QoQ | -18.716 % | |
| Return On Equity YoY | 48.971 % | |
| Return On Equity IPRWA | VRT: 0.092 high: 0.077 mean: 0.044 median: 0.044 low: -0.688 |
|
| DuPont ROE | 9.531 % | |
| Return On Invested Capital (ROIC) | 5.384 % | |
| Return On Invested Capital QoQ | -19.57 % | |
| Return On Invested Capital YoY | 67.049 % | |
| Return On Invested Capital IPRWA | high: 6.031 % VRT: 5.384 % mean: 2.503 % median: 2.328 % low: -3.096 % |
|