VRT Vertiv Holdings Co

Vertiv Holdings designs, manufactures, and services power, cooling, and IT infrastructure equipment for data centers and communication networks. Sector: Industrials.

Vertiv Holdings Co (VRT) is an individual stock. The analysis below presents key financial metrics for the company, covering profitability, capital efficiency, valuation, margins, and growth.

Examining the company through a capital allocation lens, ROIC is 27.78%, WACC is 15.21%, and the economic spread is 12.57%. On balance, the spread between ROIC and WACC is solidly positive — reinvestment is adding value rather than diluting it. Supporting metrics show ROE at 44.83% and ROA at 12.49%, a combination that helps frame whether profitability strength is broad enough to hold through different market conditions. Taken together, the return profile suggests a company with credible compounding capacity if current operating execution persists.

Valuation currently screens at trailing P/E of 81.26, forward P/E of 48.73, PEG of 1.26. The gap between trailing and forward multiples is wide, suggesting the market is pricing meaningful earnings expansion over the coming year. A PEG below 1.5 implies the company's growth rate is not fully reflected in the current multiple — a constructive signal for growth-adjusted value. The aggregate current ratio of 1.49 reflects tighter near-term liquidity — a factor worth monitoring if macro conditions tighten. The valuation profile here is neither obviously cheap nor dramatically expensive — a setup where the return case is built more on earnings delivery than on re-rating potential.

From gross to free cash flow, gross margin sits at 37.15%, operating margin at 18.78%, and free cash flow margin at 21.01%. At this gross margin level, pricing power is present but not dominant — cost management matters as much as revenue growth. The operating margin reading is healthy — adequate to support reinvestment without sacrificing profitability. The company's FCF margin is above average, pointing to the company with efficient capital deployment and durable cash generation. The margin profile is mixed, with some layers more resilient than others and less room for execution slippage.

Revenue momentum and analyst targets together paint a picture where the estimated 12-month price change of 11.48%, where consensus expectations favor gradual appreciation over the next year, while TTM revenue growth of 30.13% reflecting top-line acceleration that, if sustained, supports the forward earnings case. Reported revenue growth is the operational foundation; the analyst target spread shows what the market is willing to pay above it — and that premium can evaporate quickly if delivery slips. For investors, the central question is whether the operating momentum visible in revenues is durable enough to support the price appreciation implied by consensus targets. The estimated 12-month price change is based on analyst consensus price target estimates, sourced from publicly available data, and should not be interpreted as a reliable prediction of future performance.

When all the evidence is placed side by side, this profile stands out as one with genuine compounding characteristics and limited structural headwinds.

This summary is based on publicly available quantitative data and is not intended as investment advice. Carefully consider your personal financial circumstances before making any decisions.