# Vertiv Holdings (VRT.US)

Canonical: https://gigainvestors.com/s/VRT

Analysis as of: 2026-10-16T07:32:56.364Z. Financial observations: FY2016–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $214.75 per share; close as of 2026-10-15.

Estimated value: low $31.43 per share, central $34.73 per share, high $39.13 per share. Buy at or below the central value $34.73 per share. Valuation as of 2026-10-16T07:32:56.364Z; scenarios are not confidence intervals.

Expected annual return: 3.9% at the stated quote. About 3.9% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 1 revenue decline in the last 10 years (informational)

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 3

- Operating margin variation: 0.78×

Chart: Operating margin; fiscal year observations.

- FY2017: -0.00×

- FY2018: -0.00×

- FY2019: 0.05×

- FY2020: 0.08×

- FY2021: 0.05×

- FY2022: 0.04×

- FY2023: 0.13×

- FY2024: 0.17×

- FY2025: 0.19×

- LTM to Jun 2026: 0.19×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 8.7%

- ROIC, second-lowest year: -0.0%

- Typical minus recent gross margin: -4.4 pp

- Typical gross margin (annual median): 32.0%

- Recent gross margin (lower of latest and 3-year median): 36.3%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.8%

- ROIC including acquisitions, ten-year median: 6.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: -0.0%

- FY2018: -0.0%

- FY2019: 8.7%

- FY2020: 16.0%

- FY2021: 7.0%

- FY2022: 4.5%

- FY2023: 26.1%

- FY2024: 29.6%

- FY2025: 43.9%

### economics: pass

- Owner earnings / net income, 5-yr: 1.12×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $4.6B

- Net income, five-year total: $4.1B

- Return on incremental invested capital: 75.1%

- Working capital / revenue, annual change: 0.6 pp

- Working capital / revenue, change between three-year averages: 0.6 pp

- Working capital / revenue, final three-year average: 29.7%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 3.50×

- FY2023: 1.30×

- FY2024: 1.19×

- FY2025: 1.06×

- LTM to Jun 2026: 1.00×

### management: pass

- Historical market-dollar context (not the management verdict): 2018 to 2025 (7 years)

- buybacks unrelated to price (informational)

- Per-share earnings: -0.00 to 1.28 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 4.9%

- Market cap gain: $61B

- Cumulative retained earnings: $1.0B

- Diluted shares, 5-year annual growth: 4.9%

- $1 test, starting fiscal year: FY2018

- $1 test, ending fiscal year: FY2025

- Per-share value change: $1.28

- Per-share value, starting three-year median: -$0.00

- Per-share value, ending three-year median: $1.28

- Buybacks concentrated in cheaper years (correlation): -1.00

- Average buyback yield: 2.3%

- Buyback history: 3 years

- Debt-funded buybacks: No

- Cumulative net income, 10 years: $2.0B

- ROIC, last three-year median: 29.6%

Chart: Earnings per share; fiscal year observations.

- FY2016: -$0.00

- FY2017: -$0.00

- FY2018: $0.04

- FY2019: -$1.19

- FY2020: -$1.07

- FY2021: $0.33

- FY2022: $0.20

- FY2023: $1.19

- FY2024: $1.28

- FY2025: $3.41

### accounting: pass

- restructuring or one-time charges in at least three of five years

- Sloan accruals: -6.4%

- Receivables to sales index (DSRI): 1.03×

- Restructuring years, last five: 5

- Stock compensation / operating cash flow: 2.2%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.59×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 1.00×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -1113.7%

- FY2017: 198394.9%

- FY2018: 0.8%

- FY2019: -4.3%

- FY2020: -10.6%

- FY2021: -1.3%

- FY2022: 3.2%

- FY2023: -5.5%

- FY2024: -9.0%

- FY2025: -6.4%

## Holders

- [Terry Smith](https://gigainvestors.com/FS): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Andrew Adams](https://gigainvestors.com/MPF): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Leon Cooperman](https://gigainvestors.com/oa): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 36% since Jun 2026 · "Vertiv Q2 2026 earnings: revenue miss sinks stock" (finance.yahoo.com, Jul 2026) · sales +12.2%

Story as of 2026-10-16T09:59:49.320Z; price observation 2026-10-15.

Price needs cash profits to grow 27.2% a year for ten years

- 2025-05-18: Vertiv Holdings Co (NYSE:VRT) Reports US$164 Million Q1 Net Income Turnaround ([finance.yahoo.com](https://finance.yahoo.com/news/vertiv-holdings-co-nyse-vrt-172426811.html))

- 2025-09-25: Vertiv Stock Pulls Back On Data Center Technology Competition And Why Investors Shouldn't Worry ([finance.yahoo.com](https://finance.yahoo.com/m/24982f0f-4e5a-31cb-a766-1d9fb83409d0/vertiv-stock-pulls-back-on.html))

- 2025-10-23: VRT Q3 CY2025 Deep Dive: AI Data Center Momentum and Results, Tariff Headwinds Remain ([finance.yahoo.com](https://finance.yahoo.com/news/vrt-q3-cy2025-deep-dive-053409128.html))

- 2026-02-15: 3 Cataylsts Behind Vertiv’s 20% Weekly Jump: 252% Order Growth Fuels 2026 Guidance Boom ([finance.yahoo.com](https://finance.yahoo.com/news/3-cataylsts-behind-vertiv-20-183445293.html))

- 2026-04-10: Vertiv Holdings Co (VRT) Surged Due to Robust Demand from Data Center Construction ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/vertiv-holdings-co-vrt-surged-144211504.html))

- 2026-07-29: Vertiv Q2 2026 earnings: revenue miss sinks stock ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/vertiv-q2-2026-earnings-revenue-121320056.html))

### Sales · FY2025–2026

sales +12.2%; source https://www.sec.gov/Archives/edgar/data/1674101/000167410126000008/vrt-20251231.htm; observed 2026-02-13.

- FY2017: $3.9B 

- FY2018: $4.3B 

- FY2019: $4.4B 

- FY2020: $4.4B 

- FY2021: $5.0B 

- FY2022: $5.7B 

- FY2023: $6.9B 

- FY2024: $8.0B 

- FY2025: $10B 

- FY2026: $11B 

### Gross margin · FY2025

gross margin 36.3%; source https://www.sec.gov/Archives/edgar/data/1674101/000167410126000008/vrt-20251231.htm; observed 2026-02-13.

- FY2016: 29.8% 

- FY2017: 33.8% 

- FY2018: 33.1% 

- FY2019: 29.9% 

- FY2020: 30.8% 

- FY2021: 27.6% 

- FY2022: 28.4% 

- FY2023: 35.0% 

- FY2024: 36.6% 

- FY2025: 36.3% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in electrical equipment & parts; annual sales are USD 10.2 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1674101/000167410126000008/vrt-20251231.htm (filed 2026-02-13); FY2025: revenue 10229900000; grossProfit 3715200000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); VRT.US: Vertiv Holdings Co designs, manufactures, and services critical digital infrastructure technologies and life cycle services for data centers, communication networks, and commercial and industrial environments in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company offers AC and DC power management products, low/medium voltage switchgear, busbar, thermal management products, air cooled and liquid cooled thermal management products, integrated modular solutions, racks, single phase UPS, rack power distribution, rack thermal systems, configurable integrated solutions, energy storage solutions, hardware, and software infrastructure that are integral to the technologies used for various services, including artificial intelligence, e-commerce, online banking, file sharing, video on-demand, energy storage, wireless communications, Internet of Things, and online gaming. It also provides lifecycle management services, predictive analytics, and professional services for deploying, maintaining, and optimizing its products and their related systems; and preventative maintenance, acceptance testing, engineering and consulting, fluid management, performance assessments, remote monitoring, training, spare parts, and critical digital infrastructure software services. The company offers its products primarily under the Vertiv, Liebert, NetSure, Geist, Energy Labs, ERS, Albér, and Avocent brands. It serves through a network of direct sales professionals, independent sales representatives, channel partners, and original equipment manufacturers. The company is headquartered in Westerville, Ohio.

### Why customers stay

Margins ranged from 35% to 36.6% during 2023–25; it earns 8.7% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2023: grossProfit / revenue = 35%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2024: grossProfit / revenue = 36.6%.

- Source: https://www.sec.gov/Archives/edgar/data/1674101/000167410126000008/vrt-20251231.htm (filed 2026-02-13); FY2025: grossProfit / revenue = 36.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); 10-year return on capital observations [[2017,-4.6335509416858013e-7],[2018,-0.00023633491484190968],[2019,0.08651900599155289],[2020,0.15976568132660418],[2021,0.07002501713122551],[2022,0.04535485649523693],[2023,0.2608527366004472],[2024,0.2963806130192352],[2025,0.43864473797421016]]; median 0.08651900599155289. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Reinvests 83.7% of cash earnings; earns 75.1% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2016: growth capex 0; upkeep 34000000; owner earnings 118696580. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2017: growth capex 0; upkeep 36700000; owner earnings 307598724. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2018: growth capex 0; upkeep 64600000; cash acquisitions 124300000; owner earnings 182930748. Growth capex plus acquisitions / owner earnings = 0.6794921103148827.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2021: growth capex 0; upkeep 84600000; cash acquisitions 1163700000; owner earnings 262000000. Growth capex plus acquisitions / owner earnings = 4.441603053435115.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2022: growth capex 0; upkeep 111000000; cash acquisitions 5000000; owner earnings 268000000. Growth capex plus acquisitions / owner earnings = 0.018656716417910446.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2023: growth capex 0; upkeep 134600000; cash acquisitions 28800000; owner earnings 596600000. Growth capex plus acquisitions / owner earnings = 0.048273550117331546.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2024: growth capex 0; upkeep 184100000; cash acquisitions 17600000; owner earnings 588700000. Growth capex plus acquisitions / owner earnings = 0.02989638185833192.

- Source: https://www.sec.gov/Archives/edgar/data/1674101/000167410126000008/vrt-20251231.htm (filed 2026-02-13); FY2025: growth capex 0; upkeep 226400000; cash acquisitions 1184800000; owner earnings 1415000000. Growth capex plus acquisitions / owner earnings = 0.8373144876325088.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); Incremental return on capital 0.7512463514823835, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); Dividend observations: [[2016,1024000000],[2017,1024000000],[2018,4883137],[2019,360227000000],[2020,3300000],[2021,3800000],[2022,3800000],[2023,9500000],[2024,42200000],[2025,66600000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 0.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); VRT.US SharesStats.PercentInsiders = 0.23800000000000002 percentage points; cache date 2026-10-16.

### What could break it

"We are subject to various changes in costs of production" (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/1674101/000167410126000008/vrt-20251231.htm (filed 2026-02-13); We are subject to various changes in costs of production

### What the price says

The price assumes cash profits grow 27.2% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); Ten-year compound average after fade. Initial solved rate 0.38477940854970194. Price 214.75; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2018-07: $9.85 per share

- 2018-08: $9.73 per share

- 2018-09: $9.75 per share

- 2018-10: $9.71 per share

- 2018-11: $9.85 per share

- 2018-12: $9.80 per share

- 2019-01: $9.87 per share

- 2019-02: $9.93 per share

- 2019-03: $10.02 per share

- 2019-04: $10.12 per share

- 2019-05: $10.08 per share

- 2019-06: $10.14 per share

- 2019-07: $10.19 per share

- 2019-08: $10.25 per share

- 2019-09: $10.20 per share

- 2019-10: $10.27 per share

- 2019-11: $10.23 per share

- 2019-12: $11.03 per share

- 2020-01: $12.40 per share

- 2020-02: $11.79 per share

- 2020-03: $8.65 per share

- 2020-04: $10.59 per share

- 2020-05: $12.73 per share

- 2020-06: $13.56 per share

- 2020-07: $14.50 per share

- 2020-08: $16.23 per share

- 2020-09: $17.32 per share

- 2020-10: $17.65 per share

- 2020-11: $18.71 per share

- 2020-12: $18.67 per share

- 2021-01: $20.12 per share

- 2021-02: $20.93 per share

- 2021-03: $20.00 per share

- 2021-04: $22.70 per share

- 2021-05: $24.82 per share

- 2021-06: $27.30 per share

- 2021-07: $28.04 per share

- 2021-08: $28.17 per share

- 2021-09: $24.09 per share

- 2021-10: $25.68 per share

- 2021-11: $25.64 per share

- 2021-12: $24.97 per share

- 2022-01: $20.86 per share

- 2022-02: $13.02 per share

- 2022-03: $14.00 per share

- 2022-04: $12.53 per share

- 2022-05: $10.99 per share

- 2022-06: $8.22 per share

- 2022-07: $11.42 per share

- 2022-08: $11.53 per share

- 2022-09: $9.72 per share

- 2022-10: $14.31 per share

- 2022-11: $13.85 per share

- 2022-12: $13.66 per share

- 2023-01: $14.22 per share

- 2023-02: $16.25 per share

- 2023-03: $14.31 per share

- 2023-04: $14.92 per share

- 2023-05: $19.30 per share

- 2023-06: $24.77 per share

- 2023-07: $26.01 per share

- 2023-08: $39.39 per share

- 2023-09: $37.20 per share

- 2023-10: $39.27 per share

- 2023-11: $43.66 per share

- 2023-12: $48.03 per share

- 2024-01: $56.33 per share

- 2024-02: $67.62 per share

- 2024-03: $81.67 per share

- 2024-04: $93.00 per share

- 2024-05: $98.07 per share

- 2024-06: $86.57 per share

- 2024-07: $78.70 per share

- 2024-08: $83.03 per share

- 2024-09: $99.49 per share

- 2024-10: $109.29 per share

- 2024-11: $127.60 per share

- 2024-12: $113.61 per share

- 2025-01: $117.02 per share

- 2025-02: $95.17 per share

- 2025-03: $72.20 per share

- 2025-04: $85.38 per share

- 2025-05: $107.93 per share

- 2025-06: $128.41 per share

- 2025-07: $145.60 per share

- 2025-08: $127.55 per share

- 2025-09: $150.86 per share

- 2025-10: $192.86 per share

- 2025-11: $179.73 per share

- 2025-12: $162.01 per share

- 2026-01: $186.18 per share

- 2026-02: $254.89 per share

- 2026-03: $250.58 per share

- 2026-04: $328.49 per share

- 2026-05: $315.71 per share

- 2026-06: $334.82 per share

- 2026-07: $241.57 per share

- 2026-08: $258.72 per share

- 2026-09: $241.31 per share

- 2026-10: $237.29 per share

## Annual estimated value (USD per share)

- FY2020: low $8.12 per share, central $9.04 per share, high $10.26 per share

- FY2021: low $7.44 per share, central $8.33 per share, high $9.52 per share

- FY2022: low $7.41 per share, central $8.38 per share, high $9.67 per share

- FY2023: low $10.81 per share, central $12.07 per share, high $13.75 per share

- FY2024: low $14.65 per share, central $16.28 per share, high $18.46 per share

- FY2025: low $25.19 per share, central $28.09 per share, high $31.95 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:38:42.085Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1674101/000167410126000008/vrt-20251231.htm); period 2025-12-31, filed 2026-02-13.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.