Now trading at a price of $180.14, Vertiv has moved -4.1% so far today.
Vertiv returned gains of 51.7% last year, with its stock price reaching a high of $202.45 and a low of $53.6. Over the same period, the stock outperformed the S&P 500 index by 37.5%. More recently, the company's 50-day average price was $160.62. 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. Based in Westerville, OH, the Large-Cap Technology company has 31,000 full time employees. Vertiv has offered a 0.0% dividend yield over the last 12 months.
Strong Revenue Growth but Similar Gross Margins to the Industry Average of 36.97%:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | n/a | $4,371 | $4,998 | $5,692 | $6,863 | $8,012 |
| Gross Margins | n/a | 34.0% | 30.0% | 28.0% | 35.0% | 37.0% |
| Net Margins | n/a | -7.0% | 2.0% | 1.0% | 7.0% | 6.0% |
| Net Income (M) | -$141 | -$327 | $120 | $77 | $460 | $496 |
| Net Interest Expense (M) | $310 | $150 | $91 | $147 | $180 | $150 |
| Depreciation & Amort. (M) | $57 | $60 | $69 | $72 | $74 | $82 |
| Diluted Shares (M) | 118 | 333 | 360 | 378 | 386 | 386 |
| Earnings Per Share | -$1.19 | -$1.07 | $0.33 | -$0.04 | $1.19 | $1.28 |
| EPS Growth | n/a | 10.084033613445369% | 130.84112149532712% | -112.12121212121211% | 3075.0% | 7.5630252100840405% |
| Avg. Price | $10.14 | $14.2 | $23.94 | $14.31 | $48.03 | $180.99 |
| P/E Ratio | -8.52 | -13.27 | 70.41 | 71.55 | 39.69 | 137.11 |
| Free Cash Flow (M) | $10 | $164 | $138 | -$253 | $773 | $1,152 |
| CAPEX (M) | $48 | $44 | $73 | $100 | $128 | $167 |
| EV / EBITDA | -91.97 | -32.44 | 33.34 | 28.21 | 21.47 | 48.9 |
| Total Debt (M) | $3,467 | $2,174 | $2,994 | $3,213 | $2,963 | $2,949 |
| Net Debt / EBITDA | -73.44 | -8.44 | 7.77 | 9.99 | 2.31 | 1.19 |
| Current Ratio | 1.33 | 1.45 | 1.45 | 1.66 | 1.74 | 1.65 |
Vertiv benefits from rapidly growing revenues and increasing reinvestment in the business, generally positive cash flows, and a strong EPS growth trend. The company's financial statements show a decent current ratio of 1.65 and healthy leverage levels. Furthermore, Vertiv has similar gross margins to its peers.
Vertiv's Valuation Is in Line With Its Sector Averages:
Vertiv has a trailing twelve month P/E ratio of 60.6, compared to an average of 30.44 for the Technology sector. Based on its EPS guidance of $3.44, the company has a forward P/E ratio of 46.7. Vertiv's PEG ratio is 4.28 on the basis of the 14.2% weighted average of the company and the broader market's EPS compound average growth rates. This suggests that the company's shares are overvalued. Furthermore, Vertiv is likely overvalued compared to the book value of its equity, since its P/B ratio of 19.63 is higher than the sector average of 4.19. The company's shares are currently trading 1237.3% below their Graham number. Ultimately, Vertiv's strong cash flows, decent earnings multiple, and healthy debt levels factor towards it being fairly valued, its elevated P/B ratio notwithstanding.
Vertiv Has an Average Rating of Buy:
The 24 analysts following Vertiv have set target prices ranging from $147.0 to $234.0 per share, for an average of $192.66 with a buy rating. The company is trading -6.5% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Vertiv has an average amount of shares sold short because 2.2% of the company's shares are sold short. Institutions own 81.9% of the company's shares, and the insider ownership rate stands at 0.32%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 10% stake in the company is worth $6,995,383,081.
