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Vertiv (VRT) Stock Analysis

This is a peer-relative look at Vertiv (VRT): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Capital Goods peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for Vertiv (VRT)
Profile ItemVRT
NameVertiv Holdings Co Class A Common Stock
Country/RegionUnited States
GICS SectorIndustrials
GICS Industry GroupCapital Goods
GICS IndustryElectrical Equipment
GICS Sub-IndustryElectrical Components & Equipment
Market Capitalization70.41 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateAugust 2, 2018
Security TypeCommon Stock

Price Performance

Cumulative Growth

VRT
GSPC
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Vertiv (VRT) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Vertiv (VRT) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Vertiv (VRT) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Vertiv (VRT) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: VRTIndustry group median
Total Return (1Y)11.12%6.84%
Total Return (3Y, Annualized)71.14%17.66%
Total Return (5Y, Annualized)49.38%9.09%

Risk Profile

Drawdown History

VRT
GSPC
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Vertiv (VRT) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Vertiv (VRT) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Vertiv (VRT) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: VRTIndustry group median
Volatility (1Y, Annualized)71.11%44.38%
Beta (5Y)2.151.19
Max Drawdown (5Y)-69.52%-49.95%

Risk-Adjusted Performance

Risk-Return Positioning

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Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. VRT is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Vertiv (VRT) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: VRTIndustry group median
Sharpe Ratio (1Y)0.100.06
Sortino Ratio (1Y)0.140.09

Profitability

ROE (TTM)

Vertiv (VRT) posts ROE of 46.57%, above the industry benchmark range. Equity is being turned into profit at an exceptional rate, but very high ROE should still be checked against leverage, buybacks, and the size of the equity base.

VRT

Capital Goods industry group

46.57%

Group distribution
VRT
46.57%
Max
40.55%
Q3
19.29%
Median
12.12%
Q1
4.08%
Min
-17.12%
Largest peers
GEV
93.04%
CAT
56.14%
GE
50.17%
VRT
46.57%
DE
18.24%
RTX
12.85%
BA
--
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Where Vertiv (VRT) stands on ROE within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Vertiv (VRT) keeps 16.00% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.

VRT

Capital Goods industry group

16.00%

Group distribution
Max
27.47%
VRT
16.00%
Q3
12.10%
Median
6.30%
Q1
1.40%
Min
-12.89%
Largest peers
GEV
23.54%
GE
17.31%
VRT
16.00%
CAT
15.21%
DE
10.17%
RTX
8.75%
BA
8.07%
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Where Vertiv (VRT) stands on net margin within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Vertiv (VRT) turns 23.77% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.

VRT

Capital Goods industry group

23.77%

Group distribution
Max
36.60%
VRT
23.77%
Q3
18.33%
Median
11.12%
Q1
5.14%
Min
-12.63%
Largest peers
VRT
23.77%
CAT
20.19%
GE
18.49%
RTX
15.54%
DE
13.37%
GEV
12.77%
BA
0.30%
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Where Vertiv (VRT) stands on operating margin within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Vertiv (VRT) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: VRTIndustry group median
ROE (TTM)46.57%12.12%
ROA (TTM)11.94%5.29%
Net Margin (TTM)16.00%6.30%
Operating Margin (TTM)23.77%11.12%
Gross Margin (TTM)38.12%29.63%

Growth

Revenue Growth

Vertiv (VRT) grew revenue 27.69%, in the upper peer quartile. The top line is expanding faster than at most industry peers, which points to share gains or stronger pricing.

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Vertiv (VRT): Revenue Growth across different time periods, set against Capital Goods industry-group medians.

EPS Growth

Vertiv (VRT) grew earnings per share 166.41%, above the industry benchmark range. Profits are compounding faster than at any typical peer, though a depressed base year can inflate the percentage, so the level of earnings matters alongside the rate.

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Vertiv (VRT): EPS Growth across different time periods, set against Capital Goods industry-group medians.

Growth Metrics

Vertiv (VRT) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: VRTIndustry group median
Revenue Growth (YoY)27.69%8.11%
Revenue Growth (3Y CAGR)21.59%6.45%
EPS Growth (YoY)166.41%5.45%
EPS Growth (3Y CAGR)340.11%7.15%

Financial Strength

Current Ratio (MRQ)

Vertiv (VRT) has current ratio of 1.39, in the tighter-liquidity quartile for its industry. The short-term cushion is thinner than most peers carry, even if the absolute comfort level still depends on the business model.

VRT

Capital Goods industry group

1.39

Group distribution
Max
5.22
Q3
2.95
Median
2.08
Q1
1.43
VRT
1.39
Min
0.36
Largest peers
DE
2.13
CAT
1.42
VRT
1.39
BA
1.13
RTX
1.05
GE
0.98
GEV
0.83
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Where Vertiv (VRT) stands on current ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

Vertiv (VRT) has debt-to-equity ratio of 0.61, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.

VRT

Capital Goods industry group

0.61

Group distribution
Max
2.33
Q3
1.12
VRT
0.61
Median
0.60
Q1
0.29
Min
0.00
Largest peers
BA
7.39
DE
2.30
CAT
2.10
GE
1.16
VRT
0.61
RTX
0.55
GEV
0.30
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Where Vertiv (VRT) stands on debt-to-equity ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

Vertiv (VRT) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: VRTIndustry group median
Current Ratio (MRQ)1.392.08
Debt / Equity (MRQ)0.610.60
Net Debt / EBITDA-0.111.78

Dividends

Dividend Yield (TTM)

Vertiv (VRT) has dividend yield of 0.11%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.

VRT

Capital Goods industry group

0.11%

Group distribution
Max
2.66%
Q3
1.14%
Median
0.24%
VRT
0.11%
Q1
0.00%
Min
0.00%
Largest peers
RTX
1.47%
CAT
1.13%
DE
0.98%
GE
0.56%
GEV
0.26%
VRT
0.11%
BA
0.00%
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Where Vertiv (VRT) stands on dividend yield within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Vertiv (VRT) has payout ratio of 4.67%, within the industry’s typical payout band. The dividend shares profits with investors while leaving earnings coverage that looks normal for the peer group.

VRT

Capital Goods industry group

4.67%

Group distribution
Max
67.39%
Q3
28.02%
Median
6.86%
VRT
4.67%
Q1
0.00%
Min
0.00%
Largest peers
RTX
45.85%
DE
36.02%
CAT
24.18%
GE
20.23%
VRT
4.67%
GEV
4.59%
BA
0.00%
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Where Vertiv (VRT) stands on payout ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Vertiv (VRT) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: VRTIndustry group median
Dividend Yield (TTM)0.11%0.24%
Dividend Payout Ratio (TTM)4.67%6.86%

Valuation

P/E Ratio (TTM)

Vertiv (VRT) trades at P/E ratio of 34.18, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

VRT

Capital Goods industry group

34.18

Group distribution
Max
59.38
Q3
35.92
VRT
34.18
Median
25.41
Q1
19.47
Min
3.03
Largest peers
DE
37.33
GE
36.94
VRT
34.18
RTX
30.82
CAT
21.92
GEV
20.32
BA
17.89
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Where Vertiv (VRT) stands on P/E ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Vertiv (VRT) trades at 5.37 on P/S ratio, in the higher sales-valuation quartile. Investors are paying up for each dollar of revenue, so stronger margins, growth, or revenue quality need to carry that price.

VRT

Capital Goods industry group

5.37

Group distribution
Max
7.54
VRT
5.37
Q3
3.76
Median
2.15
Q1
1.03
Min
0.03
Largest peers
GE
6.38
VRT
5.37
GEV
4.65
DE
3.78
CAT
3.29
RTX
2.66
BA
1.45
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Where Vertiv (VRT) stands on P/S ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Vertiv (VRT) trades at 12.80 on P/B ratio, above the industry benchmark range. Investors are putting an unusually rich price on each dollar of book equity relative to peers.

VRT

Capital Goods industry group

12.80

Group distribution
VRT
12.80
Max
9.66
Q3
5.00
Median
3.12
Q1
1.81
Min
-1.08
Largest peers
BA
20.99
GE
19.06
GEV
18.00
VRT
12.80
CAT
11.90
DE
6.47
RTX
3.69
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Where Vertiv (VRT) stands on P/B ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Vertiv (VRT) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: VRTIndustry group median
P/E Ratio (TTM)34.1825.41
P/S Ratio (TTM)5.372.15
P/B Ratio (MRQ)12.803.12
Free Cash Flow Yield (TTM)4.21%3.03%