VERALTO CORP (VLTO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VLTO - US92338C1036 - Common Stock
98.5 USD
-1.28 (-1.28%)
98.5 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to VLTO. VLTO was compared to 80 industry peers in the Commercial Services & Supplies industry. VLTO has an excellent profitability rating, but there are some minor concerns on its financial health. VLTO has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year VLTO was profitable.
In the past year VLTO had a positive cash flow from operations.
VLTO had positive earnings in each of the past 5 years.
In the past 5 years VLTO always reported a positive cash flow from operatings.
1.2 Ratios
VLTO's Return On Assets of 12.29% is amongst the best of the industry. VLTO outperforms 93.83% of its industry peers.
The Return On Equity of VLTO (32.07%) is better than 92.59% of its industry peers.
The Return On Invested Capital of VLTO (18.03%) is better than 91.36% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VLTO is significantly above the industry average of 10.60%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.29% | ||
| ROE | 32.07% | ||
| ROIC | 18.03% |
ROA(3y)15.08%
ROA(5y)N/A
ROE(3y)42.55%
ROE(5y)N/A
ROIC(3y)20.23%
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 16.75%, VLTO belongs to the best of the industry, outperforming 96.30% of the companies in the same industry.
In the last couple of years the Profit Margin of VLTO has declined.
The Operating Margin of VLTO (23.28%) is better than 98.77% of its industry peers.
In the last couple of years the Operating Margin of VLTO has grown nicely.
With an excellent Gross Margin value of 60.01%, VLTO belongs to the best of the industry, outperforming 97.53% of the companies in the same industry.
VLTO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.28% | ||
| PM (TTM) | 16.75% | ||
| GM | 60.01% |
OM growth 3Y1.65%
OM growth 5YN/A
PM growth 3Y-4.33%
PM growth 5YN/A
GM growth 3Y1.18%
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), VLTO is creating value.
VLTO has more shares outstanding than it did 1 year ago.
The debt/assets ratio for VLTO has been reduced compared to a year ago.
2.2 Solvency
VLTO has an Altman-Z score of 4.97. This indicates that VLTO is financially healthy and has little risk of bankruptcy at the moment.
VLTO's Altman-Z score of 4.97 is amongst the best of the industry. VLTO outperforms 82.72% of its industry peers.
VLTO has a debt to FCF ratio of 2.71. This is a good value and a sign of high solvency as VLTO would need 2.71 years to pay back of all of its debts.
VLTO's Debt to FCF ratio of 2.71 is fine compared to the rest of the industry. VLTO outperforms 75.31% of its industry peers.
VLTO has a Debt/Equity ratio of 0.69. This is a neutral value indicating VLTO is somewhat dependend on debt financing.
The Debt to Equity ratio of VLTO (0.69) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 2.71 | ||
| Altman-Z | 4.97 |
ROIC/WACC2.15
WACC8.37%
2.3 Liquidity
A Current Ratio of 1.57 indicates that VLTO should not have too much problems paying its short term obligations.
VLTO has a Current ratio of 1.57. This is comparable to the rest of the industry: VLTO outperforms 55.56% of its industry peers.
VLTO has a Quick Ratio of 1.40. This is a normal value and indicates that VLTO is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of VLTO (1.40) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
VLTO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.72%, which is quite good.
Measured over the past years, VLTO shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.57% on average per year.
The Revenue has been growing slightly by 6.15% in the past year.
Measured over the past years, VLTO shows a small growth in Revenue. The Revenue has been growing by 3.38% on average per year.
EPS 1Y (TTM)10.72%
EPS 3Y-1.57%
EPS 5YN/A
EPS Q2Q%11.24%
Revenue 1Y (TTM)6.15%
Revenue growth 3Y3.38%
Revenue growth 5YN/A
Sales Q2Q%6.85%
3.2 Future
VLTO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.53% yearly.
The Revenue is expected to grow by 5.29% on average over the next years.
EPS Next Y11.02%
EPS Next 2Y9.83%
EPS Next 3Y9.4%
EPS Next 5Y7.53%
Revenue Next Year6.15%
Revenue Next 2Y5.95%
Revenue Next 3Y5.86%
Revenue Next 5Y5.29%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 25.79, the valuation of VLTO can be described as expensive.
VLTO's Price/Earnings is on the same level as the industry average.
VLTO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.60.
The Price/Forward Earnings ratio is 23.13, which indicates a rather expensive current valuation of VLTO.
64.20% of the companies in the same industry are more expensive than VLTO, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.23. VLTO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.79 | ||
| Fwd PE | 23.13 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as VLTO.
65.43% of the companies in the same industry are more expensive than VLTO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.8 | ||
| EV/EBITDA | 18.82 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates VLTO does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of VLTO may justify a higher PE ratio.
PEG (NY)2.34
PEG (5Y)N/A
EPS Next 2Y9.83%
EPS Next 3Y9.4%
5. Dividend
5.1 Amount
VLTO has a yearly dividend return of 0.46%, which is pretty low.
VLTO's Dividend Yield is a higher than the industry average which is at 0.90.
Compared to an average S&P500 Dividend Yield of 1.94, VLTO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
5.2 History
VLTO has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
11.39% of the earnings are spent on dividend by VLTO. This is a low number and sustainable payout ratio.
DP11.39%
EPS Next 2Y9.83%
EPS Next 3Y9.4%
98.5
-1.28 (-1.28%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners97.47%
Inst Owner ChangeN/A
Ins Owners0.11%
Ins Owner Change1.42%
Market Cap24.46B
Revenue(TTM)5.45B
Net Income(TTM)913.00M
Analysts77.69
Price Target115.81 (17.57%)
Short Float %1.88%
Short Ratio2.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
Yearly Dividend0.36
Dividend Growth(5Y)N/A
DP11.39%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.63%
Min EPS beat(2)2.19%
Max EPS beat(2)3.08%
EPS beat(4)4
Avg EPS beat(4)4.18%
Min EPS beat(4)2.19%
Max EPS beat(4)7.23%
EPS beat(8)8
Avg EPS beat(8)4.56%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-0.73%
Min Revenue beat(2)-1.54%
Max Revenue beat(2)0.07%
Revenue beat(4)2
Avg Revenue beat(4)-0.36%
Min Revenue beat(4)-2.04%
Max Revenue beat(4)2.07%
Revenue beat(8)3
Avg Revenue beat(8)-0.41%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-1.73%
PT rev (3m)-1.95%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.99%
EPS NY rev (1m)0.09%
EPS NY rev (3m)1.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.79 | ||
| Fwd PE | 23.13 | ||
| P/S | 4.49 | ||
| P/FCF | 24.8 | ||
| P/OCF | 23.27 | ||
| P/B | 8.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.82 |
EPS(TTM)3.82
EY3.88%
EPS(NY)4.26
Fwd EY4.32%
FCF(TTM)3.97
FCFY4.03%
OCF(TTM)4.23
OCFY4.3%
SpS21.96
BVpS11.47
TBVpS-2.04
PEG (NY)2.34
PEG (5Y)N/A
Graham Number31.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.29% | ||
| ROE | 32.07% | ||
| ROCE | 23.53% | ||
| ROIC | 18.03% | ||
| ROICexc | 26.88% | ||
| ROICexgc | 368.33% | ||
| OM | 23.28% | ||
| PM (TTM) | 16.75% | ||
| GM | 60.01% | ||
| FCFM | 18.09% |
ROA(3y)15.08%
ROA(5y)N/A
ROE(3y)42.55%
ROE(5y)N/A
ROIC(3y)20.23%
ROIC(5y)N/A
ROICexc(3y)23.22%
ROICexc(5y)N/A
ROICexgc(3y)116.35%
ROICexgc(5y)N/A
ROCE(3y)26.4%
ROCE(5y)N/A
ROICexgc growth 3Y-1.56%
ROICexgc growth 5YN/A
ROICexc growth 3Y2.06%
ROICexc growth 5YN/A
OM growth 3Y1.65%
OM growth 5YN/A
PM growth 3Y-4.33%
PM growth 5YN/A
GM growth 3Y1.18%
GM growth 5YN/A
F-Score5
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 2.71 | ||
| Debt/EBITDA | 1.46 | ||
| Cap/Depr | 83.33% | ||
| Cap/Sales | 1.19% | ||
| Interest Coverage | 9.33 | ||
| Cash Conversion | 78.03% | ||
| Profit Quality | 108% | ||
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.4 | ||
| Altman-Z | 4.97 |
F-Score5
WACC8.37%
ROIC/WACC2.15
Cap/Depr(3y)56.79%
Cap/Depr(5y)50.81%
Cap/Sales(3y)0.94%
Cap/Sales(5y)0.96%
Profit Quality(3y)101.91%
Profit Quality(5y)107.36%
High Growth Momentum
Growth
EPS 1Y (TTM)10.72%
EPS 3Y-1.57%
EPS 5YN/A
EPS Q2Q%11.24%
EPS Next Y11.02%
EPS Next 2Y9.83%
EPS Next 3Y9.4%
EPS Next 5Y7.53%
Revenue 1Y (TTM)6.15%
Revenue growth 3Y3.38%
Revenue growth 5YN/A
Sales Q2Q%6.85%
Revenue Next Year6.15%
Revenue Next 2Y5.95%
Revenue Next 3Y5.86%
Revenue Next 5Y5.29%
EBIT growth 1Y7%
EBIT growth 3Y5.08%
EBIT growth 5YN/A
EBIT Next Year10.63%
EBIT Next 3Y8.65%
EBIT Next 5Y7.54%
FCF growth 1Y-9.79%
FCF growth 3Y-0.88%
FCF growth 5YN/A
OCF growth 1Y-9.14%
OCF growth 3Y-0.79%
OCF growth 5YN/A
VERALTO CORP / VLTO FAQ
Can you provide the ChartMill fundamental rating for VERALTO CORP?
ChartMill assigns a fundamental rating of 6 / 10 to VLTO.
Can you provide the valuation status for VERALTO CORP?
ChartMill assigns a valuation rating of 4 / 10 to VERALTO CORP (VLTO). This can be considered as Fairly Valued.
What is the profitability of VLTO stock?
VERALTO CORP (VLTO) has a profitability rating of 8 / 10.
What are the PE and PB ratios of VERALTO CORP (VLTO) stock?
The Price/Earnings (PE) ratio for VERALTO CORP (VLTO) is 25.79 and the Price/Book (PB) ratio is 8.59.
What is the financial health of VERALTO CORP (VLTO) stock?
The financial health rating of VERALTO CORP (VLTO) is 6 / 10.