VERALTO CORP (VLTO)
US92338C1036 - Common Stock
Taking everything into account, VLTO scores 5 out of 10 in our fundamental rating. VLTO was compared to 83 industry peers in the Commercial Services & Supplies industry. VLTO scores excellent on profitability, but there are some minor concerns on its financial health. VLTO is quite expensive at the moment. It does show a decent growth rate.
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.
1.2 Ratios
The Return On Assets of VLTO (12.87%) is better than 92.77% of its industry peers.
The Return On Equity of VLTO (41.25%) is better than 97.59% of its industry peers.
VLTO has a better Return On Invested Capital (17.95%) than 92.77% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VLTO is significantly above the industry average of 10.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.87% | ||
| ROE | 41.25% | ||
| ROIC | 17.95% |
ROA(3y)16.68%
ROA(5y)N/A
ROE(3y)37.91%
ROE(5y)N/A
ROIC(3y)21.29%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of VLTO (15.69%) is better than 93.98% of its industry peers.
VLTO's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 23.09%, VLTO belongs to the top of the industry, outperforming 96.39% of the companies in the same industry.
VLTO's Operating Margin has been stable in the last couple of years.
The Gross Margin of VLTO (59.38%) is better than 93.98% of its industry peers.
In the last couple of years the Gross Margin of VLTO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.09% | ||
| PM (TTM) | 15.69% | ||
| GM | 59.38% |
OM growth 3Y1.25%
OM growth 5YN/A
PM growth 3Y0.12%
PM growth 5YN/A
GM growth 3Y0.03%
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so VLTO is creating value.
The number of shares outstanding for VLTO remains at a similar level compared to 1 year ago.
Compared to 1 year ago, VLTO has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.46 indicates that VLTO is not in any danger for bankruptcy at the moment.
VLTO has a better Altman-Z score (5.46) than 84.34% of its industry peers.
VLTO has a debt to FCF ratio of 3.31. This is a good value and a sign of high solvency as VLTO would need 3.31 years to pay back of all of its debts.
VLTO has a Debt to FCF ratio of 3.31. This is in the better half of the industry: VLTO outperforms 72.29% of its industry peers.
VLTO has a Debt/Equity ratio of 1.35. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.35, VLTO is not doing good in the industry: 74.70% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 3.31 | ||
| Altman-Z | 5.46 |
ROIC/WACC2.01
WACC8.95%
2.3 Liquidity
VLTO has a Current Ratio of 2.13. This indicates that VLTO is financially healthy and has no problem in meeting its short term obligations.
VLTO has a Current ratio of 2.13. This is in the better half of the industry: VLTO outperforms 74.70% of its industry peers.
VLTO has a Quick Ratio of 1.87. This is a normal value and indicates that VLTO is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.87, VLTO is doing good in the industry, outperforming 78.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.87 |
3. Growth
3.1 Past
VLTO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -46.23%.
The Earnings Per Share has been growing slightly by 4.96% on average over the past years.
Looking at the last year, VLTO shows a very negative growth in Revenue. The Revenue has decreased by -40.30% in the last year.
The Revenue has been growing slightly by 4.91% on average over the past years.
EPS 1Y (TTM)-46.23%
EPS 3Y4.96%
EPS 5YN/A
EPS Q2Q%18.67%
Revenue 1Y (TTM)-40.3%
Revenue growth 3Y4.91%
Revenue growth 5YN/A
Sales Q2Q%4.7%
3.2 Future
The Earnings Per Share is expected to grow by 8.46% on average over the next years. This is quite good.
Based on estimates for the next years, VLTO will show a small growth in Revenue. The Revenue will grow by 4.47% on average per year.
EPS Next Y12.2%
EPS Next 2Y10%
EPS Next 3Y9.67%
EPS Next 5Y8.46%
Revenue Next Year4.25%
Revenue Next 2Y5%
Revenue Next 3Y5.18%
Revenue Next 5Y4.47%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 30.22 indicates a quite expensive valuation of VLTO.
The rest of the industry has a similar Price/Earnings ratio as VLTO.
When comparing the Price/Earnings ratio of VLTO to the average of the S&P500 Index (27.73), we can say VLTO is valued inline with the index average.
The Price/Forward Earnings ratio is 27.22, which means the current valuation is very expensive for VLTO.
The rest of the industry has a similar Price/Forward Earnings ratio as VLTO.
The average S&P500 Price/Forward Earnings ratio is at 22.83. VLTO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.22 | ||
| Fwd PE | 27.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VLTO is valued a bit more expensive than 61.45% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as VLTO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.31 | ||
| EV/EBITDA | 21.45 |
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.
VLTO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.48
PEG (5Y)N/A
EPS Next 2Y10%
EPS Next 3Y9.67%
5. Dividend
5.1 Amount
VLTO has a yearly dividend return of 0.38%, which is pretty low.
VLTO's Dividend Yield is a higher than the industry average which is at 2.08.
With a Dividend Yield of 0.38, VLTO pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
5.2 History
VLTO does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
DPN/A
EPS Next 2Y10%
EPS Next 3Y9.67%
VERALTO CORP
NYSE:VLTO (12/20/2024, 8:04:00 PM)
After market: 104.25 0 (0%)104.25
+2.92 (+2.88%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners95.78%
Inst Owner ChangeN/A
Ins Owners4.05%
Ins Owner Change-0.47%
Market Cap25.78B
Analysts74.55
Price Target116.8 (12.04%)
Short Float %1.54%
Short Ratio2.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.14%
Min EPS beat(2)2.48%
Max EPS beat(2)3.8%
EPS beat(4)4
Avg EPS beat(4)4.95%
Min EPS beat(4)2.48%
Max EPS beat(4)7.79%
EPS beat(8)N/A
Avg EPS beat(8)N/A
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)0
Avg Revenue beat(2)-1.18%
Min Revenue beat(2)-1.2%
Max Revenue beat(2)-1.15%
Revenue beat(4)1
Avg Revenue beat(4)-0.45%
Min Revenue beat(4)-1.2%
Max Revenue beat(4)0.86%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
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)0.51%
PT rev (3m)2.29%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)0.92%
EPS NY rev (1m)0.02%
EPS NY rev (3m)1.06%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)1.25%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.22 | ||
| Fwd PE | 27.22 | ||
| P/S | 5.02 | ||
| P/FCF | 32.31 | ||
| P/OCF | 30.23 | ||
| P/B | 13.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.45 |
EPS(TTM)3.45
EY3.31%
EPS(NY)3.83
Fwd EY3.67%
FCF(TTM)3.23
FCFY3.1%
OCF(TTM)3.45
OCFY3.31%
SpS20.77
BVpS7.9
TBVpS-3.99
PEG (NY)2.48
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.87% | ||
| ROE | 41.25% | ||
| ROCE | 23.55% | ||
| ROIC | 17.95% | ||
| ROICexc | 23.98% | ||
| ROICexgc | 108.94% | ||
| OM | 23.09% | ||
| PM (TTM) | 15.69% | ||
| GM | 59.38% | ||
| FCFM | 15.54% |
ROA(3y)16.68%
ROA(5y)N/A
ROE(3y)37.91%
ROE(5y)N/A
ROIC(3y)21.29%
ROIC(5y)N/A
ROICexc(3y)22.65%
ROICexc(5y)N/A
ROICexgc(3y)117.54%
ROICexgc(5y)N/A
ROCE(3y)27.92%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y1.25%
OM growth 5YN/A
PM growth 3Y0.12%
PM growth 5YN/A
GM growth 3Y0.03%
GM growth 5YN/A
F-Score6
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 3.31 | ||
| Debt/EBITDA | 2.08 | ||
| Cap/Depr | 68.75% | ||
| Cap/Sales | 1.07% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 67.38% | ||
| Profit Quality | 99.01% | ||
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.87 | ||
| Altman-Z | 5.46 |
F-Score6
WACC8.95%
ROIC/WACC2.01
Cap/Depr(3y)50.26%
Cap/Depr(5y)N/A
Cap/Sales(3y)0.97%
Cap/Sales(5y)N/A
Profit Quality(3y)101.69%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-46.23%
EPS 3Y4.96%
EPS 5YN/A
EPS Q2Q%18.67%
EPS Next Y12.2%
EPS Next 2Y10%
EPS Next 3Y9.67%
EPS Next 5Y8.46%
Revenue 1Y (TTM)-40.3%
Revenue growth 3Y4.91%
Revenue growth 5YN/A
Sales Q2Q%4.7%
Revenue Next Year4.25%
Revenue Next 2Y5%
Revenue Next 3Y5.18%
Revenue Next 5Y4.47%
EBIT growth 1Y-39.67%
EBIT growth 3Y6.23%
EBIT growth 5YN/A
EBIT Next Year12.62%
EBIT Next 3Y9%
EBIT Next 5Y7.8%
FCF growth 1Y8.73%
FCF growth 3Y-1.97%
FCF growth 5YN/A
OCF growth 1Y10.69%
OCF growth 3Y-1.28%
OCF growth 5YN/A