VERALTO CORP (VLTO) Stock Fundamental Analysis
USA - NYSE:VLTO - US92338C1036 - Common Stock
98.78 USD
+0.22 (+0.22%)
98.78 USD
0 (0%)
Overall VLTO gets a fundamental rating of 6 out of 10. We evaluated VLTO against 82 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
VLTO had positive earnings in the past year.
VLTO had a positive operating cash flow in the past year.
Each year in the past 5 years VLTO has been profitable.
Each year in the past 5 years VLTO had a positive operating cash flow.
1.2 Ratios
VLTO has a Return On Assets of 12.29%. This is amongst the best in the industry. VLTO outperforms 93.90% of its industry peers.
Looking at the Return On Equity, with a value of 32.07%, VLTO belongs to the top of the industry, outperforming 93.90% of the companies in the same industry.
VLTO has a better Return On Invested Capital (18.03%) than 92.68% of its industry peers.
VLTO had an Average Return On Invested Capital over the past 3 years of 20.23%. This is significantly above the industry average of 10.46%.
| 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
The Profit Margin of VLTO (16.75%) is better than 93.90% of its industry peers.
VLTO's Profit Margin has declined in the last couple of years.
The Operating Margin of VLTO (23.28%) is better than 98.78% of its industry peers.
In the last couple of years the Operating Margin of VLTO has grown nicely.
VLTO's Gross Margin of 60.01% is amongst the best of the industry. VLTO outperforms 96.34% of its industry peers.
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.
VLTO has a better debt/assets ratio than last year.
2.2 Solvency
VLTO has an Altman-Z score of 4.98. This indicates that VLTO is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of VLTO (4.98) is better than 81.71% of its industry peers.
The Debt to FCF ratio of VLTO is 2.71, which is a good value as it means it would take VLTO, 2.71 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of VLTO (2.71) is better than 73.17% 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 | 4.98 |
ROIC/WACC2.17
WACC8.32%
2.3 Liquidity
VLTO has a Current Ratio of 1.57. This is a normal value and indicates that VLTO is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.57, VLTO is in line with its industry, outperforming 56.10% of the companies in the same industry.
A Quick Ratio of 1.40 indicates that VLTO should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.40, VLTO is in line with its industry, outperforming 54.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.72% over the past year.
The Earnings Per Share has been decreasing by -1.57% on average over the past years.
The Revenue has been growing slightly by 6.15% in the past year.
VLTO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.38% yearly.
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.
Based on estimates for the next years, VLTO will show a small growth in Revenue. The Revenue will grow by 5.41% on average per year.
EPS Next Y10.66%
EPS Next 2Y9.6%
EPS Next 3Y9.09%
EPS Next 5Y7.53%
Revenue Next Year6.1%
Revenue Next 2Y5.8%
Revenue Next 3Y5.57%
Revenue Next 5Y5.41%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 25.86, the valuation of VLTO can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of VLTO is on the same level as its industry peers.
VLTO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.89.
Based on the Price/Forward Earnings ratio of 23.29, the valuation of VLTO can be described as rather expensive.
Based on the Price/Forward Earnings ratio, VLTO is valued a bit cheaper than the industry average as 60.98% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, VLTO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.86 | ||
| Fwd PE | 23.29 |
4.2 Price Multiples
VLTO's Enterprise Value to EBITDA ratio is in line with the industry average.
VLTO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. VLTO is cheaper than 64.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.86 | ||
| EV/EBITDA | 18.86 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.43
PEG (5Y)N/A
EPS Next 2Y9.6%
EPS Next 3Y9.09%
5. Dividend
5.1 Amount
VLTO has a yearly dividend return of 0.44%, which is pretty low.
Compared to an average industry Dividend Yield of 2.55, VLTO pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, VLTO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.44% |
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
VLTO pays out 11.39% of its income as dividend. This is a sustainable payout ratio.
DP11.39%
EPS Next 2Y9.6%
EPS Next 3Y9.09%
98.78
+0.22 (+0.22%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners96.82%
Inst Owner ChangeN/A
Ins Owners4.01%
Ins Owner Change2.37%
Market Cap24.51B
Revenue(TTM)5.45B
Net Income(TTM)913.00M
Analysts77.69
Price Target118.08 (19.54%)
Short Float %1.45%
Short Ratio2.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.44% |
Yearly Dividend0.36
Dividend Growth(5Y)N/A
DP11.39%
Div Incr Years1
Div Non Decr Years1
Ex-Date
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)-0.03%
PT rev (3m)0.45%
EPS NQ rev (1m)0.76%
EPS NQ rev (3m)1.32%
EPS NY rev (1m)0.95%
EPS NY rev (3m)3.72%
Revenue NQ rev (1m)0.35%
Revenue NQ rev (3m)0.42%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)1.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.86 | ||
| Fwd PE | 23.29 | ||
| P/S | 4.5 | ||
| P/FCF | 24.86 | ||
| P/OCF | 23.32 | ||
| P/B | 8.61 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.86 |
EPS(TTM)3.82
EY3.87%
EPS(NY)4.24
Fwd EY4.29%
FCF(TTM)3.97
FCFY4.02%
OCF(TTM)4.24
OCFY4.29%
SpS21.97
BVpS11.47
TBVpS-2.04
PEG (NY)2.43
PEG (5Y)N/A
Graham Number31.4
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 | 4.98 |
F-Score5
WACC8.32%
ROIC/WACC2.17
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 Y10.66%
EPS Next 2Y9.6%
EPS Next 3Y9.09%
EPS Next 5Y7.53%
Revenue 1Y (TTM)6.15%
Revenue growth 3Y3.38%
Revenue growth 5YN/A
Sales Q2Q%6.85%
Revenue Next Year6.1%
Revenue Next 2Y5.8%
Revenue Next 3Y5.57%
Revenue Next 5Y5.41%
EBIT growth 1Y7%
EBIT growth 3Y5.08%
EBIT growth 5YN/A
EBIT Next Year10.32%
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.
What is the valuation status for VLTO stock?
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 is the earnings growth outlook for VERALTO CORP?
The Earnings per Share (EPS) of VERALTO CORP (VLTO) is expected to grow by 10.66% in the next year.
Is the dividend of VERALTO CORP sustainable?
The dividend rating of VERALTO CORP (VLTO) is 3 / 10 and the dividend payout ratio is 11.39%.