VERALTO CORP (VLTO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VLTO - US92338C1036 - Common Stock
101.5 USD
-0.25 (-0.25%)
101.5 USD
0 (0%)
VLTO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 81 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 not valued too expensively and it also shows a decent growth rate.
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.
VLTO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
VLTO has a better Return On Assets (12.29%) than 93.83% of its industry peers.
VLTO has a better Return On Equity (32.07%) than 93.83% of its industry peers.
The Return On Invested Capital of VLTO (18.03%) is better than 92.59% 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 10.33%.
| 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
Looking at the Profit Margin, with a value of 16.75%, VLTO belongs to the top 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.
VLTO has a Operating Margin of 23.28%. This is amongst the best in the industry. VLTO outperforms 98.77% of its industry peers.
In the last couple of years the Operating Margin of VLTO has grown nicely.
Looking at the Gross Margin, with a value of 60.01%, VLTO belongs to the top of the industry, outperforming 96.30% of the companies in the same industry.
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 | 23.28% | ||
| 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
VLTO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for VLTO has been increased compared to 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 5.08. This indicates that VLTO is financially healthy and has little risk of bankruptcy at the moment.
VLTO's Altman-Z score of 5.08 is amongst the best of the industry. VLTO outperforms 82.72% 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.
VLTO has a better Debt to FCF ratio (2.71) than 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.
Looking at the Debt to Equity ratio, with a value of 0.69, VLTO is in line with its industry, outperforming 45.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 2.71 | ||
| Altman-Z | 5.08 |
ROIC/WACC2.16
WACC8.33%
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.
The Current ratio of VLTO (1.57) is comparable to the rest of the industry.
A Quick Ratio of 1.40 indicates that VLTO should not have too much problems paying its short term obligations.
VLTO's Quick ratio of 1.40 is in line compared to the rest of the industry. VLTO outperforms 53.09% of its industry peers.
| 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.
VLTO shows a small growth in Revenue. In the last year, the Revenue has grown by 6.15%.
The Revenue has been growing slightly by 3.38% on average over the past years.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 26.57, which means the current valuation is very expensive for VLTO.
VLTO's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of VLTO to the average of the S&P500 Index (26.84), we can say VLTO is valued inline with the index average.
VLTO is valuated rather expensively with a Price/Forward Earnings ratio of 23.84.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VLTO indicates a somewhat cheap valuation: VLTO is cheaper than 64.20% of the companies listed in the same industry.
VLTO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.57 | ||
| Fwd PE | 23.84 |
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 65.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.56 | ||
| EV/EBITDA | 19.42 |
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)2.41
PEG (5Y)N/A
EPS Next 2Y9.83%
EPS Next 3Y9.4%
5. Dividend
5.1 Amount
VLTO has a yearly dividend return of 0.45%, which is pretty low.
VLTO's Dividend Yield is a higher than the industry average which is at 0.89.
With a Dividend Yield of 0.45, VLTO pays less dividend than the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
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 2Y9.83%
EPS Next 3Y9.4%
101.5
-0.25 (-0.25%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners97.3%
Inst Owner ChangeN/A
Ins Owners0.11%
Ins Owner Change1.42%
Market Cap25.20B
Revenue(TTM)5.45B
Net Income(TTM)913.00M
Analysts77.69
Price Target115.81 (14.1%)
Short Float %1.48%
Short Ratio2.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
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)-1.73%
PT rev (3m)-1.71%
EPS NQ rev (1m)0.23%
EPS NQ rev (3m)1.08%
EPS NY rev (1m)0.32%
EPS NY rev (3m)1.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.57 | ||
| Fwd PE | 23.84 | ||
| P/S | 4.62 | ||
| P/FCF | 25.56 | ||
| P/OCF | 23.98 | ||
| P/B | 8.85 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.42 |
EPS(TTM)3.82
EY3.76%
EPS(NY)4.26
Fwd EY4.2%
FCF(TTM)3.97
FCFY3.91%
OCF(TTM)4.23
OCFY4.17%
SpS21.96
BVpS11.47
TBVpS-2.04
PEG (NY)2.41
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 | 5.08 |
F-Score5
WACC8.33%
ROIC/WACC2.16
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.
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 11.02% 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%.