VERALTO CORP (VLTO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VLTO - US92338C1036 - Common Stock
99.78 USD
-1.58 (-1.56%)
99.78 USD
0 (0%)
Overall VLTO gets a fundamental rating of 6 out of 10. We evaluated VLTO 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
In the past year VLTO was profitable.
VLTO had a positive operating cash flow in the past year.
In the past 5 years VLTO has always been profitable.
Each year in the past 5 years VLTO had a positive operating cash flow.
1.2 Ratios
The Return On Assets of VLTO (12.29%) is better than 93.83% of its industry peers.
With an excellent Return On Equity value of 32.07%, VLTO belongs to the best of the industry, outperforming 93.83% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 18.03%, VLTO belongs to the top of the industry, outperforming 92.59% of the companies in the same industry.
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
VLTO's Profit Margin of 16.75% is amongst the best of the industry. VLTO outperforms 96.30% of its industry peers.
VLTO's Profit Margin has declined in the last couple of years.
VLTO has a Operating Margin of 23.28%. This is amongst the best in the industry. VLTO outperforms 98.77% of its industry peers.
VLTO's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 60.01%, VLTO belongs to the top of the industry, outperforming 97.53% 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
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 has been increased compared to 1 year ago.
Compared to 1 year ago, VLTO has an improved debt to assets ratio.
2.2 Solvency
VLTO has an Altman-Z score of 5.02. This indicates that VLTO is financially healthy and has little risk of bankruptcy at the moment.
VLTO's Altman-Z score of 5.02 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 Debt to FCF ratio of 2.71. This is in the better half 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.
VLTO has a Debt to Equity ratio of 0.69. This is comparable to the rest of the industry: VLTO outperforms 45.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 2.71 | ||
| Altman-Z | 5.02 |
ROIC/WACC2.16
WACC8.33%
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 (1.57) which is comparable to the rest of the industry.
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.
VLTO has a Quick ratio (1.40) which is in line with its industry peers.
| 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.
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
The Earnings Per Share is expected to grow by 7.53% on average over the next years.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 26.12, which means the current valuation is very expensive for VLTO.
Compared to the rest of the industry, the Price/Earnings ratio of VLTO is on the same level as its industry peers.
VLTO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.51, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 23.43, VLTO is valued on the expensive side.
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 23.13. VLTO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.12 | ||
| Fwd PE | 23.43 |
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 | 25.13 | ||
| EV/EBITDA | 19.06 |
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)2.37
PEG (5Y)N/A
EPS Next 2Y9.83%
EPS Next 3Y9.4%
5. Dividend
5.1 Amount
With a yearly dividend of 0.45%, VLTO is not a good candidate for dividend investing.
VLTO's Dividend Yield is a higher than the industry average which is at 0.89.
Compared to an average S&P500 Dividend Yield of 2.00, VLTO's dividend is way lower than the S&P500 average.
| 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%
99.78
-1.58 (-1.56%)
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 Cap24.78B
Revenue(TTM)5.45B
Net Income(TTM)913.00M
Analysts77.69
Price Target115.81 (16.07%)
Short Float %1.88%
Short Ratio2.65
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-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)-1.71%
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 | 26.12 | ||
| Fwd PE | 23.43 | ||
| P/S | 4.54 | ||
| P/FCF | 25.13 | ||
| P/OCF | 23.57 | ||
| P/B | 8.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.06 |
EPS(TTM)3.82
EY3.83%
EPS(NY)4.26
Fwd EY4.27%
FCF(TTM)3.97
FCFY3.98%
OCF(TTM)4.23
OCFY4.24%
SpS21.96
BVpS11.47
TBVpS-2.04
PEG (NY)2.37
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 | 5.02 |
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.
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 26.12 and the Price/Book (PB) ratio is 8.7.
What is the financial health of VERALTO CORP (VLTO) stock?
The financial health rating of VERALTO CORP (VLTO) is 6 / 10.