VERALTO CORP (VLTO)
US92338C1036 - Common Stock
VLTO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 84 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
VLTO had positive earnings in the past year.
In the past year VLTO had a positive cash flow from operations.
1.2 Ratios
VLTO has a better Return On Assets (12.87%) than 91.67% of its industry peers.
The Return On Equity of VLTO (41.25%) is better than 97.62% of its industry peers.
VLTO has a better Return On Invested Capital (17.95%) than 92.86% of its industry peers.
VLTO had an Average Return On Invested Capital over the past 3 years of 21.29%. This is significantly above the industry average of 9.90%.
| 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
Looking at the Profit Margin, with a value of 15.69%, VLTO belongs to the top of the industry, outperforming 94.05% of the companies in the same industry.
In the last couple of years the Profit Margin of VLTO has remained more or less at the same level.
Looking at the Operating Margin, with a value of 23.09%, VLTO belongs to the top of the industry, outperforming 96.43% of the companies in the same industry.
In the last couple of years the Operating Margin of VLTO has remained more or less at the same level.
The Gross Margin of VLTO (59.38%) is better than 95.24% 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
VLTO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
VLTO has about the same amout of shares outstanding than it did 1 year ago.
VLTO has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.49 indicates that VLTO is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.49, VLTO belongs to the best of the industry, outperforming 82.14% of the companies in the same industry.
The Debt to FCF ratio of VLTO is 3.31, which is a good value as it means it would take VLTO, 3.31 years of fcf income to pay off all of its debts.
VLTO has a better Debt to FCF ratio (3.31) than 71.43% of its industry peers.
A Debt/Equity ratio of 1.35 is on the high side and indicates that VLTO has dependencies on debt financing.
VLTO has a Debt to Equity ratio of 1.35. This is in the lower half of the industry: VLTO underperforms 72.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 3.31 | ||
| Altman-Z | 5.49 |
ROIC/WACC2.04
WACC8.8%
2.3 Liquidity
A Current Ratio of 2.13 indicates that VLTO has no problem at all paying its short term obligations.
VLTO has a Current ratio of 2.13. This is in the better half of the industry: VLTO outperforms 71.43% of its industry peers.
A Quick Ratio of 1.87 indicates that VLTO should not have too much problems paying its short term obligations.
VLTO has a better Quick ratio (1.87) than 76.19% of its industry peers.
| 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.
VLTO shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -40.30%.
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 8.71% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.48% on average over the next years.
EPS Next Y12.18%
EPS Next 2Y9.9%
EPS Next 3Y9.36%
EPS Next 5Y8.71%
Revenue Next Year4.23%
Revenue Next 2Y4.81%
Revenue Next 3Y4.83%
Revenue Next 5Y4.48%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 30.73, VLTO can be considered very expensive at the moment.
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 28.96, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 27.73 indicates a quite expensive valuation of VLTO.
VLTO's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of VLTO to the average of the S&P500 Index (23.82), we can say VLTO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.73 | ||
| Fwd PE | 27.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VLTO is valued a bit more expensive than the industry average as 61.90% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VLTO is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.85 | ||
| EV/EBITDA | 21.62 |
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)2.52
PEG (5Y)N/A
EPS Next 2Y9.9%
EPS Next 3Y9.36%
5. Dividend
5.1 Amount
With a yearly dividend of 0.35%, VLTO is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.10, VLTO pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.23, VLTO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.35% |
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 2Y9.9%
EPS Next 3Y9.36%
VERALTO CORP
NYSE:VLTO (11/21/2024, 8:04:00 PM)
After market: 106.01 0 (0%)106.01
+0.9 (+0.86%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap26.22B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.35% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.73 | ||
| Fwd PE | 27.73 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.52
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.87% | ||
| ROE | 41.25% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 23.09% | ||
| PM (TTM) | 15.69% | ||
| GM | 59.38% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.87 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-46.23%
EPS 3Y4.96%
EPS 5Y
EPS Q2Q%
EPS Next Y12.18%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-40.3%
Revenue growth 3Y4.91%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y