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VERALTO CORP (VLTO) Stock Fundamental Analysis

NYSE:VLTO - New York Stock Exchange, Inc. - US92338C1036 - Common Stock - Currency: USD

98.15  +0.43 (+0.44%)

After market: 98.15 0 (0%)

Fundamental Rating

5

Overall VLTO gets a fundamental rating of 5 out of 10. We evaluated VLTO against 84 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 is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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8

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.
VLTO had positive earnings in each of the past 5 years.
In the past 5 years VLTO always reported a positive cash flow from operatings.
VLTO Yearly Net Income VS EBIT VS OCF VS FCFVLTO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

1.2 Ratios

With an excellent Return On Assets value of 13.00%, VLTO belongs to the best of the industry, outperforming 93.90% of the companies in the same industry.
The Return On Equity of VLTO (40.73%) is better than 98.78% of its industry peers.
VLTO has a better Return On Invested Capital (17.94%) than 93.90% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VLTO is significantly above the industry average of 10.12%.
Industry RankSector Rank
ROA 13%
ROE 40.73%
ROIC 17.94%
ROA(3y)15.08%
ROA(5y)N/A
ROE(3y)42.51%
ROE(5y)N/A
ROIC(3y)20.23%
ROIC(5y)N/A
VLTO Yearly ROA, ROE, ROICVLTO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2020 2021 2022 2023 2024 20 40 60

1.3 Margins

With an excellent Profit Margin value of 16.04%, VLTO belongs to the best of the industry, outperforming 93.90% of the companies in the same industry.
VLTO's Profit Margin has declined in the last couple of years.
VLTO's Operating Margin of 23.26% is amongst the best of the industry. VLTO outperforms 96.34% of its industry peers.
VLTO's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 59.79%, VLTO belongs to the best of the industry, outperforming 93.90% of the companies in the same industry.
VLTO's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 23.26%
PM (TTM) 16.04%
GM 59.79%
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
VLTO Yearly Profit, Operating, Gross MarginsVLTO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2020 2021 2022 2023 2024 10 20 30 40 50

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4

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.
VLTO Yearly Shares OutstandingVLTO Yearly Shares OutstandingYearly Shares Outstanding 2021 2022 2023 2024 50M 100M 150M 200M
VLTO Yearly Total Debt VS Total AssetsVLTO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2021 2022 2023 2024 2B 4B 6B

2.2 Solvency

VLTO has a debt to FCF ratio of 3.17. This is a good value and a sign of high solvency as VLTO would need 3.17 years to pay back of all of its debts.
VLTO's Debt to FCF ratio of 3.17 is fine compared to the rest of the industry. VLTO outperforms 73.17% of its industry peers.
A Debt/Equity ratio of 1.27 is on the high side and indicates that VLTO has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.27, VLTO is doing worse than 71.95% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.27
Debt/FCF 3.17
Altman-Z N/A
ROIC/WACC2.1
WACC8.55%
VLTO Yearly LT Debt VS Equity VS FCFVLTO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2020 2021 2022 2023 2024 1B 2B 3B

2.3 Liquidity

VLTO has a Current Ratio of 1.92. 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 (1.92) is better than 71.95% of its industry peers.
A Quick Ratio of 1.69 indicates that VLTO should not have too much problems paying its short term obligations.
The Quick ratio of VLTO (1.69) is better than 71.95% of its industry peers.
Industry RankSector Rank
Current Ratio 1.92
Quick Ratio 1.69
VLTO Yearly Current Assets VS Current LiabilitesVLTO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2021 2022 2023 2024 500M 1B 1.5B 2B

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4

3. Growth

3.1 Past

VLTO shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.95%.
The Earnings Per Share has been decreasing by -1.57% on average over the past years.
VLTO shows a small growth in Revenue. In the last year, the Revenue has grown by 3.43%.
Measured over the past years, VLTO shows a small growth in Revenue. The Revenue has been growing by 3.38% on average per year.
EPS 1Y (TTM)-1.95%
EPS 3Y-1.57%
EPS 5YN/A
EPS Q2Q%9.2%
Revenue 1Y (TTM)3.43%
Revenue growth 3Y3.38%
Revenue growth 5YN/A
Sales Q2Q%4.43%

3.2 Future

VLTO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.98% yearly.
Based on estimates for the next years, VLTO will show a small growth in Revenue. The Revenue will grow by 4.53% on average per year.
EPS Next Y5.97%
EPS Next 2Y7.31%
EPS Next 3Y8.15%
EPS Next 5Y7.98%
Revenue Next Year5.02%
Revenue Next 2Y5.56%
Revenue Next 3Y7.45%
Revenue Next 5Y4.53%

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.
VLTO Yearly Revenue VS EstimatesVLTO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B
VLTO Yearly EPS VS EstimatesVLTO Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1 2 3 4 5

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2

4. Valuation

4.1 Price/Earnings Ratio

VLTO is valuated quite expensively with a Price/Earnings ratio of 27.80.
VLTO's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 29.63. VLTO is around the same levels.
The Price/Forward Earnings ratio is 26.24, which means the current valuation is very expensive for VLTO.
VLTO's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.68. VLTO is around the same levels.
Industry RankSector Rank
PE 27.8
Fwd PE 26.24
VLTO Price Earnings VS Forward Price EarningsVLTO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

VLTO's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. VLTO is more expensive than 60.98% of the companies in the same industry.
VLTO's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 29.6
EV/EBITDA 19.96
VLTO Per share dataVLTO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15 20

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)4.65
PEG (5Y)N/A
EPS Next 2Y7.31%
EPS Next 3Y8.15%

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2

5. Dividend

5.1 Amount

VLTO has a yearly dividend return of 0.39%, which is pretty low.
Compared to an average industry Dividend Yield of 2.12, VLTO pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.29, VLTO's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.39%

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
VLTO Yearly Dividends per shareVLTO Yearly Dividends per shareYearly Dividends per share 2023 2024 0.1 0.2 0.3

5.3 Sustainability

10.68% of the earnings are spent on dividend by VLTO. This is a low number and sustainable payout ratio.
DP10.68%
EPS Next 2Y7.31%
EPS Next 3Y8.15%
VLTO Yearly Income VS Free CF VS DividendVLTO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2020 2021 2022 2023 2024 200M 400M 600M 800M
VLTO Dividend Payout.VLTO Dividend Payout, showing the Payout Ratio.VLTO Dividend Payout.PayoutRetained Earnings

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VERALTO CORP

NYSE:VLTO (2/21/2025, 8:04:00 PM)

After market: 98.15 0 (0%)

98.15

+0.43 (+0.44%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)02-04 2025-02-04/amc
Earnings (Next)04-21 2025-04-21/amc
Inst Owners97.66%
Inst Owner ChangeN/A
Ins Owners4.05%
Ins Owner Change-2.22%
Market Cap24.27B
Analysts75.65
Price Target112.76 (14.89%)
Short Float %1.71%
Short Ratio2.99
Dividend
Industry RankSector Rank
Dividend Yield 0.39%
Yearly Dividend0.36
Dividend Growth(5Y)N/A
DP10.68%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.34%
Min EPS beat(2)2.48%
Max EPS beat(2)4.21%
EPS beat(4)4
Avg EPS beat(4)4.57%
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)-1.62%
Min Revenue beat(2)-2.04%
Max Revenue beat(2)-1.2%
Revenue beat(4)0
Avg Revenue beat(4)-1.18%
Min Revenue beat(4)-2.04%
Max Revenue beat(4)-0.32%
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)-2.07%
PT rev (3m)-0.94%
EPS NQ rev (1m)-1.34%
EPS NQ rev (3m)-0.38%
EPS NY rev (1m)-2.32%
EPS NY rev (3m)-2.14%
Revenue NQ rev (1m)-2.54%
Revenue NQ rev (3m)-1.51%
Revenue NY rev (1m)-0.66%
Revenue NY rev (3m)-0.39%
Valuation
Industry RankSector Rank
PE 27.8
Fwd PE 26.24
P/S 4.67
P/FCF 29.6
P/OCF 27.74
P/B 11.87
P/tB N/A
EV/EBITDA 19.96
EPS(TTM)3.53
EY3.6%
EPS(NY)3.74
Fwd EY3.81%
FCF(TTM)3.32
FCFY3.38%
OCF(TTM)3.54
OCFY3.6%
SpS21
BVpS8.27
TBVpS-4.78
PEG (NY)4.65
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 13%
ROE 40.73%
ROCE 23.41%
ROIC 17.94%
ROICexc 22.8%
ROICexgc 111.26%
OM 23.26%
PM (TTM) 16.04%
GM 59.79%
FCFM 15.79%
ROA(3y)15.08%
ROA(5y)N/A
ROE(3y)42.51%
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
ROICexcg growth 3Y-1.56%
ROICexcg 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-Score6
Asset Turnover0.81
Health
Industry RankSector Rank
Debt/Equity 1.27
Debt/FCF 3.17
Debt/EBITDA 2.02
Cap/Depr 70.51%
Cap/Sales 1.06%
Interest Coverage 250
Cash Conversion 68.04%
Profit Quality 98.44%
Current Ratio 1.92
Quick Ratio 1.69
Altman-Z N/A
F-Score6
WACC8.55%
ROIC/WACC2.1
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)-1.95%
EPS 3Y-1.57%
EPS 5YN/A
EPS Q2Q%9.2%
EPS Next Y5.97%
EPS Next 2Y7.31%
EPS Next 3Y8.15%
EPS Next 5Y7.98%
Revenue 1Y (TTM)3.43%
Revenue growth 3Y3.38%
Revenue growth 5YN/A
Sales Q2Q%4.43%
Revenue Next Year5.02%
Revenue Next 2Y5.56%
Revenue Next 3Y7.45%
Revenue Next 5Y4.53%
EBIT growth 1Y5.96%
EBIT growth 3Y5.08%
EBIT growth 5YN/A
EBIT Next Year11.89%
EBIT Next 3Y10.98%
EBIT Next 5Y7.27%
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