VERALTO CORP (VLTO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VLTO - US92338C1036 - Common Stock
100.945 USD
-0.95 (-0.93%)
We assign a fundamental rating of 5 out of 10 to VLTO. VLTO was compared to 80 industry peers in the Commercial Services & Supplies industry. While VLTO has a great profitability rating, 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.
- Each year in the past 5 years VLTO has been profitable.
- In the past 5 years VLTO always reported a positive cash flow from operatings.
1.2 Ratios
- With an excellent Return On Assets value of 12.29%, VLTO belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
- VLTO has a better Return On Equity (32.07%) than 92.50% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 18.03%, VLTO belongs to the top of the industry, outperforming 91.25% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for VLTO is significantly above the industry average of 10.58%.
| 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 96.25% of its industry peers.
- VLTO's Profit Margin has declined in the last couple of years.
- VLTO has a better Operating Margin (23.28%) than 98.75% of its industry peers.
- In the last couple of years the Operating Margin of VLTO has grown nicely.
- VLTO has a Gross Margin of 60.01%. This is amongst the best in the industry. VLTO outperforms 97.50% 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 | 23.28% | ||
| 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.
- Compared to 1 year ago, VLTO has more shares outstanding
- The debt/assets ratio for VLTO has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 5.08 indicates that VLTO is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 5.08, VLTO is doing good in the industry, outperforming 80.00% of the companies in the same industry.
- VLTO has a debt to FCF ratio of 2.71. This is a good value and a sign of high solvency as VLTO would need 2.71 years to pay back of all of its debts.
- VLTO's Debt to FCF ratio of 2.71 is fine compared to the rest of the industry. VLTO outperforms 76.25% of its industry peers.
- A Debt/Equity ratio of 0.69 indicates that VLTO is somewhat dependend on debt financing.
- VLTO has a Debt to Equity ratio (0.69) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 2.71 | ||
| Altman-Z | 5.08 |
ROIC/WACC2.14
WACC8.42%
2.3 Liquidity
- A Current Ratio of 1.57 indicates that VLTO should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.57, VLTO is in line with its industry, outperforming 55.00% 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.
- With a Quick ratio value of 1.40, VLTO perfoms like the industry average, outperforming 53.75% 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.
- 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.
- VLTO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.29% yearly.
EPS Next Y11.04%
EPS Next 2Y9.91%
EPS Next 3Y9.53%
EPS Next 5Y7.53%
Revenue Next Year6.15%
Revenue Next 2Y6.01%
Revenue Next 3Y5.88%
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.
- 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
- With a Price/Earnings ratio of 26.43, VLTO can be considered very expensive at the moment.
- The rest of the industry has a similar Price/Earnings ratio as VLTO.
- VLTO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.25.
- With a Price/Forward Earnings ratio of 23.67, VLTO is valued on the expensive side.
- Based on the Price/Forward Earnings ratio, VLTO is valued a bit cheaper than the industry average as 66.25% of the companies are valued more expensively.
- VLTO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.43 | ||
| Fwd PE | 23.67 |
4.2 Price Multiples
- VLTO's Enterprise Value to EBITDA is on the same level as the industry average.
- Based on the Price/Free Cash Flow ratio, VLTO is valued a bit cheaper than 65.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.42 | ||
| EV/EBITDA | 19.45 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The excellent profitability rating of VLTO may justify a higher PE ratio.
PEG (NY)2.39
PEG (5Y)N/A
EPS Next 2Y9.91%
EPS Next 3Y9.53%
5. Dividend
5.1 Amount
- VLTO has a yearly dividend return of 0.45%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.82, VLTO pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, 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
- 11.39% of the earnings are spent on dividend by VLTO. This is a low number and sustainable payout ratio.
DP11.39%
EPS Next 2Y9.91%
EPS Next 3Y9.53%
VERALTO CORP / VLTO FAQ
Can you provide the ChartMill fundamental rating for VERALTO CORP?
ChartMill assigns a fundamental rating of 5 / 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 26.43 and the Price/Book (PB) ratio is 8.8.
What is the financial health of VERALTO CORP (VLTO) stock?
The financial health rating of VERALTO CORP (VLTO) is 5 / 10.