Overall VLTO gets a fundamental rating of 5 out of 10. We evaluated VLTO against 80 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 has a correct valuation and a medium growth rate.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year VLTO was profitable.
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.

1.2 Ratios

VLTO has a Return On Assets of 12.29%. This is amongst the best in the industry. VLTO outperforms 93.75% of its industry peers.
VLTO's Return On Equity of 32.07% is amongst the best of the industry. VLTO outperforms 92.50% of its industry peers.
With an excellent Return On Invested Capital value of 18.03%, VLTO belongs to the best of the industry, outperforming 91.25% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital 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

The Profit Margin of VLTO (16.75%) is better than 96.25% of its industry peers.
VLTO's Profit Margin has declined in the last couple of years.
The Operating Margin of VLTO (23.28%) is better than 98.75% of its industry peers.
VLTO's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 60.01%, VLTO belongs to the best of the industry, outperforming 97.50% of the companies in the same industry.
VLTO's Gross Margin has been stable in the last couple of years.

		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

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
Compared to 1 year ago, VLTO has more shares outstanding
VLTO has a better debt/assets ratio than last year.

2.2 Solvency

VLTO has an Altman-Z score of 5.07. This indicates that VLTO is financially healthy and has little risk of bankruptcy at the moment.
VLTO has a better Altman-Z score (5.07) than 80.00% of its industry peers.
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 has a better Debt to FCF ratio (2.71) than 76.25% 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 (0.69) which is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0.69
Debt/FCF	2.71
Altman-Z	5.07

ROIC/WACC2.14

WACC8.44%

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.
VLTO has a Current ratio of 1.57. This is comparable to the rest of the industry: VLTO outperforms 55.00% of its industry peers.
A Quick Ratio of 1.40 indicates that VLTO should not have too much problems paying its short term obligations.
VLTO has a Quick ratio (1.40) which is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Current Ratio	1.57
Quick Ratio	1.4

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 10.72% over the past year.
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.
Looking at the last year, VLTO shows a small growth in Revenue. The Revenue has grown by 6.15% in the last year.
VLTO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.38% yearly.

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

Based on estimates for the next years, VLTO will show a small growth in Earnings Per Share. The EPS will grow by 7.53% on average per year.
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 Year6.17%

Revenue Next 2Y5.99%

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.
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.

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4. Valuation

4.1 Price/Earnings Ratio

VLTO is valuated quite expensively with a Price/Earnings ratio of 26.52.
Compared to the rest of the industry, the Price/Earnings ratio of VLTO indicates a somewhat cheap valuation: VLTO is cheaper than 61.25% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.21. VLTO is around the same levels.
A Price/Forward Earnings ratio of 23.79 indicates a rather expensive valuation of VLTO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VLTO indicates a somewhat cheap valuation: VLTO is cheaper than 66.25% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, VLTO is valued at the same level.

		Industry Rank	Sector Rank
PE	26.52
Fwd PE	23.79

4.2 Price Multiples

VLTO's Enterprise Value to EBITDA ratio is in line with the industry average.
66.25% of the companies in the same industry are more expensive than VLTO, based on the Price/Free Cash Flow ratio.

		Industry Rank	Sector Rank
P/FCF	25.51
EV/EBITDA	19.37

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
VLTO has an outstanding profitability rating, which may justify a higher PE ratio.

PEG (NY)2.41

PEG (5Y)N/A

EPS Next 2Y9.83%

EPS Next 3Y9.4%

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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 0.83, VLTO pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.45, VLTO pays less dividend than the S&P500 average, which is at 1.82.

		Industry Rank	Sector Rank
Dividend Yield	0.45%

5.2 History

VLTO has paid a dividend for less than 5 years, so there is no long track record yet.

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%

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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 26.52 and the Price/Book (PB) ratio is 8.84.

What is the financial health of VERALTO CORP (VLTO) stock?

The financial health rating of VERALTO CORP (VLTO) is 5 / 10.