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VERALTO CORP (VLTO) Stock Fundamental Analysis

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

103.09  +0.15 (+0.15%)

Premarket: 103.61 +0.52 (+0.5%)

Fundamental Rating

5

Overall VLTO gets a fundamental rating of 5 out of 10. We evaluated VLTO against 83 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 does not seem to be growing, but still is valued expensively.


Dividend Valuation Growth Profitability Health

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7

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 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 200M 400M 600M 800M 1B

1.2 Ratios

VLTO's Return On Assets of 12.87% is amongst the best of the industry. VLTO outperforms 93.90% of its industry peers.
VLTO's Return On Equity of 41.25% is amongst the best of the industry. VLTO outperforms 98.78% of its industry peers.
The Return On Invested Capital of VLTO (17.95%) is better 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 10.08%.
Industry RankSector 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
VLTO Yearly ROA, ROE, ROICVLTO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2020 2021 2022 2023 20 40 60

1.3 Margins

VLTO's Profit Margin of 15.69% is amongst the best of the industry. VLTO outperforms 93.90% of its industry peers.
VLTO's Profit Margin has been stable in the last couple of years.
VLTO has a Operating Margin of 23.09%. This is amongst the best in the industry. VLTO outperforms 96.34% of its industry peers.
VLTO's Operating Margin has been stable in the last couple of years.
VLTO's Gross Margin of 59.38% is amongst the best of the industry. VLTO outperforms 93.90% of its industry peers.
VLTO's Gross Margin has been stable in the last couple of years.
Industry RankSector 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
VLTO Yearly Profit, Operating, Gross MarginsVLTO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2020 2021 2022 2023 10 20 30 40 50

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6

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.
The number of shares outstanding for VLTO remains at a similar level compared to 1 year ago.
Compared to 1 year ago, VLTO has a worse debt to assets ratio.
VLTO Yearly Shares OutstandingVLTO Yearly Shares OutstandingYearly Shares Outstanding 2021 2022 2023 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 1B 2B 3B 4B 5B

2.2 Solvency

VLTO has an Altman-Z score of 5.42. This indicates that VLTO is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.42, VLTO belongs to the top of the industry, outperforming 85.37% 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.
With a decent Debt to FCF ratio value of 3.31, VLTO is doing good in the industry, outperforming 71.95% of the companies in the same industry.
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 74.39% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.35
Debt/FCF 3.31
Altman-Z 5.42
ROIC/WACC2
WACC8.98%
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 1B 2B 3B

2.3 Liquidity

A Current Ratio of 2.13 indicates that VLTO has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.13, VLTO is in the better half of the industry, outperforming 74.39% of the companies in the same industry.
A Quick Ratio of 1.87 indicates that VLTO should not have too much problems paying its short term obligations.
VLTO's Quick ratio of 1.87 is fine compared to the rest of the industry. VLTO outperforms 78.05% of its industry peers.
Industry RankSector Rank
Current Ratio 2.13
Quick Ratio 1.87
VLTO Yearly Current Assets VS Current LiabilitesVLTO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2021 2022 2023 500M 1B 1.5B 2B

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3

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%.
Measured over the past 5 years, VLTO shows a small growth in Earnings Per Share. The EPS has been growing by 4.96% on average per year.
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

VLTO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.43% yearly.
Based on estimates for the next years, VLTO will show a small growth in Revenue. The Revenue will grow by 4.22% on average per year.
EPS Next Y12.2%
EPS Next 2Y10%
EPS Next 3Y9.67%
EPS Next 5Y7.43%
Revenue Next Year4.25%
Revenue Next 2Y4.95%
Revenue Next 3Y5.15%
Revenue Next 5Y4.22%

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.
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

Based on the Price/Earnings ratio of 29.88, the valuation of VLTO can be described as expensive.
VLTO's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of VLTO to the average of the S&P500 Index (28.29), we can say VLTO is valued inline with the index average.
A Price/Forward Earnings ratio of 26.92 indicates a quite expensive valuation of VLTO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VLTO is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 24.44. VLTO is around the same levels.
Industry RankSector Rank
PE 29.88
Fwd PE 26.92
VLTO Price Earnings VS Forward Price EarningsVLTO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as VLTO.
VLTO's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 31.95
EV/EBITDA 21.22
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.
VLTO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.45
PEG (5Y)N/A
EPS Next 2Y10%
EPS Next 3Y9.67%

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1

5. Dividend

5.1 Amount

VLTO has a yearly dividend return of 0.37%, which is pretty low.
Compared to an average industry Dividend Yield of 2.09, VLTO pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.28, VLTO's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.37%

5.2 History

VLTO is new to the dividend game and has less than 3 years of track record.
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

DPN/A
EPS Next 2Y10%
EPS Next 3Y9.67%
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 200M 400M 600M 800M

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VERALTO CORP

NYSE:VLTO (1/21/2025, 8:04:00 PM)

Premarket: 103.61 +0.52 (+0.5%)

103.09

+0.15 (+0.15%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)10-23 2024-10-23/amc
Earnings (Next)02-04 2025-02-04/amc
Inst Owners95.78%
Inst Owner ChangeN/A
Ins Owners4.05%
Ins Owner Change-3.21%
Market Cap25.50B
Analysts75.65
Price Target117.55 (14.03%)
Short Float %1.78%
Short Ratio3.31
Dividend
Industry RankSector Rank
Dividend Yield 0.37%
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.14%
Min EPS beat(2)2.48%
Max EPS beat(2)3.8%
EPS beat(4)4
Avg EPS beat(4)4.95%
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)-1.18%
Min Revenue beat(2)-1.2%
Max Revenue beat(2)-1.15%
Revenue beat(4)1
Avg Revenue beat(4)-0.45%
Min Revenue beat(4)-1.2%
Max Revenue beat(4)0.86%
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)0.64%
PT rev (3m)2.94%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.92%
EPS NY rev (1m)0%
EPS NY rev (3m)1.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.25%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.42%
Valuation
Industry RankSector Rank
PE 29.88
Fwd PE 26.92
P/S 4.96
P/FCF 31.95
P/OCF 29.89
P/B 13.05
P/tB N/A
EV/EBITDA 21.22
EPS(TTM)3.45
EY3.35%
EPS(NY)3.83
Fwd EY3.71%
FCF(TTM)3.23
FCFY3.13%
OCF(TTM)3.45
OCFY3.35%
SpS20.77
BVpS7.9
TBVpS-3.99
PEG (NY)2.45
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 12.87%
ROE 41.25%
ROCE 23.55%
ROIC 17.95%
ROICexc 23.98%
ROICexgc 108.94%
OM 23.09%
PM (TTM) 15.69%
GM 59.38%
FCFM 15.54%
ROA(3y)16.68%
ROA(5y)N/A
ROE(3y)37.91%
ROE(5y)N/A
ROIC(3y)21.29%
ROIC(5y)N/A
ROICexc(3y)22.65%
ROICexc(5y)N/A
ROICexgc(3y)117.54%
ROICexgc(5y)N/A
ROCE(3y)27.92%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y1.25%
OM growth 5YN/A
PM growth 3Y0.12%
PM growth 5YN/A
GM growth 3Y0.03%
GM growth 5YN/A
F-Score6
Asset Turnover0.82
Health
Industry RankSector Rank
Debt/Equity 1.35
Debt/FCF 3.31
Debt/EBITDA 2.08
Cap/Depr 68.75%
Cap/Sales 1.07%
Interest Coverage 250
Cash Conversion 67.38%
Profit Quality 99.01%
Current Ratio 2.13
Quick Ratio 1.87
Altman-Z 5.42
F-Score6
WACC8.98%
ROIC/WACC2
Cap/Depr(3y)50.26%
Cap/Depr(5y)N/A
Cap/Sales(3y)0.97%
Cap/Sales(5y)N/A
Profit Quality(3y)101.69%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-46.23%
EPS 3Y4.96%
EPS 5YN/A
EPS Q2Q%18.67%
EPS Next Y12.2%
EPS Next 2Y10%
EPS Next 3Y9.67%
EPS Next 5Y7.43%
Revenue 1Y (TTM)-40.3%
Revenue growth 3Y4.91%
Revenue growth 5YN/A
Sales Q2Q%4.7%
Revenue Next Year4.25%
Revenue Next 2Y4.95%
Revenue Next 3Y5.15%
Revenue Next 5Y4.22%
EBIT growth 1Y-39.67%
EBIT growth 3Y6.23%
EBIT growth 5YN/A
EBIT Next Year12.79%
EBIT Next 3Y9.38%
EBIT Next 5Y7.54%
FCF growth 1Y8.73%
FCF growth 3Y-1.97%
FCF growth 5YN/A
OCF growth 1Y10.69%
OCF growth 3Y-1.28%
OCF growth 5YN/A