VERALTO CORP (VLTO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VLTO - US92338C1036 - Common Stock
102.89 USD
+0.71 (+0.69%)
102.89 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to VLTO. VLTO was compared to 82 industry peers in the Commercial Services & Supplies industry. VLTO scores excellent on profitability, but there are some minor concerns on its financial health. VLTO has a correct valuation and a medium 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.
Each year in the past 5 years VLTO has been profitable.
VLTO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of VLTO (12.29%) is better than 93.90% of its industry peers.
The Return On Equity of VLTO (32.07%) is better than 93.90% of its industry peers.
VLTO's Return On Invested Capital of 18.03% is amongst the best of the industry. VLTO outperforms 92.68% of its industry peers.
VLTO had an Average Return On Invested Capital over the past 3 years of 20.23%. This is significantly above the industry average of 10.51%.
| 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
Looking at the Profit Margin, with a value of 16.75%, VLTO belongs to the top of the industry, outperforming 95.12% of the companies in the same industry.
In the last couple of years the Profit Margin of VLTO has declined.
VLTO has a Operating Margin of 23.28%. This is amongst the best in the industry. VLTO outperforms 98.78% of its industry peers.
VLTO's Operating Margin has improved in the last couple of years.
VLTO has a Gross Margin of 60.01%. This is amongst the best in the industry. VLTO outperforms 96.34% of its industry peers.
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
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), VLTO is creating value.
The number of shares outstanding for VLTO has been increased compared to 1 year ago.
VLTO has a better debt/assets ratio than last year.
2.2 Solvency
VLTO has an Altman-Z score of 5.09. This indicates that VLTO is financially healthy and has little risk of bankruptcy at the moment.
VLTO's Altman-Z score of 5.09 is amongst the best of the industry. VLTO outperforms 81.71% of its industry peers.
The Debt to FCF ratio of VLTO is 2.71, which is a good value as it means it would take VLTO, 2.71 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of VLTO (2.71) is better than 73.17% 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 of 0.69. This is comparable to the rest of the industry: VLTO outperforms 45.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 2.71 | ||
| Altman-Z | 5.09 |
ROIC/WACC2.18
WACC8.27%
2.3 Liquidity
A Current Ratio of 1.57 indicates that VLTO should not have too much problems paying its short term obligations.
With a Current ratio value of 1.57, VLTO perfoms like the industry average, outperforming 54.88% of the companies in the same industry.
VLTO has a Quick Ratio of 1.40. 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 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 |
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
The Earnings Per Share is expected to grow by 7.53% on average over the next years.
The Revenue is expected to grow by 5.29% on average over the next years.
EPS Next Y10.66%
EPS Next 2Y9.6%
EPS Next 3Y9.09%
EPS Next 5Y7.53%
Revenue Next Year6.1%
Revenue Next 2Y5.8%
Revenue Next 3Y5.57%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 26.93 indicates a quite expensive valuation of VLTO.
The rest of the industry has a similar Price/Earnings ratio as VLTO.
When comparing the Price/Earnings ratio of VLTO to the average of the S&P500 Index (26.41), we can say VLTO is valued inline with the index average.
With a Price/Forward Earnings ratio of 24.26, VLTO is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as VLTO.
VLTO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.93 | ||
| Fwd PE | 24.26 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VLTO is on the same level as its industry peers.
64.63% 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 | 25.91 | ||
| EV/EBITDA | 19.5 |
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)2.53
PEG (5Y)N/A
EPS Next 2Y9.6%
EPS Next 3Y9.09%
5. Dividend
5.1 Amount
VLTO has a yearly dividend return of 0.43%, which is pretty low.
Compared to an average industry Dividend Yield of 2.48, VLTO pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.43, VLTO pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
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 2Y9.6%
EPS Next 3Y9.09%
102.89
+0.71 (+0.69%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners96.82%
Inst Owner ChangeN/A
Ins Owners4.01%
Ins Owner Change1.47%
Market Cap25.55B
Revenue(TTM)5.45B
Net Income(TTM)913.00M
Analysts77.69
Price Target117.85 (14.54%)
Short Float %1.46%
Short Ratio2.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
Yearly Dividend0.36
Dividend Growth(5Y)N/A
DP11.39%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.63%
Min EPS beat(2)2.19%
Max EPS beat(2)3.08%
EPS beat(4)4
Avg EPS beat(4)4.18%
Min EPS beat(4)2.19%
Max EPS beat(4)7.23%
EPS beat(8)8
Avg EPS beat(8)4.56%
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)1
Avg Revenue beat(2)-0.73%
Min Revenue beat(2)-1.54%
Max Revenue beat(2)0.07%
Revenue beat(4)2
Avg Revenue beat(4)-0.36%
Min Revenue beat(4)-2.04%
Max Revenue beat(4)2.07%
Revenue beat(8)3
Avg Revenue beat(8)-0.41%
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)-0.2%
PT rev (3m)0.02%
EPS NQ rev (1m)0.76%
EPS NQ rev (3m)0.84%
EPS NY rev (1m)0.95%
EPS NY rev (3m)1.21%
Revenue NQ rev (1m)0.35%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.93 | ||
| Fwd PE | 24.26 | ||
| P/S | 4.69 | ||
| P/FCF | 25.91 | ||
| P/OCF | 24.31 | ||
| P/B | 8.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.5 |
EPS(TTM)3.82
EY3.71%
EPS(NY)4.24
Fwd EY4.12%
FCF(TTM)3.97
FCFY3.86%
OCF(TTM)4.23
OCFY4.11%
SpS21.96
BVpS11.47
TBVpS-2.04
PEG (NY)2.53
PEG (5Y)N/A
Graham Number31.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.29% | ||
| ROE | 32.07% | ||
| ROCE | 23.53% | ||
| ROIC | 18.03% | ||
| ROICexc | 26.88% | ||
| ROICexgc | 368.33% | ||
| OM | 23.28% | ||
| PM (TTM) | 16.75% | ||
| GM | 60.01% | ||
| FCFM | 18.09% |
ROA(3y)15.08%
ROA(5y)N/A
ROE(3y)42.55%
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
ROICexgc growth 3Y-1.56%
ROICexgc 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-Score5
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 2.71 | ||
| Debt/EBITDA | 1.46 | ||
| Cap/Depr | 83.33% | ||
| Cap/Sales | 1.19% | ||
| Interest Coverage | 9.33 | ||
| Cash Conversion | 78.03% | ||
| Profit Quality | 108% | ||
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.4 | ||
| Altman-Z | 5.09 |
F-Score5
WACC8.27%
ROIC/WACC2.18
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)10.72%
EPS 3Y-1.57%
EPS 5YN/A
EPS Q2Q%11.24%
EPS Next Y10.66%
EPS Next 2Y9.6%
EPS Next 3Y9.09%
EPS Next 5Y7.53%
Revenue 1Y (TTM)6.15%
Revenue growth 3Y3.38%
Revenue growth 5YN/A
Sales Q2Q%6.85%
Revenue Next Year6.1%
Revenue Next 2Y5.8%
Revenue Next 3Y5.57%
Revenue Next 5Y5.29%
EBIT growth 1Y7%
EBIT growth 3Y5.08%
EBIT growth 5YN/A
EBIT Next Year10.32%
EBIT Next 3Y8.65%
EBIT Next 5Y7.54%
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
VERALTO CORP / VLTO FAQ
Can you provide the ChartMill fundamental rating for VERALTO CORP?
ChartMill assigns a fundamental rating of 6 / 10 to VLTO.
What is the valuation status for VLTO stock?
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 is the earnings growth outlook for VERALTO CORP?
The Earnings per Share (EPS) of VERALTO CORP (VLTO) is expected to grow by 10.66% in the next year.
Is the dividend of VERALTO CORP sustainable?
The dividend rating of VERALTO CORP (VLTO) is 3 / 10 and the dividend payout ratio is 11.39%.