VERALTO CORP (VLTO) Stock Fundamental Analysis
NYSE:VLTO - New York Stock Exchange, Inc. - US92338C1036 - Common Stock - Currency: USD
Taking everything into account, VLTO scores 6 out of 10 in our fundamental rating. VLTO was compared to 83 industry peers in the Commercial Services & Supplies industry. VLTO scores excellent on profitability, 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.
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.
In the past 5 years VLTO has always been profitable.
Each year in the past 5 years VLTO had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 13.15%, VLTO belongs to the best of the industry, outperforming 89.16% of the companies in the same industry.
VLTO has a better Return On Equity (37.97%) than 93.98% of its industry peers.
VLTO has a better Return On Invested Capital (17.31%) than 91.57% 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 11.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.15% | ||
| ROE | 37.97% | ||
| ROIC | 17.31% |
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 16.56% is amongst the best of the industry. VLTO outperforms 89.16% of its industry peers.
In the last couple of years the Profit Margin of VLTO has declined.
VLTO has a better Operating Margin (23.43%) than 97.59% of its industry peers.
VLTO's Operating Margin has improved in the last couple of years.
VLTO's Gross Margin of 59.92% is amongst the best of the industry. VLTO outperforms 93.98% of its industry peers.
VLTO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.43% | ||
| PM (TTM) | 16.56% | ||
| GM | 59.92% |
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.
VLTO has more shares outstanding than it did 1 year ago.
The debt/assets ratio for VLTO has been reduced compared to a year ago.
2.2 Solvency
VLTO has an Altman-Z score of 5.45. 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 5.45, VLTO belongs to the top of the industry, outperforming 83.13% of the companies in the same industry.
The Debt to FCF ratio of VLTO is 3.06, which is a good value as it means it would take VLTO, 3.06 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.06, VLTO is in the better half of the industry, outperforming 73.49% of the companies in the same industry.
VLTO has a Debt/Equity ratio of 1.14. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.14, VLTO is doing worse than 69.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 3.06 | ||
| Altman-Z | 5.45 |
ROIC/WACC1.78
WACC9.73%
2.3 Liquidity
VLTO has a Current Ratio of 2.19. This indicates that VLTO is financially healthy and has no problem in meeting its short term obligations.
VLTO has a Current ratio of 2.19. This is in the better half of the industry: VLTO outperforms 74.70% of its industry peers.
VLTO has a Quick 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.
VLTO has a better Quick ratio (1.92) than 75.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.19 | ||
| Quick Ratio | 1.92 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.19% 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.
VLTO shows a small growth in Revenue. In the last year, the Revenue has grown by 4.70%.
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)8.19%
EPS 3Y-1.57%
EPS 5YN/A
EPS Q2Q%13.1%
Revenue 1Y (TTM)4.7%
Revenue growth 3Y3.38%
Revenue growth 5YN/A
Sales Q2Q%6.9%
3.2 Future
VLTO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.36% yearly.
The Revenue is expected to grow by 4.83% on average over the next years.
EPS Next Y6.37%
EPS Next 2Y7.19%
EPS Next 3Y7.7%
EPS Next 5Y6.36%
Revenue Next Year4.02%
Revenue Next 2Y4.36%
Revenue Next 3Y4.64%
Revenue Next 5Y4.83%
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
VLTO is valuated quite expensively with a Price/Earnings ratio of 28.50.
VLTO's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.45, VLTO is valued at the same level.
Based on the Price/Forward Earnings ratio of 25.58, the valuation of VLTO can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VLTO is on the same level as its industry peers.
VLTO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.5 | ||
| Fwd PE | 25.58 |
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.
60.24% 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 | 29.9 | ||
| EV/EBITDA | 20.64 |
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)4.48
PEG (5Y)N/A
EPS Next 2Y7.19%
EPS Next 3Y7.7%
5. Dividend
5.1 Amount
VLTO has a yearly dividend return of 0.42%, which is pretty low.
Compared to an average industry Dividend Yield of 2.44, VLTO pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.42, VLTO pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
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
10.76% of the earnings are spent on dividend by VLTO. This is a low number and sustainable payout ratio.
DP10.76%
EPS Next 2Y7.19%
EPS Next 3Y7.7%
103.75
+0.92 (+0.89%)
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 Change-8.15%
Market Cap25.72B
Analysts76.67
Price Target110.07 (6.09%)
Short Float %1.19%
Short Ratio2.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
Yearly Dividend0.36
Dividend Growth(5Y)N/A
DP10.76%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.72%
Min EPS beat(2)4.21%
Max EPS beat(2)7.23%
EPS beat(4)4
Avg EPS beat(4)4.43%
Min EPS beat(4)2.48%
Max EPS beat(4)7.23%
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)1
Avg Revenue beat(2)0.01%
Min Revenue beat(2)-2.04%
Max Revenue beat(2)2.07%
Revenue beat(4)1
Avg Revenue beat(4)-0.58%
Min Revenue beat(4)-2.04%
Max Revenue beat(4)2.07%
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)0.33%
PT rev (3m)-2.39%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.64%
EPS NY rev (1m)0%
EPS NY rev (3m)0.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.26%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)1.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.5 | ||
| Fwd PE | 25.58 | ||
| P/S | 4.87 | ||
| P/FCF | 29.9 | ||
| P/OCF | 28.04 | ||
| P/B | 11.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.64 |
EPS(TTM)3.64
EY3.51%
EPS(NY)4.06
Fwd EY3.91%
FCF(TTM)3.47
FCFY3.34%
OCF(TTM)3.7
OCFY3.57%
SpS21.3
BVpS9.29
TBVpS-3.9
PEG (NY)4.48
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.15% | ||
| ROE | 37.97% | ||
| ROCE | 22.59% | ||
| ROIC | 17.31% | ||
| ROICexc | 22.38% | ||
| ROICexgc | 98.02% | ||
| OM | 23.43% | ||
| PM (TTM) | 16.56% | ||
| GM | 59.92% | ||
| FCFM | 16.29% |
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
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 Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 3.06 | ||
| Debt/EBITDA | 2 | ||
| Cap/Depr | 75% | ||
| Cap/Sales | 1.08% | ||
| Interest Coverage | 9.03 | ||
| Cash Conversion | 69.84% | ||
| Profit Quality | 98.4% | ||
| Current Ratio | 2.19 | ||
| Quick Ratio | 1.92 | ||
| Altman-Z | 5.45 |
F-Score6
WACC9.73%
ROIC/WACC1.78
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)8.19%
EPS 3Y-1.57%
EPS 5YN/A
EPS Q2Q%13.1%
EPS Next Y6.37%
EPS Next 2Y7.19%
EPS Next 3Y7.7%
EPS Next 5Y6.36%
Revenue 1Y (TTM)4.7%
Revenue growth 3Y3.38%
Revenue growth 5YN/A
Sales Q2Q%6.9%
Revenue Next Year4.02%
Revenue Next 2Y4.36%
Revenue Next 3Y4.64%
Revenue Next 5Y4.83%
EBIT growth 1Y8.41%
EBIT growth 3Y5.08%
EBIT growth 5YN/A
EBIT Next Year8.66%
EBIT Next 3Y7.78%
EBIT Next 5Y6.77%
FCF growth 1Y-8.22%
FCF growth 3Y-0.88%
FCF growth 5YN/A
OCF growth 1Y-5.46%
OCF growth 3Y-0.79%
OCF growth 5YN/A