VERALTO CORP (VLTO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VLTO - US92338C1036 - Common Stock
101.36 USD
-0.14 (-0.14%)
101.36 USD
0 (0%)
Taking everything into account, VLTO scores 6 out of 10 in our fundamental rating. VLTO was compared to 81 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year VLTO was profitable.
In the past year VLTO had a positive cash flow from operations.
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 93.83% of the companies in the same industry.
VLTO's Return On Equity of 32.07% is amongst the best of the industry. VLTO outperforms 93.83% of its industry peers.
VLTO has a better Return On Invested Capital (18.03%) than 92.59% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VLTO is significantly above the industry average of 10.33%.
| 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 96.30% of the companies in the same industry.
In the last couple of years the Profit Margin of VLTO has declined.
VLTO's Operating Margin of 23.28% is amongst the best of the industry. VLTO outperforms 98.77% of its industry peers.
In the last couple of years the Operating Margin of VLTO has grown nicely.
Looking at the Gross Margin, with a value of 60.01%, VLTO belongs to the top of the industry, outperforming 96.30% 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
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.
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 5.07. 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 5.07, VLTO belongs to the top of the industry, outperforming 82.72% 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.
Looking at the Debt to FCF ratio, with a value of 2.71, VLTO is in the better half of the industry, outperforming 75.31% of the companies in the same industry.
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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 2.71 | ||
| Altman-Z | 5.07 |
ROIC/WACC2.17
WACC8.31%
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 55.56% 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's Quick ratio of 1.40 is in line compared to the rest of the industry. VLTO outperforms 53.09% of its industry peers.
| 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.
VLTO shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.57% yearly.
Looking at the last year, VLTO shows a small growth in Revenue. The Revenue has grown by 6.15% in the last year.
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 Y11.02%
EPS Next 2Y9.83%
EPS Next 3Y9.4%
EPS Next 5Y7.53%
Revenue Next Year6.15%
Revenue Next 2Y5.95%
Revenue Next 3Y5.86%
Revenue Next 5Y5.29%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 26.53.
VLTO's Price/Earnings is on the same level as the industry average.
VLTO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.77, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 23.80, the valuation of VLTO can be described as rather expensive.
64.20% of the companies in the same industry are more expensive than VLTO, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.35. VLTO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.53 | ||
| Fwd PE | 23.8 |
4.2 Price Multiples
VLTO's Enterprise Value to EBITDA ratio is in line with the industry average.
VLTO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. VLTO is cheaper than 65.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.53 | ||
| EV/EBITDA | 19.35 |
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)2.41
PEG (5Y)N/A
EPS Next 2Y9.83%
EPS Next 3Y9.4%
5. Dividend
5.1 Amount
With a yearly dividend of 0.45%, VLTO is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.89, VLTO pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.00, 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 2Y9.83%
EPS Next 3Y9.4%
101.36
-0.14 (-0.14%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners97.3%
Inst Owner ChangeN/A
Ins Owners0.11%
Ins Owner Change1.42%
Market Cap25.17B
Revenue(TTM)5.45B
Net Income(TTM)913.00M
Analysts77.69
Price Target115.81 (14.26%)
Short Float %1.88%
Short Ratio2.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
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)-1.73%
PT rev (3m)-1.71%
EPS NQ rev (1m)0.23%
EPS NQ rev (3m)1.08%
EPS NY rev (1m)0.32%
EPS NY rev (3m)1.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.53 | ||
| Fwd PE | 23.8 | ||
| P/S | 4.62 | ||
| P/FCF | 25.53 | ||
| P/OCF | 23.95 | ||
| P/B | 8.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.35 |
EPS(TTM)3.82
EY3.77%
EPS(NY)4.26
Fwd EY4.2%
FCF(TTM)3.97
FCFY3.92%
OCF(TTM)4.23
OCFY4.18%
SpS21.96
BVpS11.47
TBVpS-2.04
PEG (NY)2.41
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 | 5.07 |
F-Score5
WACC8.31%
ROIC/WACC2.17
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 Y11.02%
EPS Next 2Y9.83%
EPS Next 3Y9.4%
EPS Next 5Y7.53%
Revenue 1Y (TTM)6.15%
Revenue growth 3Y3.38%
Revenue growth 5YN/A
Sales Q2Q%6.85%
Revenue Next Year6.15%
Revenue Next 2Y5.95%
Revenue Next 3Y5.86%
Revenue Next 5Y5.29%
EBIT growth 1Y7%
EBIT growth 3Y5.08%
EBIT growth 5YN/A
EBIT Next Year10.63%
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 11.02% 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%.