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 scores excellent on profitability, 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

VLTO had positive earnings in the past year.
In the past year VLTO had a positive cash flow from operations.
VLTO had positive earnings in each of the past 5 years.
VLTO had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

VLTO has a better Return On Assets (12.29%) than 93.75% of its industry peers.
Looking at the Return On Equity, with a value of 32.07%, VLTO belongs to the top of the industry, outperforming 92.50% of the companies in the same industry.
The Return On Invested Capital of VLTO (18.03%) is better than 91.25% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VLTO is significantly above the industry average of 10.58%.

		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

Looking at the Profit Margin, with a value of 16.75%, VLTO belongs to the top of the industry, outperforming 96.25% of the companies in the same industry.
In the last couple of years the Profit Margin of VLTO has declined.
Looking at the Operating Margin, with a value of 23.28%, VLTO belongs to the top of the industry, outperforming 98.75% of the companies in the same industry.
VLTO's Operating Margin has improved in the last couple of years.
VLTO has a better Gross Margin (60.01%) than 97.50% 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

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
VLTO has a better debt/assets ratio than last year.

2.2 Solvency

VLTO has an Altman-Z score of 4.98. This indicates that VLTO is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.98, VLTO is doing good in the industry, outperforming 80.00% of the companies in the same industry.
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.
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	4.98

ROIC/WACC2.14

WACC8.43%

2.3 Liquidity

A Current Ratio of 1.57 indicates that VLTO should not have too much problems paying its short term obligations.
VLTO's Current ratio of 1.57 is in line compared 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's Quick ratio of 1.40 is in line compared to the rest of the industry. VLTO outperforms 53.75% of its industry peers.

		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

VLTO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.72%, which is quite good.
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.
Based on estimates for the next years, VLTO will show a small growth in Revenue. The Revenue will grow by 5.29% on average per year.

EPS Next Y11.04%

EPS Next 2Y9.91%

EPS Next 3Y9.53%

EPS Next 5Y7.53%

Revenue Next Year6.15%

Revenue Next 2Y6.01%

Revenue Next 3Y5.88%

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.
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 25.83.
Based on the Price/Earnings ratio, VLTO is valued a bit cheaper than the industry average as 61.25% of the companies are valued more expensively.
VLTO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.39.
Based on the Price/Forward Earnings ratio of 23.14, the valuation of VLTO can be described as rather expensive.
Based on the Price/Forward Earnings ratio, VLTO is valued a bit cheaper than the industry average as 66.25% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of VLTO to the average of the S&P500 Index (25.72), we can say VLTO is valued inline with the index average.

		Industry Rank	Sector Rank
PE	25.83
Fwd PE	23.14

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as VLTO.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VLTO indicates a somewhat cheap valuation: VLTO is cheaper than 67.50% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	24.85
EV/EBITDA	18.85

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)2.34

PEG (5Y)N/A

EPS Next 2Y9.91%

EPS Next 3Y9.53%

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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 0.82, 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 2Y9.91%

EPS Next 3Y9.53%

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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 25.83 and the Price/Book (PB) ratio is 8.61.

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

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