VONTIER CORP (VNT) Stock Fundamental Analysis
NYSE:VNT - New York Stock Exchange, Inc. - US9288811014 - Common Stock - Currency: USD
VNT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 124 industry peers in the Electronic Equipment, Instruments & Components industry. While VNT belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. VNT has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year VNT was profitable.
VNT had a positive operating cash flow in the past year.
In the past 5 years VNT has always been profitable.
In the past 5 years VNT always reported a positive cash flow from operatings.
1.2 Ratios
VNT has a Return On Assets of 9.79%. This is amongst the best in the industry. VNT outperforms 91.67% of its industry peers.
VNT has a better Return On Equity (40.17%) than 96.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.84%, VNT belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for VNT is above the industry average of 8.95%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.79% | ||
| ROE | 40.17% | ||
| ROIC | 12.84% |
ROA(3y)9.27%
ROA(5y)9.69%
ROE(3y)50.7%
ROE(5y)81.34%
ROIC(3y)13.6%
ROIC(5y)15.04%
1.3 Margins
VNT's Profit Margin of 14.17% is amongst the best of the industry. VNT outperforms 90.83% of its industry peers.
In the last couple of years the Profit Margin of VNT has declined.
VNT has a Operating Margin of 18.03%. This is amongst the best in the industry. VNT outperforms 94.17% of its industry peers.
VNT's Operating Margin has declined in the last couple of years.
VNT's Gross Margin of 47.80% is amongst the best of the industry. VNT outperforms 82.50% of its industry peers.
In the last couple of years the Gross Margin of VNT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.03% | ||
| PM (TTM) | 14.17% | ||
| GM | 47.8% |
OM growth 3Y-2.55%
OM growth 5Y-2.17%
PM growth 3Y0.87%
PM growth 5Y-2.11%
GM growth 3Y2.3%
GM growth 5Y2.13%
2. Health
2.1 Basic Checks
VNT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for VNT has been reduced compared to 1 year ago.
The number of shares outstanding for VNT has been reduced compared to 5 years ago.
Compared to 1 year ago, VNT has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.80 indicates that VNT is not a great score, but indicates only limited risk for bankruptcy at the moment.
VNT has a Altman-Z score of 2.80. This is comparable to the rest of the industry: VNT outperforms 46.67% of its industry peers.
The Debt to FCF ratio of VNT is 6.22, which is on the high side as it means it would take VNT, 6.22 years of fcf income to pay off all of its debts.
VNT has a Debt to FCF ratio (6.22) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.99 is on the high side and indicates that VNT has dependencies on debt financing.
VNT has a Debt to Equity ratio of 1.99. This is amonst the worse of the industry: VNT underperforms 94.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.99 | ||
| Debt/FCF | 6.22 | ||
| Altman-Z | 2.8 |
ROIC/WACC1.56
WACC8.24%
2.3 Liquidity
VNT has a Current Ratio of 1.51. This is a normal value and indicates that VNT is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.51, VNT is doing worse than 75.83% of the companies in the same industry.
A Quick Ratio of 1.14 indicates that VNT should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.14, VNT is not doing good in the industry: 73.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.51 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
VNT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.69%.
VNT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.09% yearly.
VNT shows a decrease in Revenue. In the last year, the revenue decreased by -3.75%.
Measured over the past years, VNT shows a small growth in Revenue. The Revenue has been growing by 1.45% on average per year.
EPS 1Y (TTM)0.69%
EPS 3Y0.35%
EPS 5Y1.09%
EPS Q2Q%0%
Revenue 1Y (TTM)-3.75%
Revenue growth 3Y-0.13%
Revenue growth 5Y1.45%
Sales Q2Q%-1.55%
3.2 Future
Based on estimates for the next years, VNT will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.01% on average per year.
The Revenue is expected to grow by 7.84% on average over the next years.
EPS Next Y8.9%
EPS Next 2Y9.73%
EPS Next 3Y9.95%
EPS Next 5Y11.01%
Revenue Next Year2.23%
Revenue Next 2Y3.52%
Revenue Next 3Y3.86%
Revenue Next 5Y7.84%
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
A Price/Earnings ratio of 13.00 indicates a correct valuation of VNT.
Based on the Price/Earnings ratio, VNT is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 29.63. VNT is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 11.94, which indicates a very decent valuation of VNT.
Based on the Price/Forward Earnings ratio, VNT is valued cheaper than 90.83% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of VNT to the average of the S&P500 Index (22.68), we can say VNT is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13 | ||
| Fwd PE | 11.94 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VNT indicates a somewhat cheap valuation: VNT is cheaper than 76.67% of the companies listed in the same industry.
VNT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. VNT is cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.43 | ||
| EV/EBITDA | 11.42 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of VNT may justify a higher PE ratio.
PEG (NY)1.46
PEG (5Y)11.91
EPS Next 2Y9.73%
EPS Next 3Y9.95%
5. Dividend
5.1 Amount
VNT has a yearly dividend return of 0.26%, which is pretty low.
VNT's Dividend Yield is a higher than the industry average which is at 1.92.
Compared to an average S&P500 Dividend Yield of 2.29, VNT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.26% |
5.2 History
VNT has been paying a dividend for less than 5 years, so it still needs to build a track record.
VNT has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
3.60% of the earnings are spent on dividend by VNT. This is a low number and sustainable payout ratio.
DP3.6%
EPS Next 2Y9.73%
EPS Next 3Y9.95%
37.71
-0.91 (-2.36%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners101.55%
Inst Owner Change-6.54%
Ins Owners0.41%
Ins Owner Change-1.28%
Market Cap5.66B
Analysts78.57
Price Target45.61 (20.95%)
Short Float %1.73%
Short Ratio3.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.26% |
Yearly Dividend0.1
Dividend Growth(5Y)N/A
DP3.6%
Div Incr Years0
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.02%
Min EPS beat(2)0.96%
Max EPS beat(2)5.07%
EPS beat(4)3
Avg EPS beat(4)-0.37%
Min EPS beat(4)-11.48%
Max EPS beat(4)5.07%
EPS beat(8)7
Avg EPS beat(8)2.21%
EPS beat(12)10
Avg EPS beat(12)2.33%
EPS beat(16)14
Avg EPS beat(16)3.94%
Revenue beat(2)2
Avg Revenue beat(2)1.11%
Min Revenue beat(2)0.26%
Max Revenue beat(2)1.95%
Revenue beat(4)2
Avg Revenue beat(4)-1.52%
Min Revenue beat(4)-7.57%
Max Revenue beat(4)1.95%
Revenue beat(8)6
Avg Revenue beat(8)0.22%
Revenue beat(12)9
Avg Revenue beat(12)0.8%
Revenue beat(16)12
Avg Revenue beat(16)1.12%
PT rev (1m)-1.68%
PT rev (3m)4.9%
EPS NQ rev (1m)-0.44%
EPS NQ rev (3m)-0.39%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)-0.16%
Revenue NQ rev (1m)-0.57%
Revenue NQ rev (3m)-0.57%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13 | ||
| Fwd PE | 11.94 | ||
| P/S | 1.9 | ||
| P/FCF | 16.43 | ||
| P/OCF | 13.25 | ||
| P/B | 5.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.42 |
EPS(TTM)2.9
EY7.69%
EPS(NY)3.16
Fwd EY8.37%
FCF(TTM)2.3
FCFY6.09%
OCF(TTM)2.85
OCFY7.55%
SpS19.83
BVpS7
TBVpS-7.73
PEG (NY)1.46
PEG (5Y)11.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.79% | ||
| ROE | 40.17% | ||
| ROCE | 15.79% | ||
| ROIC | 12.84% | ||
| ROICexc | 14.34% | ||
| ROICexgc | 52.37% | ||
| OM | 18.03% | ||
| PM (TTM) | 14.17% | ||
| GM | 47.8% | ||
| FCFM | 11.57% |
ROA(3y)9.27%
ROA(5y)9.69%
ROE(3y)50.7%
ROE(5y)81.34%
ROIC(3y)13.6%
ROIC(5y)15.04%
ROICexc(3y)14.96%
ROICexc(5y)17.25%
ROICexgc(3y)59.66%
ROICexgc(5y)70.36%
ROCE(3y)16.73%
ROCE(5y)18.52%
ROICexcg growth 3Y-14.58%
ROICexcg growth 5Y-2.96%
ROICexc growth 3Y-4.85%
ROICexc growth 5Y-7.2%
OM growth 3Y-2.55%
OM growth 5Y-2.17%
PM growth 3Y0.87%
PM growth 5Y-2.11%
GM growth 3Y2.3%
GM growth 5Y2.13%
F-Score8
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.99 | ||
| Debt/FCF | 6.22 | ||
| Debt/EBITDA | 3.15 | ||
| Cap/Depr | 65.07% | ||
| Cap/Sales | 2.78% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 64.37% | ||
| Profit Quality | 81.67% | ||
| Current Ratio | 1.51 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 2.8 |
F-Score8
WACC8.24%
ROIC/WACC1.56
Cap/Depr(3y)54.54%
Cap/Depr(5y)52.67%
Cap/Sales(3y)2.2%
Cap/Sales(5y)1.9%
Profit Quality(3y)83.84%
Profit Quality(5y)109.63%
High Growth Momentum
Growth
EPS 1Y (TTM)0.69%
EPS 3Y0.35%
EPS 5Y1.09%
EPS Q2Q%0%
EPS Next Y8.9%
EPS Next 2Y9.73%
EPS Next 3Y9.95%
EPS Next 5Y11.01%
Revenue 1Y (TTM)-3.75%
Revenue growth 3Y-0.13%
Revenue growth 5Y1.45%
Sales Q2Q%-1.55%
Revenue Next Year2.23%
Revenue Next 2Y3.52%
Revenue Next 3Y3.86%
Revenue Next 5Y7.84%
EBIT growth 1Y-1.18%
EBIT growth 3Y-2.68%
EBIT growth 5Y-0.76%
EBIT Next Year22.9%
EBIT Next 3Y16.16%
EBIT Next 5Y13.4%
FCF growth 1Y-12.69%
FCF growth 3Y-7.33%
FCF growth 5Y-7.43%
OCF growth 1Y-6.04%
OCF growth 3Y-3.86%
OCF growth 5Y-4.75%