VONTIER CORP (VNT) Stock Fundamental Analysis
NYSE:VNT - New York Stock Exchange, Inc. - US9288811014 - Common Stock - Currency: USD
Taking everything into account, VNT scores 6 out of 10 in our fundamental rating. VNT was compared to 125 industry peers in the Electronic Equipment, Instruments & Components industry. VNT has an excellent profitability rating, but there are some minor concerns on its financial health. VNT scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year VNT was profitable.
In the past year VNT had a positive cash flow from operations.
VNT had positive earnings in each of the past 5 years.
VNT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
VNT has a Return On Assets of 8.69%. This is amongst the best in the industry. VNT outperforms 91.20% of its industry peers.
Looking at the Return On Equity, with a value of 34.07%, VNT belongs to the top of the industry, outperforming 95.20% of the companies in the same industry.
With an excellent Return On Invested Capital value of 12.38%, VNT belongs to the best of the industry, outperforming 88.80% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for VNT is above the industry average of 9.30%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.69% | ||
| ROE | 34.07% | ||
| ROIC | 12.38% |
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
With an excellent Profit Margin value of 12.59%, VNT belongs to the best of the industry, outperforming 88.80% of the companies in the same industry.
In the last couple of years the Profit Margin of VNT has declined.
VNT has a Operating Margin of 17.71%. This is amongst the best in the industry. VNT outperforms 93.60% of its industry peers.
In the last couple of years the Operating Margin of VNT has declined.
With an excellent Gross Margin value of 47.31%, VNT belongs to the best of the industry, outperforming 81.60% of the companies in the same industry.
VNT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.71% | ||
| PM (TTM) | 12.59% | ||
| GM | 47.31% |
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.
VNT has a better debt/assets ratio than last year.
2.2 Solvency
VNT has an Altman-Z score of 2.84. This is not the best score and indicates that VNT is in the grey zone with still only limited risk for bankruptcy at the moment.
VNT has a Altman-Z score (2.84) which is in line with its industry peers.
VNT has a debt to FCF ratio of 5.72. This is a neutral value as VNT would need 5.72 years to pay back of all of its debts.
With a Debt to FCF ratio value of 5.72, VNT perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
VNT has a Debt/Equity ratio of 1.91. This is a high value indicating a heavy dependency on external financing.
VNT's Debt to Equity ratio of 1.91 is on the low side compared to the rest of the industry. VNT is outperformed by 96.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | 5.72 | ||
| Altman-Z | 2.84 |
ROIC/WACC1.39
WACC8.91%
2.3 Liquidity
A Current Ratio of 1.62 indicates that VNT should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.62, VNT is doing worse than 72.00% of the companies in the same industry.
A Quick Ratio of 1.20 indicates that VNT should not have too much problems paying its short term obligations.
VNT has a Quick ratio of 1.20. This is in the lower half of the industry: VNT underperforms 71.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
The earnings per share for VNT have decreased by -0.34% in the last year.
The Earnings Per Share has been growing slightly by 1.09% on average over the past years.
The Revenue has decreased by -3.59% in the past year.
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)-0.34%
EPS 3Y0.35%
EPS 5Y1.09%
EPS Q2Q%4.05%
Revenue 1Y (TTM)-3.59%
Revenue growth 3Y-0.13%
Revenue growth 5Y1.45%
Sales Q2Q%-1.94%
3.2 Future
VNT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.86% yearly.
Based on estimates for the next years, VNT will show a small growth in Revenue. The Revenue will grow by 4.00% on average per year.
EPS Next Y8.25%
EPS Next 2Y9.52%
EPS Next 3Y10.09%
EPS Next 5Y8.86%
Revenue Next Year1.63%
Revenue Next 2Y3.33%
Revenue Next 3Y3.78%
Revenue Next 5Y4%
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
VNT is valuated correctly with a Price/Earnings ratio of 13.12.
Based on the Price/Earnings ratio, VNT is valued cheaper than 92.80% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.45. VNT is valued rather cheaply when compared to this.
VNT is valuated reasonably with a Price/Forward Earnings ratio of 11.05.
94.40% of the companies in the same industry are more expensive than VNT, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of VNT to the average of the S&P500 Index (21.90), we can say VNT is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.12 | ||
| Fwd PE | 11.05 |
4.2 Price Multiples
82.40% of the companies in the same industry are more expensive than VNT, based on the Enterprise Value to EBITDA ratio.
VNT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. VNT is cheaper than 88.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.53 | ||
| EV/EBITDA | 11.4 |
4.3 Compensation for Growth
VNT's 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)1.59
PEG (5Y)12.01
EPS Next 2Y9.52%
EPS Next 3Y10.09%
5. Dividend
5.1 Amount
VNT has a yearly dividend return of 0.26%, which is pretty low.
Compared to an average industry Dividend Yield of 1.88, VNT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, 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 over 5 years, so it has already some 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
VNT pays out 4.02% of its income as dividend. This is a sustainable payout ratio.
DP4.02%
EPS Next 2Y9.52%
EPS Next 3Y10.09%
38.44
+0.38 (+1%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners101.87%
Inst Owner Change1.39%
Ins Owners0.49%
Ins Owner Change5.62%
Market Cap5.69B
Analysts77.14
Price Target42.75 (11.21%)
Short Float %1.87%
Short Ratio2.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.26% |
Yearly Dividend0.1
Dividend Growth(5Y)N/A
DP4.02%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.07%
Min EPS beat(2)0.96%
Max EPS beat(2)5.19%
EPS beat(4)3
Avg EPS beat(4)-0.06%
Min EPS beat(4)-11.48%
Max EPS beat(4)5.19%
EPS beat(8)7
Avg EPS beat(8)1.55%
EPS beat(12)10
Avg EPS beat(12)2.29%
EPS beat(16)14
Avg EPS beat(16)3.37%
Revenue beat(2)2
Avg Revenue beat(2)1.01%
Min Revenue beat(2)0.26%
Max Revenue beat(2)1.76%
Revenue beat(4)3
Avg Revenue beat(4)-0.9%
Min Revenue beat(4)-7.57%
Max Revenue beat(4)1.95%
Revenue beat(8)6
Avg Revenue beat(8)-0.29%
Revenue beat(12)9
Avg Revenue beat(12)0.8%
Revenue beat(16)12
Avg Revenue beat(16)0.96%
PT rev (1m)0%
PT rev (3m)-6.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.02%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)-0.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.72%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.12 | ||
| Fwd PE | 11.05 | ||
| P/S | 1.92 | ||
| P/FCF | 15.53 | ||
| P/OCF | 12.74 | ||
| P/B | 5.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.4 |
EPS(TTM)2.93
EY7.62%
EPS(NY)3.48
Fwd EY9.05%
FCF(TTM)2.48
FCFY6.44%
OCF(TTM)3.02
OCFY7.85%
SpS20.04
BVpS7.41
TBVpS-7.42
PEG (NY)1.59
PEG (5Y)12.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.69% | ||
| ROE | 34.07% | ||
| ROCE | 15.22% | ||
| ROIC | 12.38% | ||
| ROICexc | 13.7% | ||
| ROICexgc | 46.16% | ||
| OM | 17.71% | ||
| PM (TTM) | 12.59% | ||
| GM | 47.31% | ||
| FCFM | 12.35% |
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-Score7
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | 5.72 | ||
| Debt/EBITDA | 3.21 | ||
| Cap/Depr | 62.56% | ||
| Cap/Sales | 2.71% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 68.34% | ||
| Profit Quality | 98.1% | ||
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 2.84 |
F-Score7
WACC8.91%
ROIC/WACC1.39
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)-0.34%
EPS 3Y0.35%
EPS 5Y1.09%
EPS Q2Q%4.05%
EPS Next Y8.25%
EPS Next 2Y9.52%
EPS Next 3Y10.09%
EPS Next 5Y8.86%
Revenue 1Y (TTM)-3.59%
Revenue growth 3Y-0.13%
Revenue growth 5Y1.45%
Sales Q2Q%-1.94%
Revenue Next Year1.63%
Revenue Next 2Y3.33%
Revenue Next 3Y3.78%
Revenue Next 5Y4%
EBIT growth 1Y-4.84%
EBIT growth 3Y-2.68%
EBIT growth 5Y-0.76%
EBIT Next Year20.11%
EBIT Next 3Y11.55%
EBIT Next 5Y9.69%
FCF growth 1Y22.03%
FCF growth 3Y-7.33%
FCF growth 5Y-7.43%
OCF growth 1Y23.69%
OCF growth 3Y-3.86%
OCF growth 5Y-4.75%