VERALTO CORP (VLTO) Stock Fundamental Analysis
USA - NYSE:VLTO - US92338C1036 - Common Stock
104.12 USD
-0.53 (-0.51%)
104.12 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to VLTO. VLTO was compared to 82 industry peers in the Commercial Services & Supplies industry. VLTO gets an excellent profitability rating and is at the same time showing great financial health properties. While showing a medium growth rate, VLTO is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year VLTO was profitable.
VLTO had a positive operating cash flow in the past year.
VLTO had positive earnings in each of the past 5 years.
In the past 5 years VLTO always reported a positive cash flow from operatings.
1.2 Ratios
VLTO's Return On Assets of 12.45% is amongst the best of the industry. VLTO outperforms 92.68% of its industry peers.
VLTO has a Return On Equity of 33.66%. This is amongst the best in the industry. VLTO outperforms 93.90% of its industry peers.
VLTO has a better Return On Invested Capital (16.26%) than 92.68% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VLTO is significantly above the industry average of 10.38%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.45% | ||
| ROE | 33.66% | ||
| ROIC | 16.26% |
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
The Profit Margin of VLTO (16.65%) is better than 93.90% of its industry peers.
VLTO's Profit Margin has declined in the last couple of years.
VLTO's Operating Margin of 23.33% is amongst the best of the industry. VLTO outperforms 98.78% of its industry peers.
In the last couple of years the Operating Margin of VLTO has grown nicely.
With an excellent Gross Margin value of 59.88%, VLTO belongs to the best of the industry, outperforming 96.34% 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 | 23.33% | ||
| PM (TTM) | 16.65% | ||
| GM | 59.88% |
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.
Compared to 1 year ago, VLTO has more shares outstanding
Compared to 1 year ago, VLTO has an improved debt to assets ratio.
2.2 Solvency
VLTO has an Altman-Z score of 5.31. This indicates that VLTO is financially healthy and has little risk of bankruptcy at the moment.
VLTO has a Altman-Z score of 5.31. This is amongst the best in the industry. VLTO outperforms 81.71% of its industry peers.
VLTO has a debt to FCF ratio of 2.83. This is a good value and a sign of high solvency as VLTO would need 2.83 years to pay back of all of its debts.
The Debt to FCF ratio of VLTO (2.83) is better than 73.17% of its industry peers.
A Debt/Equity ratio of 1.01 is on the high side and indicates that VLTO has dependencies on debt financing.
VLTO's Debt to Equity ratio of 1.01 is on the low side compared to the rest of the industry. VLTO is outperformed by 64.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 2.83 | ||
| Altman-Z | 5.31 |
ROIC/WACC1.98
WACC8.23%
2.3 Liquidity
VLTO has a Current Ratio of 2.32. This indicates that VLTO is financially healthy and has no problem in meeting its short term obligations.
VLTO has a better Current ratio (2.32) than 76.83% of its industry peers.
VLTO has a Quick Ratio of 2.06. This indicates that VLTO is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.06, VLTO belongs to the top of the industry, outperforming 81.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.32 | ||
| Quick Ratio | 2.06 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.39% over the past year.
The Earnings Per Share has been decreasing by -1.57% on average over the past years.
The Revenue has been growing slightly by 5.61% in the past year.
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)12.39%
EPS 3Y-1.57%
EPS 5YN/A
EPS Q2Q%9.41%
Revenue 1Y (TTM)5.61%
Revenue growth 3Y3.38%
Revenue growth 5YN/A
Sales Q2Q%6.44%
3.2 Future
VLTO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.42% yearly.
The Revenue is expected to grow by 5.30% on average over the next years.
EPS Next Y9.62%
EPS Next 2Y9.39%
EPS Next 3Y9.06%
EPS Next 5Y7.42%
Revenue Next Year5.89%
Revenue Next 2Y5.69%
Revenue Next 3Y5.53%
Revenue Next 5Y5.3%
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 27.99.
Compared to the rest of the industry, the Price/Earnings ratio of VLTO is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.89, VLTO is valued at the same level.
Based on the Price/Forward Earnings ratio of 24.65, the valuation of VLTO can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as VLTO.
VLTO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.99 | ||
| Fwd PE | 24.65 |
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.
Based on the Price/Free Cash Flow ratio, VLTO is valued a bit cheaper than the industry average as 64.63% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.4 | ||
| EV/EBITDA | 20.42 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
VLTO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.91
PEG (5Y)N/A
EPS Next 2Y9.39%
EPS Next 3Y9.06%
5. Dividend
5.1 Amount
With a yearly dividend of 0.42%, VLTO is not a good candidate for dividend investing.
VLTO's Dividend Yield is a higher than the industry average which is at 2.44.
Compared to an average S&P500 Dividend Yield of 2.31, VLTO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
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
11.09% of the earnings are spent on dividend by VLTO. This is a low number and sustainable payout ratio.
DP11.09%
EPS Next 2Y9.39%
EPS Next 3Y9.06%
104.12
-0.53 (-0.51%)
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-3.8%
Market Cap25.84B
Revenue(TTM)5.36B
Net Income(TTM)893.00M
Analysts77.69
Price Target118.11 (13.44%)
Short Float %1.45%
Short Ratio2.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
Yearly Dividend0.36
Dividend Growth(5Y)N/A
DP11.09%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.15%
Min EPS beat(2)3.08%
Max EPS beat(2)7.23%
EPS beat(4)4
Avg EPS beat(4)4.25%
Min EPS beat(4)2.48%
Max EPS beat(4)7.23%
EPS beat(8)8
Avg EPS beat(8)4.91%
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)2
Avg Revenue beat(2)1.07%
Min Revenue beat(2)0.07%
Max Revenue beat(2)2.07%
Revenue beat(4)2
Avg Revenue beat(4)-0.28%
Min Revenue beat(4)-2.04%
Max Revenue beat(4)2.07%
Revenue beat(8)4
Avg Revenue beat(8)0.05%
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)0.24%
PT rev (3m)6.46%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.66%
EPS NY rev (1m)0%
EPS NY rev (3m)2.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.52%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.99 | ||
| Fwd PE | 24.65 | ||
| P/S | 4.82 | ||
| P/FCF | 27.4 | ||
| P/OCF | 25.71 | ||
| P/B | 9.74 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.42 |
EPS(TTM)3.72
EY3.57%
EPS(NY)4.22
Fwd EY4.06%
FCF(TTM)3.8
FCFY3.65%
OCF(TTM)4.05
OCFY3.89%
SpS21.61
BVpS10.69
TBVpS-2.91
PEG (NY)2.91
PEG (5Y)N/A
Graham Number29.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.45% | ||
| ROE | 33.66% | ||
| ROCE | 21.22% | ||
| ROIC | 16.26% | ||
| ROICexc | 22.1% | ||
| ROICexgc | 99.54% | ||
| OM | 23.33% | ||
| PM (TTM) | 16.65% | ||
| GM | 59.88% | ||
| FCFM | 17.59% |
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-Score6
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 2.83 | ||
| Debt/EBITDA | 2.02 | ||
| Cap/Depr | 82.67% | ||
| Cap/Sales | 1.16% | ||
| Interest Coverage | 9.13 | ||
| Cash Conversion | 75.79% | ||
| Profit Quality | 105.6% | ||
| Current Ratio | 2.32 | ||
| Quick Ratio | 2.06 | ||
| Altman-Z | 5.31 |
F-Score6
WACC8.23%
ROIC/WACC1.98
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)12.39%
EPS 3Y-1.57%
EPS 5YN/A
EPS Q2Q%9.41%
EPS Next Y9.62%
EPS Next 2Y9.39%
EPS Next 3Y9.06%
EPS Next 5Y7.42%
Revenue 1Y (TTM)5.61%
Revenue growth 3Y3.38%
Revenue growth 5YN/A
Sales Q2Q%6.44%
Revenue Next Year5.89%
Revenue Next 2Y5.69%
Revenue Next 3Y5.53%
Revenue Next 5Y5.3%
EBIT growth 1Y8.69%
EBIT growth 3Y5.08%
EBIT growth 5YN/A
EBIT Next Year10.32%
EBIT Next 3Y8.65%
EBIT Next 5Y7.46%
FCF growth 1Y-7.19%
FCF growth 3Y-0.88%
FCF growth 5YN/A
OCF growth 1Y-4.38%
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 3 / 10 to VERALTO CORP (VLTO). This can be considered as Overvalued.
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 9.62% 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 11.09%.