VERALTO CORP (VLTO) Stock Fundamental Analysis
USA - NYSE:VLTO - US92338C1036 - Common Stock
105.08 USD
+0.45 (+0.43%)
105.08 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to VLTO. VLTO was compared to 84 industry peers in the Commercial Services & Supplies industry. Both the health and profitability get an excellent rating, making VLTO a very profitable company, without any liquidiy or solvency issues. VLTO is quite expensive at the moment. It does show a decent growth rate.
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.
Each year in the past 5 years VLTO had a positive operating cash flow.
1.2 Ratios
The Return On Assets of VLTO (12.45%) is better than 91.67% of its industry peers.
The Return On Equity of VLTO (33.66%) is better than 92.86% of its industry peers.
The Return On Invested Capital of VLTO (16.26%) is better than 92.86% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VLTO is significantly above the industry average of 10.60%.
| 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
Looking at the Profit Margin, with a value of 16.65%, VLTO belongs to the top of the industry, outperforming 91.67% 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 23.33%, VLTO belongs to the top of the industry, outperforming 98.81% of the companies in the same industry.
In the last couple of years the Operating Margin of VLTO has grown nicely.
VLTO has a better Gross Margin (59.88%) than 96.43% of its industry peers.
In the last couple of years the Gross Margin of VLTO has remained more or less at the same level.
| 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
VLTO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, VLTO has more shares outstanding
VLTO has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.31 indicates that VLTO is not in any danger for bankruptcy at the moment.
VLTO's Altman-Z score of 5.31 is amongst the best of the industry. VLTO outperforms 82.14% of its industry peers.
The Debt to FCF ratio of VLTO is 2.83, which is a good value as it means it would take VLTO, 2.83 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.83, VLTO is in the better half of the industry, outperforming 72.62% of the companies in the same industry.
A Debt/Equity ratio of 1.01 is on the high side and indicates that VLTO has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.01, VLTO is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 2.83 | ||
| Altman-Z | 5.31 |
ROIC/WACC1.94
WACC8.4%
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.
Looking at the Current ratio, with a value of 2.32, VLTO is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
A Quick Ratio of 2.06 indicates that VLTO has no problem at all paying its short term obligations.
VLTO has a better Quick ratio (2.06) than 82.14% of its industry peers.
| 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.
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 5.61% in the last year.
The Revenue has been growing slightly by 3.38% on average over the past years.
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.
Based on estimates for the next years, VLTO will show a small growth in Revenue. The Revenue will grow by 5.30% on average per year.
EPS Next Y9.62%
EPS Next 2Y9.32%
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
With a Price/Earnings ratio of 28.25, VLTO can be considered very expensive at the moment.
VLTO's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.67. VLTO is around the same levels.
With a Price/Forward Earnings ratio of 24.91, VLTO is valued on the expensive side.
VLTO's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of VLTO to the average of the S&P500 Index (23.13), we can say VLTO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.25 | ||
| Fwd PE | 24.91 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as VLTO.
Based on the Price/Free Cash Flow ratio, VLTO is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.65 | ||
| 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.
The excellent profitability rating of VLTO may justify a higher PE ratio.
PEG (NY)2.94
PEG (5Y)N/A
EPS Next 2Y9.32%
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.
Compared to an average industry Dividend Yield of 2.34, VLTO pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.42, VLTO pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
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
11.09% of the earnings are spent on dividend by VLTO. This is a low number and sustainable payout ratio.
DP11.09%
EPS Next 2Y9.32%
EPS Next 3Y9.06%
105.08
+0.45 (+0.43%)
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-3.83%
Market Cap26.08B
Analysts77.6
Price Target117.82 (12.12%)
Short Float %1.44%
Short Ratio3.08
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%
PT rev (3m)7.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.01%
EPS NY rev (1m)0.26%
EPS NY rev (3m)3.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.96%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.25 | ||
| Fwd PE | 24.91 | ||
| P/S | 4.86 | ||
| P/FCF | 27.65 | ||
| P/OCF | 25.95 | ||
| P/B | 9.83 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.42 |
EPS(TTM)3.72
EY3.54%
EPS(NY)4.22
Fwd EY4.01%
FCF(TTM)3.8
FCFY3.62%
OCF(TTM)4.05
OCFY3.85%
SpS21.61
BVpS10.69
TBVpS-2.91
PEG (NY)2.94
PEG (5Y)N/A
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
ROICexcg growth 3Y-1.56%
ROICexcg 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
WACC8.4%
ROIC/WACC1.94
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 2Y9.32%
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