VERALTO CORP (VLTO)
US92338C1036 - Common Stock
We assign a fundamental rating of 5 out of 10 to VLTO. VLTO was compared to 85 industry peers in the Commercial Services & Supplies industry. While VLTO has a great profitability rating, there are some minor concerns on its financial health. 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.
VLTO had a positive operating cash flow in the past year.
1.2 Ratios
Looking at the Return On Assets, with a value of 13.98%, VLTO belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
VLTO's Return On Equity of 53.85% is amongst the best of the industry. VLTO outperforms 100.00% of its industry peers.
The Return On Invested Capital of VLTO (19.11%) is better than 94.05% of its industry peers.
VLTO had an Average Return On Invested Capital over the past 3 years of 21.29%. This is significantly above the industry average of 10.04%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.98% | ||
| ROE | 53.85% | ||
| ROIC | 19.11% |
ROA(3y)16.68%
ROA(5y)N/A
ROE(3y)37.91%
ROE(5y)N/A
ROIC(3y)21.29%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 15.83%, VLTO belongs to the top of the industry, outperforming 96.43% of the companies in the same industry.
VLTO's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 22.63%, VLTO belongs to the best of the industry, outperforming 97.62% of the companies in the same industry.
In the last couple of years the Operating Margin of VLTO has remained more or less at the same level.
Looking at the Gross Margin, with a value of 58.31%, VLTO belongs to the top of the industry, outperforming 96.43% of the companies in the same industry.
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 | 22.63% | ||
| PM (TTM) | 15.83% | ||
| GM | 58.31% |
OM growth 3Y1.25%
OM growth 5YN/A
PM growth 3Y0.12%
PM growth 5YN/A
GM growth 3Y0.03%
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.
The number of shares outstanding for VLTO remains at a similar level compared to 1 year ago.
Compared to 1 year ago, VLTO has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.28 indicates that VLTO is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.28, VLTO belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
VLTO has a debt to FCF ratio of 3.03. This is a good value and a sign of high solvency as VLTO would need 3.03 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.03, VLTO is doing good in the industry, outperforming 69.05% of the companies in the same industry.
A Debt/Equity ratio of 1.77 is on the high side and indicates that VLTO has dependencies on debt financing.
VLTO has a worse Debt to Equity ratio (1.77) than 79.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.77 | ||
| Debt/FCF | 3.03 | ||
| Altman-Z | 5.28 |
ROIC/WACC2.18
WACC8.75%
2.3 Liquidity
A Current Ratio of 1.83 indicates that VLTO should not have too much problems paying its short term obligations.
VLTO has a better Current ratio (1.83) than 66.67% of its industry peers.
VLTO has a Quick Ratio of 1.56. This is a normal value and indicates that VLTO is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of VLTO (1.56) is better than 67.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
The earnings per share for VLTO have decreased by -0.89% in the last year.
Measured over the past 5 years, VLTO shows a small growth in Earnings Per Share. The EPS has been growing by 4.96% on average per year.
The Revenue has been growing slightly by 3.10% in the past year.
VLTO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.91% yearly.
EPS 1Y (TTM)-0.89%
EPS 3Y4.96%
EPS 5YN/A
EPS growth Q2Q-18.73%
Revenue 1Y (TTM)3.1%
Revenue growth 3Y4.91%
Revenue growth 5YN/A
Revenue growth Q2Q1.71%
3.2 Future
The Earnings Per Share is expected to grow by 6.09% on average over the next years.
Based on estimates for the next years, VLTO will show a small growth in Revenue. The Revenue will grow by 4.03% on average per year.
EPS Next Y6.15%
EPS Next 2Y7.32%
EPS Next 3Y8.06%
EPS Next 5Y6.09%
Revenue Next Year3.07%
Revenue Next 2Y4.22%
Revenue Next 3Y4.72%
Revenue Next 5Y4.03%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 30.53, which means the current valuation is very expensive for VLTO.
VLTO's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of VLTO to the average of the S&P500 Index (28.15), we can say VLTO is valued inline with the index average.
With a Price/Forward Earnings ratio of 27.05, VLTO can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VLTO is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.20, VLTO is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.53 | ||
| Fwd PE | 27.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VLTO is valued a bit more expensive than the industry average as 60.71% of the companies are valued more cheaply.
VLTO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. VLTO is cheaper than 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.17 | ||
| EV/EBITDA | 21.27 |
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 a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.96
PEG (5Y)N/A
EPS Next 2Y7.32%
EPS Next 3Y8.06%
5. Dividend
5.1 Amount
With a yearly dividend of 0.37%, VLTO is not a good candidate for dividend investing.
VLTO's Dividend Yield is a higher than the industry average which is at 2.30.
With a Dividend Yield of 0.37, VLTO pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.37% |
5.2 History
VLTO does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y7.32%
EPS Next 3Y8.06%
VERALTO CORP
NYSE:VLTO (5/17/2024, 7:04:00 PM)
After market: 98.6 0 (0%)98.6
+0.15 (+0.15%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap24.34B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.37% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.53 | ||
| Fwd PE | 27.05 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)4.96
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.98% | ||
| ROE | 53.85% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 22.63% | ||
| PM (TTM) | 15.83% | ||
| GM | 58.31% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.77 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.56 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-0.89%
EPS 3Y4.96%
EPS 5Y
EPS growth Q2Q
EPS Next Y6.15%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.1%
Revenue growth 3Y4.91%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y