VERALTO CORP (VLTO) Stock Fundamental Analysis
USA - NYSE:VLTO - US92338C1036 - Common Stock
104.87 USD
+1.07 (+1.03%)
104.87 USD
0 (0%)
Overall VLTO gets a fundamental rating of 6 out of 10. We evaluated VLTO against 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. 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.
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
Looking at the Return On Assets, with a value of 12.45%, VLTO belongs to the top of the industry, outperforming 92.68% of the companies in the same industry.
VLTO's Return On Equity of 33.66% is amongst the best of the industry. VLTO outperforms 93.90% of its industry peers.
Looking at the Return On Invested Capital, with a value of 16.26%, VLTO belongs to the top of the industry, outperforming 92.68% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years 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.
In the last couple of years the Profit Margin of VLTO has declined.
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.
VLTO's Gross Margin of 59.88% is amongst the best of the industry. VLTO outperforms 96.34% 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.
The number of shares outstanding for VLTO has been increased compared to 1 year ago.
The debt/assets ratio for VLTO has been reduced compared to a year ago.
2.2 Solvency
VLTO has an Altman-Z score of 5.28. This indicates that VLTO is financially healthy and has little risk of bankruptcy at the moment.
VLTO's Altman-Z score of 5.28 is amongst the best of the industry. VLTO outperforms 81.71% 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.
VLTO's Debt to FCF ratio of 2.83 is fine compared to the rest of the industry. VLTO outperforms 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.
With a Debt to Equity ratio value of 1.01, VLTO is not doing good in the industry: 65.85% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 2.83 | ||
| Altman-Z | 5.28 |
ROIC/WACC1.99
WACC8.19%
2.3 Liquidity
A Current Ratio of 2.32 indicates that VLTO has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.32, VLTO is doing good in the industry, outperforming 76.83% of the companies in the same industry.
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.
The Quick ratio of VLTO (2.06) is better than 81.71% 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.
The Earnings Per Share has been decreasing by -1.57% on average over the past years.
VLTO shows a small growth in Revenue. In the last year, the Revenue has grown by 5.61%.
VLTO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.38% yearly.
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
Based on estimates for the next years, VLTO will show a small growth in Earnings Per Share. The EPS will grow by 7.42% on average per year.
VLTO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.30% yearly.
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
A Price/Earnings ratio of 28.19 indicates a quite expensive valuation of VLTO.
The rest of the industry has a similar Price/Earnings ratio as VLTO.
Compared to an average S&P500 Price/Earnings ratio of 27.57, VLTO is valued at the same level.
A Price/Forward Earnings ratio of 24.86 indicates a rather expensive valuation of VLTO.
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 23.09, VLTO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.19 | ||
| Fwd PE | 24.86 |
4.2 Price Multiples
VLTO's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VLTO indicates a somewhat cheap valuation: VLTO is cheaper than 64.63% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.6 | ||
| EV/EBITDA | 20.27 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates VLTO does not grow enough to justify the current Price/Earnings ratio.
VLTO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.93
PEG (5Y)N/A
EPS Next 2Y9.32%
EPS Next 3Y9.06%
5. Dividend
5.1 Amount
With a yearly dividend of 0.43%, VLTO is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.51, VLTO pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.43, VLTO pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
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
VLTO pays out 11.09% of its income as dividend. This is a sustainable payout ratio.
DP11.09%
EPS Next 2Y9.32%
EPS Next 3Y9.06%
104.87
+1.07 (+1.03%)
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 Cap26.02B
Revenue(TTM)5.36B
Net Income(TTM)893.00M
Analysts77.69
Price Target118.11 (12.63%)
Short Float %1.47%
Short Ratio2.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
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)2.6%
EPS NY rev (1m)0.26%
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 | 28.19 | ||
| Fwd PE | 24.86 | ||
| P/S | 4.85 | ||
| P/FCF | 27.6 | ||
| P/OCF | 25.9 | ||
| P/B | 9.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.27 |
EPS(TTM)3.72
EY3.55%
EPS(NY)4.22
Fwd EY4.02%
FCF(TTM)3.8
FCFY3.62%
OCF(TTM)4.05
OCFY3.86%
SpS21.61
BVpS10.69
TBVpS-2.91
PEG (NY)2.93
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 | 5.28 |
F-Score6
WACC8.19%
ROIC/WACC1.99
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