VONTIER CORP (VNT) Stock Fundamental Analysis
NYSE:VNT - New York Stock Exchange, Inc. - US9288811014 - Common Stock - Currency: USD
VNT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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
VNT had positive earnings in the past year.
VNT had a positive operating cash flow in the past year.
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 better Return On Assets (9.79%) than 91.20% of its industry peers.
Looking at the Return On Equity, with a value of 40.17%, VNT belongs to the top of the industry, outperforming 96.00% of the companies in the same industry.
VNT's Return On Invested Capital of 12.84% is amongst the best of the industry. VNT outperforms 88.80% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VNT is above the industry average of 9.30%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.79% | ||
| ROE | 40.17% | ||
| ROIC | 12.84% |
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
The Profit Margin of VNT (14.17%) is better than 89.60% of its industry peers.
VNT's Profit Margin has declined in the last couple of years.
The Operating Margin of VNT (18.03%) is better than 93.60% of its industry peers.
VNT's Operating Margin has declined in the last couple of years.
VNT's Gross Margin of 47.80% is amongst the best of the industry. VNT outperforms 82.40% of its industry peers.
In the last couple of years the Gross Margin of VNT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.03% | ||
| PM (TTM) | 14.17% | ||
| GM | 47.8% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), VNT is creating some value.
The number of shares outstanding for VNT has been reduced compared to 1 year ago.
VNT has less shares outstanding than it did 5 years ago.
VNT has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.61 indicates that VNT is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of VNT (2.61) is comparable to the rest of the industry.
VNT has a debt to FCF ratio of 6.22. This is a slightly negative value and a sign of low solvency as VNT would need 6.22 years to pay back of all of its debts.
VNT has a Debt to FCF ratio (6.22) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.99 is on the high side and indicates that VNT has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.99, VNT is doing worse than 92.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.99 | ||
| Debt/FCF | 6.22 | ||
| Altman-Z | 2.61 |
ROIC/WACC1.55
WACC8.31%
2.3 Liquidity
VNT has a Current Ratio of 1.51. This is a normal value and indicates that VNT is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of VNT (1.51) is worse than 72.80% of its industry peers.
VNT has a Quick Ratio of 1.14. This is a normal value and indicates that VNT is financially healthy and should not expect problems in meeting its short term obligations.
VNT has a Quick ratio of 1.14. This is in the lower half of the industry: VNT underperforms 72.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.51 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
The earnings per share for VNT have decreased by -0.34% in the last year.
VNT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.09% yearly.
Looking at the last year, VNT shows a decrease in Revenue. The Revenue has decreased by -3.75% in the last 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)-3.75%
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 8.61% yearly.
The Revenue is expected to grow by 5.12% on average over the next years.
EPS Next Y7.34%
EPS Next 2Y8.96%
EPS Next 3Y9.66%
EPS Next 5Y8.61%
Revenue Next Year1.8%
Revenue Next 2Y3.25%
Revenue Next 3Y4%
Revenue Next 5Y5.12%
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
A Price/Earnings ratio of 11.36 indicates a reasonable valuation of VNT.
Based on the Price/Earnings ratio, VNT is valued cheaply inside the industry as 92.80% of the companies are valued more expensively.
VNT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.22.
A Price/Forward Earnings ratio of 9.67 indicates a reasonable valuation of VNT.
Based on the Price/Forward Earnings ratio, VNT is valued cheaply inside the industry as 93.60% of the companies are valued more expensively.
VNT is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.36 | ||
| Fwd PE | 9.67 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VNT is valued a bit cheaper than the industry average as 79.20% of the companies are valued more expensively.
84.00% of the companies in the same industry are more expensive than VNT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.32 | ||
| EV/EBITDA | 9.89 |
4.3 Compensation for Growth
VNT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
VNT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.55
PEG (5Y)10.4
EPS Next 2Y8.96%
EPS Next 3Y9.66%
5. Dividend
5.1 Amount
VNT has a yearly dividend return of 0.31%, which is pretty low.
VNT's Dividend Yield is a higher than the industry average which is at 2.27.
With a Dividend Yield of 0.31, VNT pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.31% |
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 3.60% of its income as dividend. This is a sustainable payout ratio.
DP3.6%
EPS Next 2Y8.96%
EPS Next 3Y9.66%
33.29
+1.06 (+3.29%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners101.55%
Inst Owner Change0.1%
Ins Owners0.41%
Ins Owner Change1.98%
Market Cap4.94B
Analysts77.14
Price Target43.06 (29.35%)
Short Float %1.9%
Short Ratio2.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.31% |
Yearly Dividend0.1
Dividend Growth(5Y)N/A
DP3.6%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.02%
Min EPS beat(2)0.96%
Max EPS beat(2)5.07%
EPS beat(4)3
Avg EPS beat(4)-0.37%
Min EPS beat(4)-11.48%
Max EPS beat(4)5.07%
EPS beat(8)7
Avg EPS beat(8)2.21%
EPS beat(12)10
Avg EPS beat(12)2.33%
EPS beat(16)14
Avg EPS beat(16)3.94%
Revenue beat(2)2
Avg Revenue beat(2)1.11%
Min Revenue beat(2)0.26%
Max Revenue beat(2)1.95%
Revenue beat(4)2
Avg Revenue beat(4)-1.52%
Min Revenue beat(4)-7.57%
Max Revenue beat(4)1.95%
Revenue beat(8)6
Avg Revenue beat(8)0.22%
Revenue beat(12)9
Avg Revenue beat(12)0.8%
Revenue beat(16)12
Avg Revenue beat(16)1.12%
PT rev (1m)-5.59%
PT rev (3m)-5.7%
EPS NQ rev (1m)0.46%
EPS NQ rev (3m)-3.13%
EPS NY rev (1m)-0.88%
EPS NY rev (3m)-2.83%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-2.67%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-1.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.36 | ||
| Fwd PE | 9.67 | ||
| P/S | 1.66 | ||
| P/FCF | 14.32 | ||
| P/OCF | 11.55 | ||
| P/B | 4.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.89 |
EPS(TTM)2.93
EY8.8%
EPS(NY)3.44
Fwd EY10.34%
FCF(TTM)2.32
FCFY6.98%
OCF(TTM)2.88
OCFY8.66%
SpS20.08
BVpS7.09
TBVpS-7.83
PEG (NY)1.55
PEG (5Y)10.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.79% | ||
| ROE | 40.17% | ||
| ROCE | 15.79% | ||
| ROIC | 12.84% | ||
| ROICexc | 14.34% | ||
| ROICexgc | 52.37% | ||
| OM | 18.03% | ||
| PM (TTM) | 14.17% | ||
| GM | 47.8% | ||
| FCFM | 11.57% |
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-Score8
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.99 | ||
| Debt/FCF | 6.22 | ||
| Debt/EBITDA | 3.15 | ||
| Cap/Depr | 65.07% | ||
| Cap/Sales | 2.78% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 64.37% | ||
| Profit Quality | 81.67% | ||
| Current Ratio | 1.51 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 2.61 |
F-Score8
WACC8.31%
ROIC/WACC1.55
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 Y7.34%
EPS Next 2Y8.96%
EPS Next 3Y9.66%
EPS Next 5Y8.61%
Revenue 1Y (TTM)-3.75%
Revenue growth 3Y-0.13%
Revenue growth 5Y1.45%
Sales Q2Q%-1.94%
Revenue Next Year1.8%
Revenue Next 2Y3.25%
Revenue Next 3Y4%
Revenue Next 5Y5.12%
EBIT growth 1Y-1.18%
EBIT growth 3Y-2.68%
EBIT growth 5Y-0.76%
EBIT Next Year21.3%
EBIT Next 3Y12.7%
EBIT Next 5Y10.01%
FCF growth 1Y-12.69%
FCF growth 3Y-7.33%
FCF growth 5Y-7.43%
OCF growth 1Y-6.04%
OCF growth 3Y-3.86%
OCF growth 5Y-4.75%