VONTIER CORP (VNT) Stock Fundamental Analysis
NYSE:VNT - New York Stock Exchange, Inc. - US9288811014 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to VNT. VNT was compared to 125 industry peers in the Electronic Equipment, Instruments & Components industry. VNT scores excellent on profitability, but there are some minor concerns on its financial health. VNT is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
VNT had positive earnings in the past year.
In the past year VNT had a positive cash flow from operations.
In the past 5 years VNT has always been profitable.
In the past 5 years VNT always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of VNT (8.69%) is better than 91.20% of its industry peers.
The Return On Equity of VNT (34.07%) is better than 95.20% of its industry peers.
VNT has a Return On Invested Capital of 12.38%. This is amongst the best in the industry. VNT outperforms 88.80% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VNT is above the industry average of 9.35%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.69% | ||
| ROE | 34.07% | ||
| ROIC | 12.38% |
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
VNT's Profit Margin of 12.59% is amongst the best of the industry. VNT outperforms 88.80% of its industry peers.
In the last couple of years the Profit Margin of VNT has declined.
VNT's Operating Margin of 17.71% is amongst the best of the industry. VNT outperforms 93.60% of its industry peers.
In the last couple of years the Operating Margin of VNT has declined.
With an excellent Gross Margin value of 47.31%, VNT belongs to the best of the industry, outperforming 81.60% of the companies in the same industry.
VNT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.71% | ||
| PM (TTM) | 12.59% | ||
| GM | 47.31% |
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
VNT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, VNT has less shares outstanding
VNT has less shares outstanding than it did 5 years ago.
The debt/assets ratio for VNT has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.76 indicates that VNT is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.76, VNT is doing worse than 60.80% of the companies in the same industry.
VNT has a debt to FCF ratio of 5.72. This is a neutral value as VNT would need 5.72 years to pay back of all of its debts.
VNT has a Debt to FCF ratio (5.72) which is in line with its industry peers.
A Debt/Equity ratio of 1.91 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 1.91, VNT is doing worse than 95.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | 5.72 | ||
| Altman-Z | 2.76 |
ROIC/WACC1.5
WACC8.26%
2.3 Liquidity
VNT has a Current Ratio of 1.62. 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 (1.62) is worse than 72.00% of its industry peers.
VNT has a Quick Ratio of 1.20. This is a normal value and indicates that VNT is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of VNT (1.20) is worse than 71.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
VNT shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.34%.
Measured over the past 5 years, VNT shows a small growth in Earnings Per Share. The EPS has been growing by 1.09% on average per year.
VNT shows a decrease in Revenue. In the last year, the revenue decreased by -3.59%.
VNT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.45% yearly.
EPS 1Y (TTM)-0.34%
EPS 3Y0.35%
EPS 5Y1.09%
EPS Q2Q%4.05%
Revenue 1Y (TTM)-3.59%
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 8.86% yearly.
The Revenue is expected to grow by 4.00% on average over the next years.
EPS Next Y8.29%
EPS Next 2Y9.6%
EPS Next 3Y10.09%
EPS Next 5Y8.86%
Revenue Next Year1.63%
Revenue Next 2Y3.33%
Revenue Next 3Y3.78%
Revenue Next 5Y4%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
The Price/Earnings ratio is 12.19, which indicates a correct 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 is valuated cheaply when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 10.25, the valuation of VNT can be described as reasonable.
VNT's Price/Forward Earnings ratio is rather cheap when compared to the industry. VNT is cheaper than 94.40% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of VNT to the average of the S&P500 Index (22.19), we can say VNT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.19 | ||
| Fwd PE | 10.25 |
4.2 Price Multiples
VNT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VNT is cheaper than 81.60% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VNT is valued cheaper than 89.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.43 | ||
| EV/EBITDA | 10.78 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of VNT may justify a higher PE ratio.
PEG (NY)1.47
PEG (5Y)11.16
EPS Next 2Y9.6%
EPS Next 3Y10.09%
5. Dividend
5.1 Amount
With a yearly dividend of 0.27%, VNT is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.04, VNT pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.27, VNT pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.27% |
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 4.02% of its income as dividend. This is a sustainable payout ratio.
DP4.02%
EPS Next 2Y9.6%
EPS Next 3Y10.09%
35.72
+0.16 (+0.45%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners101.87%
Inst Owner Change1.39%
Ins Owners0.49%
Ins Owner Change5.81%
Market Cap5.28B
Analysts77.14
Price Target42.75 (19.68%)
Short Float %1.78%
Short Ratio2.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.27% |
Yearly Dividend0.1
Dividend Growth(5Y)N/A
DP4.02%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.07%
Min EPS beat(2)0.96%
Max EPS beat(2)5.19%
EPS beat(4)3
Avg EPS beat(4)-0.06%
Min EPS beat(4)-11.48%
Max EPS beat(4)5.19%
EPS beat(8)7
Avg EPS beat(8)1.55%
EPS beat(12)10
Avg EPS beat(12)2.29%
EPS beat(16)14
Avg EPS beat(16)3.37%
Revenue beat(2)2
Avg Revenue beat(2)1.01%
Min Revenue beat(2)0.26%
Max Revenue beat(2)1.76%
Revenue beat(4)3
Avg Revenue beat(4)-0.9%
Min Revenue beat(4)-7.57%
Max Revenue beat(4)1.95%
Revenue beat(8)6
Avg Revenue beat(8)-0.29%
Revenue beat(12)9
Avg Revenue beat(12)0.8%
Revenue beat(16)12
Avg Revenue beat(16)0.96%
PT rev (1m)0%
PT rev (3m)-6.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.43%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.72%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.19 | ||
| Fwd PE | 10.25 | ||
| P/S | 1.78 | ||
| P/FCF | 14.43 | ||
| P/OCF | 11.83 | ||
| P/B | 4.82 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.78 |
EPS(TTM)2.93
EY8.2%
EPS(NY)3.48
Fwd EY9.75%
FCF(TTM)2.48
FCFY6.93%
OCF(TTM)3.02
OCFY8.45%
SpS20.04
BVpS7.41
TBVpS-7.42
PEG (NY)1.47
PEG (5Y)11.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.69% | ||
| ROE | 34.07% | ||
| ROCE | 15.22% | ||
| ROIC | 12.38% | ||
| ROICexc | 13.7% | ||
| ROICexgc | 46.16% | ||
| OM | 17.71% | ||
| PM (TTM) | 12.59% | ||
| GM | 47.31% | ||
| FCFM | 12.35% |
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-Score7
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | 5.72 | ||
| Debt/EBITDA | 3.21 | ||
| Cap/Depr | 62.56% | ||
| Cap/Sales | 2.71% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 68.34% | ||
| Profit Quality | 98.1% | ||
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 2.76 |
F-Score7
WACC8.26%
ROIC/WACC1.5
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 Y8.29%
EPS Next 2Y9.6%
EPS Next 3Y10.09%
EPS Next 5Y8.86%
Revenue 1Y (TTM)-3.59%
Revenue growth 3Y-0.13%
Revenue growth 5Y1.45%
Sales Q2Q%-1.94%
Revenue Next Year1.63%
Revenue Next 2Y3.33%
Revenue Next 3Y3.78%
Revenue Next 5Y4%
EBIT growth 1Y-4.84%
EBIT growth 3Y-2.68%
EBIT growth 5Y-0.76%
EBIT Next Year20.11%
EBIT Next 3Y11.55%
EBIT Next 5Y9.69%
FCF growth 1Y22.03%
FCF growth 3Y-7.33%
FCF growth 5Y-7.43%
OCF growth 1Y23.69%
OCF growth 3Y-3.86%
OCF growth 5Y-4.75%