Veralto Corporation
Veralto Corporation Fundamental Analysis
Veralto Corporation (VLTO) shows moderate financial fundamentals with a PE ratio of 24.59, profit margin of 17.08%, and ROE of 34.47%. The company generates $5.5B in annual revenue with moderate year-over-year growth of 3.43%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 62.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze VLTO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentVLTO demonstrates superior asset utilization.
Valuation Score
ModerateVLTO shows balanced valuation metrics.
Growth Score
WeakVLTO faces weak or negative growth trends.
Financial Health Score
ExcellentVLTO maintains a strong and stable balance sheet.
Profitability Score
ExcellentVLTO achieves industry-leading margins.
Key Financial Metrics
Is VLTO Expensive or Cheap?
P/E Ratio
VLTO trades at 24.59 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, VLTO's PEG of 9.05 indicates potential overvaluation.
Price to Book
The market values Veralto Corporation at 7.44 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 16.66 times EBITDA. This signals the market has high growth expectations.
How Well Does VLTO Make Money?
Net Profit Margin
For every $100 in sales, Veralto Corporation keeps $17.08 as profit after all expenses.
Operating Margin
Core operations generate 23.21 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $34.47 in profit for every $100 of shareholder equity.
ROA
Veralto Corporation generates $12.22 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Veralto Corporation produces operating cash flow of $1.08B, showing steady but balanced cash generation.
Free Cash Flow
Veralto Corporation generates strong free cash flow of $1.01B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.08 in free cash annually.
FCF Yield
VLTO converts 4.39% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
24.59
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
9.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
7.44
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.20
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.86
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.67
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.34
vs 25 benchmark
ROA
Return on assets percentage
0.12
vs 25 benchmark
ROCE
Return on capital employed
0.23
vs 25 benchmark
How VLTO Stacks Against Its Sector Peers
| Metric | VLTO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 24.59 | 26.76 | Neutral |
| ROE | 34.47% | 1300.00% | Weak |
| Net Margin | 17.08% | -29570.00% (disorted) | Strong |
| Debt/Equity | 0.86 | 0.79 | Neutral |
| Current Ratio | 1.67 | 10.68 | Neutral |
| ROA | 12.22% | -1545134.00% (disorted) | Strong |
VLTO outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Veralto Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
18.85%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
14.50%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
-13.01%
Industry Style: Cyclical, Value, Infrastructure
Declining