Vontier Corporation
Vontier Corporation Fundamental Analysis
Vontier Corporation (VNT) shows moderate financial fundamentals with a PE ratio of 14.53, profit margin of 13.20%, and ROE of 34.02%. The company generates $3.1B in annual revenue with weak year-over-year growth of -3.75%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 39.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze VNT's fundamental strength across five key dimensions:
Efficiency Score
WeakVNT struggles to generate sufficient returns from assets.
Valuation Score
ModerateVNT shows balanced valuation metrics.
Growth Score
ModerateVNT shows steady but slowing expansion.
Financial Health Score
ModerateVNT shows balanced financial health with some risks.
Profitability Score
ModerateVNT maintains healthy but balanced margins.
Key Financial Metrics
Is VNT Expensive or Cheap?
P/E Ratio
VNT trades at 14.53 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, VNT's PEG of 9.92 indicates potential overvaluation.
Price to Book
The market values Vontier Corporation at 4.74 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 6.22 times EBITDA. This is generally considered low.
How Well Does VNT Make Money?
Net Profit Margin
For every $100 in sales, Vontier Corporation keeps $13.20 as profit after all expenses.
Operating Margin
Core operations generate 18.26 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $34.02 in profit for every $100 of shareholder equity.
ROA
Vontier Corporation generates $9.30 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Vontier Corporation produces operating cash flow of $515.26M, showing steady but balanced cash generation.
Free Cash Flow
Vontier Corporation generates strong free cash flow of $444.78M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.07 in free cash annually.
FCF Yield
VNT converts 7.42% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.53
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
9.92
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.74
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.93
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.72
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.16
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.34
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How VNT Stacks Against Its Sector Peers
| Metric | VNT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.53 | 35.19 | Better (Cheaper) |
| ROE | 34.02% | 1155.00% | Weak |
| Net Margin | 13.20% | -127067.00% (disorted) | Strong |
| Debt/Equity | 1.72 | 0.41 | Weak (High Leverage) |
| Current Ratio | 1.16 | 4.71 | Neutral |
| ROA | 9.30% | -314918.00% (disorted) | Weak |
VNT 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 Vontier Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
18.44%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
6.60%
Industry Style: Growth, Innovation, High Beta
GrowingFCF CAGR
-13.58%
Industry Style: Growth, Innovation, High Beta
Declining