Veralto Corporation (VLTO) AI Stock Analysis

• Market Cap: $24.78B
• Dividend Yield: 0.4%
• Average Volume (3M): 1.22M
• Price to Earnings (P/E): 28.6
• Beta (1Y): 0.69
• Revenue Growth: 4.70%
• EPS Growth: 9.03%
• Country: US
• Employees: 17,000
• Sector: Industrials
• Sector Strength: 88
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): 0.95
• Shares Outstanding: 247,861,160
• 10 Day Avg. Volume: 1,129,034
• 30 Day Avg. Volume: 1,216,147
• PEG Ratio: -11.74
• Price to Book (P/B): 6.13
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 23.73
• Enterprise Value/Market Cap: 0.81
• Enterprise Value/Revenue: 0.97
• Enterprise Value/Gross Profit: 6.37
• Enterprise Value/Ebitda: 3.97
• 1Y Price Target: $106.29
• Price Target Upside: 6.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 75 Outperform
• Price Target: $110.00 ▲(10.04%Upside)

Veralto Corporation's strong financial performance and positive earnings call outlook are key strengths. However, technical indicators show mixed signals, and valuation metrics suggest potential overvaluation. Despite macroeconomic challenges, the company's strategic measures and growth prospects provide an optimistic outlook.

Positive Factors

Business Performance

The Water segment enjoyed significant volume growth with North America volumes up 8.3% on strength in water treatment from both industrials and municipal markets.

Earnings

VLTO posted a significant beat with EPS up 13% to $0.95, surpassing expectations from the Street, internal estimates, and management's guide.

Negative Factors

Valuation

Valuation is more reasonable today vs. late 2024 highs, but doesn't provide obvious upside until a more pronounced inflection in growth or deployment magnitude is seen.

Veralto Corporation Business Overview & Revenue Model

Company Description

Veralto Corporation provides water analytics, water treatment, marking and coding, and packaging and color solutions worldwide. It operates through two segments, Water Quality (WQ) and Product Quality & Innovation (PQI). The WQ segment offers precision instrumentation and water treatment technologies to measure, analyze, and treat water in residential, commercial, municipal, industrial, research, and natural resource applications under the Hach, Trojan Technologies, ChemTreat and other brands. This segment also provides water solutions, including chemical reagents, services, and digital solutions. The PQI segment offers marking and coding for packaged goods and related consumables; a software solution that provides digital asset management, marketing resource management, and product information management; inline printing solutions for products and packaging with marking and coding systems; design software and imaging systems for the creation of new packaging designs; color management solutions for printed packages and consumer and industrial products; and color standard services for the design industry. This segment sells its products and services through the Videojet, Linx, Esko, X-Rite, and Pantone brands. The company serves industries, such as municipal utilities, food and beverage, pharmaceutical, and industrials. The company was formerly known as DH EAS Holding Corp. and changed its name to Veralto Corporation in February 2023. Veralto Corporation was incorporated in 2022 and is headquartered in Waltham, Massachusetts.

How the Company Makes Money

Veralto Corporation makes money through its diverse portfolio of products and services, primarily in the industrial technology sector. The company generates revenue by selling advanced measurement and analysis equipment, water quality systems, and other related technologies to businesses across a wide range of industries. Key revenue streams include direct sales of products, long-term service contracts, and recurring revenues from software and maintenance services. Veralto's strategic partnerships with key players in various industries, along with its focus on innovation and quality, contribute significantly to its earnings and market presence.

Veralto Corporation Financial Statement Overview

Summary

Veralto Corporation demonstrates strong financial performance with consistent revenue growth, healthy profit margins, and robust cash flow management. The balance sheet is supported by reasonable leverage despite some reliance on debt. Overall, the company shows strong profitability and efficiency in its operations.

Income Statement

Veralto Corporation demonstrates strong financial performance with consistent revenue growth, as shown by a 5.6% increase in TTM revenue compared to the previous year. The company maintains healthy profit margins: a gross profit margin of 59.7% and a net profit margin of 16.6% for the TTM. The EBIT and EBITDA margins are also robust at 23.4% and 24.6%, respectively. Overall, Veralto shows strong profitability and efficiency in its operations.

Balance Sheet

The balance sheet reflects a stable financial position, with a debt-to-equity ratio of 1.14, indicating moderate leverage. The return on equity is strong at 38.0%, highlighting efficient use of shareholder funds. However, the equity ratio of 34.6% suggests a relatively high reliance on debt financing, posing potential risks if not managed carefully. Nonetheless, the company's equity has strengthened, which is a positive sign for long-term stability.

Cash Flow

Veralto has a solid cash flow profile, with operating cash flow covering net income comfortably, indicated by an operating cash flow to net income ratio of 1.05. The free cash flow to net income ratio is also healthy at 0.98. The free cash flow growth rate is 4.9%, demonstrating effective cash generation and capital expenditure management. Overall, the company's cash flow management supports its operational and strategic needs effectively.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
5.28B	5.19B	5.02B	4.88B	4.70B	4.35B
	Gross Profit
3.15B	3.10B	2.90B	2.77B	2.71B	2.51B
	EBIT
1.24B	1.21B	1.14B	1.08B	1.04B	951.00M
	EBITDA
1.31B	1.28B	1.21B	1.21B	1.15B	1.06B
	Net Income Common Stockholders
874.00M	833.00M	839.00M	845.00M	861.00M	724.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.24B	1.10B	762.00M	-123.00M	-135.00M	0.00
	Total Assets
6.64B	6.41B	5.69B	4.83B	4.84B	0.00
	Total Debt
2.63B	2.60B	2.78B	123.00M	135.00M	0.00
	Net Debt
1.39B	1.50B	2.02B	246.00M	270.00M	0.00
	Total Liabilities
4.34B	4.36B	4.30B	1.58B	1.64B	0.00
	Stockholders Equity
2.30B	2.04B	1.38B	3.23B	3.20B	0.00
Cash Flow		Free Cash Flow
860.00M	820.00M	909.00M	836.00M	842.00M	965.00M
	Operating Cash Flow
917.00M	875.00M	963.00M	870.00M	896.00M	1.00B
	Investing Cash Flow
-422.00M	-434.00M	-55.00M	-89.00M	-97.00M	-157.00M
	Financing Cash Flow
-71.00M	-65.00M	-135.00M	-781.00M	-799.00M	-844.00M

Veralto Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 99.96
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VLTO, the sentiment is Negative. The current price of 99.96 is below the 20-day moving average (MA) of 100.51, above the 50-day MA of 95.89, and below the 200-day MA of 102.21, indicating a neutral trend. The MACD of 0.69 indicates Positive momentum. The RSI at 46.38 is Neutral, neither overbought nor oversold. The STOCH value of 27.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VLTO.

Veralto Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FSS	78 Outperform	$6.14B	29.49	18.78%	0.56%	7.85%	15.78%
ZWS	78 Outperform	$6.18B	37.57	10.49%	0.96%	3.22%	38.39%
VLTO	75 Outperform	$24.78B	28.59	46.19%	0.40%	4.70%	9.03%
ATMU	74 Outperform	$3.02B	16.53	95.48%	0.55%	1.43%	12.88%
Sector *	66 Neutral	$4.51B	12.29	5.40%	3.67%	4.15%	-12.21%
ERII	64 Neutral	$698.68M	35.18	10.35%	―	10.93%	6.99%
PCT	38 Underperform	$1.98B	―	-67.71%	―	―	-180.10%

Veralto Corporation Corporate Events

Veralto Corporation Updates Governance Structure

Veralto Corporation‘s Board of Directors approved significant amendments to its corporate governance structure, including the transition to annual director elections and the removal of supermajority voting requirements, contingent on shareholder approval at the 2025 annual meeting. These changes, effective May 15, 2025, are designed to enhance shareholder influence and streamline decision-making processes, reflecting a strategic shift in the company’s governance model.

The most recent analyst rating on (VLTO) stock is a Buy with a $125.00 price target. To see the full list of analyst forecasts on Veralto Corporation stock, see the VLTO Stock Forecast page.