Veralto Corporation (VLTO)
NYSE:VLTO
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Veralto Corporation
(NYSE:VLTO)
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Rating:67Neutral
Price Target:
$106.00
▲(16.68% Upside)
Action:ReiteratedDate:02/04/26
The score is driven primarily by strong fundamentals—high margins and reliable free-cash-flow generation—supported by constructive (but moderate) 2026 guidance. These positives are offset by weak current technical momentum (price below key moving averages with negative MACD and low RSI) and a valuation profile that offers limited support (higher P/E and low dividend yield).
Positive Factors
High margins and profitability
Sustained high gross and operating margins indicate structural pricing power and efficient cost structure across segments. Durable margin levels support reinvestment in R&D, fund M&A integration, and provide a cushion versus cyclical demand shocks, underpinning long-term earnings quality.
Negative Factors
Volatile leverage history
Material swings in leverage suggest capital structure volatility and higher refinancing or covenant risk during stress periods. This inconsistency can constrain strategic flexibility, raise funding costs if markets tighten, and increases sensitivity of returns to earnings volatility over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
High margins and profitability
Sustained high gross and operating margins indicate structural pricing power and efficient cost structure across segments. Durable margin levels support reinvestment in R&D, fund M&A integration, and provide a cushion versus cyclical demand shocks, underpinning long-term earnings quality.
Read all positive factors
Veralto Corporation (VLTO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$22.52B
Dividend Yield0.44%
Average Volume (3M)1.84M
Price to Earnings (P/E)26.4
Beta (1Y)0.71
Revenue Growth6.15%
EPS Growth12.79%
CountryUS
Employees17,000
SectorIndustrials
Sector Strength72
IndustryIndustrial - Pollution & Treatment Controls
Share Statistics
EPS (TTM)1.04
Shares Outstanding247,843,350
10 Day Avg. Volume1,661,295
30 Day Avg. Volume1,842,784
Financial Highlights & Ratios
PEG Ratio2.11
Price to Book (P/B)7.98
Price to Sales (P/S)4.50
P/FCF Ratio24.43
Enterprise Value/Market Cap1.05
Enterprise Value/Revenue4.28
Enterprise Value/Gross Profit7.14
Enterprise Value/Ebitda17.48
Forecast
1Y Price Target
$106.00Price Target Upside16.68% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)4.2
Revenue Forecast (FY)$5.85B
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 prec...
How the Company Makes Money
Veralto Corporation generates revenue through multiple channels, primarily from the sale of its analytical instruments and laboratory equipment, which are utilized in research and quality control across various industries. The company also earns s...
Veralto Corporation Earnings Call Summary
Earnings Call Date:Feb 03, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 28, 2026
Earnings Call Sentiment Positive
The call presented a majority of positive operating and financial outcomes — record annual revenue, double-digit adjusted EPS growth, strong free cash flow, margin expansion, strategic M&A and new product traction — while acknowledging near-term volume timing issues (three fewer shipping days), tariff-related headwinds, modest China performance, and integration/margin dilution from the In-Situ deal. Management guided to continued, but moderate, core sales growth and modest margin improvement in 2026, reflecting prudent expectations amid remaining external headwinds.Positive Updates
All-time High Annual Revenue
Total sales for FY2025 grew 6% year-over-year to $5.5 billion, an all-time high for the company.
Negative Updates
Volume Headwinds Driven by Shipping-Day Timing
Volumes were down modestly in Q4, with three fewer shipping days versus prior year creating an approximately 260 basis point negative impact to volumes and depressing core growth (Q4 core sales only 1.6%).
Read all updates
Q4-2025 Updates
Positive
Negative
All-time High Annual Revenue
Total sales for FY2025 grew 6% year-over-year to $5.5 billion, an all-time high for the company.
Read all positive updates
Company Guidance
Veralto guided 2026 to core sales growth of low- to mid-single digits and total sales growth of mid- to high-single digits (full-year FX tailwind of ~100–150 bps; acquisitions net of divestitures contributing ~150 bps, primarily In‑Situ), with adjusted operating profit margin improving roughly 25 bps year‑over‑year (modeled as ~50 bps core expansion offset by ~25 bps dilution from In‑Situ) and adjusted EPS of $4.10–$4.20 (mid‑ to high‑single‑digit EPS growth vs. $3.90 in 2025); they expect free cash flow conversion of ~100% of GAAP net income, CapEx of ~1.0–1.5% of sales and a modest working capital investment, and noted model assumptions use FX rates as of Dec. 31. For Q1 2026 they guided core sales flat to up low single digits, total sales mid‑ to high‑single digits (Q1 FX tailwind ~3.5%, acquisitions ~+50 bps), adjusted operating profit margin of ~24.5% and adjusted EPS of $0.97–$1.01 (against a tough Q1‑2025 core comp of 7.8%, implying a 2‑year stack of ~4–5% core growth).Veralto Corporation Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
63
Positive
Cash Flow
76
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.50B | 5.19B | 5.02B | 4.87B | 4.70B |
| Gross Profit | 3.30B | 3.10B | 2.90B | 2.77B | 2.71B |
| EBITDA | 1.35B | 1.28B | 1.21B | 1.20B | 1.15B |
| Net Income | 940.00M | 833.00M | 839.00M | 845.00M | 861.00M |
Balance Sheet | |||||
| Total Assets | 7.69B | 6.41B | 5.69B | 4.83B | 4.84B |
| Cash, Cash Equivalents and Short-Term Investments | 2.03B | 1.10B | 762.00M | 0.00 | 0.00 |
| Total Debt | 2.67B | 2.77B | 2.78B | 123.00M | 135.00M |
| Total Liabilities | 4.59B | 4.36B | 4.30B | 1.58B | 1.64B |
| Stockholders Equity | 3.11B | 2.04B | 1.38B | 3.23B | 3.20B |
Cash Flow | |||||
| Free Cash Flow | 1.01B | 820.00M | 909.00M | 836.00M | 842.00M |
| Operating Cash Flow | 1.08B | 875.00M | 963.00M | 870.00M | 896.00M |
| Investing Cash Flow | -98.00M | -434.00M | -55.00M | -89.00M | -97.00M |
| Financing Cash Flow | -102.00M | -65.00M | -135.00M | -781.00M | -799.00M |
Veralto Corporation Technical Analysis
Neutral
90.85
Price Trends
91.73
Negative
96.06
Negative
99.93
Negative
Market Momentum
-0.68
Negative
53.92
Neutral
85.08
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VLTO, the sentiment is Neutral. The current price of 90.85 is above the 20-day moving average (MA) of 88.57, below the 50-day MA of 91.73, and below the 200-day MA of 99.93, indicating a neutral trend. The MACD of -0.68 indicates Negative momentum. The RSI at 53.92 is Neutral, neither overbought nor oversold. The STOCH value of 85.08 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for VLTO.
Veralto Corporation Risk Analysis
Veralto Corporation disclosed 28 risk factors in its most recent earnings report. Veralto Corporation reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Veralto Corporation Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $8.31B | 39.60 | 12.56% | 0.80% | 6.88% | 42.07% | |
74 Outperform | $7.18B | 27.15 | 19.09% | 0.49% | 11.83% | 11.08% | |
67 Neutral | $22.52B | 26.36 | 34.47% | 0.44% | 6.15% | 12.79% | |
67 Neutral | $2.20B | 42.25 | 16.53% | ― | 29.86% | 331.33% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $5.17B | 20.57 | 63.97% | 0.39% | 3.72% | 11.71% | |
61 Neutral | $602.78M | 31.61 | 11.92% | ― | 0.10% | 1.50% |
* Industrials Sector Average
VLTO
Veralto Corporation
92.39
2.77
3.10%
CECO
Ceco Environmental
66.07
45.60
222.77%
ERII
Energy Recovery
11.29
-3.79
-25.13%
FSS
Federal Signal
117.22
42.08
56.00%
ZWS
Zurn Water Solutions
49.35
20.16
69.09%
ATMU
Atmus Filtration Technologies, Inc.
63.98
30.49
91.01%
Veralto Corporation Corporate Events
Stock Buyback
Veralto Corporation Announces $750M Share Buyback Program
Positive
Nov 25, 2025
On November 25, 2025, Veralto Corporation announced a share repurchase program, authorizing the buyback of up to $750 million of its common stock. This initiative, which has no expiration date, allows the company to repurchase shares at its discre...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.