Veralto Corporation (VLTO) AI Stock Analysis

• Market Cap: $26.43B
• Dividend Yield: 0.39%
• Average Volume (3M): 1.23M
• Price to Earnings (P/E): 30.1
• Beta (1Y): 0.70
• Revenue Growth: 5.61%
• EPS Growth: 12.26%
• Country: US
• Employees: 17,000
• Sector: Industrials
• Sector Strength: 79
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): 0.93
• Shares Outstanding: 248,160,840
• 10 Day Avg. Volume: 940,340
• 30 Day Avg. Volume: 1,229,206
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 5.04
• Enterprise Value/Gross Profit: 8.42
• Enterprise Value/Ebitda: 20.41
• 1Y Price Target: $114.14
• Price Target Upside: 7.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 80 Outperform
• Price Target: $122.00 ▲(14.55% Upside)

Veralto Corporation's strong financial performance and positive earnings call sentiment are the most significant factors driving the stock score. The technical analysis supports a stable outlook, while the valuation suggests potential overvaluation risks. The company's robust cash flow and raised EPS guidance further enhance its growth prospects.

Positive Factors

Earnings

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

Market Performance

VLTO is expected to outperform the market given multiple secular tailwinds in its Water Quality and Product Quality & Innovation segment.

Operational Success

Management's growing track record of solid execution, conservative outlook, and defensive portfolio should help this relative Safe Haven, secular growth company's stock push solidly higher in a challenging environment.

Negative Factors

Tariffs

Tariffs have had an impact particularly on products moving between China and the US, seen in higher costs.

Valuation

Spending backdrop in PQI combined with current valuation keep us neutral.

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 generates revenue through the sale of its specialized products and services across its diverse sectors. The company earns money by offering cutting-edge technologies and solutions that help other businesses optimize their operations, improve environmental performance, and meet regulatory standards. Key revenue streams include product sales, service contracts, and strategic partnerships that enhance their market reach and technological capabilities. Additionally, the company may engage in research and development initiatives that lead to the creation of proprietary technologies, further strengthening its competitive position and revenue potential.

Veralto Corporation Financial Statement Overview

Summary

Veralto Corporation demonstrates strong financial health with consistent revenue growth, high profitability margins, and efficient cash flow management. While the balance sheet shows a higher debt level, the company's ability to generate cash flow mitigates potential risks. Overall, Veralto is well-positioned for future growth within the industrial sector.

Income Statement

The company has shown consistent revenue growth over the years with a TTM (Trailing-Twelve-Months) revenue increase of 3.3% compared to the previous year. Gross Profit Margin stands at a healthy 59.9%, indicating effective cost management. The Net Profit Margin at 16.7% is robust, reflecting strong profitability. Both EBIT and EBITDA margins are strong at 23.3% and 24.4% respectively, highlighting operational efficiency.

Balance Sheet

The Debt-to-Equity ratio of 1.01 suggests a balanced approach to leveraging, while the Equity Ratio of 37.0% indicates a solid equity position. Return on Equity (ROE) is impressive at 33.7%, showcasing effective utilization of equity. However, the increase in total debt over the years warrants close monitoring.

Cash Flow

The Free Cash Flow growth of 15.0% in the TTM period signifies strong cash generation capabilities. The Operating Cash Flow to Net Income ratio of 1.13 indicates efficient cash conversion, and the Free Cash Flow to Net Income ratio of 1.06 further supports a solid cash position. Continued positive cash flow trends enhance financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.36B	5.19B	5.02B	4.87B	4.70B	4.35B
Gross Profit	3.21B	3.10B	2.90B	2.77B	2.71B	2.51B
EBITDA	1.32B	1.28B	1.21B	1.20B	1.15B	1.06B
Net Income	893.00M	833.00M	839.00M	845.00M	861.00M	724.00M
Balance Sheet
Total Assets	7.17B	6.41B	5.69B	4.83B	4.84B	0.00
Cash, Cash Equivalents and Short-Term Investments	1.56B	1.10B	762.00M	0.00	0.00	0.00
Total Debt	2.67B	2.77B	2.78B	123.00M	135.00M	0.00
Total Liabilities	4.51B	4.36B	4.30B	1.58B	1.64B	0.00
Stockholders Equity	2.65B	2.04B	1.38B	3.23B	3.20B	0.00
Cash Flow
Free Cash Flow	943.00M	820.00M	909.00M	836.00M	842.00M	965.00M
Operating Cash Flow	1.00B	875.00M	963.00M	870.00M	896.00M	1.00B
Investing Cash Flow	-451.00M	-434.00M	-55.00M	-89.00M	-97.00M	-157.00M
Financing Cash Flow	-73.00M	-65.00M	-135.00M	-781.00M	-799.00M	-844.00M

Veralto Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 106.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 106.5 is below the 20-day moving average (MA) of 107.55, above the 50-day MA of 104.19, and above the 200-day MA of 100.64, indicating a neutral trend. The MACD of 0.92 indicates Positive momentum. The RSI at 50.31 is Neutral, neither overbought nor oversold. The STOCH value of 15.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for VLTO.

Veralto Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VLTO	80 Outperform	$26.43B	30.07	41.35%	0.39%	5.61%	12.26%
ATMU	79 Outperform	$3.62B	19.46	76.25%	0.46%	1.53%	8.93%
FSS	78 Outperform	$7.75B	35.44	18.77%	0.42%	9.09%	9.64%
ERII	76 Outperform	$772.44M	35.25	11.95%	―	6.19%	15.04%
CECO	76 Outperform	$1.70B	32.69	19.67%	―	15.74%	294.80%
ZWS	70 Outperform	$7.72B	45.50	10.81%	0.78%	4.74%	30.64%
Sector *	64 Neutral	$10.96B	16.35	8.89%	1.96%	2.68%	-15.17%

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.