Veralto Corporation (VLTO) AI Stock Analysis

• Market Cap: $24.50B
• Dividend Yield: 0.45%
• Average Volume (3M): 1.44M
• Price to Earnings (P/E): 27.0
• Beta (1Y): 0.72
• Revenue Growth: 6.15%
• EPS Growth: 12.79%
• Country: US
• Employees: 17,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): 0.99
• Shares Outstanding: 248,297,350
• 10 Day Avg. Volume: 1,415,231
• 30 Day Avg. Volume: 1,435,569
• PEG Ratio: -25.78
• Price to Book (P/B): 12.36
• Price to Sales (P/S): 4.85
• P/FCF Ratio: 30.72
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 5.09
• Enterprise Value/Gross Profit: 8.48
• Enterprise Value/Ebitda: 21.00
• 1Y Price Target: $116.50
• Price Target Upside: 18.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 71 Outperform
• Price Target: $110.00 ▲(11.47% Upside)

Veralto Corporation's strong financial performance and positive earnings call are the most significant factors contributing to its score. However, bearish technical indicators and a high valuation relative to peers weigh down the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Cash Flow Generation

Robust cash flow generation enhances financial flexibility, allowing for strategic investments and debt reduction, bolstering long-term stability.

Product and Service Impact

The company's impactful products in essential services like water quality ensure sustained demand and reinforce its market leadership.

Negative Factors

Tariff-Related Challenges

Tariff challenges can pressure margins and necessitate strategic adjustments, potentially affecting profitability and competitive positioning.

China Market Performance

Slower growth in China suggests market saturation, limiting expansion potential in a key region, which could impact future revenue streams.

Balance Sheet Transparency

Lack of detailed equity analysis may obscure financial health insights, potentially affecting investor confidence and strategic decision-making.

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 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 significant income from software solutions that facilitate data management and analysis, enhancing operational efficiency for its clients. Additionally, recurring revenue streams emerge from maintenance contracts, service agreements, and the sale of consumables that accompany its instruments. Strategic partnerships with research institutions and other industry leaders further bolster Veralto's revenue, as collaborations often lead to the development of innovative products and solutions, driving additional sales.

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	5.45B	5.19B	5.02B	4.87B	4.70B	4.35B
Gross Profit	3.27B	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	913.00M	833.00M	839.00M	845.00M	861.00M	724.00M
Balance Sheet
Total Assets	7.43B	6.41B	5.69B	4.83B	4.84B	0.00
Cash, Cash Equivalents and Short-Term Investments	1.77B	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	4.58B	4.36B	4.30B	1.58B	1.64B	0.00
Stockholders Equity	2.85B	2.04B	1.38B	3.23B	3.20B	0.00
Cash Flow
Free Cash Flow	986.00M	820.00M	909.00M	836.00M	842.00M	965.00M
Operating Cash Flow	1.05B	875.00M	963.00M	870.00M	896.00M	1.00B
Investing Cash Flow	-457.00M	-434.00M	-55.00M	-89.00M	-97.00M	-157.00M
Financing Cash Flow	-93.00M	-65.00M	-135.00M	-781.00M	-799.00M	-844.00M

Veralto Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 98.68
• 50DMA: Negative
• 100DMA: Negative
• 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 98.68 is below the 20-day moving average (MA) of 102.80, below the 50-day MA of 104.95, and below the 200-day MA of 100.75, indicating a bearish trend. The MACD of -1.19 indicates Positive momentum. The RSI at 31.26 is Neutral, neither overbought nor oversold. The STOCH value of 37.13 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
ZWS	―	$7.88B	41.93	11.76%	0.78%	6.88%	42.07%
ATMU	―	$3.74B	20.10	76.25%	0.45%	1.53%	8.93%
ERII	―	$910.22M	41.40	11.95%	―	6.19%	15.04%
FSS	―	$7.04B	36.09	19.08%	0.43%	9.09%	9.64%
CECO	―	$1.71B	33.87	18.85%	―	29.86%	331.33%
VLTO	―	$24.50B	27.05	38.03%	0.45%	6.15%	12.79%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Veralto Corporation Corporate Events

Veralto Corporation Reports Strong Q3 2025 Results

Veralto Corporation is a global leader in providing essential water and product quality solutions, dedicated to safeguarding vital resources, with a strong presence in the technology sector. The company, headquartered in Waltham, Massachusetts, boasts a workforce of nearly 17,000 associates and generates annual sales exceeding $5 billion.

Veralto Corp Q3 2025 Earnings Call Highlights

Veralto Corporation’s recent earnings call highlighted a robust financial performance in the third quarter of 2025, marked by significant growth in core sales and earnings per share (EPS), alongside improved cash flow. Despite these positive results, the company acknowledged challenges related to tariffs and slower growth in the Chinese market.

Veralto Corporation Reports Strong Q2 2025 Performance

Veralto Corporation, headquartered in Waltham, Massachusetts, is a global leader in essential technology solutions, focusing on water and product quality solutions to safeguard vital resources. The company boasts a strong presence in the technology sector, with a commitment to providing clean water, safe food, and trusted essential goods worldwide.

Veralto Corporation’s Earnings Call Highlights Growth and Challenges

The recent earnings call of Veralto Corporation was marked by an overall positive sentiment, highlighting significant achievements in core sales growth and earnings per share (EPS) increases. The Water Quality segment stood out with strong performances, which helped to overshadow the challenges faced by the PQI segment and flat sales in China.