Veralto Corporation (VLTO) AI Stock Analysis

• Market Cap: $23.70B
• Dividend Yield: 0.44%
• Average Volume (3M): 2.25M
• Price to Earnings (P/E): 25.5
• Beta (1Y): 0.68
• 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): 1.04
• Shares Outstanding: 247,843,350
• 10 Day Avg. Volume: 2,235,568
• 30 Day Avg. Volume: 2,246,403
• PEG Ratio: 2.11
• Price to Book (P/B): 7.98
• Price to Sales (P/S): 4.50
• P/FCF Ratio: 24.43
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 4.39
• Enterprise Value/Gross Profit: 7.32
• Enterprise Value/Ebitda: 17.94
• 1Y Price Target: $107.11
• Price Target Upside: 11.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 4.19
• Revenue Forecast (FY): $5.84B

• Rating: 67 Neutral
• Price Target: $106.00 ▲(10.83% Upside)
• Action: Reiterated Date: 02/04/26
• Date: Action: Reiterated 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.

Very strong free cash flow conversion

Exceptionally high FCF conversion means reported profits reliably convert to cash, enabling large buybacks, dividend increases, low capex needs, and bolt-on M&A without heavy external funding. This cash durability strengthens capital allocation and balance sheet resilience over the medium term.

Recurring revenue from consumables and services

A majority recurring revenue mix from consumables, service contracts and installed base lock-ins produces predictable cash flows and higher customer lifetime value. That recurring stream smooths volatility, sustains aftermarket margins, and supports long-term revenue visibility and planning.

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.

Volume weakness; price-driven growth

Growth relying on price increases rather than unit expansion signals limited underlying demand momentum. If customers compress usage or competitors undercut prices, revenue and margin sustainability could suffer. Durable unit demand is required to support consumables and long-run aftermarket revenue.

Integration, tariff and regional headwinds

Ongoing tariffs, modest China performance and near-term dilution from acquisitions raise execution risk and compress margins. Integration costs and regional softness can persist for multiple quarters, complicating realization of synergies and creating uncertainty in sustainable margin trajectory.

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

Strong profitability (gross margin ~57–60%, EBIT margin ~22–23%) and consistently high free-cash-flow conversion (~94–96% of net income) support high-quality earnings. Offsets include a mixed/volatile leverage profile over recent periods and lower operating cash flow coverage in the TTM period, plus an unusually high TTM revenue growth rate versus the prior annual trend that may be non-recurring.

Income Statement

VLTO shows strong, consistent profitability with high gross margins (~57–60%) and solid operating profitability (EBIT margin ~22–23%) across the period. Revenue has grown steadily in the annual periods (low-to-mid single digits), and profitability has remained resilient, supporting quality earnings. The main weakness is that the TTM (Trailing-Twelve-Months) revenue growth rate shown is unusually high versus the prior annual trend, which may signal a one-off step change or data distortion rather than a durable acceleration; net margin also trends slightly lower versus earlier years despite higher revenue.

Balance Sheet

The balance sheet is mixed. Leverage is moderate in the TTM (Trailing-Twelve-Months) period (debt roughly in line with equity), an improvement versus 2023–2024 when debt was meaningfully higher than equity. Returns on equity are very strong (reflecting high profitability and/or a relatively smaller equity base), which is a positive for capital efficiency. The key risk is the sharp shift in leverage over time (very low leverage in 2021–2022, much higher in 2023–2024, then improved in TTM), suggesting capital structure volatility; this can increase sensitivity to earnings or refinancing conditions.

Cash Flow

Cash generation is a clear strength: free cash flow is consistently high and closely tracks net income (free cash flow is ~94–96% of net income across periods), indicating good earnings quality and strong cash conversion. TTM (Trailing-Twelve-Months) free cash flow is also up sharply versus the prior year. The main weakness is that operating cash flow coverage of obligations trends lower in the TTM (Trailing-Twelve-Months) period versus prior years, which, despite strong free cash flow, suggests reduced near-term coverage buffer compared with earlier periods.

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

• Technical Analysis Sentiment: Negative
• Last Price: 95.64
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 95.64 is above the 20-day moving average (MA) of 93.89, below the 50-day MA of 98.21, and below the 200-day MA of 101.54, indicating a neutral trend. The MACD of -0.50 indicates Negative momentum. The RSI at 49.19 is Neutral, neither overbought nor oversold. The STOCH value of 80.38 is Negative, 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	75 Outperform	$8.39B	43.49	12.06%	0.80%	6.88%	42.07%
FSS	74 Outperform	$7.20B	29.48	19.20%	0.49%	11.83%	11.08%
ERII	71 Outperform	$539.91M	23.52	11.03%	―	0.10%	1.50%
VLTO	67 Neutral	$23.70B	25.47	36.55%	0.44%	6.15%	12.79%
CECO	67 Neutral	$1.78B	39.77	17.71%	―	29.86%	331.33%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ATMU	63 Neutral	$5.12B	25.09	68.46%	0.39%	3.72%	11.71%

Veralto Corporation Corporate Events

Veralto Corporation Announces $750M Share Buyback Program

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 discretion, potentially impacting its market positioning and shareholder value.

The most recent analyst rating on (VLTO) stock is a Buy with a $121.00 price target. To see the full list of analyst forecasts on Veralto Corporation stock, see the VLTO Stock Forecast page.