Veralto Corporation (VLTO)
NYSE:VLTO
Want to see VLTO full AI Analyst Report?
Top Page
Veralto Corporation
(NYSE:VLTO)
Select Model
Select Model
Rating:69Neutral
Price Target:
$94.00
▲(3.32% Upside)
Action:ReiteratedDate:04/29/26
The score is supported by strong underlying profitability and cash generation, plus a constructive earnings update with raised guidance. These positives are tempered by weak technical momentum (oversold and trading below key moving averages) and a balance-sheet profile that became more leveraged versus prior years, while valuation and yield are only moderately supportive.
Positive Factors
Strong free cash flow generation
Very high and consistent free cash flow that closely tracks net income provides durable funding for capital allocation priorities: M&A (≈$1B deployed), opportunistic buybacks, dividends and reinvestment. Strong cash conversion supports debt service and multi-year programs without equity dilution.
Negative Factors
Higher and more volatile leverage vs. prior years
A meaningful increase in leverage since 2021 reduces financial flexibility and amplifies downside in stress scenarios. Even with current moderate ratios, past volatility and higher absolute debt elevate refinancing and covenant risk, constraining capacity for opportunistic investment if cash flow softens.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Very high and consistent free cash flow that closely tracks net income provides durable funding for capital allocation priorities: M&A (≈$1B deployed), opportunistic buybacks, dividends and reinvestment. Strong cash conversion supports debt service and multi-year programs without equity dilution.
Read all positive factors
Veralto Corporation (VLTO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$21.52B
Dividend Yield0.44%
Average Volume (3M)1.86M
Price to Earnings (P/E)21.4
Beta (1Y)0.71
Revenue Growth5.95%
EPS Growth10.56%
CountryUS
Employees17,000
SectorIndustrials
Sector Strength72
IndustryIndustrial - Pollution & Treatment Controls
Share Statistics
EPS (TTM)3.90
Shares Outstanding245,599,260
10 Day Avg. Volume1,731,399
30 Day Avg. Volume1,859,436
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 Cap1.06
Enterprise Value/Revenue4.09
Enterprise Value/Gross Profit6.84
Enterprise Value/Ebitda16.74
Forecast
1Y Price Target
$105.20Price Target Upside15.63% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)4.24
Revenue Forecast (FY)$5.87B
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 makes money primarily by selling mission-critical instruments and systems, recurring consumables, and ongoing services across its two operating segments.
1) Water Quality revenue model: The company generates revenue from the sale of water...
Veralto Corporation Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call conveyed predominantly positive momentum: solid Q1 results (≈7% sales growth, ≈13% adj EPS growth), an upgraded EPS outlook, strategic acquisitions ($1B deployed), disciplined pricing and tariff management, and a new cost optimization program that should materially improve margins in 2027–2028. Headwinds were limited to segment- and region-specific softness (PQI packaging & color, China municipal water), timing/shipment delays, and macro/geopolitical risks that are largely described as managed and baked into guidance. On balance, the highlights materially outweigh the lowlights.Positive Updates
Strong Q1 Financial Performance
Total sales grew approximately 7% year-over-year and adjusted EPS grew ~13% year-over-year. Management raised full-year adjusted EPS guidance to $4.20–$4.28 per share driven by Q1 strength, pricing, and execution.
Negative Updates
PQI Packaging & Color Weakness
Packaging and color sales declined high single digits in Q1, driven by a pull-forward / nonrecurring decline (sales of color testing and packaging inspection equipment) concentrated in discrete industrial end markets such as automotive, textiles and building materials.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Q1 Financial Performance
Total sales grew approximately 7% year-over-year and adjusted EPS grew ~13% year-over-year. Management raised full-year adjusted EPS guidance to $4.20–$4.28 per share driven by Q1 strength, pricing, and execution.
Read all positive updates
Company Guidance
Veralto raised full‑year adjusted EPS guidance to $4.20–$4.28 per share after a strong Q1 (≈7% total sales growth and ≈13% adjusted EPS growth) and said core sales growth should accelerate through 2026; the company did not include any 2026 benefit from its new cost‑optimization program (about 50% of run‑rate savings expected in 2027 and full run‑rate in 2028). Management reaffirmed its value‑creation framework—mid‑single‑digit core sales growth with 30%–35% fall‑through—said pricing should contribute roughly 100–200 bps (PQI slightly higher), that tariff and Section‑232 impacts are small and largely baked in, and noted ~$1 billion deployed for two acquisitions plus opportunistic share repurchases; the guide raise was driven by Q1 strength, stronger order books/pricing and execution, and easier comps in H2 (especially Q4).Veralto Corporation Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
66
Positive
Cash Flow
83
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.59B | 5.50B | 5.19B | 5.02B | 4.87B | 4.70B |
| Gross Profit | 3.35B | 3.30B | 3.10B | 2.90B | 2.77B | 2.71B |
| EBITDA | 1.37B | 1.35B | 1.28B | 1.21B | 1.20B | 1.15B |
| Net Income | 969.00M | 940.00M | 833.00M | 839.00M | 845.00M | 861.00M |
Balance Sheet | ||||||
| Total Assets | 7.65B | 7.69B | 6.41B | 5.69B | 4.83B | 4.84B |
| Cash, Cash Equivalents and Short-Term Investments | 1.43B | 2.03B | 1.10B | 762.00M | 0.00 | 0.00 |
| Total Debt | 2.66B | 2.67B | 2.77B | 2.78B | 123.00M | 135.00M |
| Total Liabilities | 4.65B | 4.59B | 4.36B | 4.30B | 1.58B | 1.64B |
| Stockholders Equity | 3.00B | 3.11B | 2.04B | 1.38B | 3.23B | 3.20B |
Cash Flow | ||||||
| Free Cash Flow | 1.04B | 1.01B | 820.00M | 909.00M | 836.00M | 842.00M |
| Operating Cash Flow | 1.10B | 1.08B | 875.00M | 963.00M | 870.00M | 896.00M |
| Investing Cash Flow | -526.00M | -98.00M | -434.00M | -55.00M | -89.00M | -97.00M |
| Financing Cash Flow | -408.00M | -102.00M | -65.00M | -135.00M | -781.00M | -799.00M |
Veralto Corporation Technical Analysis
Negative
90.98
Price Trends
91.28
Negative
95.82
Negative
99.74
Negative
Market Momentum
-0.02
Negative
52.71
Neutral
70.95
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 90.98 is above the 20-day moving average (MA) of 88.82, below the 50-day MA of 91.28, and below the 200-day MA of 99.74, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 52.71 is Neutral, neither overbought nor oversold. The STOCH value of 70.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $8.56B | 31.92 | 13.40% | 0.80% | 10.03% | 28.13% | |
76 Outperform | $7.42B | 23.39 | 19.09% | 0.49% | 23.25% | 28.92% | |
73 Outperform | $2.67B | 173.67 | 5.54% | ― | 32.11% | -71.47% | |
69 Neutral | $21.52B | 21.45 | 33.38% | 0.44% | 5.95% | 10.56% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $583.23M | 31.61 | 11.92% | ― | -6.87% | 8.36% | |
55 Neutral | $4.30B | 23.93 | 58.84% | 0.39% | 9.99% | 15.89% |
* Industrials Sector Average
VLTO
Veralto Corporation
88.24
-6.98
-7.33%
CECO
Ceco Environmental
78.17
52.81
208.24%
ERII
Energy Recovery
11.00
-4.58
-29.40%
FSS
Federal Signal
117.49
30.60
35.22%
ZWS
Zurn Water Solutions
50.30
15.85
46.01%
ATMU
Atmus Filtration Technologies, Inc.
50.68
14.53
40.18%
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.