Veralto Corporation (VLTO) AI Stock Analysis

• Market Cap: $26.49B
• Dividend Yield: 0.39%
• Average Volume (3M): 1.01M
• Price to Earnings (P/E): 29.8
• Beta (1Y): 0.71
• Revenue Growth: 5.61%
• EPS Growth: 12.26%
• Country: US
• Employees: 17,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): 0.93
• Shares Outstanding: 248,160,840
• 10 Day Avg. Volume: 1,147,155
• 30 Day Avg. Volume: 1,007,395
• 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: $113.86
• Price Target Upside: 6.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 80 Outperform
• Price Target: $122.00 ▲(14.30% 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

Revenue Growth

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

Cash Flow Generation

Strong cash flow enhances financial flexibility, allowing for strategic investments and debt management, bolstering future growth.

Water Quality Segment Performance

Robust performance in Water Quality reflects competitive strength and market leadership, driving sustainable profitability.

Negative Factors

PQI Segment Margin Pressure

Margin pressure in PQI could affect overall profitability, requiring strategic adjustments to maintain competitive advantage.

Challenges in China

Flat sales in China suggest potential market saturation or competitive challenges, impacting growth prospects in a key region.

Rising Debt Levels

Increasing debt levels may strain financial resources, limiting capacity for future investments and increasing financial risk.

Veralto Corporation Business Overview & Revenue Model

Company Description

Veralto Corporation (VLTO) is a company that operates in various industrial sectors, focusing on providing advanced solutions and services that enhance productivity and efficiency. The corporation engages in offering innovative products and services in areas such as environmental solutions, diagnostics, and industrial technologies, catering to a wide range of industries including healthcare, manufacturing, and environmental management.

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: Positive
• Last Price: 106.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 106.74 is below the 20-day moving average (MA) of 106.94, above the 50-day MA of 105.82, and above the 200-day MA of 100.76, indicating a bullish trend. The MACD of 0.31 indicates Positive momentum. The RSI at 51.54 is Neutral, neither overbought nor oversold. The STOCH value of 39.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VLTO.

Veralto Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZWS	80 Outperform	7.91B	46.65	11.12%	0.75%	4.74%	30.64%
VLTO	80 Outperform	$26.49B	29.84	41.35%	0.39%	5.61%	12.26%
ATMU	79 Outperform	3.77B	20.25	81.62%	0.44%	1.53%	8.93%
FSS	78 Outperform	7.60B	34.78	17.56%	0.42%	9.09%	9.64%
ERII	74 Outperform	776.70M	36.63	13.03%	―	6.19%	15.04%
PCT	38 Underperform	2.37B	-8.23	0.00%	―	0.00%	-79.12%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

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.