Vontier (VNT) AI Stock Analysis

• Market Cap: $4.46B
• Dividend Yield: 0.33%
• Average Volume (3M): 1.14M
• Price to Earnings (P/E): 10.9
• Beta (1Y): 1.28
• Revenue Growth: -3.75%
• EPS Growth: 13.76%
• Country: US
• Employees: 8,000
• Sector: Technology
• Sector Strength: 45
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 2.75
• Shares Outstanding: 148,320,140
• 10 Day Avg. Volume: 1,251,165
• 30 Day Avg. Volume: 1,142,327
• PEG Ratio: 0.79
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.68
• Price to Cash Flow (P/CF): 7.50
• P/FCF Ratio: 7.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $40.50
• Price Target Upside: 34.82% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

Vontier's stock score reflects a company with strong operational efficiencies and a solid earnings outlook, but facing challenges due to high leverage and recent revenue declines. Technical indicators suggest a downward trend, while the valuation appears attractive. The earnings call provided positive guidance but also highlighted ongoing challenges in certain segments.

Positive Factors

Market Leadership

VNT enjoys market leadership positions and has a rich mix of higher multiple software and services, screening well on classic quality metrics.

Orders Growth

Vontier had a 6% year-over-year orders growth and is seeing a multi-year replacement cycle start for underground tank equipment.

Valuation

VNT shares trade at just 12x 2025 estimated adjusted EPS, well below the 22x peer average, despite similar margins and adjusted EPS growth.

Negative Factors

Car Wash Segment Performance

Car wash equipment and software (DRB Systems) saw a 20% year-over-year revenue decline.

Revenue Decline

In 2024, Vontier faced a revenue decline in car wash equipment and software and a revenue and margin decline in the Repair Solutions segment.

Vontier Business Overview & Revenue Model

Company Description

Vontier Corporation engages in the research and development, manufacture, sale, and distribution of technical equipment, components, software, and services for manufacturing, repairing, and servicing in the mobility infrastructure industry worldwide. The company offers a range of solutions, including environmental sensors, fueling equipment, field payment hardware, point-of sale, workflow and monitoring software, vehicle tracking and fleet management, software solutions for traffic light control, and vehicle mechanics', and technicians' equipment. Its mobility technologies products include solutions and services in the areas of fuel dispensing, remote fuel management, point-of-sale and payment systems, environmental compliance, vehicle tracking and fleet management, and traffic management; and diagnostics and repair technologies products comprise vehicle repair tools, toolboxes, automotive diagnostic equipment, and software, as well as wheel-service equipment for automotive tire installation and repair shops, including brake lathes, tire changers, wheel balancers, and wheel weights under the Ammco and Coats brands. The company markets its products and services to retail and commercial fueling operators, convenience store and in-bay car wash operators, tunnel car wash and commercial vehicle repair businesses, municipal governments, and public safety entities and fleet owners/operators through a network of franchised mobile distributors, as well as direct sales personnel and independent distributors. It serves customers in North America, the Asia Pacific, Europe, and Latin America. The company was incorporated in 2019 and is headquartered in Raleigh, North Carolina.

How the Company Makes Money

Vontier makes money through the sale of its broad range of products and solutions designed for the transportation and mobility industries. Key revenue streams include the manufacturing and distribution of fueling systems and equipment, which are used by fuel retailers and service stations globally. Additionally, Vontier generates income from its vehicle and fleet management technologies, which help businesses optimize fleet operations, enhance safety, and reduce costs. The company also earns revenue from environmental and emissions control technologies, offering solutions that help clients comply with regulations and improve sustainability. Significant partnerships with automotive manufacturers, fuel retailers, and logistics companies also contribute to Vontier's earnings, as these collaborations expand the reach and application of its technologies across various markets.

Vontier Financial Statement Overview

Summary

Vontier demonstrates strong operational efficiencies and consistent cash generation, but faces challenges due to high leverage and recent revenue declines. While profitability indicators remain solid, the negative revenue and free cash flow growth signal potential risks that need addressing to sustain financial health.

Income Statement

The company shows a stable revenue generation with a slight decline in the most recent year. Gross profit margins are strong at 100% for 2024 due to accounting treatment, but EBIT and EBITDA margins indicate consistent operational efficiency. However, net profit margins have slightly decreased, and revenue growth has been negative recently, impacting overall performance.

Balance Sheet

The balance sheet reflects a high level of debt relative to equity, with a Debt-to-Equity Ratio exceeding 2. This indicates potential leverage risk. However, Return on Equity shows improvement due to increased net income, and the Equity Ratio has improved, suggesting better asset support by equity.

Cash Flow

The company has maintained a consistent free cash flow, although growth has been negative. The operating cash flow remains robust relative to net income, indicating strong cash generation from operations. However, free cash flow relative to net income shows fluctuation, which poses a potential risk.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.98B	3.10B	3.18B	2.99B	2.70B
	Gross Profit
1.42B	1.43B	1.43B	1.33B	1.19B
	EBIT
537.00M	543.40M	577.90M	582.20M	638.80M
	EBITDA
699.40M	702.20M	698.70M	683.60M	636.70M
	Net Income Common Stockholders
422.20M	376.90M	401.30M	413.00M	342.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
356.40M	340.90M	225.80M	572.60M	380.50M
	Total Assets
4.31B	4.29B	4.34B	4.35B	3.07B
	Total Debt
2.20B	2.35B	2.64B	2.64B	1.81B
	Net Debt
1.84B	2.01B	2.43B	2.06B	1.43B
	Total Liabilities
3.25B	3.40B	3.76B	3.78B	2.88B
	Stockholders Equity
1.05B	890.40M	576.50M	569.90M	187.40M
Cash Flow		Free Cash Flow
344.80M	394.90M	261.20M	433.30M	655.60M
	Operating Cash Flow
427.50M	455.00M	321.20M	481.10M	691.30M
	Investing Cash Flow
-11.40M	69.30M	-329.90M	-1.01B	-41.70M
	Financing Cash Flow
-392.30M	-387.80M	-347.90M	725.50M	-283.90M

Vontier Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 30.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VNT, the sentiment is Negative. The current price of 30.04 is below the 20-day moving average (MA) of 31.27, below the 50-day MA of 34.11, and below the 200-day MA of 35.80, indicating a bearish trend. The MACD of -1.26 indicates Negative momentum. The RSI at 36.84 is Neutral, neither overbought nor oversold. The STOCH value of 58.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VNT.

Vontier Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ITRI	74 Outperform	$4.71B	19.93	17.70%	―	12.29%	147.67%
MKSI	72 Outperform	$4.30B	22.67	7.93%	1.38%	-0.99%	―
NOVT	67 Neutral	$4.12B	64.59	9.03%	―	7.67%	-12.33%
VNT	63 Neutral	$4.46B	10.94	43.49%	0.33%	-3.75%	13.76%
CGNX	61 Neutral	$4.03B	38.64	7.03%	1.30%	9.19%	-5.77%
Sector *	58 Neutral	$10.03B	10.00	-6.85%	3.09%	7.49%	-11.58%
LFUS	56 Neutral	$3.80B	38.46	4.62%	1.79%	-7.28%	-56.46%

Vontier Corporate Events

Vontier Amends Executive Incentive Compensation Plan

On February 24, 2025, Vontier Corporation’s Board of Directors approved an amendment to the Executive Incentive Compensation Plan. The amended plan outlines performance-based incentive awards for executive officers, determined by specific performance goals such as earnings per share, stock price targets, and other financial and strategic criteria. The plan includes stipulations for eligibility based on employment status, with specific conditions for voluntary and involuntary terminations, retirements, disabilities, and other employment changes.