Vontier (VNT) AI Stock Analysis

• Market Cap: $5.66B
• Dividend Yield: 0.26%
• Average Volume (3M): 1.03M
• Price to Earnings (P/E): 14.3
• Beta (1Y): 1.26
• Revenue Growth: 1.76%
• EPS Growth: 4.10%
• Country: US
• Employees: 8,000
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.78
• Shares Outstanding: 145,100,000
• 10 Day Avg. Volume: 802,202
• 30 Day Avg. Volume: 1,026,530
• PEG Ratio: 0.97
• Price to Book (P/B): 5.30
• Price to Sales (P/S): 1.87
• P/FCF Ratio: 16.16
• Enterprise Value/Market Cap: 1.40
• Enterprise Value/Revenue: 2.60
• Enterprise Value/Gross Profit: 5.50
• Enterprise Value/Ebitda: 11.47
• 1Y Price Target: $47.00
• Price Target Upside: 21.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $42.00 ▲(8.39% Upside)

Vontier's overall stock score reflects a balance of strong financial performance and positive earnings call outcomes, offset by technical analysis indicating bearish momentum. The company's valuation is attractive, but high leverage and operational challenges remain concerns.

Positive Factors

Free Cash Flow Generation

Sustained adjusted free cash flow generation provides durable flexibility to fund buybacks, organic investment, and debt reduction. Over a multi-quarter horizon strong FCF supports strategic initiatives and cushions the business through cyclical demand shifts in mobility and fueling markets.

Recurring Aftermarket and Software Revenue

A business model with recurring aftermarket parts, services, and software subscriptions increases revenue visibility and customer lifetime value. This durable revenue mix supports margin stability, predictable service demand, and higher switching costs versus one-time equipment sales.

High Profitability and ROE

Healthy net margins and a strong ROE reflect effective cost control and capital deployment across operating businesses. This fundamental profitability enables reinvestment in product platforms, supports shareholder returns, and sustains operations through industry cycles.

Negative Factors

High Financial Leverage

A materially elevated debt load raises refinancing, interest-rate and covenant risks that can constrain capital allocation. Over a 2-6 month horizon high leverage limits flexibility for M&A, accelerates sensitivity to cash flow swings, and may force prioritization of debt service over growth.

Operational Margin Pressure

Eroding operating margins point to rising cost pressures or mix shifts in core businesses. If persistent, margin compression will reduce free cash flow conversion and limit room for investment or deleveraging, making profitability more sensitive to demand volatility in fueling and fleet markets.

Segment Concentration and Repair Demand Decline

Dependence on Repair Solutions and sensitivity to technician/service spend creates durable revenue volatility when end-market capex and maintenance budgets contract. A weak repair cycle can drag overall core sales and hamper recovery timelines across the portfolio.

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 generates revenue through multiple streams, primarily by selling its products and services to businesses in the transportation and mobility sectors. Key revenue streams include the sale of hardware such as fuel dispensers and vehicle service equipment, as well as software solutions that facilitate vehicle tracking, fleet management, and fuel management. Additionally, the company earns recurring revenue through maintenance contracts and service agreements for its products. Vontier also benefits from strategic partnerships with other technology firms and industry players, enabling it to expand its market reach and enhance its product offerings. These collaborations often lead to joint ventures and co-developed technologies, contributing to the company's overall earnings.

Vontier Financial Statement Overview

Summary

Vontier shows strong profitability and revenue growth with a solid net profit margin of 13.34%. However, high leverage with a debt-to-equity ratio of 1.73 and declining operational margins pose challenges. Cash flow generation remains strong, supporting financial health despite high debt levels.

Income Statement

Vontier's income statement shows a solid performance with a TTM revenue growth rate of 8.2%, indicating a positive trajectory. The gross profit margin is healthy, and the net profit margin is strong at 13.34%. However, the EBIT and EBITDA margins have slightly decreased compared to previous years, suggesting some pressure on operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.73, which is a concern for financial stability. However, the return on equity remains robust at 35.46%, indicating effective use of equity to generate profits. The equity ratio is moderate, reflecting a balanced asset structure.

Cash Flow

Cash flow analysis shows a slight decline in free cash flow growth, but the operating cash flow to net income ratio is stable. The free cash flow to net income ratio is strong at 84.72%, suggesting good cash generation relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.04B	2.98B	3.10B	3.18B	2.99B	2.70B
Gross Profit	1.44B	1.42B	1.43B	1.43B	1.33B	1.19B
EBITDA	690.50M	699.40M	702.20M	698.70M	683.60M	548.60M
Net Income	406.10M	422.20M	376.90M	401.30M	413.00M	342.00M
Balance Sheet
Total Assets	4.38B	4.31B	4.29B	4.34B	4.35B	3.07B
Cash, Cash Equivalents and Short-Term Investments	433.80M	356.40M	340.90M	225.80M	572.60M	380.50M
Total Debt	2.13B	2.20B	2.35B	2.64B	2.64B	1.85B
Total Liabilities	3.14B	3.25B	3.40B	3.76B	3.78B	2.88B
Stockholders Equity	1.23B	1.05B	890.40M	576.50M	569.90M	187.40M
Cash Flow
Free Cash Flow	414.30M	344.80M	394.90M	261.20M	433.30M	655.60M
Operating Cash Flow	489.00M	427.50M	455.00M	321.20M	481.10M	691.30M
Investing Cash Flow	-30.80M	-11.40M	69.30M	-329.90M	-1.01B	-41.70M
Financing Cash Flow	-358.60M	-392.30M	-387.80M	-347.90M	725.50M	-283.90M

Vontier Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 38.75
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VNT, the sentiment is Positive. The current price of 38.75 is above the 20-day moving average (MA) of 37.92, above the 50-day MA of 36.98, and above the 200-day MA of 37.77, indicating a bullish trend. The MACD of 0.40 indicates Negative momentum. The RSI at 59.53 is Neutral, neither overbought nor oversold. The STOCH value of 87.66 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VNT.

Vontier Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FLEX	74 Outperform	$22.74B	27.43	17.45%	―	0.77%	0.51%
JBL	73 Outperform	$24.16B	35.18	47.87%	0.14%	13.18%	-38.37%
FTV	72 Outperform	$17.47B	31.40	7.79%	0.43%	-8.96%	-30.29%
TDY	71 Outperform	$25.78B	31.85	8.11%	―	7.41%	-12.85%
VNT	67 Neutral	$5.66B	14.32	35.82%	0.26%	1.76%	4.10%
COHR	66 Neutral	$27.98B	266.87	3.08%	―	20.80%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%