Vontier (VNT) AI Stock Analysis

• Market Cap: $6.18B
• Dividend Yield: 0.24%
• Average Volume (3M): 807.95K
• Price to Earnings (P/E): 16.1
• Beta (1Y): 1.28
• Revenue Growth: 1.16%
• EPS Growth: 0.98%
• Country: US
• Employees: 8,000
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.79
• Shares Outstanding: 146,700,000
• 10 Day Avg. Volume: 826,005
• 30 Day Avg. Volume: 807,954
• 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: 1.18
• Enterprise Value/Revenue: 2.39
• Enterprise Value/Gross Profit: 5.06
• Enterprise Value/Ebitda: 10.82
• 1Y Price Target: $47.67
• Price Target Upside: 13.07% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 76 Outperform
• Price Target: $48.00 ▲(13.85% Upside)

Vontier's overall stock score is driven by strong earnings call performance and positive technical indicators. Financial performance is solid, though high leverage poses a risk. Valuation is fair, with a reasonable P/E ratio but low dividend yield.

Positive Factors

Revenue Growth

Vontier's strong core sales growth, particularly in key segments, indicates robust market demand and effective strategy execution, supporting long-term revenue expansion.

Product Innovation

Successful product innovation and substantial R&D investments enhance Vontier's competitive edge, positioning the company for sustainable growth and market leadership.

Cash Flow Generation

Strong free cash flow generation supports financial flexibility and shareholder returns, underpinning Vontier's ability to invest in growth opportunities and manage debt.

Negative Factors

High Leverage

High leverage can constrain financial flexibility and increase risk, requiring careful management to ensure long-term financial stability and operational resilience.

Tariff-Related Cost Pressures

Ongoing tariff-related cost pressures could impact margins and profitability, necessitating strategic pricing and supply chain adjustments to maintain competitive positioning.

Repair Solutions Market Pressure

Flat sales in the Repair Solutions segment highlight market challenges, potentially affecting revenue growth and necessitating strategic adjustments to capture market opportunities.

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 demonstrates strong financial performance with consistent revenue and profit growth, efficient cost management, and solid cash flow generation. However, the high leverage remains a concern, requiring careful management to mitigate potential risks.

Income Statement

Vontier's income statement shows a stable revenue growth rate of 2.6% in the TTM, recovering from a slight decline in previous years. The gross profit margin remains strong at 46.6%, although slightly lower than the previous year. Net profit margin is healthy at 12.99%, indicating efficient cost management. EBIT and EBITDA margins are solid, reflecting good operational efficiency. Overall, the company demonstrates consistent profitability and growth potential.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.78, which, although improved from previous years, still indicates significant leverage. Return on equity is robust at 36.06%, showcasing effective use of equity to generate profits. The equity ratio is moderate, suggesting a balanced asset structure. While the company is leveraging debt effectively, the high leverage poses potential risks if not managed carefully.

Cash Flow

Cash flow analysis shows a strong free cash flow growth rate of 16.66% in the TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.38, suggesting that operating cash flow is adequately supporting net income. The free cash flow to net income ratio is high at 0.85, reflecting efficient cash conversion. Overall, the cash flow position is solid, with positive growth trends.

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	671.80M	699.40M	702.20M	698.70M	683.60M	548.60M
Net Income	395.10M	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	364.20M	356.40M	340.90M	225.80M	572.60M	380.50M
Total Debt	2.14B	2.20B	2.35B	2.64B	2.64B	1.85B
Total Liabilities	3.17B	3.25B	3.40B	3.76B	3.78B	2.88B
Stockholders Equity	1.20B	1.05B	890.40M	576.50M	569.90M	187.40M
Cash Flow
Free Cash Flow	427.20M	344.80M	394.90M	261.20M	433.30M	655.60M
Operating Cash Flow	500.30M	427.50M	455.00M	321.20M	481.10M	691.30M
Investing Cash Flow	-80.00M	-11.40M	69.30M	-329.90M	-1.01B	-41.70M
Financing Cash Flow	-399.40M	-392.30M	-387.80M	-347.90M	725.50M	-283.90M

Vontier Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 42.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 42.16 is below the 20-day moving average (MA) of 42.82, above the 50-day MA of 41.84, and above the 200-day MA of 37.22, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 46.97 is Neutral, neither overbought nor oversold. The STOCH value of 16.98 is Positive, 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
TDY	79 Outperform	$27.06B	31.79	8.28%	―	6.47%	-1.48%
VNT	76 Outperform	$6.18B	16.06	35.63%	0.24%	1.16%	0.98%
FTV	75 Outperform	$16.42B	21.91	7.41%	0.58%	-0.12%	-11.27%
FLEX	74 Outperform	$21.34B	24.97	17.51%	―	-3.63%	2.26%
JBL	68 Neutral	$23.16B	36.46	44.90%	0.15%	3.18%	-46.01%
COHR	60 Neutral	$16.67B	-201.15	0.61%	―	23.42%	71.17%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Vontier Corporate Events

Vontier Stockholders Approve Key Proposals at Annual Meeting

At the Annual Meeting held on May 27, 2025, Vontier Corporation’s stockholders voted on three key proposals. The first proposal involved the election of eight directors, all of whom were elected for a term expiring at the 2026 Annual Meeting. The second proposal, which was approved, ratified the selection of Ernst & Young LLP as the company’s independent registered public accounting firm for 2025. The third proposal, also approved on an advisory basis, concerned the compensation of the company’s named executive officers.