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Vontier Corp (VNT)
NYSE:VNT
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Vontier
(NYSE:VNT)
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Rating:73Outperform
Price Target:
$47.00
▲(16.25% Upside)
Action:UpgradedDate:02/14/26
The score is driven primarily by solid financial quality (durable profitability and strong free cash flow) tempered by still-elevated leverage. Technicals are supportive with a clear uptrend and positive momentum. Valuation appears reasonable, and earnings-call guidance is constructive on margins and cash generation but includes near-term growth phasing and order/margin headwinds.
Positive Factors
Free Cash Flow Generation
Sustained, high free cash flow (>$460M in 2025 and very high FCF conversion) provides durable internal funding for capex, R&D, buybacks and debt paydown. This cash convertibility supports deleveraging and strategic optionality without relying on volatile external financing.
High and Stable Margins
Consistently robust gross and EBITDA margins reflect a favorable product mix (equipment plus higher‑margin software/services) and aftermarket revenue. High structural margins support earnings resilience through cycles and fund reinvestment in product and service capabilities.
Product Innovation & Commercial Momentum
Strong organic growth at Invenco, unified payment wins and new product rollouts show meaningful product-market fit and cross-sell potential. Continued innovation in payments and forecourt software creates a sustainable competitive edge and recurring revenue levers.
Negative Factors
Elevated Leverage
Material leverage (debt/equity ~1.7x) constrains strategic flexibility, raises refinancing risk, and amplifies earnings volatility. Even with improving trends, elevated debt limits the pace of organic investment, M&A optionality, and rapid capital return without sustained higher cash flow.
Near-Term Debt Maturity & Interest Step‑ups
A large near-term bond maturity requiring a $300M short-term facility and rising interest costs introduces structural refinancing risk. Higher financing expense and short-dated rollover reduce free cash available for deleveraging or investment and increase sensitivity to rising rates.
Order Intake & Demand Pacing
Order growth in low single digits and a book-to-bill just below 1 signal demand pacing risk and potential revenue lability. Persistent sub‑1 book-to-bill can lead to lumpy shipments, slower organic growth and tighter margin leverage absent stronger order flow.
Vontier (VNT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.80B
Dividend Yield0.26%
Average Volume (3M)1.27M
Price to Earnings (P/E)14.7
Beta (1Y)1.26
Revenue Growth1.76%
EPS Growth4.10%
CountryUS
Employees8,000
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.86
Shares Outstanding141,600,000
10 Day Avg. Volume1,584,810
30 Day Avg. Volume1,271,621
Financial Highlights & Ratios
PEG Ratio37.07
Price to Book (P/B)4.38
Price to Sales (P/S)1.77
P/FCF Ratio12.37
Enterprise Value/Market Cap1.31
Enterprise Value/Revenue2.47
Enterprise Value/Gross Profit5.23
Enterprise Value/Ebitda10.95
Forecast
1Y Price Target
$48.80Price Target Upside20.70% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)3.45
Revenue Forecast (FY)$3.12B
Vontier Business Overview & Revenue Model
Company DescriptionVontier 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 MoneyVontier 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 Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call reflected solid execution and multiple clear positives: strong cash generation (>$460M FCF), improved leverage (2.3x), meaningful product and commercial momentum (Invenco ~22% organic growth, unified payment win, DRB inflection), and a credible plan to drive $15M of incremental savings and ~80 bps of margin expansion in 2026. Near-term headwinds include a $4M inventory reserve at Invenco, one-time corporate healthcare costs, Mobility Tech margin pressure in the quarter, Repair Solutions softness, and a slightly sub-1 book-to-bill. Management emphasized constructive end-market dynamics (notably convenience retail and fueling) and provided conservative, achievable guidance with second-half weighting.Q4-2025 Updates
Positive Updates
Quarterly and Full-Year Revenue Growth
Q4 core growth of 5%; full-year organic sales grew nearly 4%, demonstrating overall revenue resilience across the portfolio.
Strong EPS and Profitability
Q4 adjusted EPS of $0.86 was at the high end of guidance and up 8% year over year; full-year EPS finished up 11% year over year.
Exceptional Free Cash Flow Generation
Generated over $460 million in adjusted free cash flow in 2025 (roughly 15% of annual sales); full-year adjusted free cash flow conversion of ~98%.
Share Repurchases and Balance Sheet Improvement
Deployed $125 million in buybacks in Q4 and $300 million for the year (representing >5% of shares outstanding); net leverage improved to 2.3x from 2.6x.
Environmental & Fueling Solutions (EFS) Momentum
EFS delivered above-market growth: full-year core growth of 6%; Q4 dispenser sales increased high single digits and environmental solutions grew low double digits; Q4 segment margins expanded ~90 basis points and full-year operating margin expanded ~40 basis points to end above 29%.
Mobility Technologies — Invenco Growth and Product Momentum
Invenco closed the year with nearly $650 million of revenue, up ~22% organically year over year; Mobility Tech core sales increased 8.5% in Q4 driven by new products (FlexPay 6, Vehicle Identification System, NFX Payment Server) and rollout of unified payment solutions.
Product Innovation and Strategic Wins
Launched indoor payment terminal sharing software across devices, advanced unified payment offering tied to NFX microservices, and secured a full unified payment agreement with a global c-store customer; DRB’s Patheon software drove DRB to high-single-digit growth in Q4.
Cost Savings and Margin Expansion Plan
Announced a simplification program expected to deliver $15 million of incremental in-year savings and guidance calling for ~80 basis points of adjusted operating margin expansion at the midpoint for 2026.
Guidance and Outlook
Full-year 2026 sales guidance of $3.1–$3.15 billion (midpoint ~3% core growth); adjusted EPS guidance $3.35–$3.50 (high-single-digit growth); adjusted free cash flow conversion expected ~95% (~15% of sales).
Negative Updates
One-Time Invenco Inventory Reserve
Recorded a $4 million inventory reserve related to legacy Invenco inventory, which reduced margins (about a 130 basis point hit to Invenco margins in Q4) and drove a ~220 basis point decline in Mobility Tech segment margins for the quarter.
Repair Solutions Underperformance
Repair Solutions sales declined 2% in Q4 and margins were pressured by lower volumes; the segment is expected to be flattish in 2026 despite signs of sequential improvement.
DRB Full-Year Weakness Despite Q4 Recovery
Although DRB grew high single digits in Q4 driven by Patheon adoption, DRB was down high single digits for the full year, reflecting earlier weakness and still-recovering install/upgrade cycles.
Near-Term Growth Phasing and Tough Comps
First-half 2026 comparisons are tough (particularly at EFS and Mobility Tech) and the company expects a back-half weighted year; Q1 core growth guidance is ~1% and Mobility Tech is expected to be flattish in Q1.
Orders and Book-to-Bill
Orders were only up low single digits for the year and book-to-bill finished just under 1, indicating order intake was slightly below shipment levels for the period.
Corporate Cost Pressures and One-Time Items
Q4 adjusted operating profit margin was affected by one-time costs including the Invenco inventory reserve and higher health care claims at corporate; some margin headwinds are still being managed.
Debt Maturity & Financing Actions
Upcoming $500 million bond maturity: plan to repay $200 million in cash and enter a $300 million, 364-day term loan; higher interest expense step-ups begin in Q2 and divestiture impacts were noted for top-line modeling.
Company Guidance
Vontier guided full-year 2026 sales of $3.10–$3.15 billion, implying roughly 3% core growth at the midpoint (EFS low‑ to mid‑single digits, Mobility Technologies mid‑single digits, Repair Solutions flattish) and about 80 basis points of adjusted operating margin expansion at the midpoint. Management expects $15 million of incremental in‑year cost savings (majority implemented in Q1, ramping into H2), adjusted EPS of $3.35–$3.50 (high‑single‑digit y/y growth) with share repurchases under $50 million, and adjusted free cash flow conversion of ~95% (≈15% of sales). Q1 guidance was $730–$740 million of sales with ~1% core growth at the midpoint, EPS of $0.78–$0.81 and relatively flat margins; they expect H1 to be just over 48% of sales and ~47% of EPS, noted ~1.3% average price increases, and flagged modest interest step‑ups beginning in Q2.Vontier Financial Statement Overview
Summary
Profitability and free cash flow are solid and consistent (FCF positive with improved 2025 conversion), supporting shareholder returns and potential deleveraging. The key offset is balance-sheet leverage, which has improved but remains meaningfully elevated, limiting flexibility.Income Statement
Revenue has been fairly stable with a modest rebound in 2025 (annual revenue up ~4% after two down years). Profitability is solid for the space, with gross margin holding in the mid-to-high 40% range and EBIT/EBITDA margins remaining strong, though both dipped in 2025 versus 2024. Net margin also softened in 2025, signaling some incremental cost pressure or mix headwinds, but overall earnings power remains healthy and consistent.74
Positive
Balance Sheet
Leverage remains the key constraint: debt is still meaningfully higher than equity (debt-to-equity ~1.7x in 2025), though it has improved materially from very elevated levels earlier in the period. Equity has been building and return on equity is strong, but that strength is partly amplified by leverage. Overall, the balance sheet trend is improving, yet debt levels still reduce flexibility relative to a cleaner-capitalized peer set.56
Neutral
Cash Flow
Cash generation is a clear positive: free cash flow is consistently positive and in 2025 was ~86% of net income, indicating good earnings-to-cash conversion. Free cash flow also stepped up sharply in 2025 versus 2024, reflecting improved cash efficiency. A watch item is that operating cash flow relative to debt is moderate (coverage below ~0.5x in recent years), meaning deleveraging is possible but not rapid without sustained higher cash flow.72
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.08B | 2.98B | 3.10B | 3.18B | 2.99B |
| Gross Profit | 1.45B | 1.42B | 1.43B | 1.43B | 1.33B |
| EBITDA | 686.80M | 699.40M | 702.20M | 698.70M | 683.60M |
| Net Income | 406.10M | 422.20M | 376.90M | 401.30M | 413.00M |
Balance Sheet | |||||
| Total Assets | 4.37B | 4.31B | 4.29B | 4.34B | 4.35B |
| Cash, Cash Equivalents and Short-Term Investments | 492.20M | 356.40M | 340.90M | 225.80M | 572.60M |
| Total Debt | 2.14B | 2.20B | 2.35B | 2.64B | 2.64B |
| Total Liabilities | 3.12B | 3.25B | 3.40B | 3.76B | 3.78B |
| Stockholders Equity | 1.24B | 1.05B | 890.40M | 576.50M | 569.90M |
Cash Flow | |||||
| Free Cash Flow | 441.10M | 344.80M | 394.90M | 261.20M | 433.30M |
| Operating Cash Flow | 511.00M | 427.50M | 455.00M | 321.20M | 481.10M |
| Investing Cash Flow | -20.70M | -11.40M | 69.30M | -329.90M | -1.01B |
| Financing Cash Flow | -371.30M | -392.30M | -387.80M | -347.90M | 725.50M |
Vontier Technical Analysis
Positive
40.43
Price Trends
38.66
Positive
38.59
Positive
38.93
Positive
Market Momentum
0.82
Positive
53.83
Neutral
16.24
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 40.43 is above the 20-day moving average (MA) of 39.95, above the 50-day MA of 38.66, and above the 200-day MA of 38.93, indicating a bullish trend. The MACD of 0.82 indicates Positive momentum. The RSI at 53.83 is Neutral, neither overbought nor oversold. The STOCH value of 16.24 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VNT.
Vontier Risk Analysis
Vontier disclosed 37 risk factors in its most recent earnings report. Vontier 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
Vontier Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $31.64B | 36.15 | 8.92% | ― | 7.41% | -12.85% | |
73 Outperform | $5.80B | 14.67 | 35.39% | 0.26% | 1.76% | 4.10% | |
73 Outperform | $28.12B | 40.64 | 47.87% | 0.14% | 13.18% | -38.37% | |
72 Outperform | $23.87B | 29.06 | 16.85% | ― | 0.77% | 0.51% | |
67 Neutral | $18.32B | 33.05 | 7.78% | 0.43% | -8.96% | -30.29% | |
63 Neutral | $47.78B | 252.24 | 3.63% | ― | 20.80% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
VNT
Vontier
40.94
3.05
8.06%
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26.34
68.27%
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266.26
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69.31%
TDY
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683.22
182.79
36.53%
FTV
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57.68
-2.02
-3.38%
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.