Vontier (VNT) AI Stock Analysis

• Market Cap: $6.37B
• Dividend Yield: 0.23%
• Average Volume (3M): 1.04M
• Price to Earnings (P/E): 16.6
• Beta (1Y): 1.26
• Revenue Growth: 1.16%
• EPS Growth: 0.98%
• Country: US
• Employees: 8,000
• Sector: Technology
• Sector Strength: 82
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.79
• Shares Outstanding: 146,700,000
• 10 Day Avg. Volume: 755,441
• 30 Day Avg. Volume: 1,039,136
• 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: 1.14
• Enterprise Value/Revenue: 2.39
• Enterprise Value/Gross Profit: 5.13
• Enterprise Value/Ebitda: 10.82
• 1Y Price Target: $47.67
• Price Target Upside: 9.71% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 76 Outperform
• Price Target: $48.00 ▲(10.47% 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

Cost Management

Vontier will have carryover benefits from 2024 cost actions and additional share repurchases as a source of potential upside.

Earnings Performance

2Q25 adjusted EPS was $0.07 above consensus.

Negative Factors

Revenue Decline

In 2024, Vontier faced a ~20% y/y revenue decline in car wash equipment & software (DRB Systems).

Segment Performance

Repair Solutions’ underlying demand remains weak and management lowered their outlook for the segment.

Vontier Business Overview & Revenue Model

Company Description

Vontier Corporation is a global industrial technology company that operates in various sectors including mobility, transportation, and diagnostics. The company is known for its innovative solutions in fuel dispensing, point-of-sale systems, vehicle tracking and diagnostics, and environmental compliance. Vontier's core products and services cater to industries such as retail fueling, automotive repair, and fleet management, enabling enhanced efficiency and productivity for its clients.

How the Company Makes Money

Vontier makes money primarily through the sale of its technology-driven products and services. The company's revenue model includes the production and distribution of hardware such as fuel dispensers and payment systems, alongside software solutions for fleet management and vehicle diagnostics. Key revenue streams include sales from their extensive product lines, service and maintenance contracts, and software subscriptions. Significant partnerships with fuel retailers, automotive service providers, and fleet operators contribute to its earnings, providing a recurring revenue base through ongoing service agreements and technological upgrades.

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	1.42B	1.42B	1.43B	1.43B	1.33B	1.19B
EBITDA	671.80M	699.40M	702.20M	698.70M	683.60M	636.70M
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	1.81B
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: 43.45
• 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 VNT, the sentiment is Positive. The current price of 43.45 is above the 20-day moving average (MA) of 42.61, above the 50-day MA of 40.37, and above the 200-day MA of 36.89, indicating a bullish trend. The MACD of 0.82 indicates Positive momentum. The RSI at 62.08 is Neutral, neither overbought nor oversold. The STOCH value of 63.28 is Neutral, 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	$25.74B	30.25	8.72%	―	6.47%	-1.48%
VNT	76 Outperform	$6.37B	16.55	35.63%	0.23%	1.16%	0.98%
FLEX	74 Outperform	$20.89B	24.44	17.67%	―	-3.63%	2.26%
FTV	72 Outperform	$16.20B	21.61	7.36%	0.56%	-0.12%	-11.27%
JBL	67 Neutral	$22.55B	40.84	32.41%	0.15%	-6.13%	-53.35%
Sector *	61 Neutral	$35.55B	8.91	-10.55%	1.87%	8.47%	-8.26%
COHR	60 Neutral	$15.24B	―	0.63%	―	23.42%	71.17%

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.