Vontier (VNT) AI Stock Analysis

• Market Cap: $6.18B
• Dividend Yield: 0.24%
• Average Volume (3M): 1.09M
• Price to Earnings (P/E): 16.0
• Beta (1Y): 1.26
• Revenue Growth: 1.16%
• EPS Growth: 0.98%
• Country: US
• Employees: 8,000
• Sector: Technology
• Sector Strength: 91
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.79
• Shares Outstanding: 146,700,000
• 10 Day Avg. Volume: 1,137,260
• 30 Day Avg. Volume: 1,088,649
• 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: 5.13
• Enterprise Value/Ebitda: 10.82
• 1Y Price Target: $47.44
• Price Target Upside: 11.76% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 76 Outperform
• Price Target: $48.00 ▲(13.07% 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 presents a strong financial profile with robust profitability and efficient cash flow management. Despite a slight revenue decline, the company's leverage is manageable, supporting operational stability.

Income Statement

The company exhibits solid profitability with a strong gross profit margin of 59.8% and a respectable net profit margin of 12.6% for TTM. However, revenue shows a slight decline from the previous year, indicating potential challenges in growth. EBIT and EBITDA margins, at 17.7% and 20.9% respectively, reflect stable operational efficiency.

Balance Sheet

Vontier maintains a moderate debt-to-equity ratio of 1.96, which suggests a balanced approach to leverage. The return on equity (ROE) is strong at 34.1%, indicating effective use of equity to generate profits. The equity ratio, at 25.5%, shows that a quarter of the company's assets are financed by shareholders, reflecting a stable financial position.

Cash Flow

The company demonstrates robust cash flow management with a free cash flow growth rate of 6.2% TTM. The operating cash flow to net income ratio is 1.2, indicating efficient cash generation relative to net income. Additionally, the free cash flow to net income ratio stands at 0.98, reflecting a strong correlation between profit and cash flow, which is favorable for long-term sustainability.

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: 42.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 42.45 is above the 20-day moving average (MA) of 40.79, above the 50-day MA of 38.65, and above the 200-day MA of 36.59, indicating a bullish trend. The MACD of 1.12 indicates Negative momentum. The RSI at 64.19 is Neutral, neither overbought nor oversold. The STOCH value of 77.42 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
CGNX	77 Outperform	$7.17B	59.76	8.10%	0.74%	10.14%	57.53%
VNT	76 Outperform	$6.18B	16.04	35.63%	0.24%	1.16%	0.98%
MKSI	75 Outperform	$6.73B	25.47	11.12%	0.87%	4.47%	2887.37%
LFUS	74 Outperform	$6.21B	52.24	4.74%	1.11%	1.34%	-38.02%
ITRI	71 Outperform	$5.77B	21.76	18.92%	―	3.90%	44.95%
NOVT	67 Neutral	$4.14B	70.79	8.16%	―	6.34%	-1.57%
Sector *	61 Neutral	$36.02B	6.70	-7.25%	1.99%	8.63%	-7.76%

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.