A Business at a Glance
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Veralto Corp
VLTO
$23.0B
Mkt Cap
$92.02
+0.57%
Veralto Corp (VLTO) has a current P/E ratio of 19.7, compared to its historical median P/E of 27.0. The stock is currently considered Cheap based on its historical valuation range.
Veralto Corp (VLTO) has a 5-year average return on invested capital (ROIC) of 30.4%. This indicates strong capital allocation and a potential competitive advantage.
Veralto Corp (VLTO) has a market capitalization of $22.6B. It is classified as a large-cap stock.
Yes, Veralto Corp (VLTO) pays a dividend with a trailing twelve-month yield of 0.50%.
Based on historical P/E analysis, Veralto Corp (VLTO) appears cheap. The current P/E of 19.7 is 27% below its historical median of 27.0. The estimated fair value CAGR (P/E method) is 0.8%.
Veralto Corp (VLTO) operates in the Instruments For Meas & Testing Of Electricity & Elec Signals industry, within the Technology sector.
Veralto Corp (VLTO) reported annual revenue of $5.5 billion in its most recent fiscal year, based on SEC EDGAR filings.
Veralto Corporation is a diversified technology company providing essential solutions for monitoring, enhancing, and protecting critical resources globally, operating through two segments: Water Quality (WQ) and Product Quality & Innovation (PQI). The WQ segment delivers comprehensive water analytics, treatment, and digital solutions through brands including Hach, Trojan Technologies, and ChemTreat, serving municipal utilities, industrial customers, and research institutions to ensure safe drinking water and optimize wastewater management; Hach alone serves over 149,000 customers and helps safeguard water for approximately 3.4 billion people daily, while Trojan Technologies supports treatment of 15 trillion gallons of water annually. The PQI segment provides marking and coding, packaging design, and color management solutions to consumer packaged goods, pharmaceutical, and industrial companies through brands including Videojet, Linx, Esko, X-Rite, and Pantone, enabling product authenticity, traceability, regulatory compliance, and brand trust. Veralto's business model is highly resilient, with approximately 61% of sales derived from recurring revenue streams including consumables, spare parts, services, and software, generating strong cash flows with limited capital expenditure requirements; the company distributes approximately 18% of technology and equipment products through third-party distributors and serves a geographically diversified customer base across North America (48% of 2025 sales), Western Europe (23%), other developed markets (2%), and high-growth markets (27%), with no single customer exceeding 10% of sales. The company leverages the Veralto Enterprise System (VES)—a business management philosophy and continuous improvement framework—to drive operational excellence, support growth initiatives, and enhance competitive differentiation across its nearly 17,000-person workforce, which includes approximately 5,000 associates in high-growth markets supported by nine local manufacturing facilities.
【Steady growth with pricing momentum】 Management expects core sales growth to accelerate as 2026 progresses, with low- to mid-single-digit core sales growth anticipated for the full year, supported by broad-based demand across key verticals and regions. Pricing is expected to remain at the high end of the historical 100–200 basis point range, reflecting both carryover from prior-year actions and new price increases implemented as part of regular cadence, while the company continues to navigate macroeconomic dynamics with underlying demand described as "pretty good and pretty solid." Margin expansion of approximately 25 basis points is targeted for 2026, driven by 50 basis points of core business improvement offset by approximately 25 basis points of dilution from the In-Situ acquisition, with the company expecting to leverage VES tools and operational efficiencies to support continued profitability growth. The company remains disciplined in capital allocation, with a bias toward acquisitions to expand product capabilities and geographic reach, while maintaining strong free cash flow conversion and evaluating strategic opportunities within its proven valuation framework.
| Metric | Target | Period |
|---|---|---|
| Adjusted EPS | $4.10–$4.20 | FY2026 |
| Core sales growth | low- to mid-single-digit range | FY2026 |
| Total sales growth | mid- to high- single- digit range | FY2026 |
| Adjusted operating profit margin | approximately 25 basis points of year-over-year improvement | FY2026 |
| Free cash flow conversion | approximately 100% of GAAP net income | FY2026 |
| Adjusted EPS | $4.20–$4.28 | FY2026 |
Adjusted EPS (FY2026): “Our adjusted EPS guidance for the full- year 2026 is in the range of $4.10-$4.20 per share, or mid- to high- single- digit growth over the prior year.”
Core sales growth (FY2026): “We are targeting core sales growth in the low- to mid-single- digit range on a year-over-year basis.”
Total sales growth (FY2026): “Total sales growth, including the impact of completed acquisitions and FX, is projected in the mid- to high- single- digit range.”
Adjusted operating profit margin (FY2026): “Moving to adjusted operating profit margin, we are targeting approximately 25 basis points of year-over-year improvement in 2026.”
Free cash flow conversion (FY2026): “We are targeting free cash flow conversion of approximately 100% of GAAP net income.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 5.6B | 5.5B | 5.2B | 5.0B | 4.9B | 4.7B |
| Net Income | 969M | 940M | 833M | 839M | 845M | 861M |
| EPS | $3.91 | $3.76 | $3.34 | $3.40 | $8,450,000.00 | $3.50 |
| Free Cash Flow | 1.0B | 1.0B | 820M | 909M | 836M | 842M |
| ROIC | 24.5% | 28.1% | 27.3% | 26.9% | 52.2% | 17.7% |
| Gross Margin | 59.9% | 59.9% | 59.8% | 57.8% | 56.7% | 57.7% |
| Debt/Equity | 0.89 | 0.86 | 1.28 | 1.90 | 0.00 | - |
| Dividends/Share | $0.46 | $0.44 | $0.36 | $0.00 | $0.00 | - |
| Operating Income | 1.3B | 1.3B | 1.2B | 1.1B | 1.1B | 1.0B |
| Operating Margin | 23.1% | 23.2% | 23.3% | 22.7% | 22.8% | 22.1% |
| ROE | 32.2% | 36.6% | 48.7% | 36.3% | 26.1% | - |
| Shares Outstanding | 246M | 250M | 249M | 247M | 0M | 246M |
| Metric | ||||||
|---|---|---|---|---|---|---|
| Income Statement | ||||||
| Revenue | 4.7B | 4.9B | 5.0B | 5.2B | 5.5B | 5.6B |
| Gross Margin | 57.7% | 56.7% | 57.8% | 59.8% | 59.9% | 59.9% |
| R&D | 244M | 217M | 225M | 253M | 266M | 270M |
| SG&A | 1.4B | 1.4B | 1.5B | 1.6B | 1.8B | 1.8B |
| EBIT | 1.0B | 1.1B | 1.1B | 1.2B | 1.3B | 1.3B |
| Op. Margin | 22.1% | 22.8% | 22.7% | 23.3% | 23.2% | 23.1% |
| Net Income | 861M | 845M | 839M | 833M | 940M | 969M |
| Net Margin | 18.3% | 17.4% | 16.7% | 16.0% | 17.1% | 17.3% |
| Non-Recurring | 0 | 0 | 0 | -15M | -6.0M | -6.0M |
| Returns on Capital | ||||||
| ROIC | 17.7% | 52.2% | 26.9% | 27.3% | 28.1% | 24.5% |
| ROE | N/A | 26.1% | 36.3% | 48.7% | 36.6% | 32.2% |
| ROA | 17.8% | 17.5% | 16.0% | 13.8% | 13.3% | 12.7% |
| Cash Flow | ||||||
| Op. Cash Flow | 896M | 870M | 963M | 875M | 1.1B | 1.1B |
| Free Cash Flow | 842M | 836M | 909M | 820M | 1.0B | 1.0B |
| Owner Earnings | 756M | 739M | 821M | 732M | 925M | 945M |
| CapEx | 54M | 34M | 54M | 55M | 63M | 60M |
| Maint. CapEx | 106M | 90M | 87M | 78M | 78M | 83M |
| Growth CapEx | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 106M | 90M | 87M | 78M | 78M | 83M |
| CapEx/OCF | 6.0% | 3.9% | 5.6% | 6.3% | 5.8% | 5.4% |
| Capital Allocation | ||||||
| Dividends Paid | 0 | 0 | 0 | 89M | 109M | 114M |
| Dividend Yield | N/A | N/A | N/A | 0.4% | 0.4% | 0.5% |
| Share Buybacks | 0 | 0 | 0 | 0 | 0 | 0 |
| Buyback Yield | 0.0% | N/A | N/A | N/A | N/A | 0.0% |
| Stock-Based Comp | 34M | 41M | 55M | 65M | 74M | 74M |
| Debt Repayment | 0 | 0 | 0 | 0 | 0 | 0 |
| Balance Sheet | ||||||
| Net Debt | 0 | 0 | 1.9B | 1.5B | 642M | 1.2B |
| Cash & Equiv. | 0 | 0 | 762M | 1.1B | 2.0B | 1.4B |
| Long-Term Debt | 0 | 0 | 2.6B | 2.6B | 2.0B | 2.0B |
| Debt/Equity | N/A | 0.00 | 1.90 | 1.28 | 0.86 | 0.89 |
| Interest Coverage | N/A | N/A | 38.0 | 10.7 | 13.3 | 13.3 |
| Equity | 0 | 3.2B | 1.4B | 2.0B | 3.1B | 3.0B |
| Total Assets | 4.8B | 4.8B | 5.7B | 6.4B | 7.7B | 7.7B |
| Total Liabilities | 4.8B | 1.6B | 4.3B | 4.4B | 4.6B | -61M |
| Intangibles | N/A | 479M | 427M | 535M | 524M | 750M |
| Retained Earnings | N/A | 0 | 178M | 917M | 1.7B | 2.0B |
| Working Capital | N/A | 157M | 808M | 1.1B | 1.4B | 960M |
| Current Assets | N/A | 1.3B | 2.1B | 2.4B | 3.4B | 2.9B |
| Current Liabilities | N/A | 1.1B | 1.3B | 1.2B | 2.1B | 2.0B |
| Per Share Data | ||||||
| EPS | 3.50 | 8,450,000.00 | 3.40 | 3.34 | 3.76 | 3.91 |
| Owner EPS | 3.07 | 7,390,000.00 | 3.33 | 2.94 | 3.70 | 3.85 |
| Book Value | 0.00 | 32,350,000.00 | 5.60 | 8.17 | 12.42 | 12.24 |
| Cash Flow/Share | 3.64 | 8,700,000.00 | 3.90 | 3.51 | 4.31 | 4.28 |
| Dividends/Share | N/A | 0.00 | 0.00 | 0.36 | 0.44 | 0.46 |
| Shares Out. | 246.0M | 0.0M | 246.8M | 249.4M | 250.0M | 245.6M |
| Valuation | ||||||
| P/E Ratio | N/A | N/A | 24.2 | 30.7 | 27.0 | 23.5 |
| P/FCF | N/A | N/A | 22.4 | 31.2 | 25.1 | 21.7 |
| EV/EBIT | N/A | N/A | 18.8 | 21.5 | 19.4 | 18.4 |
| Price/Book | N/A | N/A | 14.7 | 12.5 | 8.2 | 7.5 |
| Price/Sales | N/A | N/A | 3.6 | 4.7 | 4.6 | 4.0 |
| FCF Yield | N/A | N/A | 4.5% | 3.2% | 4.0% | 4.6% |
| Market Cap | 0 | N/A | 20.3B | 25.6B | 25.4B | 22.6B |
| Avg. Price | 0.00 | N/A | 73.62 | 97.12 | 100.50 | 92.02 |
| Year-End Price | N/A | N/A | 82.35 | 102.54 | 101.62 | 92.02 |
Veralto Corp passes 5 of 9 quality checks, suggesting mixed fundamentals.
Veralto Corp trades at 19.7x trailing earnings, compared to its 15-year median P/E of 27.0x, suggesting it is currently Cheap relative to its historical range. On a free-cash-flow basis, the stock trades at 17.9x vs a median of 25.1x. The company's 5-year average ROIC is 30.4% with a gross margin of 58.4%. Total shareholder yield (dividends) is 0.5%. At current prices, the estimated annualized return to fair value is -0.3%.
Veralto Corp (VLTO) has a net profit margin of 17.1%. This is a healthy margin.
Veralto Corp (VLTO) generated $1.0 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Veralto Corp (VLTO) has a debt-to-equity ratio of 0.86. This indicates moderate leverage.
Veralto Corp (VLTO) reported earnings per share (EPS) of $3.76 in its most recent fiscal year.
Veralto Corp (VLTO) has a return on equity (ROE) of 36.6%. This indicates the company generates strong returns for shareholders.
Veralto Corp (VLTO) has a 5-year average gross margin of 58.4%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 5 years of financial data for Veralto Corp (VLTO), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Veralto Corp (VLTO) has a book value per share of $12.42, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects core sales growth to accelerate as 2026 progresses, with low- to mid-single-digit core sales growth anticipated for the full year, supported by broad-based demand across key verticals and regions. Pricing is expected to remain at the high end of the historical 100–200 basis point range, reflecting both carryover from prior-year actions and new price increases implemented as part of regular cadence, while the company continues to navigate macroeconomic dynamics with underlying demand described as "pretty good and pretty solid." Margin expansion of approximately 25 basis points is targeted for 2026, driven by 50 basis points of core business improvement offset by approximately 25 basis points of dilution from the In-Situ acquisition, with the company expecting to leverage VES tools and operational efficiencies to support continued profitability growth. The company remains disciplined in capital allocation, with a bias toward acquisitions to expand product capabilities and geographic reach, while maintaining strong free cash flow conversion and evaluating strategic opportunities within its proven valuation framework.
Based on recent SEC filings and earnings calls, Veralto Corp (VLTO) has provided the following forward guidance: Adjusted EPS: $4.10–$4.20 (FY2026); Core sales growth: low- to mid-single-digit range (FY2026); Total sales growth: mid- to high- single- digit range (FY2026); Adjusted operating profit margin: approximately 25 basis points of year-over-year improvement (FY2026); Free cash flow conversion: approximately 100% of GAAP net income (FY2026), plus 1 additional metric.
Adjusted EPS (FY2026): “Reflecting this momentum and our strong first quarter, we raised our full year adjusted earnings per share guidance to a range of $4.20-$4.28 per share.”
No recent press releases.