Veralto Corporation (VLTO) 10-Year Financial Performance & Capital Metrics

VLTO • • Industrial / General

IndustrialsEnvironmental ServicesWater Treatment & PurificationWater Purification Systems

AboutVeralto Corporation provides water analytics, water treatment, marking and coding, and packaging and color solutions worldwide. It operates through two segments, Water Quality (WQ) and Product Quality & Innovation (PQI). The WQ segment offers precision instrumentation and water treatment technologies to measure, analyze, and treat water in residential, commercial, municipal, industrial, research, and natural resource applications under the Hach, Trojan Technologies, ChemTreat and other brands. This segment also provides water solutions, including chemical reagents, services, and digital solutions. The PQI segment offers marking and coding for packaged goods and related consumables; a software solution that provides digital asset management, marketing resource management, and product information management; inline printing solutions for products and packaging with marking and coding systems; design software and imaging systems for the creation of new packaging designs; color management solutions for printed packages and consumer and industrial products; and color standard services for the design industry. This segment sells its products and services through the Videojet, Linx, Esko, X-Rite, and Pantone brands. The company serves industries, such as municipal utilities, food and beverage, pharmaceutical, and industrials. The company was formerly known as DH EAS Holding Corp. and changed its name to Veralto Corporation in February 2023. Veralto Corporation was incorporated in 2022 and is headquartered in Waltham, Massachusetts.Show more

Revenue $5.19B +3.4%
EBITDA $1.29B +4.8%
Net Income $833M -0.7%
EPS (Diluted) 3.34 -2.1%
Gross Margin 59.79% +3.5%
EBITDA Margin 24.76% +1.3%
Operating Margin 23.26% +2.5%
Net Margin 16.04% -4.0%
ROE 48.51% +33.8%
ROIC 25.47% +0.8%
Debt/Equity 1.35 -32.3%
Interest Coverage 10.69 -71.9%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Excellent 3Y average ROE of 37.0%
✓FCF machine: 15.8% free cash flow margin
✓Healthy 5Y average net margin of 17.1%

✗Weaknesses

✗Expensive at 12.6x book value

Price & Volume

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Growth Metrics

Revenue CAGR

10Y-

5Y-

3Y3.38%

TTM6.15%

Profit (Net Income) CAGR

10Y-

5Y-

3Y-1.1%

TTM13.28%

EPS CAGR

10Y-

5Y-

3Y-1.55%

TTM12.65%

ROCE

10Y Avg27.8%

5Y Avg27.8%

3Y Avg27.74%

Latest25.2%

Peer Comparison

Water Purification Systems

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
ZWSZurn Elkay Water Solutions Corporation	7.91B	47.27	51.38	2.35%	10.78%	11.12%	3.43%	0.35
VLTOVeralto Corporation	25.62B	103.18	30.89	3.43%	16.75%	32.06%	3.2%	1.35

Profit & Loss

	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	4.7B	4.87B	5.02B	5.19B
Revenue Growth %	-	0.04%	0.03%	0.03%
Cost of Goods Sold+	1.99B	2.11B	2.12B	2.09B
COGS % of Revenue	0.42%	0.43%	0.42%	0.4%
Gross Profit+	2.71B	2.77B	2.9B	3.1B
Gross Margin %	0.58%	0.57%	0.58%	0.6%
Gross Profit Growth %	-	0.02%	0.05%	0.07%
Operating Expenses+	1.67B	1.65B	1.76B	1.9B
OpEx % of Revenue	0.36%	0.34%	0.35%	0.37%
Selling, General & Admin	1.43B	1.47B	1.54B	1.64B
SG&A % of Revenue	0.3%	0.3%	0.31%	0.32%
Research & Development	244M	217M	225M	253M
R&D % of Revenue	0.05%	0.04%	0.04%	0.05%
Other Operating Expenses	0	-43M	0	0
Operating Income+	1.04B	1.11B	1.14B	1.21B
Operating Margin %	0.22%	0.23%	0.23%	0.23%
Operating Income Growth %	-	0.07%	0.03%	0.06%
EBITDA+	1.15B	1.2B	1.23B	1.29B
EBITDA Margin %	0.24%	0.25%	0.24%	0.25%
EBITDA Growth %	-	0.05%	0.02%	0.05%
D&A (Non-Cash Add-back)	106M	90M	87M	78M
EBIT	1.04B	1.11B	1.13B	1.2B
Net Interest Income+	0	0	-30M	-113M
Interest Income	0	0	0	0
Interest Expense	0	0	30M	113M
Other Income/Expense	6M	1M	-44M	-122M
Pretax Income+	1.05B	1.11B	1.1B	1.09B
Pretax Margin %	0.22%	0.23%	0.22%	0.21%
Income Tax+	186M	268M	257M	253M
Effective Tax Rate %	0.82%	0.76%	0.77%	0.77%
Net Income+	861M	845M	839M	833M
Net Margin %	0.18%	0.17%	0.17%	0.16%
Net Income Growth %	-	-0.02%	-0.01%	-0.01%
Net Income (Continuing)	861M	845M	839M	833M
Discontinued Operations	0	0	0	0
Minority Interest	4M	5M	6M	7M
EPS (Diluted)+	3.50	3.43	3.41	3.34
EPS Growth %	-	-0.02%	-0.01%	-0.02%
EPS (Basic)	3.50	3.43	3.41	3.37
Diluted Shares Outstanding	246.1M	246.1M	246.4M	249.6M
Basic Shares Outstanding	246.1M	246.1M	246.4M	247.3M
Dividend Payout Ratio	-	-	-	0.11%

Balance Sheet

	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	1.21B	1.28B	2.07B	2.39B
Cash & Short-Term Investments	0	0	762M	1.1B
Cash Only	0	0	762M	1.1B
Short-Term Investments	0	0	0	0
Accounts Receivable	757M	816M	826M	812M
Days Sales Outstanding	58.79	61.16	60.05	57.07
Inventory	322M	345M	297M	288M
Days Inventory Outstanding	59.15	59.68	51.13	50.34
Other Current Assets	126M	119M	188M	186M
Total Non-Current Assets+	3.63B	3.54B	3.62B	4.02B
Property, Plant & Equipment	260M	247M	262M	268M
Fixed Asset Turnover	18.08x	19.72x	19.16x	19.38x
Goodwill	2.5B	2.48B	2.53B	2.69B
Intangible Assets	533M	479M	427M	535M
Long-Term Investments	0	0	0	0
Other Non-Current Assets	340M	343M	398M	523M
Total Assets+	4.84B	4.83B	5.69B	6.41B
Asset Turnover	0.97x	1.01x	0.88x	0.81x
Asset Growth %	-	-0%	0.18%	0.13%
Total Current Liabilities+	1.12B	1.12B	1.26B	1.25B
Accounts Payable	464M	440M	431M	395M
Days Payables Outstanding	85.23	76.11	74.21	69.05
Short-Term Debt	34M	32M	33M	39M
Deferred Revenue (Current)	1000K	1000K	1000K	1000K
Other Current Liabilities	216M	243M	403M	330M
Current Ratio	1.07x	1.14x	1.64x	1.92x
Quick Ratio	0.79x	0.83x	1.40x	1.69x
Cash Conversion Cycle	32.7	44.72	36.98	38.37
Total Non-Current Liabilities+	518M	462M	3.04B	3.12B
Long-Term Debt	0	0	2.63B	2.6B
Capital Lease Obligations	101M	91M	115M	129M
Deferred Tax Liabilities	0	0	0	0
Other Non-Current Liabilities	404M	357M	280M	371M
Total Liabilities	1.64B	1.58B	4.3B	4.36B
Total Debt+	135M	123M	2.78B	2.77B
Net Debt	135M	123M	2.02B	1.67B
Debt / Equity	0.04x	0.04x	2.00x	1.35x
Debt / EBITDA	0.12x	0.10x	2.26x	2.15x
Net Debt / EBITDA	0.12x	0.10x	1.64x	1.30x
Interest Coverage	-	-	38.00x	10.69x
Total Equity+	3.2B	3.24B	1.39B	2.04B
Equity Growth %	-	0.01%	-0.57%	0.47%
Book Value per Share	13.01	13.17	5.64	8.19
Total Shareholders' Equity	3.2B	3.23B	1.38B	2.04B
Common Stock	4.08B	4.19B	2M	2M
Retained Earnings	0	0	178M	917M
Treasury Stock	0	0	0	0
Accumulated OCI	-887M	-954M	-954M	-1.07B
Minority Interest	4M	5M	6M	7M

Cash Flow

	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	896M	870M	963M	875M
Operating CF Margin %	0.19%	0.18%	0.19%	0.17%
Operating CF Growth %	-	-0.03%	0.11%	-0.09%
Net Income	861M	845M	839M	833M
Depreciation & Amortization	106M	90M	87M	78M
Stock-Based Compensation	34M	41M	55M	65M
Deferred Taxes	-11M	-44M	0	0
Other Non-Cash Items	3M	44M	15M	15M
Working Capital Changes	-97M	-106M	-33M	-116M
Change in Receivables	-14M	-88M	2M	3M
Change in Inventory	-75M	-38M	52M	3M
Change in Payables	65M	23M	-1M	-29M
Cash from Investing+	-97M	-89M	-55M	-434M
Capital Expenditures	-54M	-34M	-54M	-55M
CapEx % of Revenue	0.01%	0.01%	0.01%	0.01%
Acquisitions	-	-	-	-
Investments	-	-	-	-
Other Investing	-9M	0	-3M	-16M
Cash from Financing+	-799M	-781M	-135M	-65M
Debt Issued (Net)	-	-	-	-
Equity Issued (Net)	-	-	-	-
Dividends Paid	0	0	0	-89M
Share Repurchases	-	-	-	-
Other Financing	1M	0	-2.6B	0
Net Change in Cash	-	-	-	-
Free Cash Flow+	842M	836M	909M	820M
FCF Margin %	0.18%	0.17%	0.18%	0.16%
FCF Growth %	-	-0.01%	0.09%	-0.1%
FCF per Share	3.42	3.40	3.69	3.29
FCF Conversion (FCF/Net Income)	1.04x	1.03x	1.15x	1.05x
Interest Paid	0	0	0	137M
Taxes Paid	0	0	113M	293M

Key Ratios

Metric	2021	2022	2023	2024
Return on Equity (ROE)	26.9%	26.24%	36.25%	48.51%
Return on Invested Capital (ROIC)	23.4%	24.9%	25.27%	25.47%
Gross Margin	57.72%	56.86%	57.78%	59.79%
Net Margin	18.32%	17.35%	16.71%	16.04%
Debt / Equity	0.04x	0.04x	2.00x	1.35x
Interest Coverage	-	-	38.00x	10.69x
FCF Conversion	1.04x	1.03x	1.15x	1.05x
Revenue Growth	-	3.62%	3.1%	3.43%

Revenue by Segment

	2024
Revenue from Contract with Customer, Measurement, Recurring	3.15B
Revenue from Contract with Customer, Measurement, Recurring Growth	-
Revenue from Contract with Customer, Measurement, Nonrecurring	2.04B
Revenue from Contract with Customer, Measurement, Nonrecurring Growth	-

Revenue by Geography

	2024
UNITED STATES	2.31B
UNITED STATES Growth	-
All Other Countries	2.28B
All Other Countries Growth	-
CHINA	334M
CHINA Growth	-
GERMANY	266M
GERMANY Growth	-

Frequently Asked Questions

Valuation & Price

Veralto Corporation (VLTO) has a price-to-earnings (P/E) ratio of 30.9x. This suggests investors expect higher future growth.

Growth & Financials

Veralto Corporation (VLTO) reported $5.45B in revenue for fiscal year 2024. This represents a 16% increase from $4.70B in 2021.

Veralto Corporation (VLTO) grew revenue by 3.4% over the past year. Growth has been modest.

Yes, Veralto Corporation (VLTO) is profitable, generating $913.0M in net income for fiscal year 2024 (16.0% net margin).

Dividend & Returns

Yes, Veralto Corporation (VLTO) pays a dividend with a yield of 0.35%. This makes it attractive for income-focused investors.

Veralto Corporation (VLTO) has a return on equity (ROE) of 48.5%. This is excellent, indicating efficient use of shareholder capital.

Veralto Corporation (VLTO) generated $986.0M in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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