📊 VLTO Key Takeaways
Is Veralto Corp (VLTO) a Good Investment?
Veralto demonstrates strong operational leverage with net income growth (12.8%) outpacing revenue growth (6%), supported by excellent profitability margins (60% gross, 24% operating). Conservative leverage (0.89x debt/equity) and robust free cash flow generation ($170M, 12% margin) position the company for sustained financial health.
Veralto Corp Key Strengths (VLTO)
- Excellent profitability margins (60% gross, 24% operating, 18% net) indicate pricing power and operational efficiency
- Operating leverage evident with NI growth (12.8%) exceeding revenue growth (6%), demonstrating margin expansion capability
- Strong free cash flow generation ($170M) with minimal capex requirements indicates capital-light, cash-generative business model
- Conservative balance sheet with 0.89x debt/equity, healthy current ratio (1.48x), and $1.4B cash position
- Strong interest coverage (5.8x) and solid liquidity metrics support financial stability
VLTO Stock Risks: Veralto Corp Investment Risks
- Moderate revenue growth rate (6% YoY) below high-growth industry peers, suggesting mature market position or competitive pressure
- Low returns on assets (3.3%) and equity (8.5%) indicate underutilized asset base or capital inefficiency despite high margins
- Absolute debt level of $2.7B requires sustained profitability; elevated if revenue growth slows further
- Very low capex ($12M) may constrain organic growth investments or indicate deferred maintenance issues
- Cyclical exposure through instruments/electrical testing sector creates vulnerability to industrial demand slowdowns
Key Metrics to Watch
- Revenue growth acceleration - assess if 6% rate can expand through market share gains or new products
- Operating margin trajectory - monitor sustainability or expansion of 23.8% operating margin at higher revenue levels
- Free cash flow conversion - track FCF/net income ratio to ensure cash generation quality remains strong
- Debt reduction pace - monitor absolute debt levels and D/E ratio trend toward improved leverage
- Return on equity improvement - assess if capital structure optimization or profitability growth can improve 8.5% ROE
Veralto Corp (VLTO) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Veralto Corp presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
VLTO Profit Margin, ROE & Profitability Analysis
VLTO vs Utilities Sector: How Veralto Corp Compares
How Veralto Corp compares to Utilities sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Veralto Corp Stock Overvalued? VLTO Valuation Analysis 2026
Based on fundamental analysis, Veralto Corp appears fundamentally strong relative to the Utilities sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Veralto Corp Balance Sheet: VLTO Debt, Cash & Liquidity
VLTO Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Veralto Corp's revenue has shown modest growth of 10% over the 5-year period. The most recent EPS of $3.40 reflects profitable operations.
VLTO Revenue Growth, EPS Growth & YoY Performance
VLTO Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $1.3B | $225.0M | $0.90 |
| Q3 2025 | $1.3B | $219.0M | $0.88 |
| Q2 2025 | $1.3B | $203.0M | $0.81 |
| Q1 2025 | $1.2B | $184.0M | $0.74 |
| Q3 2024 | $1.3B | $205.0M | $0.83 |
| Q2 2024 | $1.3B | $203.0M | $0.81 |
| Q1 2024 | $1.2B | $184.0M | $0.74 |
| Q3 2023 | $1.2B | $205.0M | $0.83 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Veralto Corp Dividends, Buybacks & Capital Allocation
VLTO SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Veralto Corp (CIK: 0001967680)
📋 Recent SEC Filings
❓ Frequently Asked Questions about VLTO
What is the AI rating for VLTO?
Veralto Corp (VLTO) has an AI grade of A with 85% confidence, based on fundamental analysis of SEC EDGAR filings.
What are VLTO's key strengths?
Claude: Excellent profitability margins (60% gross, 24% operating, 18% net) indicate pricing power and operational efficiency. Operating leverage evident with NI growth (12.8%) exceeding revenue growth (6%), demonstrating margin expansion capability.
What are the risks of investing in VLTO?
Claude: Moderate revenue growth rate (6% YoY) below high-growth industry peers, suggesting mature market position or competitive pressure. Low returns on assets (3.3%) and equity (8.5%) indicate underutilized asset base or capital inefficiency despite high margins.
What is VLTO's revenue and growth?
Veralto Corp reported revenue of $1.4B.
Does VLTO pay dividends?
Veralto Corp pays dividends, with $32.0M distributed to shareholders in the trailing twelve months.
Where can I find VLTO SEC filings?
Official SEC filings for Veralto Corp (CIK: 0001967680) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is VLTO's EPS?
Veralto Corp has a diluted EPS of $1.02.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is VLTO's fundamental grade?
Based on our AI fundamental analysis in June 2026, Veralto Corp has a A grade with 85% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is VLTO stock overvalued or undervalued?
Valuation metrics for VLTO: ROE of 8.5% (sector avg: 10%), net margin of 17.9% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is VLTO's AI grade for 2026?
Our dual AI analysis gives Veralto Corp a combined A grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is VLTO's free cash flow?
Veralto Corp's operating cash flow is $182.0M, with capital expenditures of $12.0M. FCF margin is 12.0%.
How does VLTO compare to other Utilities stocks?
Vs Utilities sector averages: Net margin 17.9% (avg: 12%), ROE 8.5% (avg: 10%), current ratio 1.48 (avg: 0.8).