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Vontier Corp (VNT)
:VNT
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Vontier
(NYSE:VNT)63Neutral
Positive Factors
Financial Performance
Vontier had 6% y/y orders growth and is seeing a multi-year replacement cycle start for underground tank equipment.
Valuation
VNT shares trade at just 12x 2025E adj. EPS, well below the 22x peer average, despite similar margins and adj. EPS growth.
Negative Factors
Revenue Decline
In 2024, Vontier faced two headwinds, including a revenue decline in car wash equipment & software and revenue and margin declines in the Repair Solutions segment.
Vontier (VNT) vs. S&P 500 (SPY)
Market Cap
$4.85B
Dividend Yield0.3%
Average Volume (3M)1.07M
Price to Earnings (P/E)12.3
Beta (1Y)1.40
Revenue Growth-3.75%
EPS Growth13.76%
CountryUS
Employees8,000
SectorTechnology
Sector Strength48
IndustryHardware & Equipment
Share Statistics
EPS (TTM)2.75
Shares Outstanding148,700,000
10 Day Avg. Volume1,375,279
30 Day Avg. Volume1,067,992
Financial Highlights & Ratios
PEG Ratio0.89
Price to Book (P/B)N/A
Price to Sales (P/S)1.68
Price to Cash Flow (P/CF)7.40
P/FCF Ratio7.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$45.20Price Target Upside34.36% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Vontier Business Overview & Revenue Model
Company DescriptionVontier Corporation (VNT) is a global industrial technology company that focuses on the transportation and mobility sectors. The company's diverse portfolio includes products and services that improve the efficiency, safety, and environmental impact of the transportation industry. Vontier operates through various segments, offering solutions such as fueling equipment, vehicle and fleet management technologies, environmental sensors, and various software and hardware tools for vehicle diagnostics and repair.
How the Company Makes MoneyVontier makes money through the sale of its broad range of products and solutions designed for the transportation and mobility industries. Key revenue streams include the manufacturing and distribution of fueling systems and equipment, which are used by fuel retailers and service stations globally. Additionally, Vontier generates income from its vehicle and fleet management technologies, which help businesses optimize fleet operations, enhance safety, and reduce costs. The company also earns revenue from environmental and emissions control technologies, offering solutions that help clients comply with regulations and improve sustainability. Significant partnerships with automotive manufacturers, fuel retailers, and logistics companies also contribute to Vontier's earnings, as these collaborations expand the reach and application of its technologies across various markets.
Vontier Financial Statement Overview
Summary
Vontier demonstrates strong operational efficiencies and consistent cash generation, but faces challenges due to high leverage and recent revenue declines. While profitability indicators remain solid, the negative revenue and free cash flow growth signal potential risks that need addressing to sustain financial health.Income Statement
The company shows a stable revenue generation with a slight decline in the most recent year. Gross profit margins are strong at 100% for 2024 due to accounting treatment, but EBIT and EBITDA margins indicate consistent operational efficiency. However, net profit margins have slightly decreased, and revenue growth has been negative recently, impacting overall performance.65
Positive
Balance Sheet
The balance sheet reflects a high level of debt relative to equity, with a Debt-to-Equity Ratio exceeding 2. This indicates potential leverage risk. However, Return on Equity shows improvement due to increased net income, and the Equity Ratio has improved, suggesting better asset support by equity.58
Neutral
Cash Flow
The company has maintained a consistent free cash flow, although growth has been negative. The operating cash flow remains robust relative to net income, indicating strong cash generation from operations. However, free cash flow relative to net income shows fluctuation, which poses a potential risk.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.98B | 3.10B | 3.18B | 2.99B | 2.70B | Gross Profit |
| 1.42B | 1.43B | 1.43B | 1.33B | 1.19B | EBIT |
| 537.00M | 543.40M | 577.90M | 582.20M | 638.80M | EBITDA |
| 699.40M | 702.20M | 698.70M | 683.60M | 636.70M | Net Income Common Stockholders |
| 422.20M | 376.90M | 401.30M | 413.00M | 342.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 356.40M | 340.90M | 225.80M | 572.60M | 380.50M | Total Assets |
| 4.31B | 4.29B | 4.34B | 4.35B | 3.07B | Total Debt |
| 2.20B | 2.35B | 2.64B | 2.64B | 1.81B | Net Debt |
| 1.84B | 2.01B | 2.43B | 2.06B | 1.43B | Total Liabilities |
| 3.25B | 3.40B | 3.76B | 3.78B | 2.88B | Stockholders Equity |
| 1.05B | 890.40M | 576.50M | 569.90M | 187.40M |
| Cash Flow | Free Cash Flow | |||
| 344.80M | 394.90M | 261.20M | 433.30M | 655.60M | Operating Cash Flow |
| 427.50M | 455.00M | 321.20M | 481.10M | 691.30M | Investing Cash Flow |
| -11.40M | 69.30M | -329.90M | -1.01B | -41.70M | Financing Cash Flow |
| -392.30M | -387.80M | -347.90M | 725.50M | -283.90M |
Vontier Technical Analysis
Negative
33.64
Price Trends
37.31
Negative
37.39
Negative
36.83
Negative
Market Momentum
-1.16
Positive
24.69
Positive
11.85
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VNT, the sentiment is Negative. The current price of 33.64 is below the 20-day moving average (MA) of 37.11, below the 50-day MA of 37.31, and below the 200-day MA of 36.83, indicating a bearish trend. The MACD of -1.16 indicates Positive momentum. The RSI at 24.69 is Positive, neither overbought nor oversold. The STOCH value of 11.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VNT.
Vontier Risk Analysis
Vontier disclosed 36 risk factors in its most recent earnings report. Vontier reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Vontier Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $78.56B | 23.43 | 110.24% | 2.11% | -1.30% | 20.26% | |
77 Outperform | $24.39B | 9.55 | 24.30% | 1.11% | -2.99% | 159.26% | |
75 Outperform | $78.11B | 26.26 | 25.87% | 1.03% | 0.41% | 19.76% | |
72 Outperform | $63.06B | 28.21 | 9.66% | 1.77% | 10.29% | 22.72% | |
69 Neutral | $30.57B | 34.41 | 26.22% | 1.85% | -11.28% | -23.69% | |
63 Neutral | $4.85B | 12.25 | 43.49% | 0.30% | -3.75% | 13.76% | |
59 Neutral | $22.39B | 11.53 | -18.05% | 2.31% | 5.00% | -25.89% |
* Technology Sector Average
Performance Comparison
VNT
Vontier
32.61
-10.09
-23.63%
DOV
Dover
177.74
4.34
2.50%
EMR
Emerson Electric Company
111.83
3.20
2.95%
ITW
Illinois Tool Works
267.67
10.72
4.17%
PH
Parker Hannifin
606.60
73.91
13.87%
ROK
Rockwell Automation
270.37
-8.30
-2.98%
Vontier Earnings Call Summary
Earnings Call Date: Feb 13, 2025 | % Change Since: -10.75% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a solid performance in key segments like Environmental & Fueling Solutions and Mobility Technologies, supported by strong demand and successful cost optimization initiatives. However, challenges remain in the car wash and repair segments, with mixed headwinds impacting margins.Highlights
Strong Fourth Quarter Performance
Vontier delivered top- and bottom-line results above the midpoint of guidance with 3.5% core growth in Q4 and bookings up 9% organically.
Growth in Environmental & Fueling Solutions
The Environmental & Fueling Solutions segment achieved nearly 11% core growth in Q4, with global dispenser equipment sales growing high-single-digits.
Mobility Technologies Advancement
Mobility Technologies saw a 3% core sales increase, with Invenco leading the way, showcasing strong demand for FlexPay6 and Unified Payment Solutions.
Operational and Margin Improvements
Operating margin in the Environmental & Fueling Solutions segment increased 110 basis points for the full year 2024.
Successful Cost Optimization
The company achieved cost optimization benefits that offset margin headwinds from mix, with significant progress on product line simplification.
Lowlights
Challenges in Car Wash Business
DRB's revenues declined by over 20% for the full year, with the car wash industry experiencing a pullback on planned greenfield activity.
Decline in Repair Solutions
Repair Solutions segment saw a core sales decline of just over 2% in Q4, with large-ticket items under pressure due to discretionary spending slowdowns.
Mix and Geographic Headwinds
Operating margins were impacted by geographic and product mix, particularly in the Environmental & Fueling Solutions segment, leading to a slight decline in Q4.
Company Guidance
During the Vontier Fourth Quarter 2024 Earnings Conference Call, the company provided guidance for fiscal year 2025, indicating expected revenue of approximately $3 billion, with core growth projected between 1% and 3.5%. Operating margins are anticipated to expand by 35 to 50 basis points, driven by cost optimization initiatives. Vontier forecasts earnings per share (EPS) in the range of $3.00 to $3.15, reflecting mid- to high-single-digit growth year-over-year. The company plans to manage the timing shift of the Matco Expo, which moves from Q1 to Q2, impacting first-quarter results. Despite this, Vontier sees sequential revenue acceleration throughout the year, with first-half EPS comprising a little over 46% of the annual total. The guidance incorporates a $30 million to $40 million foreign exchange headwind and includes a placeholder for $75 million in share repurchases.Vontier Corporate Events
Executive/Board Changes
Vontier Amends Executive Incentive Compensation Plan
Neutral
Feb 26, 2025
On February 24, 2025, Vontier Corporation’s Board of Directors approved an amendment to the Executive Incentive Compensation Plan. The amended plan outlines performance-based incentive awards for executive officers, determined by specific performance goals such as earnings per share, stock price targets, and other financial and strategic criteria. The plan includes stipulations for eligibility based on employment status, with specific conditions for voluntary and involuntary terminations, retirements, disabilities, and other employment changes.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.