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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#1101
Positioning
Market Dominance
Manufacturing
Measuring And Control Equipment
$26.6B
Jennifer L. Honeycutt
Veralto Corporation provides water supply services. The company offers water treatment solutions that sources water to the consumers and back into the water cycle. It also provides printers, instruments, software, services, and consumables for color and appearance management, packaging design and quality management, packaging converting, printing, marking and coding, and traceability applications to food and beverage, consumer packaged goods, pharmaceutical, and industrial products. Veralto Corporation was formerly known as DH EAS Holding Corp. and changed its name to Veralto Corporation on February 22, 2023. The company was incorporated in 2022 and is based in Waltham, Massachusetts. Veralto Corporation operates as a subsidiary of Danaher Corporation.
Headcount
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Dates updated upon official exchange announcement.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = VLTO ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$UL UNILEVER PLC | 78 | 96 | 98 | 59 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ASML ASML HOLDING NV | 77 | 89 | 86 | 83 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ESLT ELBIT SYSTEMS LTD | 76 | 81 | 87 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$MT ArcelorMittal | 75 | 71 | 98 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$AMAT APPLIED MATERIALS INC /DE | 75 | 85 | 87 | 84 | 20.9x | 13.6x | 32.9% | 20.5% | 48.8% | 30.6% | 24.4% | 7.7% | 0.9% | 32.0x | $148.6B | VS | |
$SIMO Silicon Motion Technology CORP | 75 | 84 | 86 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$CODA Coda Octopus Group, Inc. | 74 | 83 | 90 | 79 | 16.3x | 11.9x | 7.4% | 7.5% | 68.3% | 19.5% | 18.2% | 29.0% | 0.0% | 0.0x | $84M | VS | |
$GSK GSK plc | 74 | 84 | 90 | 70 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$EFXT Enerflex Ltd. | 74 | 80 | 91 | 83 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$BUD Anheuser-Busch InBev SA/NV | 74 | 84 | 97 | 63 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$VLTO Veralto Corp | 56 | 71 | 64 | 41 | 25.5x | 20.3x | 29.1% | 11.8% | 60.0% | 23.4% | 16.7% | 9.0% | 0.4% | 86.0x | $26.6B | ||
| SECTOR BENCH | - | - | - | - | - | 22.3x | 11.5x | -1.9% | 0.9% | 44.1% | 2.5% | 1.0% | 6.7% | 0.0% | 0.2x | - | REF |
Veralto Corp (VLTO) receives a "Hold" rating with a composite score of 56.4/100. It ranks #1101 out of 7,333 stocks in our coverage universe and carries a 3-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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HQ Base
Pending Verification
In-line with peers — no strong momentum signal
Trading at a discount to fundamentals — favorable entry valuation
High profitability & efficiency — strong quality floor supports entry
Low volatility — smoother ride and historically better risk-adjusted returns
Aggressive spending — empire-building risk, dilutive growth
Mid-range overall rating
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Relative valuation derived from Manufacturing sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for VLTO.
View All RatingsROIC 115.8% vs WACC 8.8% (spread +107.0%)
GM 60% vs sector 44%, OM 23% vs sector 3%
Capital turnover 6.13x, R&D intensity 4.8%
Rev growth 9%, 3yr history
Interest coverage 60.8x, Net debt/EBITDA 0.7x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate Veralto Corp (VLTO) as a Hold with a composite score of 56.4/100 at a current price of $93.60. The stock presents a mixed quantitative picture — neither compelling enough to warrant new accumulation nor weak enough to justify selling.
Veralto Corp holds a top-quartile position (#0 of 50) within the Manufacturing sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 56.4/100 places it at rank #1101 in our full universe.
Wide
Low
Standard
Undervalued
Gross margins of 60% signal strong pricing power.
Returns on equity of 29.1% exceed cost of capital.
Stable competitive position in a defensive sector.
Vulnerability to macroeconomic shocks and interest rate volatility.
Veralto Corp represents a hold based on multi-factor quantitative performance.
Our model assigns Veralto Corp a Hold rating, with a composite score of 56.4/100 and 3 out of 5 stars. Ranked #1101 of 7,333 stocks, VLTO presents a mixed quantitative picture — neither compelling enough to initiate new positions nor weak enough to warrant selling. Investors already holding may consider maintaining their position while monitoring for changes in the factor profile.
VLTO earns a quality score of 71/100, indicating above-average business quality. The company reports a return on equity of 29.1% (sector avg: -1.9%), gross margins of 60.0% (sector avg: 44.1%), net margins of 16.7% (sector avg: 1.0%). Companies in this tier generally demonstrate consistent profitability and efficient capital deployment, though they may face some competitive pressure.
VLTO's value score of 64/100 indicates the stock is fairly valued based on its current fundamentals. Key valuation metrics include a P/E ratio of 25.54x, an EV/EBITDA of 20.32x, a P/B ratio of 7.44x. At this level, neither a clear bargain nor overpriced, the stock's attractiveness depends more on forward growth expectations and qualitative factors.
Veralto Corp's investment score of 35/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of 9.0% vs. a sector average of 6.7% and a return on assets of 11.8% (sector: 0.9%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
VLTO is currently showing below-average momentum at 41/100, which may indicate weakening institutional interest or negative sentiment shifts. Revenue growth stands at 9.0% year-over-year, while a beta of 0.69 reflects its sensitivity to broader market moves. Investors should note that declining momentum can precede further price weakness, though contrarian opportunities sometimes emerge at these levels.
Veralto Corp earns an excellent stability score of 89/100, reflecting low price volatility and a conservatively managed balance sheet. Key stability metrics include a beta of 0.69 and a debt-to-equity ratio of 86.00x (sector avg: 0.2x). Stocks with this level of stability tend to act as portfolio anchors, providing downside protection during market corrections while still participating in broad market advances.
VLTO carries a short interest score of 70/100, indicating moderate short selling activity. This is a neutral reading — not enough to signal systemic bearishness, but worth monitoring. Specific risk factors include elevated leverage (D/E: 86.00x). At $26.6B market cap (large-cap), Veralto Corp offers reasonable institutional liquidity.
VLTO offers a modest dividend yield of 0.4%. While the income contribution is relatively small, even a small dividend signals management's commitment to shareholder returns and can serve as a signal of financial discipline.
Veralto Corp is a large-cap company in the Manufacturing sector, ranked #0 of 50 in its sector (100th percentile) and #1101 of 7,333 overall (85th percentile). Key comparisons include ROE of 29.1% exceeding the -1.9% sector median and operating margins of 23.4% above the 2.5% sector average. This top-quartile standing reflects exceptional competitive strength relative to Manufacturing peers.
While VLTO currently exhibits a HOLD profile, superior opportunities exist within the MANUFACTURING sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Manufacturing Alpha →Quant Factor Profile
Key factor gap
Stability (89) vs Investment (35) — closing this gap could shift the rating.
EV/EBITDA 77% ABOVE SECTOR MEDIAN
ROE 1634% BELOW SECTOR MEDIAN
Gross Margin 36% ABOVE SECTOR MEDIAN (FAVORABLE)
Veralto aims for an adjusted EPS of $4.10–$4.20 by 2026, driven by an anticipated 4% to 5% annual core revenue growth. The company is strategically enhancing its water analytics portfolio through the acquisition of In-Situ, a move expected to contribute to its financial targets and market position. This acquisition aligns with Veralto's focus on expanding its presence in crucial environmental and water quality sectors.
Veralto Corporation (NYSE:VLTO) recently released its full-year results, reporting revenues of US$5.5 billion and EPS of US$3.76, aligning with analyst predictions. Despite an initial 8.0% drop in shares, analysts have maintained their revenue and EPS forecasts for 2026 at US$5.85 billion and US$4.04 respectively, with no significant change in the consensus price target of US$111. The company is expected to accelerate revenue growth to 6.4% annually, matching the industry average.
Trane Technologies (TT) gains from transformation initiatives, growth in the HVAC deals, and strength across bookings.
JPMorgan Chase & Co. reduced its stake in Veralto Corporation by 1.7% in the third quarter, selling 54,227 shares, though it still holds over 3.1 million shares. Other institutional investors like Vanguard Group Inc. and State Street Corp increased their positions in VLTO. The article also covers Veralto's recent earnings beat, increased dividend, insider stock sales, and mixed analyst ratings.
Veralto Corporation (VLTO) has underperformed the S&P 500 over the past year, with its stock dropping 3.6% while the S&P 500 gained 11.5%. Despite exceeding Q4 2025 EPS expectations, the stock fell due to slower growth projections for 2026. However, analysts maintain a "Moderate Buy" consensus, with an average price target that implies a 16.4% premium over current levels.
Above 50MA
37.18%
Net New Highs
+51081