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Veralto Corporation

Rank #117Capital Return

VLTO · NYSE · Industrials

Veralto Corporation (VLTO) — Rank #117 by gross profitability (GP/assets 0.43) · ROE 31.3% · Piotroski F-Score 5 / 9.

As-of 2026-09-15 · CIK 0001967680 · all metrics point-in-time as of the filing date.

About

Veralto Corporation provides water analytics, water treatment, marking and coding, and packaging and color solutions worldwide.

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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 software 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.

Industry
Pollution & Treatment Controls
Sector
Industrials
State
X1
Filer Category
Large accelerated filer
Fiscal Year End
December 31

Price History

VLTO+25.3% · +8.0% CAGRSPY+85.3% · +23.5% CAGR

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

$23.48B

P/E (annual)

25.6

P/S (annual)

4.3

P/B

7.8

P/OCF (annual)

21.8

Shareholder Yield

0.2%

Employees

17,000

Industry

Pollution & Treatment Controls

Exchange

NYSE

Signal Flags

4 green1 red
Revenue growth acceleratingGrowth rate increasing year over year
Deferred revenue growingRevenue and deferred revenue both growing — retention signal
RPO outpacing revenueRemaining performance obligations growing faster than recognized revenue — forward demand building
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 1-quarter streak
Operating margin decliningOperating margin lower than prior year

Quality Profile

Profitability

1/1 pass
GP / assets
0.43
Return on equity
31.3%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.55
Current ratio
1.48×
Net cash
-$1.23B

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
1.3%

Growth

2/2 pass
Revenue growth
6.0%
Piotroski F-Score
5 / 9
Share dilution
0.3%

Terry Smith quality gate

Passes 4/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

10.1%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 0.3% — per-share value needs a total required return of 10.3% once share-count change is priced in.

vs. own 6-year median revenue growth: 3.1%

priced above its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

5.6%

r = 10% (base)

10.1%

r = 12%

13.9%

Net debt / market cap: 5.1%

Base FCF: $1B3Y mean FCF: $914.3M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

24.8xCheap
24.8xmed 25.5x30.1x

P / S

Price / revenue per share

4.2xCheap
4.2xmed 4.4x4.8x

P / B

Price / book value per share

7.5xFair
6.7xmed 9.9x15.6x

P / GP

Price / gross profit per share

7.1xCheap
7.1xmed 7.8x8.1x

P / FCF

Price / free cash flow per share

23.0xCheap
23.0xmed 25.6x30.6x

FCF yield, shareholder yield, and buyback activity are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.43

Primary signal (Novy-Marx).

72nd pctl of 37 SIC 38 peers

Return on equity

31.3%

Gross margin

59.9%

53rd pctl of 37 SIC 38 peers

Revenue growth (YoY)

6.0%

RPO growth (YoY)

10.9%

Remaining performance obligations growth — RPO > revenue = forward demand building.

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

4.2%

Revenue CAGR (5Y)

—

Earnings CAGR (3Y)

3.6%

FCF CAGR (3Y)

—

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.55

12th pctl of 35 SIC 38 peers (best = lowest)

Current ratio

1.48×

9th pctl of 36 SIC 38 peers

Quick ratio

1.19×

Net cash

-$1.23B

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$1.01B

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

0.08

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

1.3%

Stock-based comp intensity.

Dividend safety

Composite score

3.0 / 5

Good
Payout ratio
11.6%5/5 Strong
FCF coverage
9.30×5/5 Strong
Dividend growth streak
1 yr1/5 Weak
Balance-sheet health
D/E 1.55 · IC N/A1/5 Weak

Piotroski F-Score

F-Score

5 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20212025
Value
Capital Return
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