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Bull
- Vontier has inherited a proven business system of disciplined capital allocation and continuous improvement from its former parent companies, Danaher and Fortive. u The spinoff from Fortive will allow Vontier to redeploy capital to its business, as its former parent invested less than 5% of its total M&A capital in Vontier.
- Vontier has built a large installed base that generates recurring revenue in the mid-20s.Bear
- Core revenue growth has been sluggish in recent years.
- In the long run, growth in electric vehicles threatens to disrupt Vontier ’ s retail fueling business.
- Vontier ’ s M&A-driven growth strategy creates acquisition risk and constrains growth in returns on invested capital.
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Disclaimer
The user julio holds no position in NYSE:VNT. Simply Wall St has no position in any of the companies mentioned. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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US$42.31
FV
11.1% undervalued intrinsic discount5.87%
Revenue growth p.a.
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5 days ago author updated this narrative
