Vontier (NYSE:VNT) - Share price, News & Analysis

VNT fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	2/6
Past Performance	3/6
Financial Health	2/6
Dividends	0/6

VNT Stock Overview

Rewards

Trading at 65.9% below our estimate of its fair value

Earnings are forecast to grow 3.67% per year

Earnings have grown 6.4% per year over the past 5 years

Risk Analysis

Debt is not well covered by operating cash flow

Large one-off items impacting financial results

Vontier Competitors

Dover

NYSE:DOV

US$19.2b

Ingersoll Rand

NYSE:IR

US$17.6b

Franklin Electric

NasdaqGS:FELE

US$3.3b

WashTec

XTRA:WSU

€634.3m

Price History & Performance

Summary of all time highs, changes and price drops for Vontier
Historical stock prices
Current Share Price	US$27.30
52 Week High	US$37.08
52 Week Low	US$21.95
Beta	0
1 Month Change	8.46%
3 Month Change	10.39%
1 Year Change	-19.68%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-19.71%

Recent News & Updates

Apr 22

Returns On Capital Signal Tricky Times Ahead For Vontier (NYSE:VNT)

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...

Shareholder Returns

	VNT	US Electronic	US Market
7D	5.3%	3.8%	2.7%
1Y	-19.7%	-9.4%	-8.1%

Return vs Industry: VNT underperformed the US Electronic industry which returned -9.4% over the past year.

Return vs Market: VNT underperformed the US Market which returned -8.1% over the past year.

Price Volatility

Is VNT's price volatile compared to industry and market?
VNT volatility
VNT Average Weekly Movement	4.8%
Electronic Industry Average Movement	7.8%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	2.9%

Stable Share Price: VNT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: VNT's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2019	8,500	Mark Morelli	https://www.vontier.com

Vontier Corporation engages in the research and development, manufacture, sale, and distribution of technical equipment, components, software, and services for manufacturing, repairing, and servicing in the mobility infrastructure industry worldwide. The company offers a range of solutions, including environmental sensors, fueling equipment, field payment hardware, point-of sale, workflow and monitoring software, vehicle tracking and fleet management, software solutions for traffic light control, and vehicle mechanics’, and technicians’ equipment. Its mobility technologies products include solutions and services in the areas of fuel dispensing, remote fuel management, point-of-sale and payment systems, environmental compliance, vehicle tracking and fleet management, and traffic management; and diagnostics and repair technologies products comprise vehicle repair tools, toolboxes, automotive diagnostic equipment, and software, as well as wheel-service equipment for automotive tire installation and repair shops, including brake lathes, tire changers, wheel balancers, and wheel weights under the Ammco and Coats brands.

Vontier Fundamentals Summary

How do Vontier's earnings and revenue compare to its market cap?
VNT fundamental statistics
Market Cap	US$4.40b
Earnings (TTM)	US$572.20m
Revenue (TTM)	US$3.03b

7.7x

P/E Ratio

1.4x

P/S Ratio

Is VNT overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
VNT income statement (TTM)
Revenue	US$3.03b
Cost of Revenue	US$1.67b
Gross Profit	US$1.36b
Other Expenses	US$786.90m
Earnings	US$572.20m

Last Reported Earnings

Apr 01, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	3.55
Gross Margin	44.83%
Net Profit Margin	18.88%
Debt/Equity Ratio	469.1%

How did VNT perform over the long term?

See historical performance and comparison

Dividends

0.4%

Current Dividend Yield

3%

Payout Ratio

Valuation

Is Vontier undervalued compared to its fair value and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: VNT ($27.3) is trading below our estimate of fair value ($80.02)

Significantly Below Fair Value: VNT is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: VNT is good value based on its PE Ratio (7.7x) compared to the US Electronic industry average (16.3x).

PE vs Market: VNT is good value based on its PE Ratio (7.7x) compared to the US market (16x).

Price to Earnings Growth Ratio

PEG Ratio: VNT is poor value based on its PEG Ratio (2.1x)

Price to Book Ratio

PB vs Industry: VNT is overvalued based on its PB Ratio (8x) compared to the US Electronic industry average (1.9x).

Future Growth

How is Vontier forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

3.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: VNT's forecast earnings growth (3.7% per year) is above the savings rate (1.9%).

Earnings vs Market: VNT's earnings (3.7% per year) are forecast to grow slower than the US market (12.4% per year).

High Growth Earnings: VNT's earnings are forecast to grow, but not significantly.

Revenue vs Market: VNT's revenue is expected to decline over the next 3 years (-0.1% per year).

High Growth Revenue: VNT's revenue is forecast to decline over the next 3 years (-0.1% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: VNT's Return on Equity is forecast to be very high in 3 years time (47.8%).

Past Performance

How has Vontier performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

6.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: VNT has a large one-off gain of $185.9M impacting its April 1 2022 financial results.

Growing Profit Margin: VNT's current net profit margins (18.9%) are higher than last year (15.6%).

Past Earnings Growth Analysis

Earnings Trend: VNT's earnings have grown by 6.4% per year over the past 5 years.

Accelerating Growth: VNT's earnings growth over the past year (31.2%) exceeds its 5-year average (6.4% per year).

Earnings vs Industry: VNT earnings growth over the past year (31.2%) underperformed the Electronic industry 34.8%.

Return on Equity

High ROE: Whilst VNT's Return on Equity (103.68%) is outstanding, this metric is skewed due to their high level of debt.

Financial Health

How is Vontier's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: VNT's short term assets ($1.3B) exceed its short term liabilities ($848.3M).

Long Term Liabilities: VNT's short term assets ($1.3B) do not cover its long term liabilities ($2.9B).

Debt to Equity History and Analysis

Debt Level: VNT's net debt to equity ratio (403.8%) is considered high.

Reducing Debt: Insufficient data to determine if VNT's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: VNT's debt is not well covered by operating cash flow (13.9%).

Interest Coverage: VNT's interest payments on its debt are well covered by EBIT (11.8x coverage).

Balance Sheet

Dividend

What is Vontier current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.37%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: VNT's dividend (0.37%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.51%).

High Dividend: VNT's dividend (0.37%) is low compared to the top 25% of dividend payers in the US market (3.97%).

Stability and Growth of Payments

Stable Dividend: VNT is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: VNT is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.

Earnings Payout to Shareholders

Earnings Coverage: VNT is not paying a notable dividend for the US market.

Cash Payout to Shareholders

Cash Flow Coverage: VNT is not paying a notable dividend for the US market.

Next Steps

Explore strong dividend paying companies in the Tech industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

1.2yrs

Average management tenure

CEO

Mark Morelli (57 yo)

2.33yrs

Tenure

US$8,686,894

Compensation

Mr. Mark D. Morelli serves as Chief Executive Officer of Global Traffic Technologies, LLC. He has been President and Chief Executive Officer at Vontier Corporation since January 13, 2020 and has been its D...

CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD8.69M) is about average for companies of similar size in the US market ($USD6.88M).

Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: VNT's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.

Board Members

Experienced Board: VNT's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: VNT insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/18 00:00
End of Day Share Price	2022/05/18 00:00
Earnings	2022/04/01
Annual Earnings	2021/12/31