Vontier (VNT) AI Stock Analysis

• Market Cap: $5.29B
• Dividend Yield: 0.28%
• Average Volume (3M): 991.62K
• Price to Earnings (P/E): 14.6
• Beta (1Y): 1.28
• Revenue Growth: -3.59%
• EPS Growth: -11.30%
• Country: US
• Employees: 8,000
• Sector: Technology
• Sector Strength: 81
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.77
• Shares Outstanding: 147,900,000
• 10 Day Avg. Volume: 766,509
• 30 Day Avg. Volume: 991,616
• PEG Ratio: -1.28
• Price to Book (P/B): 4.74
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.08
• Enterprise Value/Market Cap: 1.32
• Enterprise Value/Revenue: 0.58
• Enterprise Value/Gross Profit: 5.04
• Enterprise Value/Ebitda: 2.63
• 1Y Price Target: $41.33
• Price Target Upside: 15.61% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 75 Outperform
• Price Target: $39.00 ▲(9.09%Upside)

Vontier's overall stock score reflects strong financial performance, particularly in profitability and cash flow management. The company's technical indicators show positive momentum, though caution is advised due to potential overbought signals. The earnings call provided reassurance in strategic direction and growth potential, despite some challenges. Valuation metrics suggest the stock may be undervalued, presenting a potential investment opportunity.

Positive Factors

Capital Strategy

Capital optionality is expanding with Net Debt/EBITDA trending sub-2x, with a likely pivot towards stock repurchases.

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

Vontier faced revenue decline in car wash equipment & software, impacting financial results.

Segment Performance

Vontier experienced revenue and margin declines in the Repair Solutions segment.

Vontier Business Overview & Revenue Model

Company Description

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. The company markets its products and services to retail and commercial fueling operators, convenience store and in-bay car wash operators, tunnel car wash and commercial vehicle repair businesses, municipal governments, and public safety entities and fleet owners/operators through a network of franchised mobile distributors, as well as direct sales personnel and independent distributors. It serves customers in North America, the Asia Pacific, Europe, and Latin America. The company was incorporated in 2019 and is headquartered in Raleigh, North Carolina.

How the Company Makes Money

Vontier makes money primarily through the sale of its technology-driven products and services. The company's revenue model includes the production and distribution of hardware such as fuel dispensers and payment systems, alongside software solutions for fleet management and vehicle diagnostics. Key revenue streams include sales from their extensive product lines, service and maintenance contracts, and software subscriptions. Significant partnerships with fuel retailers, automotive service providers, and fleet operators contribute to its earnings, providing a recurring revenue base through ongoing service agreements and technological upgrades.

Vontier Financial Statement Overview

Summary

Vontier shows strong profitability with a high gross margin and stable operational efficiency, despite a slight revenue decline. The company's balance sheet is stable, with a moderate debt-to-equity ratio and strong ROE. Cash flow management is robust, reflecting efficient cash generation relative to net income.

Income Statement

The company exhibits solid profitability with a strong gross profit margin of 59.8% and a respectable net profit margin of 12.6% for TTM. However, revenue shows a slight decline from the previous year, indicating potential challenges in growth. EBIT and EBITDA margins, at 17.7% and 20.9% respectively, reflect stable operational efficiency.

Balance Sheet

Vontier maintains a moderate debt-to-equity ratio of 1.96, which suggests a balanced approach to leverage. The return on equity (ROE) is strong at 34.1%, indicating effective use of equity to generate profits. The equity ratio, at 25.5%, shows that a quarter of the company's assets are financed by shareholders, reflecting a stable financial position.

Cash Flow

The company demonstrates robust cash flow management with a free cash flow growth rate of 6.2% TTM. The operating cash flow to net income ratio is 1.2, indicating efficient cash generation relative to net income. Additionally, the free cash flow to net income ratio stands at 0.98, reflecting a strong correlation between profit and cash flow, which is favorable for long-term sustainability.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.96B	2.98B	3.10B	3.18B	2.99B	2.70B
	Gross Profit
1.38B	1.42B	1.43B	1.43B	1.33B	1.19B
	EBIT
525.00M	537.00M	543.40M	577.90M	582.20M	638.80M
	EBITDA
648.70M	699.40M	702.20M	698.70M	683.60M	636.70M
	Net Income Common Stockholders
373.30M	422.20M	376.90M	401.30M	413.00M	342.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
333.60M	356.40M	340.90M	225.80M	572.60M	380.50M
	Total Assets
4.29B	4.31B	4.29B	4.34B	4.35B	3.07B
	Total Debt
2.14B	2.20B	2.35B	2.64B	2.64B	1.81B
	Net Debt
1.81B	1.84B	2.01B	2.43B	2.06B	1.43B
	Total Liabilities
3.19B	3.25B	3.40B	3.76B	3.78B	2.88B
	Stockholders Equity
1.10B	1.05B	890.40M	576.50M	569.90M	187.40M
Cash Flow		Free Cash Flow
366.20M	344.80M	394.90M	261.20M	433.30M	655.60M
	Operating Cash Flow
446.40M	427.50M	455.00M	321.20M	481.10M	691.30M
	Investing Cash Flow
-80.10M	-11.40M	69.30M	-329.90M	-1.01B	-41.70M
	Financing Cash Flow
-437.60M	-392.30M	-387.80M	-347.90M	725.50M	-283.90M

Vontier Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 35.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VNT, the sentiment is Positive. The current price of 35.75 is above the 20-day moving average (MA) of 35.63, above the 50-day MA of 33.10, and above the 200-day MA of 35.36, indicating a bullish trend. The MACD of 0.86 indicates Positive momentum. The RSI at 57.41 is Neutral, neither overbought nor oversold. The STOCH value of 40.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VNT.

Vontier Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VNT	75 Outperform	$5.29B	14.56	35.88%	0.28%	-3.59%	-11.30%
NOVT	74 Outperform	$4.45B	63.34	9.73%	―	6.52%	1.60%
ITRI	74 Outperform	$5.27B	21.08	17.73%	―	7.10%	58.52%
MKSI	71 Outperform	$5.51B	24.49	9.50%	1.07%	-1.14%	―
LFUS	70 Outperform	$5.07B	47.56	4.39%	1.34%	-3.43%	-50.48%
CGNX	68 Neutral	$5.03B	43.83	8.02%	1.03%	8.56%	18.99%
Sector *	61 Neutral	$11.50B	10.46	-6.94%	2.94%	7.57%	-9.03%

Vontier Corporate Events

Vontier Stockholders Approve Key Proposals at Annual Meeting

At the Annual Meeting held on May 27, 2025, Vontier Corporation’s stockholders voted on three key proposals. The first proposal involved the election of eight directors, all of whom were elected for a term expiring at the 2026 Annual Meeting. The second proposal, which was approved, ratified the selection of Ernst & Young LLP as the company’s independent registered public accounting firm for 2025. The third proposal, also approved on an advisory basis, concerned the compensation of the company’s named executive officers.

The most recent analyst rating on (VNT) stock is a Hold with a $39.00 price target. To see the full list of analyst forecasts on Vontier stock, see the VNT Stock Forecast page.