Veralto Corporation logo

Veralto Corporation(VLTO)

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ADVISORIES YOU CAN VERIFY
QUALITY SIGNAL
2-STAR RATING
PASS
LAST CLOSE
$94.6
10/01/2026
(24-hour delay)

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*as per simulation (see disclosures)
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Upturn Advisory & Investor View for VLTO

10/01/2026: VLTO (2-star) is currently NOT-A-BUY. Pass it for now.

Veralto Corporation is an industrial technology company providing essential water quality and product identification solutions. The firm benefits from a highly resilient business model with a significant portion of revenue derived from recurring consumables and services. Its core opportunity lies in solving global challenges related to water scarcity and supply chain traceability. However, risks include sensitivity to industrial spending cycles and the need for successful execution of its independent business strategy. Veralto may suit investors seeking long-term defensive growth in the industrial sector, and stakeholders should monitor the company's margin expansion and progress in digital service offerings.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorMixed fitThe company offers steady, predictable growth rather than high-octane expansion.
Momentum investorMixed fitThis style is conditional on a positive Upturn signal in industrial sector rotation.
Value investorMixed fitValuation levels generally track with high-quality industrial peers.
Dividend investorStrong fitThe company's recurring revenue business model supports consistent dividend payments.
Low-risk investorStrong fitEssential, non-discretionary end-markets provide a defensive profile with lower relative volatility.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityMediumAs a mid-to-large cap industrial, it moves in correlation with broader market indices.
Valuation riskMediumHigh-quality industrial stocks often trade at premium multiples that require growth execution.
Competition risk (Industrial technology)MediumCompetition from both specialized firms and diversified conglomerates keeps margins under constant pressure.
Business qualityStrongThe high percentage of recurring revenue and strong market positions represent high franchise quality.
Dividend incomeLowDividends are reliable but not the primary driver of total returns compared to capital appreciation.
Execution riskMediumSuccessful implementation of the Veralto Enterprise System is critical for maintaining margin expansion.

Price Behavior

Flat / Range-Bound
PRICE PATH

Flat / Range-Bound

The stock price has been trading within a narrow range with minimal directional movement.

Smooth
PRICE STABILITY

Smooth

The stock has moved along a generally orderly path with only modest fluctuations.

Analysis of Past Performance

Type Stock
Historic Profit 13.73%
Avg. Invested days 72
Today’s Advisory PASS
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 4.0
Stock Returns Performance Upturn Returns Performance icon 2.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 10/01/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
VLTO receives a 4-star rating, supported by strong unit economics, solid company fundamentals, solid quantitative characteristics, and solid analyst coverage. The rating is constrained by weak price momentum.

Company Fundamentals

★★★★★
VLTO has solid overall fundamentals (4 stars), with solid financial health, solid growth momentum, and solid ownership. In FY2025 versus FY2024, solid earnings growth (+12.8%) and strong cash generation (FCF margin 18.4%) are partially offset by moderate revenue growth (+6.0%), very low insider ownership of 0.19%.

Financial Health Rating

★★★★★
VLTO's financial health is supported by strong cash strength, including free-cash-flow generation of $1.0B (18.4% of revenue). Profitability is solid (4 stars), which helps explain the 4-star overall score.

Growth Momentum Score

★★★★★
Free-cash-flow growth is VLTO's strongest growth driver at +23.7% FY2025 versus FY2024 (solid, 4 stars). Revenue growth (+6.0%, moderate) and earnings growth (+12.8%, solid) are also constructive, though not equally high across every growth measure.

Ownership

★★★★★
Institutional ownership is 101.3% and approximately 99.8% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership is only 0.19%, which materially reduces the ownership score.

Top 5 Institutional Investors

BlackRock Inc 9.29%
Vanguard Capital Management, LLC 6.58%
T. Rowe Price Investment Management,Inc. 5.62%
Vanguard Portfolio Management, LLC 4.98%
State Street Corp 4.57%

Unit Economics (Per $1K Revenue)

★★★★★
VLTO generates approximately $599 of gross profit, $232 of operating income, and $184 of free cash flow for every $1,000 of revenue. Based on FY2025 results. Solid margins, cash conversion, and capital efficiency support the rating.

Economic Dimensions

★★★★★
Effective Tax Rate: 19.86%

Quantitative Style Profile

★★★★★
VLTO has a high-quality, large-cap, liquid, relatively low-volatility profile. Weak momentum is the primary drawback, while valuation that is moderately attractive rather than deeply discounted.

Style Classification

Quality Focused

Quality TiltLow VolatilityLarge / Mega Cap StabilityHighly Liquid / Institution-Friendly

Key Highlights

Company Size Large-Cap Stock
Market Capitalization 22.99B USD
Price to earnings Ratio 24.31
1Y Target Price 114.79
Price to earnings Ratio 24.31
1Y Target Price 114.79
Volume (30-day avg) 1.7M shares
Beta 0.76
52 Weeks Range 79.80 - 107.30
Updated Date 10/01/2026
52 Weeks Range 79.80 - 107.30
Updated Date 10/01/2026
Dividends yield (FY) 0.52%
Basic EPS (TTM) 3.88

How Company Makes Money

Business areaWhat it includesRetail investor read
Water QualityInstruments, software, and consumables for water analysis and treatment.The company makes money by selling tools that utilities need to keep water safe, often resulting in repeat purchases.
Product IdentificationMarking, coding, and traceability systems for packaged goods.Revenue is driven by equipment sales and the ongoing sale of inks and fluids needed for supply chain tracking.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

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Valuation

Trailing PE 24.31
Forward PE 19.96
Enterprise Value 24.63B
Price to Sales(TTM) 4.04
Enterprise Value 24.63B
Price to Sales(TTM) 4.04
Enterprise Value to Revenue 4.32
Enterprise Value to EBITDA 17.67
Shares Outstanding 243.79M
Shares Floating 243.24M
Shares Outstanding 243.79M
Shares Floating 243.24M
Percent Insiders 0.19
Percent Institutions 101.27

Icon representing Upturn AI-generated SWOT analysis summary Upturn AI Summary

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Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

About Veralto Corporation

Exchange NYSE
Headquarters Waltham, MA, United States
IPO Launch date 2023-10-04
President, CEO & Director Ms. Jennifer L. Honeycutt
Sector Industrials
Industry Pollution & Treatment Controls
Full time employees 17000
Full time employees 17000

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