Veralto Corporation (VLTO) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Veralto Corporation

Updated on October 1, 2026 · accounts published on July 28, 2026

Reading of October 1, 2026: A high-margin, cash-generative industrial with a light balance sheet

Veralto trades at a P/E of 23.8 over the last 12 months, 8 % below its sector median, with ROIC of 14.7 % and net debt at 0.5× EBITDA.

• Is Veralto expensive or cheap? Veralto trades at a P/E of 23.8 over the last 12 months, 8 % below its sector median of 26.0 and under its six-year average of 25.8.
• How is the business doing? EPS grew 12.6 % over the last 12 months, twice the 6 % revenue growth, with ROIC of 14.7 % against a sector median of 8.8 %.
• How strong is the balance sheet? Net debt was just 0.5× EBITDA in fiscal 2025, about 3 % of the share price, and the Altman Z of 5.0 is well inside the safe zone.
• What to expect from the next earnings? Analysts expect EPS of $1.09 on October 27, 2026; Veralto has beaten EPS estimates in each of the last 8 quarters.
• Does Veralto turn its margin into cash, and at what multiple of the cycle does it trade? Free cash flow was 108 % of net income in fiscal 2025, above the 85 % industrials treat as healthy, on a 23.2 % operating margin.

Is Veralto expensive or cheap?

Over the last 12 months Veralto trades at a P/E of 23.8. That is 8 % below the median of 406 sector peers at 26.0 and a little under its own six-year average of 25.8. EV/EBITDA of 18.0× sits close to its five-year average of 18.5×, so both multiples fall inside the band industrials treat as neither cheap nor expensive. The free cash flow yield of 5.3 % is higher than the 4.9 % earnings yield, so the profits are backed by cash. The stock is down 11 % over 12 months and 12 % below its 52-week high of $107.14.

How is the business doing?

Over the last 12 months revenue rose 6 % while EPS rose 12.6 %, so profits are growing faster than sales. An operating margin of 22.7 % and a net margin of 17.3 % are high for an industrial company. ROIC of 14.7 % is 5.9 points above the median of 460 sector peers, and it has stayed above 10 % in five of the last six fiscal years, with 2020 the exception at 0.0 %. Return on equity of 32.8 % is boosted partly by a debt-to-equity ratio of 1.09. The weak spot is the longer record: revenue per share grew only 4.6 % a year over 2020-2025.

How strong is the balance sheet?

In fiscal 2025 Veralto carried $11.15 of debt per share against $8.18 of cash. That leaves net debt of $2.97 per share, about 3 % of the current price, or 0.5× EBITDA, far below the 3.0× ceiling industrials treat as healthy. The current ratio of 1.78 and an Altman Z of 5.0 over the last 12 months, above the 2.99 safe-zone line, tell the same story. Dividends are a small part of the return: the yield is 0.5 % and the payout was 12 % of fiscal 2025 earnings, so most of the profit stays in the company.

What to expect from the next earnings?

Veralto reports on October 27, 2026, and analysts expect EPS of $1.09 for the quarter. Its track record sets a high bar: it beat EPS estimates in all of its last 8 quarters, most recently on July 28, 2026, with $1.11 against $1.01 expected, a 9.9 % surprise. Over the last 16 days the 2026 EPS consensus from 7 analysts has held at $4.38, and revenue estimates have barely moved either. Of the 13 analysts covering the company, 6 rate it a buy, 7 a hold and none a sell, a split that leans cautious.

Does Veralto turn its margin into cash, and at what multiple of the cycle does it trade?

Industrials are semicyclical, so the sector is judged on operating margin, cash conversion and multiples measured across the cycle. Veralto's fiscal 2025 operating margin of 23.2 % is almost double the 12 % healthy threshold, and free cash flow reached 108 % of net income. Capex was only 1.1 % of revenue, below the 4-8 % range typical for the sector, which helps cash conversion but is outside the sector norm. ROIC of 14.7 % sits right at the 15 % line, and the Piotroski score is 6 of 9. Measured against the cycle, EV/EBITDA of 18.0× is in line with its five-year average of 18.5×.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.