Veralto (VLTO)
NYSEIndustrialsIndustrial - Pollution & Treatment ControlsSnapshot 2026-09-04
$96.31-1.60%
Close 2026-09-04 · 1-day change
NYSEIndustrialsIndustrial - Pollution & Treatment ControlsSnapshot 2026-09-04
Intact: The reason to own it still holds.
Veralto grows revenue about 3% to 4.5% yearly. Earnings per share rise to about $4.24 in 2026. Free cash flow matches net earnings, showing strong cash health. The company buys back shares and manages debt well.
Growth could slow below 3% yearly. Profit gains may stall or fall short of $4.24 per share. Cash flow might weaken, hurting buybacks and debt plans.
The price is about 5% below our fair value near $97. Analysts expect about 7% revenue growth, slightly above company guidance. Our fair value is 11% below Street median, reflecting cautious optimism.
Breaks if: Company halts buybacks or takes on excessive debt raising costs above 5%
Breaks if: EPS falls below $4.20 in FY26
Free cash flow conversion falls below 90% of GAAP net earnings in FY26
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
VLTO represents a stable investment in the industrials sector with a focus on growth and cash generation. The current thesis state is mixed, with management showing commitment to growth while facing sector challenges.
The market appears to have priced in a neutral valuation, with VLTO being seen as cheap compared to its peers. There is a slight expectations gap, indicating that the market is not overly optimistic about future performance.
Management is on track to achieve its earnings and cash flow goals, with recent financial performance showing improvement. However, there is a moderate risk of missing guidance, which could impact sentiment.
The future performance of VLTO will depend on sector dynamics, particularly the performance of key competitors. If these competitors continue to perform well, it could support VLTO's growth; conversely, any negative guidance from them could pose risks.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports a positive outlook. The Cleanwater1 deal reinforces the company's strategy for expanding its portfolio. There are no new threats identified that could weaken this view.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: YoY revenue growth falls below 3.0% in FY26
Over the next 1 to 3 years, VLTO's performance will be influenced by both its execution and broader sector trends. Not investment advice.