# Veralto (VLTO.US)

Canonical: https://gigainvestors.com/s/VLTO

Analysis as of: 2026-10-16T07:32:53.146Z. Financial observations: FY2019–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Record still being completed

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $100.96 per share; close as of 2026-10-15.

Estimated value: low $52.58 per share, central $58.69 per share, high $66.83 per share. Buy at or below the central value $58.69 per share. Valuation as of 2026-10-16T07:32:53.146Z; scenarios are not confidence intervals.

Expected annual return: 6.7% at the stated quote. About 6.7% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 8 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.03×

Chart: Operating margin; fiscal year observations.

- FY2019: 0.24×

- FY2020: 0.22×

- FY2021: 0.22×

- FY2022: 0.23×

- FY2023: 0.23×

- FY2024: 0.23×

- FY2025: 0.23×

- LTM to Jun 2026: 0.23×

### moat: pass

- ROIC, median of available years: 91.6%

- ROIC, second-lowest year: 88.3%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.1%

- ROIC including acquisitions, ten-year median: 24.9%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2021: 88.3%

- FY2022: 83.6%

- FY2023: >100%

- FY2024: 91.6%

- FY2025: >100%

### economics: pass

- Owner earnings / net income, 5-yr: 1.04×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $4.6B

- Net income, five-year total: $4.4B

- Working capital / revenue, annual change: 0.2 pp

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.07×

- FY2023: 1.04×

- FY2024: 1.03×

- FY2025: 1.02×

- LTM to Jun 2026: 1.04×

### management: unclear

- buybacks unrelated to price (informational)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 0.3%

- Diluted shares, 5-year annual growth: 0.3%

- Average buyback yield: 0.7%

- Buyback history: 1 years

- ROIC, last three-year median: >100%

Chart: Earnings per share; fiscal year observations.

- FY2020: $2.94

- FY2021: $3.50

- FY2022: $3.43

- FY2023: $3.40

- FY2024: $3.34

- FY2025: $3.76

### accounting: pass

- Sloan accruals: -1.8%

- Receivables to sales index (DSRI): 1.04×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 6.9%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.15×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.08×

Chart: Sloan accruals; fiscal year observations.

- FY2021: -0.7%

- FY2022: -0.5%

- FY2023: -2.2%

- FY2024: -0.7%

- FY2025: -1.8%

## Holders

- [Bill Gates](https://gigainvestors.com/GFT): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Wallace Weitz](https://gigainvestors.com/WIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 8.5% a year for ten years · "Veralto lifts annual profit forecast on water treatment demand" (ca.finance.yahoo.com, Jul 2025) · sales +3.5%

Story as of 2026-10-16T09:59:48.294Z; price observation 2026-10-15.

Price needs cash profits to grow 8.5% a year for ten years

- 2025-05-14: Veralto (NYSE:VLTO) Q1 2025 Earnings Increase With Sales At US$1,332 Million ([finance.yahoo.com](https://finance.yahoo.com/news/veralto-nyse-vlto-q1-2025-053002496.html))

- 2025-07-29: Veralto raises 2025 EPS guidance to $3.72–$3.80 as core sales growth accelerates ([seekingalpha.com](https://seekingalpha.com/news/4473735-veralto-raises-2025-eps-guidance-to-3_72-3_80-as-core-sales-growth-accelerates?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2025-08-13: VLTO Q2 Deep Dive: Secular Demand and Strategic Investments Drive Steady Growth ([finance.yahoo.com](https://finance.yahoo.com/news/vlto-q2-deep-dive-secular-033237508.html))

- 2026-02-04: VLTO Q4 Deep Dive: Macro Uncertainty and Integration Costs Shape 2026 Outlook ([finance.yahoo.com](https://finance.yahoo.com/news/vlto-q4-deep-dive-macro-184056973.html))

### Sales · FY2025–2026

sales +3.5%; source https://www.sec.gov/Archives/edgar/data/1967680/000196768026000011/vlto-20251231.htm; observed 2026-02-20.

- FY2019: $4.4B 

- FY2020: $4.3B 

- FY2021: $4.7B 

- FY2022: $4.9B 

- FY2023: $5.0B 

- FY2024: $5.2B 

- FY2025: $5.5B 

- FY2026: $5.7B 

### Gross margin · FY2025

gross margin 59.9%; source https://www.sec.gov/Archives/edgar/data/1967680/000196768026000011/vlto-20251231.htm; observed 2026-02-20.

- FY2020: 57.7% 

- FY2021: 57.7% 

- FY2022: 56.9% 

- FY2023: 57.8% 

- FY2024: 59.8% 

- FY2025: 59.9% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in pollution & treatment controls; annual sales are USD 5.5 billion.

- Source: https://eodhd.com/api/fundamentals/VLTO.US.json#2025-12-31 (filed 2026-02-20); FY2025: revenue 5503000000; grossProfit 3299000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); VLTO.US: 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.

### Why customers stay

Margins ranged from 57.8% to 59.9% during 2023–25; it earns 91.6% on its capital.

- Source: https://eodhd.com/api/fundamentals/VLTO.US.json#2023-12-31 (filed 2026-02-20); FY2023: grossProfit / revenue = 57.8%.

- Source: https://eodhd.com/api/fundamentals/VLTO.US.json#2024-12-31 (filed 2026-02-20); FY2024: grossProfit / revenue = 59.8%.

- Source: https://eodhd.com/api/fundamentals/VLTO.US.json#2025-12-31 (filed 2026-02-20); FY2025: grossProfit / revenue = 59.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); 7-year return on capital observations [[2021,0.8834529438377674],[2022,0.8358819709464208],[2023,1.0088814817940173],[2024,0.9164968040322565],[2025,1.1257886231930951]]; median 0.9164968040322565. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 57% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/1967680/000196768026000011/vlto-20251231.htm (filed 2026-02-20); Gross margin observations: [[2021,0.5772340425531914],[2022,0.5685831622176591],[2023,0.5777733519219279]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 3 of 6 years.

- Source: https://eodhd.com/api/fundamentals/VLTO.US.json#2020-12-31 (filed 2026-02-20); FY2020: growth capex 0; upkeep 36000000; owner earnings 798000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/VLTO.US.json#2021-12-31 (filed 2026-02-20); FY2021: growth capex 0; upkeep 54000000; cash acquisitions 60000000; owner earnings 913000000. Growth capex plus acquisitions / owner earnings = 0.06571741511500548.

- Source: https://eodhd.com/api/fundamentals/VLTO.US.json#2022-12-31 (filed 2026-02-20); FY2022: growth capex 0; upkeep 34000000; cash acquisitions 55000000; owner earnings 901000000. Growth capex plus acquisitions / owner earnings = 0.06104328523862375.

- Source: https://eodhd.com/api/fundamentals/VLTO.US.json#2023-12-31 (filed 2026-02-20); FY2023: growth capex 0; upkeep 54000000; cash acquisitions 0; owner earnings 872000000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/VLTO.US.json#2024-12-31 (filed 2026-02-20); FY2024: growth capex 0; upkeep 55000000; cash acquisitions 363000000; owner earnings 856000000. Growth capex plus acquisitions / owner earnings = 0.42406542056074764.

- Source: https://eodhd.com/api/fundamentals/VLTO.US.json#2025-12-31 (filed 2026-02-20); FY2025: growth capex 0; upkeep 63000000; cash acquisitions 0; owner earnings 955000000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); Dividend observations: [[2020,0],[2021,0],[2022,0],[2023,147000000],[2024,89000000],[2025,109000000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 0.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); VLTO.US SharesStats.PercentInsiders = 0.192 percentage points; cache date 2026-10-16.

### What could break it

"Financial and Tax Risks" (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/1967680/000196768026000011/vlto-20251231.htm (filed 2026-02-20); Financial and Tax Risks

### What the price says

The price assumes cash profits grow 8.5% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); Ten-year compound average after fade. Initial solved rate 0.10967733164764837. Price 100.96; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2023-09: $84.56 per share

- 2023-10: $69.00 per share

- 2023-11: $77.25 per share

- 2023-12: $82.26 per share

- 2024-01: $76.69 per share

- 2024-02: $86.42 per share

- 2024-03: $88.66 per share

- 2024-04: $93.68 per share

- 2024-05: $98.58 per share

- 2024-06: $95.47 per share

- 2024-07: $106.56 per share

- 2024-08: $112.43 per share

- 2024-09: $111.86 per share

- 2024-10: $102.19 per share

- 2024-11: $108.19 per share

- 2024-12: $101.85 per share

- 2025-01: $103.39 per share

- 2025-02: $99.76 per share

- 2025-03: $97.45 per share

- 2025-04: $95.90 per share

- 2025-05: $101.03 per share

- 2025-06: $100.95 per share

- 2025-07: $104.83 per share

- 2025-08: $106.19 per share

- 2025-09: $106.61 per share

- 2025-10: $98.68 per share

- 2025-11: $101.22 per share

- 2025-12: $99.78 per share

- 2026-01: $98.98 per share

- 2026-02: $97.43 per share

- 2026-03: $88.42 per share

- 2026-04: $88.20 per share

- 2026-05: $82.23 per share

- 2026-06: $88.68 per share

- 2026-07: $94.17 per share

- 2026-08: $98.57 per share

- 2026-09: $94.32 per share

- 2026-10: $100.96 per share

## Annual estimated value (USD per share)

- FY2024: low $45.73 per share, central $51.49 per share, high $59.15 per share

- FY2025: low $49.41 per share, central $55.16 per share, high $62.82 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:38:38.723Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1967680/000196768026000011/vlto-20251231.htm); period 2025-12-31, filed 2026-02-20.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.