VLTOVeralto
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (1.1×).
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Negative operating leverage, costs are rising faster than sales, squeezing margins as it grows.
Margin-driven, fat margins on slower asset turns. ROE 32% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is VLTO?
Veralto earns 24% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 15 points above what the capital costs: growth creates value
- Operating margin
- 23%
Operating margin · Pollution & Treatment Controls median 5.6% · 12 months to Q1 2026
- Cash conversion
- 1.06×
Cash conversion · 0.95× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −0.36%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2021 | 22% |
| FY2022 | 23% |
| FY2023 | 23% |
| FY2024 | 23% |
| FY2025 | 23% |
Details›
- Gross margin12 months to Q1 2026
- 60%
- Operating margin12 months to Q1 2026
- 23%
- Net margin12 months to Q1 2026
- 17%
- Free cash flow margin
- 19%
- R&D as % of revenue
- 4.8%
- Revenue, trailing twelve months
- $5.59B
- Free cash flow, trailing twelve months
- $1.04B
- Net income, trailing twelve months
- $969M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 24%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.