Vontier Corporation (VNT) | Investment Case

1. Company Snapshot

1.a. Company Description

Vontier Corporation engages in the research and development, manufacture, sale, and distribution of technical equipment, components, software, and services for manufacturing, repairing, and servicing in the mobility infrastructure industry worldwide.The company offers a range of solutions, including environmental sensors, fueling equipment, field payment hardware, point-of sale, workflow and monitoring software, vehicle tracking and fleet management, software solutions for traffic light control, and vehicle mechanics', and technicians' equipment.Its mobility technologies products include solutions and services in the areas of fuel dispensing, remote fuel management, point-of-sale and payment systems, environmental compliance, vehicle tracking and fleet management, and traffic management; and diagnostics and repair technologies products comprise vehicle repair tools, toolboxes, automotive diagnostic equipment, and software, as well as wheel-service equipment for automotive tire installation and repair shops, including brake lathes, tire changers, wheel balancers, and wheel weights under the Ammco and Coats brands.

The company markets its products and services to retail and commercial fueling operators, convenience store and in-bay car wash operators, tunnel car wash and commercial vehicle repair businesses, municipal governments, and public safety entities and fleet owners/operators through a network of franchised mobile distributors, as well as direct sales personnel and independent distributors.It serves customers in North America, the Asia Pacific, Europe, and Latin America.The company was incorporated in 2019 and is headquartered in Raleigh, North Carolina.

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1.b. Last Insights on VNT

Vontier Corporation faced negative drivers, including a 16.4% reduction in stake by Artisan Partners Limited Partnership, which sold 367,585 shares. Despite beating Q4 earnings and revenue estimates with $0.86 per share, exceeding the Zacks Consensus Estimate of $0.85 per share, the company's growth prospects are being closely watched by investors. Additionally, several institutional investors, including SG Americas Securities LLC and Compass Wealth Management LLC, have been adjusting their stakes in the company, with SG Americas Securities LLC boosting its position by 1,304.6%.

1.c. Company Highlights

Last Price	35.16
Change Percentage	-2.01%
Open	35.96
Previous Close	35.88
Market Cap ( Millions)	4979
Volume	1464158
Year High	48.2
Year Low	33.06
M A 50	37.2
M A 200	39.06

FCF Yield	8.86%
Dividend Yield	0.28%
ROE	34.02%
Debt / Equity	171.64%
Net Debt / EBIDTA	237.23%
Price To Book	4.07
Price Earnings Ratio	12.46
Price To FCF	11.29
Price To sales	1.62
EV / EBITDA	9.56

2. Vontier's Strong Q4 2025 Earnings: A Closer Look

Vontier Corporation reported a robust fourth quarter 2025, with total sales reaching $809 million and core growth of 5%. The company's adjusted EPS was $0.86, surpassing estimates of $0.85. Adjusted operating profit margin was 21.3%, impacted by one-time costs related to an Invenco inventory adjustment and higher healthcare claims. The company's strong cash generation was evident, with adjusted free cash flow conversion at 98% and free cash flow yield at 7.27%, indicating a healthy cash generation model.

Publication Date: Feb -16

                                    📋 Highlights
                                    Annual Organic Sales Growth:
                                                Vontier achieved 4% organic sales growth for the full year 2025.
Adjusted Free Cash Flow:
                                                Generated $460 million in adjusted free cash flow (15% of annual sales) in 2025.
Cost Savings from Simplification:
                                                $15 million in incremental in-year cost savings from organizational simplification.
Mobility Tech Growth:
                                                Mobility Technologies core sales rose 8.5% in Q4, driven by broad-based demand.
2026 Guidance:
                                                Full-year sales projected at $3.1–$3.15 billion, with core growth of ~3% and mid-single-digit Mobility Tech growth.

                                

Segment Performance

The Environmental and Fueling Solutions segment delivered a strong finish to the year, with above-market growth, demonstrating Vontier's strong share position with large national and regional operators. Mobility Technologies core sales increased 8.5% for the quarter, with broad-based growth across all business lines. As Mark Morelli noted, "We finished the year strong, strengthened our foundation, and built meaningful momentum across the portfolio, led by high single-digit growth in both our mobility tech and environmental and fueling segments."

Outlook and Guidance

Vontier expects sales in the range of $3.1 to $3.15 billion for the full year 2026, assuming core growth of about 3%. The company is confident in its connected mobility strategy, which enables profitable growth and underpins innovation across Vontier. With a strong leadership position in attractive and resilient end markets, Vontier is well-positioned to deliver on its financial commitments.

Valuation and Metrics

Analysts estimate next year's revenue growth at 5.0%. With a P/E Ratio of 14.81 and an EV/EBITDA of 11.13, the market is pricing in moderate growth expectations. The company's ROE of 34.02% and ROIC of 12.48% indicate strong profitability. The Net Debt / EBITDA ratio of 2.37 suggests a manageable debt burden. These metrics suggest that Vontier's stock is reasonably valued, with a balance between growth expectations and profitability.

3. NewsRoom

Vontier to showcase technologies that give fleets total control across every site, vehicle and energy type at ACT Expo 2026

Apr -28

Source: businesswire.com

Vontier Named One of America's Climate Leaders for 2026 by USA TODAY

Apr -27

Source: businesswire.com

Vontier Schedules First Quarter 2026 Earnings Call

Apr -17

Source: businesswire.com

VNT vs. SYM: Which Stock Is the Better Value Option?

Apr -08

Source: zacks.com

Vontier Recognized with Seven British Safety Council International Safety Awards for 2026

Apr -06

Source: businesswire.com

Eldred Rock Partners LLC Sells 51,679 Shares of Vontier Corporation $VNT

Apr -03

Source: defenseworld.net

Vontier Earns Gold Rating from EcoVadis for Strong Sustainability Performance

Apr -01

Source: businesswire.com

Loyalty Isn't Rational: Vontier Finds America's Most Frequent C‑Store Visitors Are Motivated by Identity, Not Incentives

Mar -26

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.81%)

6. Segments

Environmental & Fueling Solutions

Expected Growth: 3%

Vontier Corporation's Environmental & Fueling Solutions segment growth is driven by increasing demand for sustainable energy solutions, government regulations promoting eco-friendly practices, and rising adoption of electric vehicles. Additionally, the segment benefits from its diversified customer base, innovative product offerings, and strategic acquisitions, contributing to its 3% growth rate.

Mobility Technologies

Expected Growth: 2%

Vontier's Mobility Technologies segment growth is driven by increasing adoption of electric vehicles, rising demand for autonomous driving, and growing need for advanced driver-assistance systems. Additionally, the segment benefits from the trend towards vehicle electrification, autonomous driving, and connectivity, as well as the increasing importance of safety and sustainability in the automotive industry.

Repair Solutions

Expected Growth: 4%

Vontier's Repair Solutions segment growth is driven by increasing adoption of predictive maintenance, rising demand for efficient repair services, and expansion into new markets. Additionally, the company's investments in digitalization, IoT, and AI technologies enhance its offerings, further fueling growth.

Other

Expected Growth: 1%

Vontier's 'Other' segment growth is driven by increasing demand for remote monitoring and analytics solutions, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on digital transformation and IoT-enabled products contributes to its growth momentum.

Intersegment Eliminations

Expected Growth: 0%

Vontier Corporation's Intersegment Eliminations with 0% growth indicates a neutral impact on consolidated financials. This is driven by the absence of significant intercompany transactions, no material eliminations of revenues or expenses, and a lack of notable changes in internal sales or purchases between segments.

7. Detailed Products

Retail and Industrial

Vontier's Retail and Industrial segment provides a range of products and solutions for retail and industrial applications, including point-of-sale systems, self-service kiosks, and industrial automation solutions.

Mobility

Vontier's Mobility segment provides a range of products and solutions for the transportation industry, including fleet management systems, route optimization software, and telematics solutions.

Smart Transportation

Vontier's Smart Transportation segment provides a range of products and solutions for intelligent transportation systems, including traffic management systems, parking management systems, and tolling systems.

8. Vontier Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Vontier Corporation operates in a niche market with limited substitutes, reducing the threat of substitutes.

Bargaining Power Of Customers

Vontier Corporation's customers are diverse and fragmented, reducing their bargaining power.

Bargaining Power Of Suppliers

Vontier Corporation relies on a few key suppliers, giving them some bargaining power.

Threat Of New Entrants

Vontier Corporation operates in a capital-intensive industry, making it difficult for new entrants to join.

Intensity Of Rivalry

Vontier Corporation operates in a highly competitive industry, with several established players competing for market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	72.49%
Debt Cost	5.12%
Equity Weight	27.51%
Equity Cost	10.63%
WACC	6.64%
Leverage	263.56%

11. Quality Control: Vontier Corporation passed 4 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Teledyne Technologies

A-Score: 5.4/10

Value: 3.1

Growth: 6.3

Quality: 6.8

Yield: 0.0

Momentum: 7.0

Volatility: 9.3

1-Year Total Return ->

OSI Systems

A-Score: 4.9/10

Value: 2.6

Growth: 5.9

Quality: 7.1

Yield: 0.0

Momentum: 8.5

Volatility: 5.3

1-Year Total Return ->

Jabil

A-Score: 4.8/10

Value: 3.5

Growth: 6.6

Quality: 4.4

Yield: 0.0

Momentum: 9.0

Volatility: 5.3

1-Year Total Return ->

Vontier

A-Score: 4.6/10

Value: 5.5

Growth: 3.7

Quality: 6.4

Yield: 0.0

Momentum: 5.0

Volatility: 7.3

1-Year Total Return ->

Badger Meter

A-Score: 4.5/10

Value: 1.2

Growth: 8.0

Quality: 7.2

Yield: 1.0

Momentum: 3.0

Volatility: 6.7

1-Year Total Return ->

Plexus

A-Score: 4.2/10

Value: 4.0

Growth: 6.2

Quality: 5.5

Yield: 0.0

Momentum: 3.5

Volatility: 6.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-3.62%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

6.64%

Vontier Corporation - US9288811014

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on VNT

1.c. Company Highlights

Less Volatile

Strong Momentum

Better Quality

Earnings Beats

Average Growth

Stable Momentum

Earnings Miss

Revenues Miss

Average Quality

Revenues Beats

2. Vontier's Strong Q4 2025 Earnings: A Closer Look

Segment Performance

Outlook and Guidance

Valuation and Metrics

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.81%)

6. Segments

Environmental & Fueling Solutions

Expected Growth: 3%

Mobility Technologies

Expected Growth: 2%

Repair Solutions

Expected Growth: 4%

Other

Expected Growth: 1%

Intersegment Eliminations

Expected Growth: 0%

7. Detailed Products

Retail and Industrial

Mobility

Smart Transportation

8. Vontier Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Vontier Corporation passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

35.16$

Current Price

35.16$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA