Vontier Corporation Common Stock (VNT)

FairStock Score: 63/100 — STEADY

Key Financials

Strengths

• Generates $351 million in annual free cash flow (6.8% yield on market cap)
• High return on equity of 35.1% demonstrating efficient capital deployment

Concerns

• Trades significantly above Graham Number ($23) with negative 57% margin of safety—limited downside protection

AI Analysis

Vontier Corporation Common Stock is a small-cap technology company valued at $5.2 billion. The business generates $3.1 billion in annual revenue with a 4.0% net margin and $351 million in free cash flow. From a quality standpoint, Vontier shows solid Piotroski F-Score of 6/9 and Altman Z-Score of 2.0 in the grey zone. On valuation, the stock is attractively valued at 13.3x earnings, with trades above its Graham Number with a negative 57% margin. Growth dynamics show revenue growing at 4.1% and profit growth of 0.0%. Our composite FairStock Score of 63/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

The market underappreciates Vontier's consistent 35% ROE at just 13x earnings—a re-rating toward sector peers could unlock 30-50% upside. With $351 million in annual free cash flow (6.8% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the technology space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer