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Revisiting Vontier’s (VNT) Valuation Following Guidance Raise and Earnings Beat

Simply Wall St · 11/02 22:20

Vontier (NYSE:VNT) kicked off its latest earnings season with third-quarter results that edged past Wall Street’s expectations. Revenue held steady, and management nudged up their full-year earnings guidance despite cautious signals for next quarter.

See our latest analysis for Vontier.

Vontier’s shares have seen some turbulence lately, with a 1.10% uptick following earnings. However, the 7-day and 30-day share price returns remain firmly negative. Still, the company’s strategic buybacks, robust three-year total shareholder return of nearly 119%, and improving full-year outlook all suggest stable momentum building for long-term investors.

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But with the stock up against its price target and future growth already reflected in management’s raised guidance, investors have to wonder: is there still a compelling buying opportunity, or is the market already pricing in the next wave of gains?

Most Popular Narrative: 21.1% Undervalued

Compared to Vontier's last close, the most widely followed narrative places its fair value much higher. This sets the stage for a bullish perspective on future opportunity and growth momentum. Before diving into the numbers, here's the driving argument at the heart of the narrative.

Adoption of new digital payment and remote monitoring solutions (FlexPay 6, iNFX, TLS-450PLUS) is accelerating within Vontier's installed base, expanding high-margin recurring revenue and positioning the company for continued revenue growth as more fueling stations upgrade infrastructure to meet regulatory and operational demands.

Read the complete narrative.

Curious how Vontier combines high-margin software, recurring sales, and a shift toward digital to reach a fair value well above today’s price? Analysts are banking on growth forecasts and a future profit multiple rarely seen outside pure tech. Explore the full narrative to discover which aggressive assumptions might be powering this target and see if you agree with the formula.

Result: Fair Value of $48.81 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, heavy reliance on legacy fueling equipment and intensifying competition in software could disrupt Vontier’s growth assumptions and present challenges for future earnings projections.

Find out about the key risks to this Vontier narrative.

Build Your Own Vontier Narrative

If you want to see things from a different angle or dig deeper into the numbers, you can craft your own perspective with just a few clicks. Do it your way

A great starting point for your Vontier research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.