Vontier (VNT) Margins Slip to 13%, Challenging Bullish Value Narrative Despite Discounted Price

Vontier (VNT) reported a net profit margin of 13%, down slightly from last year's 13.4%, with earnings declining at a rate of 1.6% per year over the past five years. Looking ahead, analysts expect earnings to grow by 8.46% annually. However, forecasted revenue growth of 5.5% per year falls short of the broader US market's 10.3% pace. These results come as the stock trades at $38.08, noticeably below its estimated fair value and analyst price targets. This enhances its value appeal despite subdued growth trends.

See our full analysis for Vontier.

Next, we will see how Vontier's numbers match up to the storylines tracking around the stock, highlighting where market narratives get backed up or get called into question.

See what the community is saying about VontierNYSE:VNT Earnings & Revenue History as at Oct 2025

Recurring Revenue Now 30% of Sales

About 30% of Vontier’s total revenue now comes from SaaS and other recurring services, with recurring revenues in Mobility Technologies at approximately 40% of that segment. This shift is creating more predictable future cash flow. Analysts' consensus view sees this trend powering future performance:

Expansion into high-margin digital solutions and services is supporting stronger margin growth and reinforcing Vontier’s competitive position. Strategic focus on automation and compliance-driven system upgrades, such as digital payment and environmental management, is building a stable, growing baseline for future earnings despite only moderate overall revenue growth. Consistent execution on these initiatives has been key to analyst expectations for profit margins to rise from 13.0% to 15.9% over the next 3 years. The steady shift toward subscriptions gives analysts some confidence that even as core fueling demand matures, Vontier’s profit base will be stickier. This aligns with the consensus narrative predicting higher margin durability going forward.
See how analysts build their strategy around this recurring revenue engine in the full consensus narrative. 📊 Read the full Vontier Consensus Narrative.

Profit Margins Expected to Climb

Forecasts project Vontier’s net profit margin rising from the current 13.0% to 15.9% in three years as software-based sales mix increases and operational improvements take hold. The analysts' consensus view highlights a few tension points in this upside:

Operational efficiency, such as cost reductions and lean manufacturing, as well as portfolio optimization like exiting lower-margin European businesses, are expected to lower operating costs. However, headwinds persist, such as higher R&D spending and ongoing supply chain pressures that could offset some of the anticipated gains if macro conditions worsen or cost cuts underdeliver.

Story Continues

Valuation Discount vs Peers and DCF Fair Value

Vontier currently trades at a Price-to-Earnings ratio of 14.1x, which is well below the peer average (47.3x) and sector average (25.7x). Its share price of $38.08 is materially lower than both the $48.81 analyst price target and the $65.78 DCF fair value estimate. Analysts' consensus view underscores that this wide discount reflects cautious optimism:

Valuation is supported by reliable past earnings and discounted trading levels. However, it is tempered by industry growth rates below market averages and only moderate upside to current analyst targets. This suggests Vontier is a value play rather than a high-growth story.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Vontier on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

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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.

See What Else Is Out There

While Vontier offers value appeal, its moderate revenue growth and reliance on maturing core segments may limit upside compared to the broader market.

If you’re looking for more reliable expansion, check out stable growth stocks screener (2095 results) to discover companies that consistently deliver steady revenue and earnings growth regardless of cycles.

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.

Companies discussed in this article include VNT.

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