Vontier Ends 2022 With Solid Fourth Quarter; Increasing FVE

Narrow-moat Vontier’s fourth-quarter adjusted EPS of $0.81 beat our estimate by $0.08 as the company benefited from an easing in supply chain constraints. After rolling our model forward one year, we’ve bumped our fair value estimate for Vontier to $37 from $36.50, mostly due to time value of money. The stock closed up nearly 10% following the earnings release, but we continue to see the name as undervalued, with shares trading at a roughly 30% discount to our updated fair value estimate.