- Vontier's guidance for a bigger near-term impact from EMV headwinds ($300M+ in 2023) spooked a market that was already skeptical about Vontier's growth credentials.
- Management has been criticized for not being more active in deploying capital into M&A or buybacks to offset the EMV headwinds.
- The market has not been overly impressed with Vontier's first two major M&A transactions, though both are logical extensions of the existing business, and DRB, in particular, should be accretive.
- Low-single-digit growth is enough to support a double-digit long-term annualized return here, but "weak revenue growth and little-to-no margin leverage" is a potential value trap recipe.
For further details see:
Vontier - Faster EMV Erosion Is A Near-Term Challenge, And The Street Needs To See A Better Path For Growth