Vontier Corporation (VNT)’s Management is Confident About Its Long-Term Growth

Argosy Investors, an investment management company, recently released its second-quarter 2022 investor letter. A copy of the same can be downloaded here. Year to date, the fund returned -25.4% in select accounts compared to -20% for the S&P 500. The main reason for the fund’s underperformance was the poor performance of its most significant holdings. For more information on the fund’s top picks in 2022, please check its top five holdings.

Argosy Investors discussed stocks like Vontier Corporation (NYSE:VNT). Headquartered in Raleigh, North Carolina, Vontier Corporation (NYSE:VNT) is a manufacturing company. The stock of Vontier Corporation (NYSE:VNT) closed at $24.33 per share on August 18, 2022. In one month, the stock returned 0.50% and its shares lost 29.36% of their value over the last 52 weeks. Vontier Corporation (NYSE:VNT) has a market capitalization of $3.843 billion.

Here is what Argosy Investors specifically said about Vontier Corporation (NYSE:VNT):

“Vontier Corporation (NYSE:VNT) is an industrial business focused on mobility with large exposure to retail gas stations and the automotive aftermarket. Trading at 9x estimated 2023E cash flows, VNT is priced for terminal declines in cash flow due to its exposure to internal combustion engines (ICE). Meanwhile, I believe Vontier is successfully pivoting its business towards higher-growth market segments, evidenced by its acquisition of DRB Systems, a point-of-sale (POS) and operating system used by car washes. In more recent comments, VNT has doubled down on its interest in the car wash space, so we expect to see additional investments here. There is a very successful example in Sonny’s, a vertically integrated provider of equipment, service, POS, training, consulting, etc. that has existed in private markets for years. This very well could be a model that DRB, under VNT’s control, attempts to emulate. Given the mission-criticality of these systems to car wash operators, and their small cost relative to total car wash revenues, there is significant pricing power for operators like DRB and Sonny’s. I believe that investors are overly and unnecessarily skeptical of the capital allocation decisions happening at VNT, but we believe recent repurchases reflect management confidence in the long-term of the business and appear to be opportunistic based on the business’ attractive valuation.”

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Vontier Corporation (NYSE:VNT) is not on the list of 30 Most Popular Stocks Among Hedge Funds. As per our database, Vontier Corporation (NYSE:VNT) was held by 33 hedge fund portfolios at the end of the first quarter, which was 29 in the previous quarter.

We discussed Vontier Corporation (NYSE:VNT) in another article and shared Mayar Capital’s insights about the company. You can check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other prominent investors.

Disclosure: None. This article is originally published at Insider Monkey.