As the world shifts toward electric vehicles and smarter cities, Vontier (VNT) is aligning itself with the future of mobility. 

The company’s focus on fleet management, vehicle repair tools, and fuel solutions positions it to thrive in the evolving transportation landscape. 

Vontier’s Konect platform, which helps gas stations integrate EV chargers, and its partnership with SK Signet for ultra-fast charging, strengthen its presence in the growing EV market. 

Despite concerns over its reliance on the automotive sector and the gradual pace of EV adoption, Vontier’s diversified approach and strong performance highlight its potential for long-term growth.

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With the world moving toward electric vehicles and smarter cities, mobility is evolving at a very fast pace.

Connected vehicles, real-time traffic management, and usage of advanced EV charging networks are becoming more and more mainstream, enabling cleaner, more efficient urban mobility.

Smart EV charging, for instance, not only helps reduce emissions but also improves the overall driving experience by cutting down on charging times.

Similarly, smarter traffic management systems that can adjust traffic lights based on real-time data are already helping reduce congestion and improve road safety.

With these shifts, traditional infrastructure is evolving to support a more connected, efficient future.

The move to electric vehicles is accelerating globally, and urban centers are integrating new technologies like smart parking and autonomous vehicles.

As these trends continue, companies that adapt to this new reality are well-positioned to thrive in a rapid change in transportation.

Vontier (VNT) is one of those companies embracing these changes.

Through its work in fleet management, vehicle repair tools, and fuel solutions, the company is aligning itself with the future of mobility.

One of Vontier’s standout moves is its Konect platform, developed through its subsidiary Gilbarco Veeder-Root.

Konect helps gas stations seamlessly add EV chargers, offering a “turnkey” solution that’s easy for fuel retailers to implement.

This move not only taps into Vontier’s existing customer base but also positions the company to benefit from the rise of electric mobility.

The partnership with SK Signet, which adds ultra-fast charging capabilities, further strengthens its ability to support the growing EV market.

Furthermore, Vontier’s diversified approach ensures they’re not overly reliant on any one area, with their vehicle repair tools business through Matco Tools also poised to grow as electric vehicles become more complex and require specialized maintenance.

These factors have enabled the company to achieve a 34% Uniform return on assets ”ROA” and 12% asset growth last year.

Despite the strong performance, the market has concerns about Vontier’s reliance on the automotive and mobility sectors, reflected in the company trading at 14x Uniform P/E.

Any downturn in these industries could negatively impact all three of the company’s segments.

Additionally, the move into EV charging, while promising, won’t pay off overnight. The shift to electric vehicles is happening slowly, so Vontier will need to be patient as the market develops.

But with solid growth in core areas and a clear focus on the future, the company is well-positioned to benefit from the ongoing transformation in transportation.

Best regards,

Joel Litman & Rob Spivey
Chief Investment Strategist &
Director of Research
at Valens Research