VARTA AG (VAR1.DE)
DE000A0TGJ55 - Common Stock
We assign a fundamental rating of 2 out of 10 to VAR1. VAR1 was compared to 55 industry peers in the Electrical Equipment industry. VAR1 may be in some trouble as it scores bad on both profitability and health. VAR1 is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year VAR1 has reported negative net income.
VAR1 had a positive operating cash flow in the past year.
VAR1 had positive earnings in 4 of the past 5 years.
VAR1 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of -31.14%, VAR1 is not doing good in the industry: 90.57% of the companies in the same industry are doing better.
With a Return On Equity value of -203.52%, VAR1 is not doing good in the industry: 92.45% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -31.14% | ||
| ROE | -203.52% | ||
| ROIC | N/A |
ROA(3y)0.86%
ROA(5y)3.28%
ROE(3y)-13.64%
ROE(5y)-3.79%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
VAR1 has a better Gross Margin (50.64%) than 67.92% of its industry peers.
VAR1's Gross Margin has declined in the last couple of years.
The Profit Margin and Operating Margin are not available for VAR1 so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 50.64% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-6.44%
GM growth 5Y-2.16%
2. Health
2.1 Basic Checks
VAR1 does not have a ROIC to compare to the WACC, probably because it is not profitable.
VAR1 has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for VAR1 has been increased compared to 5 years ago.
The debt/assets ratio for VAR1 has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.79, we must say that VAR1 is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.79, VAR1 is doing worse than 69.81% of the companies in the same industry.
A Debt/Equity ratio of 2.51 is on the high side and indicates that VAR1 has dependencies on debt financing.
With a Debt to Equity ratio value of 2.51, VAR1 is not doing good in the industry: 90.57% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.51 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.79 |
ROIC/WACCN/A
WACC6.13%
2.3 Liquidity
A Current Ratio of 1.00 indicates that VAR1 should not have too much problems paying its short term obligations.
VAR1's Current ratio of 1.00 is on the low side compared to the rest of the industry. VAR1 is outperformed by 79.25% of its industry peers.
A Quick Ratio of 0.50 indicates that VAR1 may have some problems paying its short term obligations.
VAR1 has a worse Quick ratio (0.50) than 92.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
VAR1 shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -626.10%.
Looking at the last year, VAR1 shows a decrease in Revenue. The Revenue has decreased by -8.95% in the last year.
The Revenue has been growing by 27.22% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-626.1%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%77.19%
Revenue 1Y (TTM)-8.95%
Revenue growth 3Y30.55%
Revenue growth 5Y27.22%
Sales Q2Q%10.9%
3.2 Future
The Earnings Per Share is expected to grow by 17.62% on average over the next years. This is quite good.
Based on estimates for the next years, VAR1 will show a small growth in Revenue. The Revenue will grow by 3.84% on average per year.
EPS Next Y-54.37%
EPS Next 2Y6.92%
EPS Next 3Y17.62%
EPS Next 5YN/A
Revenue Next Year1.29%
Revenue Next 2Y1.3%
Revenue Next 3Y3.61%
Revenue Next 5Y3.84%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for VAR1. In the last year negative earnings were reported.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for VAR1. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
VAR1's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VAR1 is cheaper than 92.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.41 |
4.3 Compensation for Growth
A more expensive valuation may be justified as VAR1's earnings are expected to grow with 17.62% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y6.92%
EPS Next 3Y17.62%
5. Dividend
5.1 Amount
VAR1 does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
VARTA AG
FRA:VAR1 (9/16/2024, 5:27:09 PM)
1.479
-0.03 (-2.05%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap63.07M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -31.14% | ||
| ROE | -203.52% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 50.64% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.51 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1 | ||
| Quick Ratio | 0.5 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-626.1%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-54.37%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-8.95%
Revenue growth 3Y30.55%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y