VERA BRADLEY INC (VRA)
US92335C1062 - Common Stock
VRA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 50 industry peers in the Textiles, Apparel & Luxury Goods industry. While VRA has a great health rating, there are worries on its profitability. VRA is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
VRA had positive earnings in the past year.
VRA had a positive operating cash flow in the past year.
Of the past 5 years VRA 4 years were profitable.
Of the past 5 years VRA 4 years had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 0.22%, VRA perfoms like the industry average, outperforming 42.00% of the companies in the same industry.
VRA has a Return On Equity (0.35%) which is comparable to the rest of the industry.
VRA has a Return On Invested Capital of 0.38%. This is in the lower half of the industry: VRA underperforms 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.22% | ||
| ROE | 0.35% | ||
| ROIC | 0.38% |
ROA(3y)-3.09%
ROA(5y)-0.92%
ROE(3y)-5.1%
ROE(5y)-1.45%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
VRA has a Profit Margin (0.19%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of VRA has declined.
The Operating Margin of VRA (0.38%) is worse than 70.00% of its industry peers.
In the last couple of years the Operating Margin of VRA has declined.
The Gross Margin of VRA (52.52%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of VRA has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.38% | ||
| PM (TTM) | 0.19% | ||
| GM | 52.52% |
OM growth 3Y-16.78%
OM growth 5Y-9.23%
PM growth 3Y-3.59%
PM growth 5Y-19.74%
GM growth 3Y-1.33%
GM growth 5Y-1.02%
2. Health
2.1 Basic Checks
VRA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, VRA has about the same amount of shares outstanding.
Compared to 5 years ago, VRA has less shares outstanding
There is no outstanding debt for VRA. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 3.32 indicates that VRA is not in any danger for bankruptcy at the moment.
VRA has a better Altman-Z score (3.32) than 66.00% of its industry peers.
There is no outstanding debt for VRA. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 3.32 |
ROIC/WACC0.04
WACC9.07%
2.3 Liquidity
VRA has a Current Ratio of 2.85. This indicates that VRA is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.85, VRA is doing good in the industry, outperforming 68.00% of the companies in the same industry.
VRA has a Quick Ratio of 1.15. This is a normal value and indicates that VRA is financially healthy and should not expect problems in meeting its short term obligations.
VRA's Quick ratio of 1.15 is in line compared to the rest of the industry. VRA outperforms 42.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.85 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
The earnings per share for VRA have decreased strongly by -63.33% in the last year.
Measured over the past years, VRA shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.76% on average per year.
VRA shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.94%.
VRA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.50% yearly.
EPS 1Y (TTM)-63.33%
EPS 3Y-4.5%
EPS 5Y-1.76%
EPS Q2Q%-60.61%
Revenue 1Y (TTM)-10.94%
Revenue growth 3Y0.18%
Revenue growth 5Y2.5%
Sales Q2Q%-13.54%
3.2 Future
Based on estimates for the next years, VRA will show a very negative growth in Earnings Per Share. The EPS will decrease by -10.84% on average per year.
VRA is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.37% yearly.
EPS Next Y-81.3%
EPS Next 2Y-10.84%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-13.42%
Revenue Next 2Y-3.37%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
Based on the Price/Earnings ratio of 23.73, the valuation of VRA can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as VRA.
When comparing the Price/Earnings ratio of VRA to the average of the S&P500 Index (28.96), we can say VRA is valued inline with the index average.
A Price/Forward Earnings ratio of 12.16 indicates a correct valuation of VRA.
Based on the Price/Forward Earnings ratio, VRA is valued a bit cheaper than the industry average as 72.00% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.82. VRA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.73 | ||
| Fwd PE | 12.16 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VRA indicates a somewhat cheap valuation: VRA is cheaper than 74.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, VRA is valued a bit cheaper than the industry average as 62.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.23 | ||
| EV/EBITDA | 8.62 |
4.3 Compensation for Growth
VRA's earnings are expected to decrease with -10.84% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-10.84%
EPS Next 3YN/A
5. Dividend
5.1 Amount
VRA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
VERA BRADLEY INC
NASDAQ:VRA (11/22/2024, 4:30:01 PM)
After market: 5.22 0 (0%)5.22
-0.05 (-0.95%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap147.36M
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 | 23.73 | ||
| Fwd PE | 12.16 | ||
| 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 | 0.22% | ||
| ROE | 0.35% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 0.38% | ||
| PM (TTM) | 0.19% | ||
| GM | 52.52% | ||
| 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 Turnover1.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.85 | ||
| Quick Ratio | 1.15 | ||
| 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)-63.33%
EPS 3Y-4.5%
EPS 5Y
EPS Q2Q%
EPS Next Y-81.3%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-10.94%
Revenue growth 3Y0.18%
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