VERALLIA (VRLA.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:VRLA - FR0013447729 - Common Stock
21.52 EUR
-0.16 (-0.74%)
Overall VRLA gets a fundamental rating of 5 out of 10. We evaluated VRLA against 13 industry peers in the Containers & Packaging industry. VRLA has an excellent profitability rating, but there are concerns on its financial health. VRLA is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year VRLA was profitable.
- In the past year VRLA had a positive cash flow from operations.
- In the past 5 years VRLA has always been profitable.
- Each year in the past 5 years VRLA had a positive operating cash flow.
1.2 Ratios
- With a decent Return On Assets value of 3.98%, VRLA is doing good in the industry, outperforming 61.54% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 21.11%, VRLA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- VRLA has a Return On Invested Capital of 9.94%. This is amongst the best in the industry. VRLA outperforms 84.62% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for VRLA is significantly above the industry average of 6.42%.
- The last Return On Invested Capital (9.94%) for VRLA is well below the 3 year average (15.43%), which needs to be investigated, but indicates that VRLA had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.98% | ||
| ROE | 21.11% | ||
| ROIC | 9.94% |
ROA(3y)7.73%
ROA(5y)7.12%
ROE(3y)36.5%
ROE(5y)35.91%
ROIC(3y)15.43%
ROIC(5y)13.84%
1.3 Margins
- VRLA has a Profit Margin (5.26%) which is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of VRLA has grown nicely.
- The Operating Margin of VRLA (13.41%) is better than 84.62% of its industry peers.
- VRLA's Operating Margin has improved in the last couple of years.
- The Gross Margin of VRLA (18.40%) is worse than 84.62% of its industry peers.
- VRLA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.41% | ||
| PM (TTM) | 5.26% | ||
| GM | 18.4% |
OM growth 3Y-2.15%
OM growth 5Y3.01%
PM growth 3Y-9.08%
PM growth 5Y8.81%
GM growth 3Y-4.25%
GM growth 5Y-0.22%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), VRLA is creating value.
- Compared to 1 year ago, VRLA has more shares outstanding
- VRLA has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for VRLA is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.76, we must say that VRLA is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.76, VRLA is in line with its industry, outperforming 53.85% of the companies in the same industry.
- The Debt to FCF ratio of VRLA is 8.16, which is on the high side as it means it would take VRLA, 8.16 years of fcf income to pay off all of its debts.
- VRLA has a Debt to FCF ratio of 8.16. This is in the better half of the industry: VRLA outperforms 69.23% of its industry peers.
- A Debt/Equity ratio of 2.63 is on the high side and indicates that VRLA has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 2.63, VRLA is doing worse than 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.63 | ||
| Debt/FCF | 8.16 | ||
| Altman-Z | 1.76 |
ROIC/WACC1.74
WACC5.7%
2.3 Liquidity
- A Current Ratio of 1.00 indicates that VRLA should not have too much problems paying its short term obligations.
- VRLA has a Current ratio of 1.00. This is comparable to the rest of the industry: VRLA outperforms 46.15% of its industry peers.
- VRLA has a Quick Ratio of 1.00. This is a bad value and indicates that VRLA is not financially healthy enough and could expect problems in meeting its short term obligations.
- VRLA has a worse Quick ratio (0.51) than 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
- VRLA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -37.59%.
- The Earnings Per Share has been growing by 14.87% on average over the past years. This is quite good.
- VRLA shows a decrease in Revenue. In the last year, the revenue decreased by -3.17%.
- VRLA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.97% yearly.
EPS 1Y (TTM)-37.59%
EPS 3Y-0.17%
EPS 5Y14.87%
EPS Q2Q%-46.18%
Revenue 1Y (TTM)-3.17%
Revenue growth 3Y8.93%
Revenue growth 5Y5.97%
Sales Q2Q%-2.38%
3.2 Future
- The Earnings Per Share is expected to decrease by -4.68% on average over the next years.
- VRLA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.90% yearly.
EPS Next Y-42.02%
EPS Next 2Y-11.89%
EPS Next 3Y-4.68%
EPS Next 5YN/A
Revenue Next Year-3.21%
Revenue Next 2Y-0.79%
Revenue Next 3Y0.39%
Revenue Next 5Y0.9%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 14.25 indicates a correct valuation of VRLA.
- Compared to the rest of the industry, the Price/Earnings ratio of VRLA indicates a somewhat cheap valuation: VRLA is cheaper than 76.92% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of VRLA to the average of the S&P500 Index (27.32), we can say VRLA is valued slightly cheaper.
- A Price/Forward Earnings ratio of 11.36 indicates a reasonable valuation of VRLA.
- Based on the Price/Forward Earnings ratio, VRLA is valued cheaply inside the industry as 84.62% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.32, VRLA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.25 | ||
| Fwd PE | 11.36 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VRLA indicates a rather cheap valuation: VRLA is cheaper than 92.31% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of VRLA indicates a rather cheap valuation: VRLA is cheaper than 84.62% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.21 | ||
| EV/EBITDA | 5.15 |
4.3 Compensation for Growth
- The excellent profitability rating of VRLA may justify a higher PE ratio.
- A cheap valuation may be justified as VRLA's earnings are expected to decrease with -4.68% in the coming years.
PEG (NY)N/A
PEG (5Y)0.96
EPS Next 2Y-11.89%
EPS Next 3Y-4.68%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 7.25%, VRLA is a good candidate for dividend investing.
- VRLA's Dividend Yield is rather good when compared to the industry average which is at 2.76. VRLA pays more dividend than 100.00% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, VRLA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.25% |
5.2 History
- On average, the dividend of VRLA grows each year by 18.10%, which is quite nice.
Dividend Growth(5Y)18.1%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
- VRLA pays out 113.31% of its income as dividend. This is not a sustainable payout ratio.
- VRLA's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP113.31%
EPS Next 2Y-11.89%
EPS Next 3Y-4.68%
VERALLIA / VRLA.PA FAQ
What is the fundamental rating for VRLA stock?
ChartMill assigns a fundamental rating of 5 / 10 to VRLA.PA.
Can you provide the valuation status for VERALLIA?
ChartMill assigns a valuation rating of 7 / 10 to VERALLIA (VRLA.PA). This can be considered as Undervalued.
Can you provide the profitability details for VERALLIA?
VERALLIA (VRLA.PA) has a profitability rating of 8 / 10.
What is the expected EPS growth for VERALLIA (VRLA.PA) stock?
The Earnings per Share (EPS) of VERALLIA (VRLA.PA) is expected to decline by -42.02% in the next year.
How sustainable is the dividend of VERALLIA (VRLA.PA) stock?
The dividend rating of VERALLIA (VRLA.PA) is 6 / 10 and the dividend payout ratio is 113.31%.