VERALLIA (VRLA.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:VRLA - FR0013447729 - Common Stock
21.72 EUR
+0.04 (+0.18%)
Overall VRLA gets a fundamental rating of 5 out of 10. We evaluated VRLA against 13 industry peers in the Containers & Packaging industry. VRLA scores excellent on profitability, 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
- VRLA had positive earnings in the past year.
- VRLA had a positive operating cash flow in the past year.
- Each year in the past 5 years VRLA has been profitable.
- In the past 5 years VRLA always reported a positive cash flow from operatings.
1.2 Ratios
- VRLA has a Return On Assets of 3.98%. This is in the better half of the industry: VRLA outperforms 61.54% of its industry peers.
- VRLA's Return On Equity of 21.11% is amongst the best of the industry. VRLA outperforms 100.00% of its industry peers.
- The Return On Invested Capital of VRLA (9.94%) is better than 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.
- In the last couple of years the Gross Margin of VRLA has remained more or less at the same level.
| 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.
- Compared to 1 year ago, VRLA has a worse debt to assets ratio.
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.
- VRLA has a Debt/Equity ratio of 2.63. This is a high value indicating a heavy dependency on external 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
- VRLA has a Current Ratio of 1.00. This is a normal value and indicates that VRLA is financially healthy and should not expect problems in meeting its short term obligations.
- VRLA's Current ratio of 1.00 is in line compared 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.
- With a Quick ratio value of 0.51, VRLA is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
| 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%.
- VRLA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.87% yearly.
- The Revenue has decreased by -3.17% in the past year.
- Measured over the past years, VRLA shows a small growth in Revenue. The Revenue has been growing by 5.97% on average per year.
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.
- Based on estimates for the next years, VRLA will show a small growth in Revenue. The Revenue will grow by 0.90% on average per year.
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.
- 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 14.38, the valuation of VRLA can be described as correct.
- Based on the Price/Earnings ratio, VRLA is valued a bit cheaper than 76.92% of the companies in the same industry.
- VRLA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.30.
- A Price/Forward Earnings ratio of 11.47 indicates a reasonable valuation of VRLA.
- VRLA's Price/Forward Earnings ratio is rather cheap when compared to the industry. VRLA is cheaper than 84.62% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of VRLA to the average of the S&P500 Index (24.32), we can say VRLA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.38 | ||
| Fwd PE | 11.47 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, VRLA is valued cheaper than 92.31% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, VRLA is valued cheaply inside the industry as 84.62% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.29 | ||
| 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)0.97
EPS Next 2Y-11.89%
EPS Next 3Y-4.68%
5. Dividend
5.1 Amount
- VRLA has a Yearly Dividend Yield of 7.25%, which is a nice return.
- Compared to an average industry Dividend Yield of 2.76, VRLA pays a better dividend. On top of this VRLA pays more dividend than 100.00% of the companies listed in the same industry.
- VRLA's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.25% |
5.2 History
- The dividend of VRLA is nicely growing with an annual growth rate of 18.10%!
Dividend Growth(5Y)18.1%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
- 113.31% of the earnings are spent on dividend by VRLA. 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%.