VERALLIA (VRLA.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:VRLA - FR0013447729 - Common Stock
21.7 EUR
+0.02 (+0.09%)
Overall VRLA gets a fundamental rating of 5 out of 10. We evaluated VRLA against 13 industry peers in the Containers & Packaging industry. While VRLA belongs to the best of the industry regarding profitability, there are concerns on its financial health. VRLA is cheap, but on the other hand it scores bad on growth.
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.
- VRLA had positive earnings in each of the past 5 years.
- Each year in the past 5 years VRLA had a positive operating cash flow.
1.2 Ratios
- VRLA has a better Return On Assets (3.98%) than 61.54% of its industry peers.
- VRLA has a better Return On Equity (21.11%) than 100.00% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 9.94%, VRLA belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
- 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 of 5.26%. This is comparable to the rest of the industry: VRLA outperforms 53.85% of its industry peers.
- VRLA's Profit Margin has improved in the last couple of years.
- VRLA has a Operating Margin of 13.41%. This is amongst the best in the industry. VRLA outperforms 84.62% of its industry peers.
- In the last couple of years the Operating Margin of VRLA has grown nicely.
- Looking at the Gross Margin, with a value of 18.40%, VRLA is doing worse than 84.62% of the companies in the same industry.
- 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so VRLA is creating value.
- Compared to 1 year ago, VRLA has more shares outstanding
- Compared to 5 years ago, VRLA has less shares outstanding
- VRLA has a worse debt/assets ratio than last year.
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.
- VRLA has a debt to FCF ratio of 8.16. This is a slightly negative value and a sign of low solvency as VRLA would need 8.16 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 8.16, VRLA is doing good in the industry, outperforming 69.23% of the companies in the same industry.
- A Debt/Equity ratio of 2.63 is on the high side and indicates that VRLA has dependencies on debt financing.
- VRLA has a worse Debt to Equity ratio (2.63) than 76.92% of its industry peers.
| 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%.
- VRLA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.87% yearly.
- VRLA shows a decrease in Revenue. In the last year, the revenue decreased by -3.17%.
- The Revenue has been growing slightly by 5.97% on average over the past years.
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
- Based on estimates for the next years, VRLA will show a decrease in Earnings Per Share. The EPS will decrease by -4.68% on average per year.
- 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
- 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 14.37, the valuation of VRLA can be described as correct.
- VRLA's Price/Earnings ratio is a bit cheaper when compared to the industry. VRLA is cheaper than 76.92% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.25. VRLA is valued slightly cheaper when compared to this.
- With a Price/Forward Earnings ratio of 11.46, the valuation of VRLA can be described as very reasonable.
- 84.62% of the companies in the same industry are more expensive than VRLA, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, VRLA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.37 | ||
| Fwd PE | 11.46 |
4.2 Price Multiples
- 92.31% of the companies in the same industry are more expensive than VRLA, based on the Enterprise Value to EBITDA ratio.
- 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 | 9.28 | ||
| EV/EBITDA | 5.15 |
4.3 Compensation for Growth
- The excellent profitability rating of VRLA may justify a higher PE ratio.
- VRLA's earnings are expected to decrease with -4.68% in the coming years. This may justify a cheaper valuation.
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 7.84%, which is a nice return.
- Compared to an average industry Dividend Yield of 2.85, VRLA pays a better dividend. On top of this VRLA pays more dividend than 100.00% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, VRLA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.84% |
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%.