VERALLIA (VRLA.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:VRLA - FR0013447729 - Common Stock
21.72 EUR
+0.04 (+0.18%)
Taking everything into account, VRLA scores 5 out of 10 in our fundamental rating. VRLA was compared to 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
- VRLA had positive earnings in the past year.
- VRLA had a positive operating cash flow in the past year.
- 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
- Looking at the Return On Assets, with a value of 3.98%, VRLA is in the better half of 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 better Return On Invested Capital (9.94%) than 84.62% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for VRLA is significantly above the industry average of 6.42%.
- The 3 year average ROIC (15.43%) for VRLA is well above the current ROIC(9.94%). The reason for the recent decline needs to be investigated.
| 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's Profit Margin of 5.26% is in line compared to the rest of the industry. VRLA outperforms 53.85% of its industry peers.
- In the last couple of years the Profit Margin of VRLA has grown nicely.
- Looking at the Operating Margin, with a value of 13.41%, VRLA belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
- In the last couple of years the Operating Margin of VRLA has grown nicely.
- VRLA's Gross Margin of 18.40% is on the low side compared to the rest of the industry. VRLA is outperformed by 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so VRLA is creating value.
- VRLA has more shares outstanding than it did 1 year ago.
- 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.
- VRLA has a Altman-Z score (1.76) which is in line with its industry peers.
- 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.
- The Debt to FCF ratio of VRLA (8.16) is better than 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.
- 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
- 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 has a Current ratio (1.00) which is comparable to the rest of the industry.
- 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.
- Looking at the Quick ratio, with a value of 0.51, VRLA is doing worse than 61.54% of the companies in the same industry.
| 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
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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
- With a Price/Earnings ratio of 14.38, VRLA is valued correctly.
- 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.
- When comparing the Price/Earnings ratio of VRLA to the average of the S&P500 Index (27.21), we can say VRLA is valued slightly cheaper.
- Based on the Price/Forward Earnings ratio of 11.47, the valuation of VRLA can be described as reasonable.
- 84.62% of the companies in the same industry are more expensive than VRLA, based on the Price/Forward Earnings ratio.
- VRLA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.38 | ||
| Fwd PE | 11.47 |
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.
- VRLA's Price/Free Cash Flow ratio is rather cheap when compared to the industry. VRLA is cheaper than 84.62% of the companies in the same industry.
| 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.
- 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
- With a Yearly Dividend Yield of 7.25%, VRLA is a good candidate for dividend investing.
- 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.
- Compared to an average S&P500 Dividend Yield of 1.82, VRLA pays a better dividend.
| 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
- 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%.