VERALLIA (VRLA.PA)
FR0013447729 - Common Stock
We assign a fundamental rating of 5 out of 10 to VRLA. VRLA was compared to 15 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.
Each year in the past 5 years VRLA has been profitable.
VRLA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
VRLA has a better Return On Assets (6.32%) than 66.67% of its industry peers.
With an excellent Return On Equity value of 32.84%, VRLA belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
VRLA has a Return On Invested Capital of 13.88%. This is amongst the best in the industry. VRLA outperforms 86.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VRLA is significantly above the industry average of 7.97%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.32% | ||
| ROE | 32.84% | ||
| ROIC | 13.88% |
ROA(3y)8.17%
ROA(5y)6.81%
ROE(3y)39.45%
ROE(5y)37.17%
ROIC(3y)15.5%
ROIC(5y)13.67%
1.3 Margins
Looking at the Profit Margin, with a value of 8.04%, VRLA is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Profit Margin of VRLA has grown nicely.
Looking at the Operating Margin, with a value of 17.34%, VRLA belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
VRLA's Operating Margin has improved in the last couple of years.
VRLA's Gross Margin of 22.53% is on the low side compared to the rest of the industry. VRLA is outperformed by 86.67% of its industry peers.
In the last couple of years the Gross Margin of VRLA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.34% | ||
| PM (TTM) | 8.04% | ||
| GM | 22.53% |
OM growth 3Y10.51%
OM growth 5Y11.72%
PM growth 3Y14.74%
PM growth 5Y47.9%
GM growth 3Y6.32%
GM growth 5Y7.99%
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 less shares outstanding
VRLA has less shares outstanding than it did 5 years ago.
VRLA has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.95 indicates that VRLA is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.95, VRLA is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
The Debt to FCF ratio of VRLA is 12.03, which is on the high side as it means it would take VRLA, 12.03 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 12.03, VRLA is in line with its industry, outperforming 53.33% of the companies in the same industry.
VRLA has a Debt/Equity ratio of 2.37. This is a high value indicating a heavy dependency on external financing.
VRLA has a worse Debt to Equity ratio (2.37) than 93.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.37 | ||
| Debt/FCF | 12.03 | ||
| Altman-Z | 1.95 |
ROIC/WACC2.43
WACC5.7%
2.3 Liquidity
A Current Ratio of 0.90 indicates that VRLA may have some problems paying its short term obligations.
VRLA has a Current ratio of 0.90. This is amonst the worse of the industry: VRLA underperforms 86.67% of its industry peers.
VRLA has a Quick Ratio of 0.90. 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's Quick ratio of 0.48 is on the low side compared to the rest of the industry. VRLA is outperformed by 93.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
The earnings per share for VRLA have decreased strongly by -40.67% in the last year.
VRLA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 62.86% yearly.
The Revenue has decreased by -8.55% in the past year.
VRLA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.07% yearly.
EPS 1Y (TTM)-40.67%
EPS 3Y33.91%
EPS 5Y62.86%
EPS Q2Q%-59.97%
Revenue 1Y (TTM)-8.55%
Revenue growth 3Y15.47%
Revenue growth 5Y10.07%
Sales Q2Q%-17.65%
3.2 Future
Based on estimates for the next years, VRLA will show a decrease in Earnings Per Share. The EPS will decrease by -5.21% on average per year.
Based on estimates for the next years, VRLA will show a decrease in Revenue. The Revenue will decrease by -1.67% on average per year.
EPS Next Y-35.88%
EPS Next 2Y-12.3%
EPS Next 3Y-5.21%
EPS Next 5YN/A
Revenue Next Year-11.22%
Revenue Next 2Y-4.1%
Revenue Next 3Y-1.67%
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
A Price/Earnings ratio of 10.79 indicates a reasonable valuation of VRLA.
Based on the Price/Earnings ratio, VRLA is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of VRLA to the average of the S&P500 Index (30.52), we can say VRLA is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.66, the valuation of VRLA can be described as very cheap.
100.00% 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 21.99, VRLA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.79 | ||
| Fwd PE | 7.66 |
4.2 Price Multiples
80.00% of the companies in the same industry are more expensive than VRLA, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, VRLA is valued a bit cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.56 | ||
| EV/EBITDA | 4.58 |
4.3 Compensation for Growth
VRLA has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as VRLA's earnings are expected to decrease with -5.21% in the coming years.
PEG (NY)N/A
PEG (5Y)0.17
EPS Next 2Y-12.3%
EPS Next 3Y-5.21%
5. Dividend
5.1 Amount
VRLA has a Yearly Dividend Yield of 8.32%, which is a nice return.
In the last 3 months the price of VRLA has falen by -27.49%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
VRLA's Dividend Yield is rather good when compared to the industry average which is at 4.72. VRLA pays more dividend than 100.00% of the companies in the same industry.
VRLA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.32% |
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
87.86% of the earnings are spent on dividend by VRLA. This is not a sustainable payout ratio.
The Dividend Rate of VRLA has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP87.86%
EPS Next 2Y-12.3%
EPS Next 3Y-5.21%
VERALLIA
EPA:VRLA (9/16/2024, 9:03:08 AM)
26.1
-0.28 (-1.06%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.07B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.32% |
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)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.79 | ||
| Fwd PE | 7.66 | ||
| 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)0.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.32% | ||
| ROE | 32.84% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.34% | ||
| PM (TTM) | 8.04% | ||
| GM | 22.53% | ||
| 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 Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.37 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.48 | ||
| 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)-40.67%
EPS 3Y33.91%
EPS 5Y
EPS Q2Q%
EPS Next Y-35.88%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-8.55%
Revenue growth 3Y15.47%
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