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. 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.
- VRLA had a positive operating cash flow in the past year.
- In the past 5 years VRLA has always 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 (3.98%) than 61.54% of its industry peers.
- 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's Return On Invested Capital of 9.94% is amongst the best of 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 in line with its industry peers.
- VRLA's Profit Margin has improved in the last couple of years.
- VRLA has a better Operating Margin (13.41%) than 84.62% of its industry peers.
- In the last couple of years the Operating Margin of VRLA has grown nicely.
- VRLA has a Gross Margin of 18.40%. This is amonst the worse of the industry: VRLA underperforms 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so VRLA is creating value.
- The number of shares outstanding for VRLA has been increased compared to 1 year ago.
- VRLA has less shares outstanding than it did 5 years ago.
- 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.
- With a Altman-Z score value of 1.76, VRLA perfoms like the industry average, 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.
- The Debt to Equity ratio of VRLA (2.63) is worse 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'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.
- 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
- VRLA is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.68% yearly.
- 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
- The Price/Earnings ratio is 14.38, which indicates a correct valuation of VRLA.
- 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.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, VRLA is valued a bit cheaper.
- A Price/Forward Earnings ratio of 11.47 indicates a reasonable valuation of VRLA.
- Based on the Price/Forward Earnings ratio, VRLA is valued 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 (24.26), we can say VRLA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.38 | ||
| Fwd PE | 11.47 |
4.2 Price Multiples
- VRLA's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VRLA is cheaper than 92.31% of the companies 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 | 9.29 | ||
| EV/EBITDA | 5.15 |
4.3 Compensation for Growth
- VRLA has an outstanding profitability rating, which 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.
- 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 1.82, 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
- 113.31% 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.
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%.