VEREN INC (VRN.CA) Stock Fundamental Analysis
TSX:VRN - Toronto Stock Exchange - CA92340V1076 - Common Stock - Currency: CAD
We assign a fundamental rating of 5 out of 10 to VRN. VRN was compared to 211 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of VRN while its profitability can be described as average. A decent growth rate in combination with a cheap valuation! Better keep an eye on VRN.
1. Profitability
1.1 Basic Checks
In the past year VRN was profitable.
VRN had a positive operating cash flow in the past year.
Of the past 5 years VRN 4 years were profitable.
In the past 5 years VRN always reported a positive cash flow from operatings.
1.2 Ratios
VRN has a better Return On Assets (2.33%) than 64.93% of its industry peers.
The Return On Equity of VRN (4.04%) is comparable to the rest of the industry.
VRN has a better Return On Invested Capital (8.09%) than 83.89% of its industry peers.
VRN had an Average Return On Invested Capital over the past 3 years of 10.88%. This is above the industry average of 7.38%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.33% | ||
| ROE | 4.04% | ||
| ROIC | 8.09% |
ROA(3y)7.48%
ROA(5y)2.06%
ROE(3y)11.73%
ROE(5y)-2.07%
ROIC(3y)10.88%
ROIC(5y)8.73%
1.3 Margins
VRN's Profit Margin of 6.88% is in line compared to the rest of the industry. VRN outperforms 59.24% of its industry peers.
In the last couple of years the Profit Margin of VRN has declined.
The Operating Margin of VRN (27.16%) is better than 79.15% of its industry peers.
VRN's Operating Margin has improved in the last couple of years.
VRN's Gross Margin of 72.71% is amongst the best of the industry. VRN outperforms 88.15% of its industry peers.
In the last couple of years the Gross Margin of VRN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.16% | ||
| PM (TTM) | 6.88% | ||
| GM | 72.71% |
OM growth 3Y-11.86%
OM growth 5Y3.88%
PM growth 3Y-56.49%
PM growth 5YN/A
GM growth 3Y-1.79%
GM growth 5Y-0.31%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), VRN is creating some value.
The number of shares outstanding for VRN has been reduced compared to 1 year ago.
VRN has more shares outstanding than it did 5 years ago.
The debt/assets ratio for VRN has been reduced compared to a year ago.
2.2 Solvency
VRN has an Altman-Z score of -0.01. This is a bad value and indicates that VRN is not financially healthy and even has some risk of bankruptcy.
VRN's Altman-Z score of -0.01 is on the low side compared to the rest of the industry. VRN is outperformed by 68.25% of its industry peers.
VRN has a debt to FCF ratio of 6.16. This is a slightly negative value and a sign of low solvency as VRN would need 6.16 years to pay back of all of its debts.
VRN's Debt to FCF ratio of 6.16 is fine compared to the rest of the industry. VRN outperforms 72.51% of its industry peers.
VRN has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.37, VRN perfoms like the industry average, outperforming 51.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 6.16 | ||
| Altman-Z | -0.01 |
ROIC/WACC0.87
WACC9.28%
2.3 Liquidity
VRN has a Current Ratio of 0.57. This is a bad value and indicates that VRN is not financially healthy enough and could expect problems in meeting its short term obligations.
VRN has a Current ratio of 0.57. This is comparable to the rest of the industry: VRN outperforms 44.55% of its industry peers.
VRN has a Quick Ratio of 0.57. This is a bad value and indicates that VRN is not financially healthy enough and could expect problems in meeting its short term obligations.
VRN has a Quick ratio (0.57) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
The earnings per share for VRN have decreased strongly by -53.13% in the last year.
VRN shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -14.10% yearly.
Looking at the last year, VRN shows a very strong growth in Revenue. The Revenue has grown by 24.52%.
The Revenue has been growing slightly by 6.66% on average over the past years.
EPS 1Y (TTM)-53.13%
EPS 3Y-14.1%
EPS 5YN/A
EPS Q2Q%-85.88%
Revenue 1Y (TTM)24.52%
Revenue growth 3Y11.97%
Revenue growth 5Y6.66%
Sales Q2Q%32.55%
3.2 Future
Based on estimates for the next years, VRN will show a very strong growth in Earnings Per Share. The EPS will grow by 21.31% on average per year.
VRN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.59% yearly.
EPS Next Y189.53%
EPS Next 2Y52.32%
EPS Next 3Y21.31%
EPS Next 5YN/A
Revenue Next Year-1.53%
Revenue Next 2Y2.63%
Revenue Next 3Y1%
Revenue Next 5Y4.59%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 18.80 indicates a rather expensive valuation of VRN.
Compared to the rest of the industry, the Price/Earnings ratio of VRN is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 28.33. VRN is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 6.49, the valuation of VRN can be described as very cheap.
VRN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. VRN is cheaper than 77.25% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.37, VRN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.8 | ||
| Fwd PE | 6.49 |
4.2 Price Multiples
VRN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VRN is cheaper than 86.73% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VRN indicates a somewhat cheap valuation: VRN is cheaper than 68.72% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.4 | ||
| EV/EBITDA | 3.4 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
VRN has a very decent profitability rating, which may justify a higher PE ratio.
VRN's earnings are expected to grow with 21.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.1
PEG (5Y)N/A
EPS Next 2Y52.32%
EPS Next 3Y21.31%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.42%, VRN is a good candidate for dividend investing.
VRN's Dividend Yield is rather good when compared to the industry average which is at 6.57. VRN pays more dividend than 80.57% of the companies in the same industry.
VRN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.42% |
5.2 History
On average, the dividend of VRN grows each year by 62.49%, which is quite nice.
VRN has been paying a dividend for over 5 years, so it has already some track record.
VRN has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)62.49%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
VRN pays out 104.13% of its income as dividend. This is not a sustainable payout ratio.
The dividend of VRN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP104.13%
EPS Next 2Y52.32%
EPS Next 3Y21.31%
TSX:VRN (4/22/2025, 7:00:00 PM)
8.46
+0.15 (+1.81%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners44.99%
Inst Owner ChangeN/A
Ins Owners0.7%
Ins Owner ChangeN/A
Market Cap5.18B
Analysts81.25
Price Target11.33 (33.92%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.42% |
Yearly Dividend0.46
Dividend Growth(5Y)62.49%
DP104.13%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)12.12%
Min EPS beat(2)-20.31%
Max EPS beat(2)44.56%
EPS beat(4)2
Avg EPS beat(4)-60.8%
Min EPS beat(4)-278.4%
Max EPS beat(4)44.56%
EPS beat(8)3
Avg EPS beat(8)-39.62%
EPS beat(12)5
Avg EPS beat(12)-13.85%
EPS beat(16)5
Avg EPS beat(16)-14.22%
Revenue beat(2)1
Avg Revenue beat(2)6.25%
Min Revenue beat(2)-4.22%
Max Revenue beat(2)16.73%
Revenue beat(4)2
Avg Revenue beat(4)-0.37%
Min Revenue beat(4)-19.96%
Max Revenue beat(4)16.73%
Revenue beat(8)2
Avg Revenue beat(8)-9.07%
Revenue beat(12)4
Avg Revenue beat(12)-5.07%
Revenue beat(16)8
Avg Revenue beat(16)-0.22%
PT rev (1m)-1.85%
PT rev (3m)-2.15%
EPS NQ rev (1m)8.44%
EPS NQ rev (3m)15.45%
EPS NY rev (1m)14.22%
EPS NY rev (3m)13.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.58%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.8 | ||
| Fwd PE | 6.49 | ||
| P/S | 1.3 | ||
| P/FCF | 10.4 | ||
| P/OCF | 2.45 | ||
| P/B | 0.77 | ||
| P/tB | 0.79 | ||
| EV/EBITDA | 3.4 |
EPS(TTM)0.45
EY5.32%
EPS(NY)1.3
Fwd EY15.4%
FCF(TTM)0.81
FCFY9.61%
OCF(TTM)3.45
OCFY40.8%
SpS6.49
BVpS11.05
TBVpS10.65
PEG (NY)0.1
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.33% | ||
| ROE | 4.04% | ||
| ROCE | 10.21% | ||
| ROIC | 8.09% | ||
| ROICexc | 8.11% | ||
| ROICexgc | 8.3% | ||
| OM | 27.16% | ||
| PM (TTM) | 6.88% | ||
| GM | 72.71% | ||
| FCFM | 12.53% |
ROA(3y)7.48%
ROA(5y)2.06%
ROE(3y)11.73%
ROE(5y)-2.07%
ROIC(3y)10.88%
ROIC(5y)8.73%
ROICexc(3y)11.09%
ROICexc(5y)8.86%
ROICexgc(3y)11.37%
ROICexgc(5y)9.09%
ROCE(3y)13.72%
ROCE(5y)11.02%
ROICexcg growth 3Y-9.61%
ROICexcg growth 5Y7.92%
ROICexc growth 3Y-9.52%
ROICexc growth 5Y7.96%
OM growth 3Y-11.86%
OM growth 5Y3.88%
PM growth 3Y-56.49%
PM growth 5YN/A
GM growth 3Y-1.79%
GM growth 5Y-0.31%
F-Score6
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 6.16 | ||
| Debt/EBITDA | 1.03 | ||
| Cap/Depr | 120.62% | ||
| Cap/Sales | 40.64% | ||
| Interest Coverage | 5.33 | ||
| Cash Conversion | 87.37% | ||
| Profit Quality | 182.07% | ||
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | -0.01 |
F-Score6
WACC9.28%
ROIC/WACC0.87
Cap/Depr(3y)230.75%
Cap/Depr(5y)176.18%
Cap/Sales(3y)74.7%
Cap/Sales(5y)63.8%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-53.13%
EPS 3Y-14.1%
EPS 5YN/A
EPS Q2Q%-85.88%
EPS Next Y189.53%
EPS Next 2Y52.32%
EPS Next 3Y21.31%
EPS Next 5YN/A
Revenue 1Y (TTM)24.52%
Revenue growth 3Y11.97%
Revenue growth 5Y6.66%
Sales Q2Q%32.55%
Revenue Next Year-1.53%
Revenue Next 2Y2.63%
Revenue Next 3Y1%
Revenue Next 5Y4.59%
EBIT growth 1Y-6.28%
EBIT growth 3Y-1.31%
EBIT growth 5Y10.81%
EBIT Next Year58.77%
EBIT Next 3Y12.73%
EBIT Next 5Y10.8%
FCF growth 1Y118.84%
FCF growth 3Y51.96%
FCF growth 5Y3.41%
OCF growth 1Y-3.82%
OCF growth 3Y12.18%
OCF growth 5Y3.91%