Veren Inc (VRN.CA) Fundamental Analysis & Valuation
TSX:VRN • CA92340V1076
Current stock price
9.14 CAD
+0.34 (+3.86%)
Last:
This VRN.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. VRN.CA Profitability Analysis
1.1 Basic Checks
- VRN had positive earnings in the past year.
- In the past year VRN had a positive cash flow from operations.
- VRN had positive earnings in 4 of the past 5 years.
- In the past 5 years VRN always reported a positive cash flow from operatings.
1.2 Ratios
- VRN has a Return On Assets of 2.33%. This is comparable to the rest of the industry: VRN outperforms 55.29% of its industry peers.
- VRN has a Return On Equity (4.04%) which is comparable to the rest of the industry.
- VRN's Return On Invested Capital of 8.09% is amongst the best of the industry. VRN outperforms 84.13% 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 6.97%.
| 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
- With a Profit Margin value of 6.88%, VRN perfoms like the industry average, outperforming 59.62% of the companies in the same industry.
- VRN's Profit Margin has declined in the last couple of years.
- With a decent Operating Margin value of 27.16%, VRN is doing good in the industry, outperforming 78.85% of the companies in the same industry.
- In the last couple of years the Operating Margin of VRN has grown nicely.
- The Gross Margin of VRN (72.71%) is better than 88.46% of its industry peers.
- VRN's Gross Margin has been stable in the last couple of years.
| 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. VRN.CA Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), VRN is creating some value.
- VRN has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for VRN has been increased compared to 5 years ago.
- Compared to 1 year ago, VRN has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.04, we must say that VRN is in the distress zone and has some risk of bankruptcy.
- VRN has a worse Altman-Z score (0.04) than 66.83% 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 has a Debt to FCF ratio of 6.16. This is in the better half of the industry: VRN outperforms 73.08% of its industry peers.
- A Debt/Equity ratio of 0.37 indicates that VRN is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.37, VRN is in line with its industry, outperforming 51.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 6.16 | ||
| Altman-Z | 0.04 |
ROIC/WACC0.89
WACC9.11%
2.3 Liquidity
- A Current Ratio of 0.57 indicates that VRN may have some problems paying its short term obligations.
- With a Current ratio value of 0.57, VRN is not doing good in the industry: 75.96% of the companies in the same industry are doing better.
- A Quick Ratio of 0.57 indicates that VRN may have some problems paying its short term obligations.
- With a Quick ratio value of 0.57, VRN is not doing good in the industry: 68.75% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.57 |
3. VRN.CA Growth Analysis
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.
- VRN shows a strong growth in Revenue. In the last year, the Revenue has grown by 24.52%.
- Measured over the past years, VRN shows a small growth in Revenue. The Revenue has been growing by 6.66% on average per year.
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
- The Earnings Per Share is expected to grow by 21.31% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 4.59% on average over the next years.
EPS Next Y189.53%
EPS Next 2Y52.32%
EPS Next 3Y21.31%
EPS Next 5YN/A
Revenue Next Year3.46%
Revenue Next 2Y2.34%
Revenue Next 3Y1.23%
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. VRN.CA Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 20.31 indicates a rather expensive valuation of VRN.
- The rest of the industry has a similar Price/Earnings ratio as VRN.
- VRN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.42.
- The Price/Forward Earnings ratio is 7.02, which indicates a rather cheap valuation of VRN.
- 72.60% of the companies in the same industry are more expensive than VRN, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of VRN to the average of the S&P500 Index (22.29), we can say VRN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.31 | ||
| Fwd PE | 7.02 |
4.2 Price Multiples
- VRN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VRN is cheaper than 86.06% of the companies in the same industry.
- VRN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. VRN is cheaper than 70.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.24 | ||
| EV/EBITDA | 3.57 |
4.3 Compensation for Growth
- VRN's 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)0.11
PEG (5Y)N/A
EPS Next 2Y52.32%
EPS Next 3Y21.31%
5. VRN.CA Dividend Analysis
5.1 Amount
- VRN has a Yearly Dividend Yield of 5.03%, which is a nice return.
- Compared to an average industry Dividend Yield of 3.03, VRN pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.81, VRN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.03% |
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
- 104.13% of the earnings are spent on dividend by VRN. 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%
VRN.CA Fundamentals: All Metrics, Ratios and Statistics
TSX:VRN (5/13/2025, 7:00:00 PM)
9.14
+0.34 (+3.86%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)05-09 2025-05-09/bmo
Earnings (Next)07-24 2025-07-24/bmo
Inst Owners44.99%
Inst Owner ChangeN/A
Ins Owners0.7%
Ins Owner ChangeN/A
Market Cap5.59B
Revenue(TTM)3.97B
Net Income(TTM)273.30M
Analysts81.25
Price Target11.39 (24.62%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.03% |
Yearly Dividend0.46
Dividend Growth(5Y)62.49%
DP104.13%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
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)0.45%
PT rev (3m)-0.78%
EPS NQ rev (1m)-1.09%
EPS NQ rev (3m)16.84%
EPS NY rev (1m)0%
EPS NY rev (3m)14.22%
Revenue NQ rev (1m)3.41%
Revenue NQ rev (3m)2.93%
Revenue NY rev (1m)1%
Revenue NY rev (3m)6.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.31 | ||
| Fwd PE | 7.02 | ||
| P/S | 1.41 | ||
| P/FCF | 11.24 | ||
| P/OCF | 2.65 | ||
| P/B | 0.83 | ||
| P/tB | 0.86 | ||
| EV/EBITDA | 3.57 |
EPS(TTM)0.45
EY4.92%
EPS(NY)1.3
Fwd EY14.25%
FCF(TTM)0.81
FCFY8.9%
OCF(TTM)3.45
OCFY37.76%
SpS6.49
BVpS11.05
TBVpS10.65
PEG (NY)0.11
PEG (5Y)N/A
Graham Number0 (-100%)
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%
ROICexgc growth 3Y-9.61%
ROICexgc 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 | 0.04 |
F-Score6
WACC9.11%
ROIC/WACC0.89
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 Year3.46%
Revenue Next 2Y2.34%
Revenue Next 3Y1.23%
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%
Veren Inc / VRN.CA Fundamental Analysis FAQ
Can you provide the ChartMill fundamental rating for Veren Inc?
ChartMill assigns a fundamental rating of 5 / 10 to VRN.CA.
Can you provide the valuation status for Veren Inc?
ChartMill assigns a valuation rating of 7 / 10 to Veren Inc (VRN.CA). This can be considered as Undervalued.
Can you provide the profitability details for Veren Inc?
Veren Inc (VRN.CA) has a profitability rating of 6 / 10.
What are the PE and PB ratios of Veren Inc (VRN.CA) stock?
The Price/Earnings (PE) ratio for Veren Inc (VRN.CA) is 20.31 and the Price/Book (PB) ratio is 0.83.
Can you provide the expected EPS growth for VRN stock?
The Earnings per Share (EPS) of Veren Inc (VRN.CA) is expected to grow by 189.53% in the next year.