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.

6

1. VRN.CA Profitability Analysis

1.1 Basic Checks

  • VRN had positive earnings in the past year.
  • VRN had a positive operating cash flow in the past year.
  • VRN had positive earnings in 4 of the past 5 years.
  • Each year in the past 5 years VRN had a positive operating cash flow.
VRN.CA Yearly Net Income VS EBIT VS OCF VS FCFVRN.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B -1B 2B -2B

1.2 Ratios

  • The Return On Assets of VRN (2.33%) is comparable to the rest of the industry.
  • 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 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 6.78%.
Industry RankSector 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%
VRN.CA Yearly ROA, ROE, ROICVRN.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 -40 -60 -80

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.
  • In the last couple of years the Profit Margin of VRN has declined.
  • 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.
  • VRN's Operating Margin has improved in the last couple of years.
  • 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 RankSector 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%
VRN.CA Yearly Profit, Operating, Gross MarginsVRN.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 -50 -100 -150

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3

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.
  • Compared to 1 year ago, VRN has less shares outstanding
  • VRN has more shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, VRN has an improved debt to assets ratio.
VRN.CA Yearly Shares OutstandingVRN.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M
VRN.CA Yearly Total Debt VS Total AssetsVRN.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

2.2 Solvency

  • VRN has an Altman-Z score of 0.04. 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 0.04 is on the low side compared to the rest of the industry. VRN is outperformed by 66.83% of its industry peers.
  • The Debt to FCF ratio of VRN is 6.16, which is on the high side as it means it would take VRN, 6.16 years of fcf income to pay off all of its debts.
  • With a decent Debt to FCF ratio value of 6.16, VRN is doing good in the industry, outperforming 73.08% of the companies in the same industry.
  • VRN has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
  • VRN has a Debt to Equity ratio of 0.37. This is comparable to the rest of the industry: VRN outperforms 51.92% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.37
Debt/FCF 6.16
Altman-Z 0.04
ROIC/WACC0.89
WACC9.11%
VRN.CA Yearly LT Debt VS Equity VS FCFVRN.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B -2B 4B 6B 8B

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 in the lower half of the industry: VRN underperforms 75.96% 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.
  • Looking at the Quick ratio, with a value of 0.57, VRN is doing worse than 68.75% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.57
Quick Ratio 0.57
VRN.CA Yearly Current Assets VS Current LiabilitesVRN.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. VRN.CA Growth Analysis

3.1 Past

  • The earnings per share for VRN have decreased strongly by -53.13% in the last year.
  • Measured over the past years, VRN shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -14.10% on average per year.
  • Looking at the last year, VRN shows a very strong growth in Revenue. The Revenue has grown by 24.52%.
  • VRN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.66% yearly.
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 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.
VRN.CA Yearly Revenue VS EstimatesVRN.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1B 2B 3B 4B 5B
VRN.CA Yearly EPS VS EstimatesVRN.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 2 -2 4 -4

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7

4. VRN.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 20.31 indicates a rather expensive valuation of VRN.
  • VRN's Price/Earnings is on the same level as the industry average.
  • VRN is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 24.88, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 7.02, the valuation of VRN can be described as very cheap.
  • Based on the Price/Forward Earnings ratio, VRN is valued a bit cheaper than the industry average as 72.60% of the companies are valued more expensively.
  • When comparing the Price/Forward Earnings ratio of VRN to the average of the S&P500 Index (22.19), we can say VRN is valued rather cheaply.
Industry RankSector Rank
PE 20.31
Fwd PE 7.02
VRN.CA Price Earnings VS Forward Price EarningsVRN.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VRN indicates a rather cheap valuation: VRN is cheaper than 86.06% of the companies listed 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 RankSector Rank
P/FCF 11.24
EV/EBITDA 3.57
VRN.CA Per share dataVRN.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

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.
  • The decent profitability rating of VRN 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%

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5

5. VRN.CA Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 5.03%, VRN is a good candidate for dividend investing.
  • VRN's Dividend Yield is a higher than the industry average which is at 4.41.
  • Compared to an average S&P500 Dividend Yield of 1.89, VRN pays a better dividend.
Industry RankSector 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
VRN.CA Yearly Dividends per shareVRN.CA Yearly Dividends per shareYearly Dividends per share 2019 2020 2021 2022 2023 2024 2025 0.1 0.2 0.3 0.4

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%
VRN.CA Yearly Income VS Free CF VS DividendVRN.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B -1B 2B -2B
VRN.CA Dividend Payout.VRN.CA Dividend Payout, showing the Payout Ratio.VRN.CA Dividend Payout.PayoutRetained Earnings

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VRN.CA Fundamentals: All Metrics, Ratios and Statistics

Veren Inc

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
Earnings (Next)07-24
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 RankSector 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 RankSector 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 NumberN/A
Profitability
Industry RankSector 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 RankSector 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.


How profitable is Veren Inc (VRN.CA) stock?

Veren Inc (VRN.CA) has a profitability rating of 6 / 10.


How financially healthy is Veren Inc?

The financial health rating of Veren Inc (VRN.CA) is 3 / 10.


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.