Veren Inc (VRN.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:VRN - CA92340V1076 - Common Stock
9.14 CAD
+0.34 (+3.86%)
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. VRN has a medium profitability rating, but doesn't score so well on its financial health evaluation. VRN scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
- In the past year VRN was profitable.
- 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
- The Return On Assets of VRN (2.33%) is comparable to the rest of the industry.
- VRN has a Return On Equity (4.04%) which is in line with its industry peers.
- Looking at the Return On Invested Capital, with a value of 8.09%, VRN belongs to the top of the industry, outperforming 84.13% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for VRN is above the industry average of 6.52%.
| 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
- The Profit Margin of VRN (6.88%) is comparable to the rest of the industry.
- VRN's Profit Margin has declined in the last couple of years.
- VRN has a Operating Margin of 27.16%. This is in the better half of the industry: VRN outperforms 78.85% of its industry peers.
- In the last couple of years the Operating Margin of VRN has grown nicely.
- VRN has a Gross Margin of 72.71%. This is amongst the best in the industry. VRN outperforms 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. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so VRN is still creating some value.
- Compared to 1 year ago, VRN has less shares outstanding
- The number of shares outstanding for VRN has been increased compared to 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 0.04. 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.
- 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 73.08% of its industry peers.
- A Debt/Equity ratio of 0.37 indicates that VRN is not too dependend on debt financing.
- VRN has a Debt to Equity ratio (0.37) which is comparable to the rest of the 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.
- The Current ratio of VRN (0.57) is worse than 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.
- 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. Growth
3.1 Past
- VRN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -53.13%.
- 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.
- The Revenue has grown by 24.52% in the past year. This is a very strong growth!
- 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 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. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 20.31 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.
- VRN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.33.
- 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.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.12, VRN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.31 | ||
| Fwd PE | 7.02 |
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.
- Based on the Price/Free Cash Flow ratio, VRN is valued a bit 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
- The 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%
5. Dividend
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 2.71.
- Compared to an average S&P500 Dividend Yield of 1.91, 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%
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 NumberN/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%
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 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.