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VERSO CORP - A (VRS) Stock Fundamental Analysis

NYSE:VRS - New York Stock Exchange, Inc. - Common Stock

26.99  +0.04 (+0.15%)

After market: 26.99 0 (0%)

Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to VRS. VRS was compared to 9 industry peers in the Paper & Forest Products industry. Both the profitability and financial health of VRS have multiple concerns. VRS is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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0

1. Profitability

1.1 Basic Checks

VRS had positive earnings in the past year.
VRS Yearly Net Income VS EBIT VS OCF VS FCFVRS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 0 500M 1B

1.2 Ratios

Industry RankSector Rank
ROA -0.28%
ROE N/A
ROIC N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
VRS Yearly ROA, ROE, ROICVRS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 0 50 100

1.3 Margins

Industry RankSector Rank
OM -0.47%
PM (TTM) -0.23%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
VRS Yearly Profit, Operating, Gross MarginsVRS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 0 10 -10 20 30 40

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3

2. Health

2.1 Basic Checks

Compared to 1 year ago, VRS has less shares outstanding
The debt/assets ratio for VRS has been reduced compared to a year ago.
VRS Yearly Shares OutstandingVRS Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 20M 40M 60M 80M
VRS Yearly Total Debt VS Total AssetsVRS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 500M 1B 1.5B 2B 2.5B

2.2 Solvency

VRS has an Altman-Z score of 2.73. This is not the best score and indicates that VRS is in the grey zone with still only limited risk for bankruptcy at the moment.
A Debt/Equity ratio of 0.00 indicates that VRS is not too dependend on debt financing.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Altman-Z 2.73
ROIC/WACCN/A
WACCN/A
VRS Yearly LT Debt VS Equity VS FCFVRS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 0 500M -500M -1B

2.3 Liquidity

VRS has a Current Ratio of 2.47. This indicates that VRS is financially healthy and has no problem in meeting its short term obligations.
A Quick Ratio of 1.71 indicates that VRS should not have too much problems paying its short term obligations.
Industry RankSector Rank
Current Ratio 2.47
Quick Ratio 1.71
VRS Yearly Current Assets VS Current LiabilitesVRS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 1B 2B 3B

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4

3. Growth

3.1 Past

VRS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 109.07%, which is quite impressive.
VRS shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -59.44% yearly.
VRS shows a decrease in Revenue. In the last year, the revenue decreased by -5.96%.
The Revenue for VRS have been decreasing by -13.51% on average. This is quite bad
EPS 1Y (TTM)109.07%
EPS 3Y-59.44%
EPS 5YN/A
EPS Q2Q%116.76%
Revenue 1Y (TTM)-5.96%
Revenue growth 3Y-21.89%
Revenue growth 5Y-13.51%
Sales Q2Q%4.46%

3.2 Future

VRS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 61.31% yearly.
The Revenue is expected to decrease by -3.77% on average over the next years.
EPS Next Y750.1%
EPS Next 2Y358.72%
EPS Next 3Y274.69%
EPS Next 5Y61.31%
Revenue Next Year1.51%
Revenue Next 2Y-1.5%
Revenue Next 3Y-2.16%
Revenue Next 5Y-3.77%

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 accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
VRS Yearly Revenue VS EstimatesVRS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B
VRS Yearly EPS VS EstimatesVRS Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 10

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3

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 96.39, VRS can be considered very expensive at the moment.
VRS is valuated expensively when we compare the Price/Earnings ratio to 29.62, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.44, the valuation of VRS can be described as reasonable.
When comparing the Price/Forward Earnings ratio of VRS to the average of the S&P500 Index (22.70), we can say VRS is valued slightly cheaper.
Industry RankSector Rank
PE 96.39
Fwd PE 11.44
VRS Price Earnings VS Forward Price EarningsVRS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA 4.18
VRS Per share dataVRS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

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.
VRS's earnings are expected to grow with 274.69% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.13
PEG (5Y)N/A
EPS Next 2Y358.72%
EPS Next 3Y274.69%

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0

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.48%, VRS has a reasonable but not impressive dividend return.
VRS's Dividend Yield is slightly below the S&P500 average, which is at 2.27.
Industry RankSector Rank
Dividend Yield 1.48%

5.2 History

VRS is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr YearsN/A
Div Non Decr YearsN/A
VRS Yearly Dividends per shareVRS Yearly Dividends per shareYearly Dividends per share 2020 2021 1 2 3

5.3 Sustainability

The earnings of VRS are negative and hence is the payout ratio. VRS will probably not be able to sustain this dividend level.
DP-400%
EPS Next 2Y358.72%
EPS Next 3Y274.69%
VRS Yearly Income VS Free CF VS DividendVRS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 0 500M 1B

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VERSO CORP - A

NYSE:VRS (3/30/2022, 9:06:12 PM)

After market: 26.99 0 (0%)

26.99

+0.04 (+0.15%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)02-28 2022-02-28/bmo
Earnings (Next)05-06 2022-05-06/bmo
Inst Owners0.18%
Inst Owner Change0%
Ins Owners6.9%
Ins Owner Change0%
Market Cap786.76M
Analysts45
Price Target35.7 (32.27%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.48%
Yearly Dividend0.4
Dividend Growth(5Y)N/A
DP-400%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE 96.39
Fwd PE 11.44
P/S 0.62
P/FCF N/A
P/OCF N/A
P/B 1.13
P/tB N/A
EV/EBITDA 4.18
EPS(TTM)0.28
EY1.04%
EPS(NY)2.36
Fwd EY8.74%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS43.84
BVpS23.98
TBVpSN/A
PEG (NY)0.13
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -0.28%
ROE N/A
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM -0.47%
PM (TTM) -0.23%
GM N/A
FCFM N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y0%
ROICexcg growth 5Y0%
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover1.21
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 2.47
Quick Ratio 1.71
Altman-Z 2.73
F-Score7
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)109.07%
EPS 3Y-59.44%
EPS 5YN/A
EPS Q2Q%116.76%
EPS Next Y750.1%
EPS Next 2Y358.72%
EPS Next 3Y274.69%
EPS Next 5Y61.31%
Revenue 1Y (TTM)-5.96%
Revenue growth 3Y-21.89%
Revenue growth 5Y-13.51%
Sales Q2Q%4.46%
Revenue Next Year1.51%
Revenue Next 2Y-1.5%
Revenue Next 3Y-2.16%
Revenue Next 5Y-3.77%
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1YN/A
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1YN/A
OCF growth 3YN/A
OCF growth 5YN/A