Veritiv Corporation (VRTV) Stock Fundamental Analysis
USA - NYSE:VRTV - US9234541020 - Common Stock
169.99 USD
+0.03 (+0.02%)
170 USD
+0.01 (+0.01%)
We assign a fundamental rating of 5 out of 10 to VRTV. VRTV was compared to 49 industry peers in the Trading Companies & Distributors industry. VRTV has an excellent financial health rating, but there are some minor concerns on its profitability. VRTV is valued quite cheap, but it does not seem to be growing. These ratings could make VRTV a good candidate for value investing.
1. Profitability
1.1 Basic Checks
VRTV had positive earnings in the past year.
VRTV had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: VRTV reported negative net income in multiple years.
In the past 5 years VRTV always reported a positive cash flow from operatings.
1.2 Ratios
VRTV's Return On Assets of 13.62% is amongst the best of the industry. VRTV outperforms 90.38% of its industry peers.
VRTV's Return On Equity of 28.99% is fine compared to the rest of the industry. VRTV outperforms 76.92% of its industry peers.
The Return On Invested Capital of VRTV (21.42%) is better than 90.38% of its industry peers.
VRTV had an Average Return On Invested Capital over the past 3 years of 12.89%. This is above the industry average of 10.03%.
The 3 year average ROIC (12.89%) for VRTV is below the current ROIC(21.42%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.62% | ||
| ROE | 28.99% | ||
| ROIC | 21.42% |
ROA(3y)7.86%
ROA(5y)4.35%
ROE(3y)24.43%
ROE(5y)12.98%
ROIC(3y)12.89%
ROIC(5y)8.93%
1.3 Margins
With a Profit Margin value of 4.46%, VRTV perfoms like the industry average, outperforming 44.23% of the companies in the same industry.
With a Operating Margin value of 6.16%, VRTV is not doing good in the industry: 65.38% of the companies in the same industry are doing better.
VRTV's Operating Margin has improved in the last couple of years.
The Gross Margin of VRTV (24.32%) is worse than 75.00% of its industry peers.
VRTV's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.16% | ||
| PM (TTM) | 4.46% | ||
| GM | 24.32% |
OM growth 3Y87.53%
OM growth 5Y46.31%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y6.12%
GM growth 5Y4.55%
2. Health
2.1 Basic Checks
VRTV has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
VRTV has less shares outstanding than it did 1 year ago.
Compared to 1 year ago, VRTV has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.85 indicates that VRTV is not in any danger for bankruptcy at the moment.
VRTV's Altman-Z score of 5.85 is amongst the best of the industry. VRTV outperforms 80.77% of its industry peers.
The Debt to FCF ratio of VRTV is 0.20, which is an excellent value as it means it would take VRTV, only 0.20 years of fcf income to pay off all of its debts.
VRTV has a Debt to FCF ratio of 0.20. This is amongst the best in the industry. VRTV outperforms 92.31% of its industry peers.
VRTV has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of VRTV (0.07) is better than 82.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.2 | ||
| Altman-Z | 5.85 |
ROIC/WACC2.7
WACC7.93%
2.3 Liquidity
VRTV has a Current Ratio of 2.02. This indicates that VRTV is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 2.02, VRTV perfoms like the industry average, outperforming 48.08% of the companies in the same industry.
A Quick Ratio of 1.34 indicates that VRTV should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.34, VRTV is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.02 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
VRTV shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.19%.
The Revenue for VRTV has decreased by -17.09% in the past year. This is quite bad
Measured over the past years, VRTV shows a decrease in Revenue. The Revenue has been decreasing by -3.10% on average per year.
EPS 1Y (TTM)-9.19%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-35.57%
Revenue 1Y (TTM)-17.09%
Revenue growth 3Y-2.28%
Revenue growth 5Y-3.1%
Sales Q2Q%-19.02%
3.2 Future
VRTV is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -12.22% yearly.
The Revenue is expected to decrease by -5.73% on average over the next years.
EPS Next Y-11.35%
EPS Next 2Y-12.22%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-11.98%
Revenue Next 2Y-5.73%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 8.60, which indicates a very decent valuation of VRTV.
VRTV's Price/Earnings ratio is rather cheap when compared to the industry. VRTV is cheaper than 88.46% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.50. VRTV is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 9.47 indicates a reasonable valuation of VRTV.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VRTV indicates a rather cheap valuation: VRTV is cheaper than 80.77% of the companies listed in the same industry.
VRTV's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.6 | ||
| Fwd PE | 9.47 |
4.2 Price Multiples
78.85% of the companies in the same industry are more expensive than VRTV, based on the Enterprise Value to EBITDA ratio.
VRTV's Price/Free Cash Flow ratio is rather cheap when compared to the industry. VRTV is cheaper than 90.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.26 | ||
| EV/EBITDA | 5.64 |
4.3 Compensation for Growth
The decent profitability rating of VRTV may justify a higher PE ratio.
VRTV's earnings are expected to decrease with -12.22% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-12.22%
EPS Next 3YN/A
5. Dividend
5.1 Amount
VRTV has a Yearly Dividend Yield of 1.48%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.83, VRTV pays a bit more dividend than its industry peers.
VRTV's Dividend Yield is slightly below the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
5.2 History
VRTV is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
VRTV pays out 12.55% of its income as dividend. This is a sustainable payout ratio.
DP12.55%
EPS Next 2Y-12.22%
EPS Next 3YN/A
169.99
+0.03 (+0.02%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners0.2%
Inst Owner Change0%
Ins Owners6.92%
Ins Owner Change0%
Market Cap2.31B
Analysts85.71
Price Target161.16 (-5.19%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
Yearly Dividend0.61
Dividend Growth(5Y)N/A
DP12.55%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-7.64%
Min EPS beat(2)-15.86%
Max EPS beat(2)0.58%
EPS beat(4)2
Avg EPS beat(4)-2.98%
Min EPS beat(4)-15.86%
Max EPS beat(4)9.66%
EPS beat(8)6
Avg EPS beat(8)15.36%
EPS beat(12)10
Avg EPS beat(12)565.21%
EPS beat(16)12
Avg EPS beat(16)399.35%
Revenue beat(2)0
Avg Revenue beat(2)-11.99%
Min Revenue beat(2)-12.36%
Max Revenue beat(2)-11.63%
Revenue beat(4)0
Avg Revenue beat(4)-11.64%
Min Revenue beat(4)-15.68%
Max Revenue beat(4)-6.92%
Revenue beat(8)2
Avg Revenue beat(8)-4.8%
Revenue beat(12)6
Avg Revenue beat(12)-1.78%
Revenue beat(16)9
Avg Revenue beat(16)-1.33%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.6 | ||
| Fwd PE | 9.47 | ||
| P/S | 0.38 | ||
| P/FCF | 6.26 | ||
| P/OCF | 6.03 | ||
| P/B | 2.46 | ||
| P/tB | 2.85 | ||
| EV/EBITDA | 5.64 |
EPS(TTM)19.77
EY11.63%
EPS(NY)17.95
Fwd EY10.56%
FCF(TTM)27.14
FCFY15.97%
OCF(TTM)28.21
OCFY16.59%
SpS448.92
BVpS69.09
TBVpS59.6
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.62% | ||
| ROE | 28.99% | ||
| ROCE | 28.28% | ||
| ROIC | 21.42% | ||
| ROICexc | 22.09% | ||
| ROICexgc | 24.54% | ||
| OM | 6.16% | ||
| PM (TTM) | 4.46% | ||
| GM | 24.32% | ||
| FCFM | 6.05% |
ROA(3y)7.86%
ROA(5y)4.35%
ROE(3y)24.43%
ROE(5y)12.98%
ROIC(3y)12.89%
ROIC(5y)8.93%
ROICexc(3y)13.37%
ROICexc(5y)9.26%
ROICexgc(3y)14.83%
ROICexgc(5y)10.26%
ROCE(3y)17.02%
ROCE(5y)11.79%
ROICexcg growth 3Y101.79%
ROICexcg growth 5Y49.59%
ROICexc growth 3Y100.86%
ROICexc growth 5Y49.44%
OM growth 3Y87.53%
OM growth 5Y46.31%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y6.12%
GM growth 5Y4.55%
F-Score7
Asset Turnover3.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.2 | ||
| Debt/EBITDA | 0.15 | ||
| Cap/Depr | 36.16% | ||
| Cap/Sales | 0.24% | ||
| Interest Coverage | 23.59 | ||
| Cash Conversion | 92.2% | ||
| Profit Quality | 135.5% | ||
| Current Ratio | 2.02 | ||
| Quick Ratio | 1.34 | ||
| Altman-Z | 5.85 |
F-Score7
WACC7.93%
ROIC/WACC2.7
Cap/Depr(3y)41.96%
Cap/Depr(5y)54.9%
Cap/Sales(3y)0.33%
Cap/Sales(5y)0.39%
Profit Quality(3y)312.57%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-9.19%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-35.57%
EPS Next Y-11.35%
EPS Next 2Y-12.22%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-17.09%
Revenue growth 3Y-2.28%
Revenue growth 5Y-3.1%
Sales Q2Q%-19.02%
Revenue Next Year-11.98%
Revenue Next 2Y-5.73%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-8.56%
EBIT growth 3Y83.25%
EBIT growth 5Y41.77%
EBIT Next Year0.1%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y348.05%
FCF growth 3Y-2.27%
FCF growth 5Y123.86%
OCF growth 1Y282.42%
OCF growth 3Y-3.51%
OCF growth 5Y47.14%