Veritiv Corporation (VRTV) Fundamental Analysis & Valuation

NYSE:VRTV • US9234541020

169.99 USD
+0.03 (+0.02%)
At close: Nov 29, 2023
170 USD
+0.01 (+0.01%)
After Hours: 11/29/2023, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This VRTV fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

5

Overall VRTV gets a fundamental rating of 5 out of 10. We evaluated VRTV against 46 industry peers in the Trading Companies & Distributors industry. VRTV is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. VRTV has a valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

5

1. VRTV Profitability Analysis

1.1 Basic Checks

  • VRTV had positive earnings in the past year.
  • VRTV had a positive operating cash flow in the past year.
VRTV Yearly Net Income VS EBIT VS OCF VS FCFVRTV Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 0 100M 200M 300M 400M

1.2 Ratios

  • VRTV has a better Return On Assets (13.62%) than 90.38% of its industry peers.
  • VRTV has a Return On Equity of 28.99%. This is in the better half of the industry: VRTV outperforms 76.92% of its industry peers.
  • VRTV has a Return On Invested Capital of 21.42%. This is amongst the best in the industry. VRTV outperforms 90.38% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for VRTV is above the industry average of 9.05%.
  • The 3 year average ROIC (12.89%) for VRTV is below the current ROIC(21.42%), indicating increased profibility in the last year.
Industry RankSector 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%
VRTV Yearly ROA, ROE, ROICVRTV Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 0 10 20 30 40

1.3 Margins

  • VRTV has a Profit Margin (4.46%) which is in line with its industry peers.
  • VRTV's Operating Margin of 6.16% is on the low side compared to the rest of the industry. VRTV is outperformed by 65.38% of its industry peers.
  • In the last couple of years the Operating Margin of VRTV has grown nicely.
  • Looking at the Gross Margin, with a value of 24.32%, VRTV is doing worse than 75.00% of the companies in the same industry.
  • VRTV's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
VRTV Yearly Profit, Operating, Gross MarginsVRTV Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 0 5 10 15 20

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ROAROEROICOperating and Profit MarginShow most profitable peers

8

2. VRTV Health Analysis

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.
VRTV Yearly Shares OutstandingVRTV Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 5M 10M 15M
VRTV Yearly Total Debt VS Total AssetsVRTV Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 500M 1B 1.5B 2B 2.5B

2.2 Solvency

  • An Altman-Z score of 5.85 indicates that VRTV is not in any danger for bankruptcy at the moment.
  • VRTV has a better Altman-Z score (5.85) than 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.
  • With an excellent Debt to FCF ratio value of 0.20, VRTV belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
  • A Debt/Equity ratio of 0.07 indicates that VRTV is not too dependend on debt financing.
  • VRTV has a Debt to Equity ratio of 0.07. This is amongst the best in the industry. VRTV outperforms 82.69% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.07
Debt/FCF 0.2
Altman-Z 5.85
ROIC/WACC2.7
WACC7.93%
VRTV Yearly LT Debt VS Equity VS FCFVRTV Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 0 200M 400M 600M 800M 1B

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.
  • VRTV has a Current ratio (2.02) which is in line with its industry peers.
  • VRTV has a Quick Ratio of 1.34. This is a normal value and indicates that VRTV is financially healthy and should not expect problems in meeting its short term obligations.
  • With a decent Quick ratio value of 1.34, VRTV is doing good in the industry, outperforming 61.54% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.02
Quick Ratio 1.34
VRTV Yearly Current Assets VS Current LiabilitesVRTV Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 500M 1B 1.5B 2B

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

0

3. VRTV Growth Analysis

3.1 Past

  • VRTV shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.19%.
  • Looking at the last year, VRTV shows a very negative growth in Revenue. The Revenue has decreased by -17.09% in the last year.
  • 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

  • The Earnings Per Share is expected to decrease by -12.22% on average over the next years. This is quite bad
  • Based on estimates for the next years, VRTV will show a decrease in Revenue. The Revenue will decrease by -5.73% on average per year.
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.
VRTV Yearly Revenue VS EstimatesVRTV Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B
VRTV Yearly EPS VS EstimatesVRTV Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 10 15 20

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Find the best growth stocksShow best growing peers

6

4. VRTV Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 8.60 indicates a reasonable valuation of VRTV.
  • Compared to the rest of the industry, the Price/Earnings ratio of VRTV indicates a rather cheap valuation: VRTV is cheaper than 88.46% of the companies listed in the same industry.
  • VRTV's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.46.
  • A Price/Forward Earnings ratio of 9.47 indicates a reasonable valuation of VRTV.
  • VRTV's Price/Forward Earnings ratio is rather cheap when compared to the industry. VRTV is cheaper than 80.77% of the companies in the same industry.
  • VRTV is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.65, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 8.6
Fwd PE 9.47
VRTV Price Earnings VS Forward Price EarningsVRTV Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, VRTV is valued a bit cheaper than 78.85% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, VRTV is valued cheaper than 90.38% of the companies in the same industry.
Industry RankSector Rank
P/FCF 6.26
EV/EBITDA 5.64
VRTV Per share dataVRTV EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 100 200 300 400

4.3 Compensation for Growth

  • 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

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. VRTV Dividend Analysis

5.1 Amount

  • VRTV has a Yearly Dividend Yield of 1.48%.
  • VRTV's Dividend Yield is a higher than the industry average which is at 1.04.
  • Compared to an average S&P500 Dividend Yield of 1.82, VRTV has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 1.48%

5.2 History

  • VRTV does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
VRTV Yearly Dividends per shareVRTV Yearly Dividends per shareYearly Dividends per share 2022 2023 0.5 1 1.5

5.3 Sustainability

  • 12.55% of the earnings are spent on dividend by VRTV. This is a low number and sustainable payout ratio.
DP12.55%
EPS Next 2Y-12.22%
EPS Next 3YN/A
VRTV Yearly Income VS Free CF VS DividendVRTV Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 0 100M 200M 300M
VRTV Dividend Payout.VRTV Dividend Payout, showing the Payout Ratio.VRTV Dividend Payout.PayoutRetained Earnings

More info and screens

Find the best dividend stocksShow peers with best dividend

VRTV Fundamentals: All Metrics, Ratios and Statistics

Veritiv Corporation

NYSE:VRTV (11/29/2023, 8:04:00 PM)

After market: 170 +0.01 (+0.01%)

169.99

+0.03 (+0.02%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)11-03
Earnings (Next)02-26
Inst Owners0.2%
Inst Owner Change0%
Ins Owners6.92%
Ins Owner Change0%
Market Cap2.31B
Revenue(TTM)6.09B
Net Income(TTM)271.80M
Analysts85.71
Price Target161.16 (-5.19%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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 RankSector 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
Graham NumberN/A
Profitability
Industry RankSector 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%
ROICexgc growth 3Y101.79%
ROICexgc 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 RankSector 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%

Veritiv Corporation / VRTV FAQ

What is the ChartMill fundamental rating of Veritiv Corporation (VRTV) stock?

ChartMill assigns a fundamental rating of 6 / 10 to VRTV.


Can you provide the valuation status for Veritiv Corporation?

ChartMill assigns a valuation rating of 7 / 10 to Veritiv Corporation (VRTV). This can be considered as Undervalued.


What is the profitability of VRTV stock?

Veritiv Corporation (VRTV) has a profitability rating of 6 / 10.


Can you provide the expected EPS growth for VRTV stock?

The Earnings per Share (EPS) of Veritiv Corporation (VRTV) is expected to decline by -11.35% in the next year.


Is the dividend of Veritiv Corporation sustainable?

The dividend rating of Veritiv Corporation (VRTV) is 3 / 10 and the dividend payout ratio is 12.55%.