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Veritiv Corporation (VRTV) Stock Fundamental Analysis

USA - NYSE:VRTV - US9234541020 - Common Stock

169.99 USD
+0.03 (+0.02%)
Last: 11/29/2023, 8:04:00 PM
170 USD
+0.01 (+0.01%)
After Hours: 11/29/2023, 8:04:00 PM
Fundamental Rating

5

Overall VRTV gets a fundamental rating of 5 out of 10. We evaluated VRTV against 50 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 bad growth rate and is valued cheaply. With these ratings, VRTV could be worth investigating further for value investing!.


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

In the past year VRTV was profitable.
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.
VRTV had a positive operating cash flow in each of the past 5 years.
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 2015 2016 2017 2018 2019 2020 2021 2022 0 100M 200M 300M 400M

1.2 Ratios

The Return On Assets of VRTV (13.62%) is better than 90.38% of its industry peers.
Looking at the Return On Equity, with a value of 28.99%, VRTV is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
VRTV's Return On Invested Capital of 21.42% is amongst the best of the industry. VRTV outperforms 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 10.24%.
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 2015 2016 2017 2018 2019 2020 2021 2022 0 10 20 30 40

1.3 Margins

VRTV's Profit Margin of 4.46% is in line compared to the rest of the industry. VRTV outperforms 44.23% of its industry peers.
Looking at the Operating Margin, with a value of 6.16%, VRTV is doing worse than 65.38% of the companies in the same industry.
In the last couple of years the Operating Margin of VRTV has grown nicely.
With a Gross Margin value of 24.32%, VRTV is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
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 2015 2016 2017 2018 2019 2020 2021 2022 0 5 10 15 20

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8

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so VRTV is creating value.
Compared to 1 year ago, VRTV has less shares outstanding
VRTV has a better debt/assets ratio than last year.
VRTV Yearly Shares OutstandingVRTV Yearly Shares OutstandingYearly Shares Outstanding 2015 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 2015 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 Altman-Z score of 5.85. This is amongst the best in the industry. VRTV outperforms 80.77% of its industry peers.
VRTV has a debt to FCF ratio of 0.20. This is a very positive value and a sign of high solvency as it would only need 0.20 years to pay back of all of its debts.
The Debt to FCF ratio of VRTV (0.20) is better than 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 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 2015 2016 2017 2018 2019 2020 2021 2022 0 200M 400M 600M 800M 1B

2.3 Liquidity

A Current Ratio of 2.02 indicates that VRTV has no problem at all paying its short term obligations.
The Current ratio of VRTV (2.02) is comparable to the rest of the industry.
A Quick Ratio of 1.34 indicates that VRTV should not have too much problems paying its short term obligations.
The Quick ratio of VRTV (1.34) is better than 61.54% of its industry peers.
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 2015 2016 2017 2018 2019 2020 2021 2022 500M 1B 1.5B 2B

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0

3. Growth

3.1 Past

The earnings per share for VRTV have decreased by -9.19% in the last year.
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

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.
VRTV Yearly Revenue VS EstimatesVRTV Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 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 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 10 15 20

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7

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 8.60, which indicates a very decent valuation of VRTV.
88.46% of the companies in the same industry are more expensive than VRTV, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of VRTV to the average of the S&P500 Index (27.30), we can say VRTV is valued rather cheaply.
The Price/Forward Earnings ratio is 9.47, which indicates a very decent valuation of VRTV.
Based on the Price/Forward Earnings ratio, VRTV is valued cheaper than 80.77% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of VRTV to the average of the S&P500 Index (22.73), we can say VRTV is valued rather cheaply.
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 10 20 30

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, VRTV is valued a bit cheaper than the industry average as 78.85% of the companies are valued more expensively.
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 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 has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as VRTV's earnings are expected to decrease with -12.22% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-12.22%
EPS Next 3YN/A

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3

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.
VRTV's Dividend Yield is a higher than the industry average which is at 2.75.
VRTV's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
Industry RankSector 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
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 2015 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

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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 2023-11-03/bmo
Earnings (Next)02-26 2024-02-26/amc
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 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
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%
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 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%