Veritiv Corporation (VRTV) Stock Fundamental Analysis
NYSE:VRTV - New York Stock Exchange, Inc. - US9234541020 - Common Stock - Currency: USD
Taking everything into account, VRTV scores 5 out of 10 in our fundamental rating. VRTV was compared to 49 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. This makes VRTV very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year VRTV was profitable.
VRTV had a positive operating cash flow in the past year.
In multiple years VRTV reported negative net income over the last 5 years.
VRTV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of VRTV (13.62%) is better 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 better Return On Invested Capital (21.42%) 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 9.86%.
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
The Profit Margin of VRTV (4.46%) is comparable to the rest of the industry.
VRTV has a worse Operating Margin (6.16%) than 65.38% of its industry peers.
In the last couple of years the Operating Margin of VRTV has grown nicely.
VRTV has a worse Gross Margin (24.32%) than 75.00% of its industry peers.
In the last couple of years the Gross Margin of VRTV has grown nicely.
| 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.
The number of shares outstanding for VRTV has been reduced compared to 1 year ago.
The debt/assets ratio for VRTV has been reduced compared to a year ago.
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.
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.
With an excellent Debt to Equity ratio value of 0.07, VRTV belongs to the best of the industry, outperforming 82.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.2 | ||
| Altman-Z | 5.85 |
ROIC/WACC2.7
WACC7.93%
2.3 Liquidity
A Current Ratio of 2.02 indicates that VRTV has no problem at all paying its short term obligations.
VRTV has a Current ratio (2.02) which 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.
VRTV's Quick ratio of 1.34 is fine compared to the rest of the industry. VRTV outperforms 61.54% of its industry peers.
| 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%.
Looking at the last year, VRTV shows a very negative growth in Revenue. The Revenue has decreased by -17.09% in the last year.
VRTV shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.10% yearly.
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
Based on estimates for the next years, VRTV will show a very negative growth in Earnings Per Share. The EPS will decrease by -12.22% on average per year.
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.60, the valuation of VRTV can be described as very reasonable.
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.
The average S&P500 Price/Earnings ratio is at 29.63. VRTV is valued rather cheaply when compared to this.
VRTV is valuated reasonably with a Price/Forward Earnings ratio of 9.47.
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.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, VRTV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.6 | ||
| Fwd PE | 9.47 |
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.
90.38% of the companies in the same industry are more expensive than VRTV, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.26 | ||
| EV/EBITDA | 5.64 |
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
5. Dividend
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 1.86.
VRTV's Dividend Yield is slightly below the S&P500 average, which is at 2.27.
| 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
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
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%