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. While VRTV has a great health rating, its profitability is only average at the moment. VRTV has a bad growth rate and is valued cheaply. This makes VRTV very considerable 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.
In multiple years VRTV reported negative net income over the last 5 years.
Each year in the past 5 years VRTV had a positive operating cash flow.
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.
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.
With an excellent Return On Invested Capital value of 21.42%, VRTV belongs to the best of the industry, outperforming 90.38% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for VRTV is above the industry average of 9.16%.
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
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.
VRTV has a Operating Margin of 6.16%. This is in the lower half of the industry: VRTV underperforms 65.38% of its industry peers.
In the last couple of years the Operating Margin of VRTV has grown nicely.
VRTV's Gross Margin of 24.32% is on the low side compared to the rest of the industry. VRTV is outperformed by 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so VRTV is creating value.
VRTV has less shares outstanding than it did 1 year ago.
The debt/assets ratio for VRTV has been reduced compared to a year ago.
2.2 Solvency
VRTV has an Altman-Z score of 5.85. This indicates that VRTV is financially healthy and has little risk of bankruptcy at the moment.
VRTV has a better Altman-Z score (5.85) than 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's Debt to FCF ratio of 0.20 is amongst the best of the industry. VRTV outperforms 92.31% of its industry peers.
A Debt/Equity ratio of 0.07 indicates that VRTV is not too dependend on debt financing.
VRTV has a better Debt to Equity ratio (0.07) 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.
Looking at the Current ratio, with a value of 2.02, VRTV is in line with its industry, outperforming 48.08% of the companies in the same industry.
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.
VRTV has a better Quick ratio (1.34) than 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.02 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
The earnings per share for VRTV have decreased by -9.19% in the last year.
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
The Earnings Per Share is expected to decrease by -12.22% on average over the next years. This is quite bad
VRTV is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.73% yearly.
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
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.
VRTV's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.98.
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.
The average S&P500 Price/Forward Earnings ratio is at 21.38. VRTV is valued rather cheaply when compared to this.
| 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 78.85% of the companies in the same industry.
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.
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 3.07.
Compared to the average S&P500 Dividend Yield of 2.46, VRTV is paying slightly less dividend.
| Industry Rank | Sector 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
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%