Veritiv Corporation (VRTV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VRTV - US9234541020 - Common Stock
169.99 USD
+0.03 (+0.02%)
170 USD
+0.01 (+0.01%)
Overall VRTV gets a fundamental rating of 5 out of 10. We evaluated VRTV against 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 cheap, but on the other hand it scores bad on growth. These ratings could make VRTV a good candidate 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.
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 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.
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 9.22%.
The last Return On Invested Capital (21.42%) for VRTV is above the 3 year average (12.89%), which is a sign of increasing profitability.
| 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 has a Profit Margin of 4.46%. This is comparable to the rest of the industry: VRTV outperforms 44.23% of its industry peers.
The Operating Margin of VRTV (6.16%) is worse than 65.38% of its industry peers.
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.
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.
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.
Looking at the Debt to FCF ratio, with a value of 0.20, VRTV belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
VRTV has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
VRTV's Debt to Equity ratio of 0.07 is amongst the best of the industry. VRTV outperforms 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.
VRTV has a Current ratio of 2.02. This is comparable to the rest of the industry: VRTV outperforms 48.08% of its industry peers.
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 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.
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
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
Based on the Price/Earnings ratio of 8.60, the valuation of VRTV can be described as reasonable.
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.
VRTV's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.46.
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.
VRTV is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.6 | ||
| Fwd PE | 9.47 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VRTV indicates a somewhat cheap valuation: VRTV is cheaper than 78.85% of the companies listed 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 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.
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%.
VRTV's Dividend Yield is a higher than the industry average which is at 2.62.
VRTV's Dividend Yield is slightly below the S&P500 average, which is at 2.32.
| 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
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 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
Graham NumberN/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%
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 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%
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.
What is the valuation status of Veritiv Corporation (VRTV) stock?
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.
What is the valuation of Veritiv Corporation based on its PE and PB ratios?
The Price/Earnings (PE) ratio for Veritiv Corporation (VRTV) is 8.6 and the Price/Book (PB) ratio is 2.46.
How financially healthy is Veritiv Corporation?
The financial health rating of Veritiv Corporation (VRTV) is 9 / 10.