VERA BRADLEY INC (VRA)
US92335C1062 - Common Stock
Taking everything into account, VRA scores 5 out of 10 in our fundamental rating. VRA was compared to 51 industry peers in the Textiles, Apparel & Luxury Goods industry. While VRA has a great health rating, there are worries on its profitability. VRA has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
VRA had positive earnings in the past year.
In the past year VRA had a positive cash flow from operations.
VRA had positive earnings in 4 of the past 5 years.
Of the past 5 years VRA 4 years had a positive operating cash flow.
1.2 Ratios
VRA has a Return On Assets of 2.06%. This is comparable to the rest of the industry: VRA outperforms 42.00% of its industry peers.
The Return On Equity of VRA (3.03%) is worse than 60.00% of its industry peers.
VRA's Return On Invested Capital of 4.06% is on the low side compared to the rest of the industry. VRA is outperformed by 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.06% | ||
| ROE | 3.03% | ||
| ROIC | 4.06% |
ROA(3y)-3.09%
ROA(5y)-0.92%
ROE(3y)-5.1%
ROE(5y)-1.45%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 1.67%, VRA is in line with its industry, outperforming 42.00% of the companies in the same industry.
VRA's Profit Margin has declined in the last couple of years.
The Operating Margin of VRA (4.02%) is worse than 62.00% of its industry peers.
VRA's Operating Margin has declined in the last couple of years.
VRA has a Gross Margin of 54.44%. This is in the better half of the industry: VRA outperforms 68.00% of its industry peers.
VRA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.02% | ||
| PM (TTM) | 1.67% | ||
| GM | 54.44% |
OM growth 3Y-16.78%
OM growth 5Y-9.23%
PM growth 3Y-3.59%
PM growth 5Y-19.74%
GM growth 3Y-1.33%
GM growth 5Y-1.02%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VRA is destroying value.
VRA has about the same amout of shares outstanding than it did 1 year ago.
VRA has less shares outstanding than it did 5 years ago.
VRA has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 4.01 indicates that VRA is not in any danger for bankruptcy at the moment.
VRA's Altman-Z score of 4.01 is fine compared to the rest of the industry. VRA outperforms 72.00% of its industry peers.
VRA has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 4.01 |
ROIC/WACC0.44
WACC9.22%
2.3 Liquidity
A Current Ratio of 3.88 indicates that VRA has no problem at all paying its short term obligations.
The Current ratio of VRA (3.88) is better than 84.00% of its industry peers.
A Quick Ratio of 1.85 indicates that VRA should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.85, VRA is in the better half of the industry, outperforming 78.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.88 | ||
| Quick Ratio | 1.85 |
3. Growth
3.1 Past
VRA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 116.00%, which is quite impressive.
Measured over the past years, VRA shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.76% on average per year.
Looking at the last year, VRA shows a decrease in Revenue. The Revenue has decreased by -5.83% in the last year.
Measured over the past years, VRA shows a small growth in Revenue. The Revenue has been growing by 2.50% on average per year.
EPS 1Y (TTM)116%
EPS 3Y-4.5%
EPS 5Y-1.76%
EPS growth Q2Q-31.25%
Revenue 1Y (TTM)-5.83%
Revenue growth 3Y0.18%
Revenue growth 5Y2.5%
Revenue growth Q2Q-9.41%
3.2 Future
The Earnings Per Share is expected to grow by 11.67% on average over the next years. This is quite good.
The Revenue is expected to grow by 1.98% on average over the next years.
EPS Next Y5.36%
EPS Next 2Y11.67%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.69%
Revenue Next 2Y1.98%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 12.67, VRA is valued correctly.
Based on the Price/Earnings ratio, VRA is valued a bit cheaper than the industry average as 74.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of VRA to the average of the S&P500 Index (28.28), we can say VRA is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 12.02, the valuation of VRA can be described as correct.
VRA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. VRA is cheaper than 74.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.88. VRA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.67 | ||
| Fwd PE | 12.02 |
4.2 Price Multiples
VRA's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VRA is cheaper than 96.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VRA indicates a rather cheap valuation: VRA is cheaper than 84.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.76 | ||
| EV/EBITDA | 4.46 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates VRA does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.36
PEG (5Y)N/A
EPS Next 2Y11.67%
EPS Next 3YN/A
5. Dividend
5.1 Amount
VRA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
VERA BRADLEY INC
NASDAQ:VRA (5/3/2024, 7:25:15 PM)
After market: 6.84 0 (0%)6.84
-0.13 (-1.87%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap210.40M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.67 | ||
| Fwd PE | 12.02 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.36
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.06% | ||
| ROE | 3.03% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.02% | ||
| PM (TTM) | 1.67% | ||
| GM | 54.44% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.88 | ||
| Quick Ratio | 1.85 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)116%
EPS 3Y-4.5%
EPS 5Y
EPS growth Q2Q
EPS Next Y5.36%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-5.83%
Revenue growth 3Y0.18%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y