Veren Inc (VRN.CA) Stock Fundamental Analysis
TSX:VRN - Toronto Stock Exchange - CA92340V1076 - Common Stock - Currency: CAD
VRN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 214 industry peers in the Oil, Gas & Consumable Fuels industry. VRN has a medium profitability rating, but doesn't score so well on its financial health evaluation. A decent growth rate in combination with a cheap valuation! Better keep an eye on VRN.
1. Profitability
1.1 Basic Checks
VRN had positive earnings in the past year.
VRN had a positive operating cash flow in the past year.
VRN had positive earnings in 4 of the past 5 years.
VRN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
VRN's Return On Assets of 2.33% is in line compared to the rest of the industry. VRN outperforms 55.29% of its industry peers.
Looking at the Return On Equity, with a value of 4.04%, VRN is in line with its industry, outperforming 55.29% of the companies in the same industry.
VRN has a better Return On Invested Capital (8.09%) than 84.13% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VRN is above the industry average of 7.26%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.33% | ||
| ROE | 4.04% | ||
| ROIC | 8.09% |
ROA(3y)7.48%
ROA(5y)2.06%
ROE(3y)11.73%
ROE(5y)-2.07%
ROIC(3y)10.88%
ROIC(5y)8.73%
1.3 Margins
The Profit Margin of VRN (6.88%) is comparable to the rest of the industry.
VRN's Profit Margin has declined in the last couple of years.
The Operating Margin of VRN (27.16%) is better than 78.85% of its industry peers.
In the last couple of years the Operating Margin of VRN has grown nicely.
Looking at the Gross Margin, with a value of 72.71%, VRN belongs to the top of the industry, outperforming 88.46% of the companies in the same industry.
In the last couple of years the Gross Margin of VRN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.16% | ||
| PM (TTM) | 6.88% | ||
| GM | 72.71% |
OM growth 3Y-11.86%
OM growth 5Y3.88%
PM growth 3Y-56.49%
PM growth 5YN/A
GM growth 3Y-1.79%
GM growth 5Y-0.31%
2. Health
2.1 Basic Checks
VRN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, VRN has less shares outstanding
VRN has more shares outstanding than it did 5 years ago.
VRN has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.04, we must say that VRN is in the distress zone and has some risk of bankruptcy.
VRN's Altman-Z score of 0.04 is on the low side compared to the rest of the industry. VRN is outperformed by 66.83% of its industry peers.
VRN has a debt to FCF ratio of 6.16. This is a slightly negative value and a sign of low solvency as VRN would need 6.16 years to pay back of all of its debts.
VRN's Debt to FCF ratio of 6.16 is fine compared to the rest of the industry. VRN outperforms 73.08% of its industry peers.
VRN has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
VRN has a Debt to Equity ratio (0.37) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 6.16 | ||
| Altman-Z | 0.04 |
ROIC/WACC0.89
WACC9.11%
2.3 Liquidity
A Current Ratio of 0.57 indicates that VRN may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.57, VRN is doing worse than 75.96% of the companies in the same industry.
VRN has a Quick Ratio of 0.57. This is a bad value and indicates that VRN is not financially healthy enough and could expect problems in meeting its short term obligations.
VRN has a Quick ratio of 0.57. This is in the lower half of the industry: VRN underperforms 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
The earnings per share for VRN have decreased strongly by -53.13% in the last year.
VRN shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -14.10% yearly.
The Revenue has grown by 24.52% in the past year. This is a very strong growth!
VRN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.66% yearly.
EPS 1Y (TTM)-53.13%
EPS 3Y-14.1%
EPS 5YN/A
EPS Q2Q%-85.88%
Revenue 1Y (TTM)24.52%
Revenue growth 3Y11.97%
Revenue growth 5Y6.66%
Sales Q2Q%32.55%
3.2 Future
Based on estimates for the next years, VRN will show a very strong growth in Earnings Per Share. The EPS will grow by 21.31% on average per year.
Based on estimates for the next years, VRN will show a small growth in Revenue. The Revenue will grow by 4.59% on average per year.
EPS Next Y189.53%
EPS Next 2Y52.32%
EPS Next 3Y21.31%
EPS Next 5YN/A
Revenue Next Year3.46%
Revenue Next 2Y2.34%
Revenue Next 3Y1.23%
Revenue Next 5Y4.59%
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
VRN is valuated rather expensively with a Price/Earnings ratio of 20.31.
The rest of the industry has a similar Price/Earnings ratio as VRN.
Compared to an average S&P500 Price/Earnings ratio of 26.54, VRN is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 7.02, the valuation of VRN can be described as very cheap.
72.60% of the companies in the same industry are more expensive than VRN, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of VRN to the average of the S&P500 Index (35.28), we can say VRN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.31 | ||
| Fwd PE | 7.02 |
4.2 Price Multiples
VRN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VRN is cheaper than 86.06% of the companies in the same industry.
70.67% of the companies in the same industry are more expensive than VRN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.24 | ||
| EV/EBITDA | 3.57 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of VRN may justify a higher PE ratio.
A more expensive valuation may be justified as VRN's earnings are expected to grow with 21.31% in the coming years.
PEG (NY)0.11
PEG (5Y)N/A
EPS Next 2Y52.32%
EPS Next 3Y21.31%
5. Dividend
5.1 Amount
VRN has a Yearly Dividend Yield of 5.03%, which is a nice return.
VRN's Dividend Yield is a higher than the industry average which is at 5.75.
Compared to an average S&P500 Dividend Yield of 2.40, VRN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.03% |
5.2 History
On average, the dividend of VRN grows each year by 62.49%, which is quite nice.
VRN has been paying a dividend for over 5 years, so it has already some track record.
VRN has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)62.49%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
VRN pays out 104.13% of its income as dividend. This is not a sustainable payout ratio.
The dividend of VRN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP104.13%
EPS Next 2Y52.32%
EPS Next 3Y21.31%
TSX:VRN (5/13/2025, 7:00:00 PM)
9.14
+0.34 (+3.86%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners44.99%
Inst Owner ChangeN/A
Ins Owners0.7%
Ins Owner ChangeN/A
Market Cap5.59B
Analysts81.25
Price Target11.39 (24.62%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.03% |
Yearly Dividend0.46
Dividend Growth(5Y)62.49%
DP104.13%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)12.12%
Min EPS beat(2)-20.31%
Max EPS beat(2)44.56%
EPS beat(4)2
Avg EPS beat(4)-60.8%
Min EPS beat(4)-278.4%
Max EPS beat(4)44.56%
EPS beat(8)3
Avg EPS beat(8)-39.62%
EPS beat(12)5
Avg EPS beat(12)-13.85%
EPS beat(16)5
Avg EPS beat(16)-14.22%
Revenue beat(2)1
Avg Revenue beat(2)6.25%
Min Revenue beat(2)-4.22%
Max Revenue beat(2)16.73%
Revenue beat(4)2
Avg Revenue beat(4)-0.37%
Min Revenue beat(4)-19.96%
Max Revenue beat(4)16.73%
Revenue beat(8)2
Avg Revenue beat(8)-9.07%
Revenue beat(12)4
Avg Revenue beat(12)-5.07%
Revenue beat(16)8
Avg Revenue beat(16)-0.22%
PT rev (1m)0.45%
PT rev (3m)-0.78%
EPS NQ rev (1m)-1.09%
EPS NQ rev (3m)16.84%
EPS NY rev (1m)0%
EPS NY rev (3m)14.22%
Revenue NQ rev (1m)3.41%
Revenue NQ rev (3m)2.93%
Revenue NY rev (1m)1%
Revenue NY rev (3m)6.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.31 | ||
| Fwd PE | 7.02 | ||
| P/S | 1.41 | ||
| P/FCF | 11.24 | ||
| P/OCF | 2.65 | ||
| P/B | 0.83 | ||
| P/tB | 0.86 | ||
| EV/EBITDA | 3.57 |
EPS(TTM)0.45
EY4.92%
EPS(NY)1.3
Fwd EY14.25%
FCF(TTM)0.81
FCFY8.9%
OCF(TTM)3.45
OCFY37.76%
SpS6.49
BVpS11.05
TBVpS10.65
PEG (NY)0.11
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.33% | ||
| ROE | 4.04% | ||
| ROCE | 10.21% | ||
| ROIC | 8.09% | ||
| ROICexc | 8.11% | ||
| ROICexgc | 8.3% | ||
| OM | 27.16% | ||
| PM (TTM) | 6.88% | ||
| GM | 72.71% | ||
| FCFM | 12.53% |
ROA(3y)7.48%
ROA(5y)2.06%
ROE(3y)11.73%
ROE(5y)-2.07%
ROIC(3y)10.88%
ROIC(5y)8.73%
ROICexc(3y)11.09%
ROICexc(5y)8.86%
ROICexgc(3y)11.37%
ROICexgc(5y)9.09%
ROCE(3y)13.72%
ROCE(5y)11.02%
ROICexcg growth 3Y-9.61%
ROICexcg growth 5Y7.92%
ROICexc growth 3Y-9.52%
ROICexc growth 5Y7.96%
OM growth 3Y-11.86%
OM growth 5Y3.88%
PM growth 3Y-56.49%
PM growth 5YN/A
GM growth 3Y-1.79%
GM growth 5Y-0.31%
F-Score6
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 6.16 | ||
| Debt/EBITDA | 1.03 | ||
| Cap/Depr | 120.62% | ||
| Cap/Sales | 40.64% | ||
| Interest Coverage | 5.33 | ||
| Cash Conversion | 87.37% | ||
| Profit Quality | 182.07% | ||
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 0.04 |
F-Score6
WACC9.11%
ROIC/WACC0.89
Cap/Depr(3y)230.75%
Cap/Depr(5y)176.18%
Cap/Sales(3y)74.7%
Cap/Sales(5y)63.8%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-53.13%
EPS 3Y-14.1%
EPS 5YN/A
EPS Q2Q%-85.88%
EPS Next Y189.53%
EPS Next 2Y52.32%
EPS Next 3Y21.31%
EPS Next 5YN/A
Revenue 1Y (TTM)24.52%
Revenue growth 3Y11.97%
Revenue growth 5Y6.66%
Sales Q2Q%32.55%
Revenue Next Year3.46%
Revenue Next 2Y2.34%
Revenue Next 3Y1.23%
Revenue Next 5Y4.59%
EBIT growth 1Y-6.28%
EBIT growth 3Y-1.31%
EBIT growth 5Y10.81%
EBIT Next Year58.77%
EBIT Next 3Y12.73%
EBIT Next 5Y10.8%
FCF growth 1Y118.84%
FCF growth 3Y51.96%
FCF growth 5Y3.41%
OCF growth 1Y-3.82%
OCF growth 3Y12.18%
OCF growth 5Y3.91%