Veren Inc (VRN.CA) Stock Fundamental Analysis
Canada - TSX:VRN - CA92340V1076 - Common Stock
9.14 CAD
+0.34 (+3.86%)
We assign a fundamental rating of 5 out of 10 to VRN. VRN was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. While VRN is still in line with the averages on profitability rating, there are concerns on its financial health. VRN scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year VRN was profitable.
VRN had a positive operating cash flow in the past year.
VRN had positive earnings in 4 of the past 5 years.
In the past 5 years VRN always reported a positive cash flow from operatings.
1.2 Ratios
VRN has a Return On Assets of 2.33%. This is comparable to the rest of the industry: VRN outperforms 55.29% of its industry peers.
VRN has a Return On Equity (4.04%) which is comparable to the rest of the 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 6.88%.
| 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
VRN has a Profit Margin (6.88%) which is in line with its industry peers.
In the last couple of years the Profit Margin of VRN has declined.
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.
With an excellent Gross Margin value of 72.71%, VRN belongs to the best of the industry, outperforming 88.46% of the companies in the same industry.
VRN's Gross Margin has been stable in the last couple of years.
| 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.
VRN has less shares outstanding than it did 1 year ago.
The number of shares outstanding for VRN has been increased compared to 5 years ago.
The debt/assets ratio for VRN has been reduced compared to a year ago.
2.2 Solvency
VRN has an Altman-Z score of 0.04. This is a bad value and indicates that VRN is not financially healthy and even has some risk of bankruptcy.
VRN has a Altman-Z score of 0.04. This is in the lower half of the industry: VRN underperforms 66.83% of its industry peers.
The Debt to FCF ratio of VRN is 6.16, which is on the high side as it means it would take VRN, 6.16 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.16, VRN is in the better half of the industry, outperforming 73.08% of the companies in the same industry.
A Debt/Equity ratio of 0.37 indicates that VRN is not too dependend on debt financing.
VRN's Debt to Equity ratio of 0.37 is in line compared to the rest of the industry. VRN outperforms 51.92% of 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.
The Current ratio of VRN (0.57) is worse than 75.96% of its industry peers.
A Quick Ratio of 0.57 indicates that VRN may have some problems paying its short term obligations.
With a Quick ratio value of 0.57, VRN is not doing good in the industry: 68.75% of the companies in the same industry are doing better.
| 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!
Measured over the past years, VRN shows a small growth in Revenue. The Revenue has been growing by 6.66% on average per year.
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
VRN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.31% yearly.
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
Based on the Price/Earnings ratio of 20.31, the valuation of VRN can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of VRN is on the same level as its industry peers.
VRN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.00.
VRN is valuated cheaply with a Price/Forward Earnings ratio of 7.02.
VRN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. VRN is cheaper than 72.60% of the companies in the same industry.
VRN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.87.
| 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.
Based on the Price/Free Cash Flow ratio, VRN is valued a bit cheaper than the industry average as 70.67% of the companies are valued more expensively.
| 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.
VRN has a very decent profitability rating, which 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
With a Yearly Dividend Yield of 5.03%, VRN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.43, VRN pays a bit more dividend than its industry peers.
VRN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.03% |
5.2 History
The dividend of VRN is nicely growing with an annual growth rate of 62.49%!
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
104.13% of the earnings are spent on dividend by VRN. 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
Revenue(TTM)3.97B
Net Income(TTM)273.30M
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
Graham NumberN/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%
ROICexgc growth 3Y-9.61%
ROICexgc 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%
Veren Inc / VRN.CA FAQ
Can you provide the ChartMill fundamental rating for Veren Inc?
ChartMill assigns a fundamental rating of 5 / 10 to VRN.CA.
What is the valuation status for VRN stock?
ChartMill assigns a valuation rating of 7 / 10 to Veren Inc (VRN.CA). This can be considered as Undervalued.
How profitable is Veren Inc (VRN.CA) stock?
Veren Inc (VRN.CA) has a profitability rating of 6 / 10.
What are the PE and PB ratios of Veren Inc (VRN.CA) stock?
The Price/Earnings (PE) ratio for Veren Inc (VRN.CA) is 20.31 and the Price/Book (PB) ratio is 0.83.
What is the financial health of Veren Inc (VRN.CA) stock?
The financial health rating of Veren Inc (VRN.CA) is 3 / 10.