Veren Inc (VRN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VRN - CA92340V1076 - Common Stock
6.01 USD
0 (0%)
5.95 USD
-0.06 (-1%)
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. VRN has a medium profitability rating, but doesn't score so well on its financial health evaluation. VRN may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year VRN was profitable.
VRN had a positive operating cash flow in the past year.
Of the past 5 years VRN 4 years were profitable.
VRN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.33%, VRN is in line with its industry, outperforming 42.99% of the companies in the same industry.
VRN has a Return On Equity of 4.04%. This is comparable to the rest of the industry: VRN outperforms 43.46% of its industry peers.
VRN has a Return On Invested Capital of 8.09%. This is in the better half of the industry: VRN outperforms 64.02% of its industry peers.
VRN had an Average Return On Invested Capital over the past 3 years of 10.88%. This is significantly below the industry average of 21.09%.
| 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.
VRN's Profit Margin has declined in the last couple of years.
The Operating Margin of VRN (27.16%) is better than 61.68% of its industry peers.
In the last couple of years the Operating Margin of VRN has grown nicely.
VRN has a Gross Margin of 72.71%. This is amongst the best in the industry. VRN outperforms 82.71% of its industry peers.
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 -0.01. 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 -0.01. This is in the lower half of the industry: VRN underperforms 69.16% 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.
Looking at the Debt to FCF ratio, with a value of 6.16, VRN is in the better half of the industry, outperforming 62.15% of the companies in the same industry.
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 of 0.37. This is comparable to the rest of the industry: VRN outperforms 57.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 6.16 | ||
| Altman-Z | -0.01 |
ROIC/WACC1.06
WACC7.66%
2.3 Liquidity
VRN has a Current 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 Current ratio of 0.57. This is amonst the worse of the industry: VRN underperforms 81.31% of its industry peers.
A Quick Ratio of 0.57 indicates that VRN may have some problems paying its short term obligations.
VRN has a Quick ratio of 0.57. This is in the lower half of the industry: VRN underperforms 74.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
VRN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -53.13%.
Measured over the past years, VRN shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -14.10% on average per year.
Looking at the last year, VRN shows a very strong growth in Revenue. The Revenue has grown by 24.52%.
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
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 18.78, VRN is valued on the expensive side.
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 26.59.
The Price/Forward Earnings ratio is 6.44, which indicates a rather cheap valuation of VRN.
Based on the Price/Forward Earnings ratio, VRN is valued cheaper than 85.98% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.03. VRN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.78 | ||
| Fwd PE | 6.44 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VRN indicates a rather cheap valuation: VRN is cheaper than 83.64% of the companies listed in the same industry.
74.77% 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 | 10.32 | ||
| EV/EBITDA | 3.39 |
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's earnings are expected to grow with 21.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.1
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.
Compared to an average industry Dividend Yield of 3.95, 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 1.87.
| 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
VRN pays out 104.13% of its income as dividend. This is not a sustainable payout ratio.
VRN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP104.13%
EPS Next 2Y52.32%
EPS Next 3Y21.31%
6.01
0 (0%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners44.99%
Inst Owner Change-64.44%
Ins Owners0.7%
Ins Owner ChangeN/A
Market Cap3.68B
Revenue(TTM)3.97B
Net Income(TTM)273.30M
Analysts81.25
Price Target8.26 (37.44%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.03% |
Yearly Dividend0.33
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)4.74%
PT rev (3m)3.09%
EPS NQ rev (1m)-1.09%
EPS NQ rev (3m)16.84%
EPS NY rev (1m)0%
EPS NY rev (3m)15.32%
Revenue NQ rev (1m)3.41%
Revenue NQ rev (3m)2.93%
Revenue NY rev (1m)5.07%
Revenue NY rev (3m)5.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.78 | ||
| Fwd PE | 6.44 | ||
| P/S | 1.29 | ||
| P/FCF | 10.32 | ||
| P/OCF | 2.43 | ||
| P/B | 0.76 | ||
| P/tB | 0.79 | ||
| EV/EBITDA | 3.39 |
EPS(TTM)0.32
EY5.32%
EPS(NY)0.93
Fwd EY15.52%
FCF(TTM)0.58
FCFY9.69%
OCF(TTM)2.47
OCFY41.11%
SpS4.65
BVpS7.91
TBVpS7.62
PEG (NY)0.1
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 | -0.01 |
F-Score6
WACC7.66%
ROIC/WACC1.06
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 FAQ
Can you provide the ChartMill fundamental rating for Veren Inc?
ChartMill assigns a fundamental rating of 5 / 10 to VRN.
What is the valuation status for VRN stock?
ChartMill assigns a valuation rating of 7 / 10 to Veren Inc (VRN). This can be considered as Undervalued.
How profitable is Veren Inc (VRN) stock?
Veren Inc (VRN) has a profitability rating of 5 / 10.
What are the PE and PB ratios of Veren Inc (VRN) stock?
The Price/Earnings (PE) ratio for Veren Inc (VRN) is 18.78 and the Price/Book (PB) ratio is 0.76.
What is the financial health of Veren Inc (VRN) stock?
The financial health rating of Veren Inc (VRN) is 3 / 10.