Veren Inc (VRN) Stock Fundamental Analysis
NYSE:VRN - New York Stock Exchange, Inc. - CA92340V1076 - Common Stock - Currency: USD
VRN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 208 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 is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
VRN had positive earnings in the past year.
In the past year VRN had a positive cash flow from operations.
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
VRN has a Return On Assets (2.33%) which is comparable to the rest of the industry.
VRN has a Return On Equity (4.04%) which is comparable to the rest of the industry.
The Return On Invested Capital of VRN (8.09%) is better than 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 23.63%.
| 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 comparable to the rest of the industry.
VRN's Profit Margin has declined in the last couple of years.
VRN has a Operating Margin of 27.16%. This is in the better half of the industry: VRN outperforms 61.68% of its industry peers.
VRN's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 72.71%, VRN belongs to the top of the industry, outperforming 82.71% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), VRN 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
Based on the Altman-Z score of -0.01, we must say that VRN is in the distress zone and has some risk of bankruptcy.
VRN's Altman-Z score of -0.01 is on the low side compared to the rest of the industry. VRN is outperformed by 69.16% 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.
VRN has a Debt to FCF ratio of 6.16. This is in the better half of the industry: VRN outperforms 62.15% 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's Debt to Equity ratio of 0.37 is in line compared 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
A Current Ratio of 0.57 indicates that VRN may have some problems paying its short term obligations.
VRN's Current ratio of 0.57 is on the low side compared to the rest of the industry. VRN is outperformed by 81.31% of its industry peers.
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 worse Quick ratio (0.57) than 74.77% 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.
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.
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
The Earnings Per Share is expected to grow by 21.31% on average over the next years. This is a very strong growth
VRN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.59% yearly.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 18.78 indicates a rather expensive valuation of VRN.
Compared to the rest of the industry, the Price/Earnings ratio of VRN is on the same level as its industry peers.
VRN is valuated rather cheaply when we compare the Price/Earnings ratio to 26.48, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 6.44, the valuation of VRN can be described as very cheap.
85.98% of the companies in the same industry are more expensive than VRN, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 34.04. VRN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.78 | ||
| Fwd PE | 6.44 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VRN is valued cheaper than 83.64% 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 74.77% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.32 | ||
| EV/EBITDA | 3.39 |
4.3 Compensation for Growth
VRN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as VRN's earnings are expected to grow with 21.31% in the coming years.
PEG (NY)0.1
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.
VRN's Dividend Yield is a higher than the industry average which is at 6.34.
VRN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| 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-3.3%
Ins Owners0.7%
Ins Owner ChangeN/A
Market Cap3.68B
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
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 | -0.01 |
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%