Veren Inc (VRN) Stock Fundamental Analysis
USA - NYSE:VRN - CA92340V1076 - Common Stock
6.01 USD
0 (0%)
5.95 USD
-0.06 (-1%)
VRN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 210 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of VRN while its profitability can be described as average. 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.
VRN had positive earnings in 4 of the past 5 years.
Each year in the past 5 years VRN had a positive operating cash flow.
1.2 Ratios
VRN's Return On Assets of 2.33% is in line compared to the rest of the industry. VRN outperforms 42.99% of its industry peers.
The Return On Equity of VRN (4.04%) is comparable to the rest of the industry.
VRN has a better Return On Invested Capital (8.09%) than 64.02% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VRN is significantly below the industry average of 21.72%.
| 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.
VRN's Operating Margin of 27.16% is fine compared to the rest of the industry. VRN outperforms 61.68% of its industry peers.
In the last couple of years the Operating Margin of VRN has grown nicely.
The Gross Margin of VRN (72.71%) is better than 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), VRN is creating some value.
The number of shares outstanding for VRN has been reduced compared to 1 year ago.
VRN has more shares outstanding than it did 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 worse Altman-Z score (-0.01) than 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.
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.
Looking at the Debt to Equity ratio, with a value of 0.37, VRN is in line with its industry, outperforming 57.01% of the companies in the same industry.
| 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.
Looking at the Current ratio, with a value of 0.57, VRN is doing worse than 81.31% 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.
With a Quick ratio value of 0.57, VRN is not doing good in the industry: 74.77% 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.
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
VRN is valuated rather expensively with a Price/Earnings ratio of 18.78.
VRN's Price/Earnings is on the same level as the industry average.
VRN is valuated rather cheaply when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 6.44 indicates a rather cheap valuation of VRN.
Based on the Price/Forward Earnings ratio, VRN is valued cheaply inside the industry as 85.98% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of VRN to the average of the S&P500 Index (34.59), we can say VRN is valued rather cheaply.
| 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 cheaply inside the industry as 83.64% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, VRN is valued a bit cheaper than 74.77% of the companies in the same industry.
| 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.
Compared to an average industry Dividend Yield of 5.87, 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 2.44.
| 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.
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%
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.