Veren Inc (VRN) Stock Fundamental Analysis
USA - NYSE:VRN - CA92340V1076 - Common Stock
6.01 USD
0 (0%)
5.95 USD
-0.06 (-1%)
Overall VRN gets a fundamental rating of 5 out of 10. We evaluated VRN against 211 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
In the past year VRN was profitable.
In the past year VRN had a positive cash flow from operations.
Of the past 5 years VRN 4 years were profitable.
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.
Measured over the past 3 years, the Average Return On Invested Capital for VRN is significantly below the industry average of 21.54%.
| 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's Profit Margin of 6.88% is in line compared to the rest of the industry. VRN outperforms 48.60% of its industry peers.
In the last couple of years the Profit Margin of VRN has declined.
With a decent Operating Margin value of 27.16%, VRN is doing good in the industry, outperforming 61.68% of the companies in the same industry.
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 82.71% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so VRN is still creating some value.
The number of shares outstanding for VRN has been reduced compared to 1 year ago.
Compared to 5 years ago, VRN has more shares outstanding
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.
With a Altman-Z score value of -0.01, VRN is not doing good in the industry: 69.16% of the companies in the same industry are doing better.
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 62.15% of its industry peers.
A Debt/Equity ratio of 0.37 indicates that VRN is not too dependend on debt financing.
The Debt to Equity ratio of VRN (0.37) is comparable to the rest of the 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.
With a Current ratio value of 0.57, VRN is not doing good in the industry: 81.31% of the companies in the same industry are doing better.
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.
The Quick ratio of VRN (0.57) is worse 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.
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
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
A Price/Earnings ratio of 18.78 indicates a rather expensive valuation of VRN.
VRN's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.91, VRN is valued a bit cheaper.
With a Price/Forward Earnings ratio of 6.44, the valuation of VRN can be described as very cheap.
Based on the Price/Forward Earnings ratio, VRN is valued cheaply inside the industry as 85.98% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.92. VRN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.78 | ||
| Fwd PE | 6.44 |
4.2 Price Multiples
83.64% of the companies in the same industry are more expensive than VRN, based on the Enterprise Value to EBITDA ratio.
VRN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. VRN is 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
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 6.30, VRN pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, VRN pays a better dividend.
| 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 Change0%
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.