Veritiv Corporation (VRTV)
US9234541020 - Common Stock
Overall VRTV gets a fundamental rating of 6 out of 10. We evaluated VRTV against 51 industry peers in the Trading Companies & Distributors industry. While VRTV has a great health rating, its profitability is only average at the moment. VRTV has a bad growth rate and is valued cheaply. With these ratings, VRTV could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
VRTV had positive earnings in the past year.
In the past year VRTV had a positive cash flow from operations.
In multiple years VRTV reported negative net income over the last 5 years.
In the past 5 years VRTV always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 13.62%, VRTV belongs to the top of the industry, outperforming 90.38% of the companies in the same industry.
With a decent Return On Equity value of 28.99%, VRTV is doing good in the industry, outperforming 76.92% of the companies in the same industry.
The Return On Invested Capital of VRTV (21.42%) is better than 90.38% of its industry peers.
VRTV had an Average Return On Invested Capital over the past 3 years of 12.89%. This is in line with the industry average of 11.48%.
The 3 year average ROIC (12.89%) for VRTV is below the current ROIC(21.42%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.62% | ||
| ROE | 28.99% | ||
| ROIC | 21.42% |
ROA(3y)7.86%
ROA(5y)4.35%
ROE(3y)24.43%
ROE(5y)12.98%
ROIC(3y)12.89%
ROIC(5y)8.93%
1.3 Margins
VRTV has a Profit Margin of 4.46%. This is comparable to the rest of the industry: VRTV outperforms 44.23% of its industry peers.
VRTV has a worse Operating Margin (6.16%) than 65.38% of its industry peers.
In the last couple of years the Operating Margin of VRTV has grown nicely.
VRTV has a Gross Margin of 24.32%. This is in the lower half of the industry: VRTV underperforms 75.00% of its industry peers.
In the last couple of years the Gross Margin of VRTV has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.16% | ||
| PM (TTM) | 4.46% | ||
| GM | 24.32% |
OM growth 3Y87.53%
OM growth 5Y46.31%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y6.12%
GM growth 5Y4.55%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so VRTV is creating value.
Compared to 1 year ago, VRTV has less shares outstanding
The number of shares outstanding for VRTV has been reduced compared to 5 years ago.
Compared to 1 year ago, VRTV has an improved debt to assets ratio.
2.2 Solvency
VRTV has an Altman-Z score of 5.85. This indicates that VRTV is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.85, VRTV belongs to the best of the industry, outperforming 80.77% of the companies in the same industry.
VRTV has a debt to FCF ratio of 0.20. This is a very positive value and a sign of high solvency as it would only need 0.20 years to pay back of all of its debts.
VRTV has a Debt to FCF ratio of 0.20. This is amongst the best in the industry. VRTV outperforms 92.31% of its industry peers.
VRTV has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
VRTV has a better Debt to Equity ratio (0.07) than 82.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.2 | ||
| Altman-Z | 5.85 |
ROIC/WACC2.7
WACC7.93%
2.3 Liquidity
VRTV has a Current Ratio of 2.02. This indicates that VRTV is financially healthy and has no problem in meeting its short term obligations.
VRTV has a Current ratio (2.02) which is comparable to the rest of the industry.
A Quick Ratio of 1.34 indicates that VRTV should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.34, VRTV is doing good in the industry, outperforming 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.02 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
The earnings per share for VRTV have decreased by -9.19% in the last year.
The Revenue for VRTV has decreased by -17.09% in the past year. This is quite bad
Measured over the past years, VRTV shows a decrease in Revenue. The Revenue has been decreasing by -3.10% on average per year.
EPS 1Y (TTM)-9.19%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-35.57%
Revenue 1Y (TTM)-17.09%
Revenue growth 3Y-2.28%
Revenue growth 5Y-3.1%
Revenue growth Q2Q-19.02%
3.2 Future
The Earnings Per Share is expected to decrease by -12.22% on average over the next years. This is quite bad
VRTV is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.73% yearly.
EPS Next Y-11.35%
EPS Next 2Y-12.22%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-11.98%
Revenue Next 2Y-5.73%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
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 8.60 indicates a reasonable valuation of VRTV.
VRTV's Price/Earnings ratio is rather cheap when compared to the industry. VRTV is cheaper than 88.46% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.15. VRTV is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 9.47, which indicates a very decent valuation of VRTV.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VRTV indicates a rather cheap valuation: VRTV is cheaper than 80.77% of the companies listed in the same industry.
VRTV is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.6 | ||
| Fwd PE | 9.47 |
4.2 Price Multiples
VRTV's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. VRTV is cheaper than 78.85% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VRTV indicates a rather cheap valuation: VRTV is cheaper than 90.38% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.26 | ||
| EV/EBITDA | 5.64 |
4.3 Compensation for Growth
The decent profitability rating of VRTV may justify a higher PE ratio.
VRTV's earnings are expected to decrease with -12.22% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-12.22%
EPS Next 3YN/A
5. Dividend
5.1 Amount
VRTV has a Yearly Dividend Yield of 1.48%.
Compared to an average industry Dividend Yield of 1.72, VRTV pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.33, VRTV is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
5.2 History
VRTV is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
12.55% of the earnings are spent on dividend by VRTV. This is a low number and sustainable payout ratio.
DP12.55%
EPS Next 2Y-12.22%
EPS Next 3YN/A
Veritiv Corporation
NYSE:VRTV (11/29/2023, 7:04:00 PM)
After market: 170 +0.01 (+0.01%)169.99
+0.03 (+0.02%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.31B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.6 | ||
| Fwd PE | 9.47 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.62% | ||
| ROE | 28.99% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.16% | ||
| PM (TTM) | 4.46% | ||
| GM | 24.32% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover3.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.02 | ||
| Quick Ratio | 1.34 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-9.19%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-11.35%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-17.09%
Revenue growth 3Y-2.28%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y