Veritiv Corporation (VRTV) Stock Fundamental Analysis
USA - NYSE:VRTV - US9234541020 - Common Stock
169.99 USD
+0.03 (+0.02%)
170 USD
+0.01 (+0.01%)
Taking everything into account, VRTV scores 5 out of 10 in our fundamental rating. VRTV was compared to 51 industry peers in the Trading Companies & Distributors industry. VRTV is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. VRTV has a bad growth rate and is valued cheaply. These ratings could make VRTV a good candidate for value investing.
1. Profitability
1.1 Basic Checks
VRTV had positive earnings in the past year.
VRTV had a positive operating cash flow in the past year.
In multiple years VRTV reported negative net income over the last 5 years.
VRTV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of VRTV (13.62%) is better than 90.38% of its industry peers.
VRTV has a Return On Equity of 28.99%. This is in the better half of the industry: VRTV outperforms 76.92% of its industry peers.
VRTV has a Return On Invested Capital of 21.42%. This is amongst the best in the industry. VRTV outperforms 90.38% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VRTV is above the industry average of 10.12%.
The last Return On Invested Capital (21.42%) for VRTV is above the 3 year average (12.89%), which is a sign of increasing profitability.
| 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 (4.46%) which is comparable to the rest of the industry.
Looking at the Operating Margin, with a value of 6.16%, VRTV is doing worse than 65.38% of the companies in the same industry.
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.
VRTV's Gross Margin has improved in the last couple of years.
| 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.
The number of shares outstanding for VRTV has been reduced compared to 1 year ago.
The debt/assets ratio for VRTV has been reduced compared to a year ago.
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.
The Altman-Z score of VRTV (5.85) is better than 80.77% of its industry peers.
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 better Debt to FCF ratio (0.20) than 92.31% of its industry peers.
A Debt/Equity ratio of 0.07 indicates that VRTV is not too dependend on debt financing.
The Debt to Equity ratio of VRTV (0.07) is better 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
A Current Ratio of 2.02 indicates that VRTV has no problem at all paying its short term obligations.
VRTV's Current ratio of 2.02 is in line compared to the rest of the industry. VRTV outperforms 48.08% of its industry peers.
VRTV has a Quick Ratio of 1.34. This is a normal value and indicates that VRTV is financially healthy and should not expect problems in meeting its short term obligations.
VRTV's Quick ratio of 1.34 is fine compared to the rest of the industry. VRTV outperforms 61.54% of its industry peers.
| 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.
VRTV shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -17.09%.
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 Q2Q%-35.57%
Revenue 1Y (TTM)-17.09%
Revenue growth 3Y-2.28%
Revenue growth 5Y-3.1%
Sales Q2Q%-19.02%
3.2 Future
Based on estimates for the next years, VRTV will show a very negative growth in Earnings Per Share. The EPS will decrease by -12.22% on average per year.
Based on estimates for the next years, VRTV will show a decrease in Revenue. The Revenue will decrease by -5.73% on average per year.
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
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 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 26.28. VRTV is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 9.47 indicates a reasonable 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 33.61, 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
Based on the Enterprise Value to EBITDA ratio, VRTV is valued a bit cheaper than 78.85% of the companies in the same industry.
VRTV's Price/Free Cash Flow ratio is rather cheap when compared to the industry. VRTV is cheaper than 90.38% of the companies 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 2.24, VRTV pays a bit more dividend than its industry peers.
VRTV's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
5.2 History
VRTV does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
VRTV pays out 12.55% of its income as dividend. This is a sustainable payout ratio.
DP12.55%
EPS Next 2Y-12.22%
EPS Next 3YN/A
169.99
+0.03 (+0.02%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners0.2%
Inst Owner Change0%
Ins Owners6.92%
Ins Owner Change0%
Market Cap2.31B
Revenue(TTM)6.09B
Net Income(TTM)271.80M
Analysts85.71
Price Target161.16 (-5.19%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
Yearly Dividend0.61
Dividend Growth(5Y)N/A
DP12.55%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-7.64%
Min EPS beat(2)-15.86%
Max EPS beat(2)0.58%
EPS beat(4)2
Avg EPS beat(4)-2.98%
Min EPS beat(4)-15.86%
Max EPS beat(4)9.66%
EPS beat(8)6
Avg EPS beat(8)15.36%
EPS beat(12)10
Avg EPS beat(12)565.21%
EPS beat(16)12
Avg EPS beat(16)399.35%
Revenue beat(2)0
Avg Revenue beat(2)-11.99%
Min Revenue beat(2)-12.36%
Max Revenue beat(2)-11.63%
Revenue beat(4)0
Avg Revenue beat(4)-11.64%
Min Revenue beat(4)-15.68%
Max Revenue beat(4)-6.92%
Revenue beat(8)2
Avg Revenue beat(8)-4.8%
Revenue beat(12)6
Avg Revenue beat(12)-1.78%
Revenue beat(16)9
Avg Revenue beat(16)-1.33%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.6 | ||
| Fwd PE | 9.47 | ||
| P/S | 0.38 | ||
| P/FCF | 6.26 | ||
| P/OCF | 6.03 | ||
| P/B | 2.46 | ||
| P/tB | 2.85 | ||
| EV/EBITDA | 5.64 |
EPS(TTM)19.77
EY11.63%
EPS(NY)17.95
Fwd EY10.56%
FCF(TTM)27.14
FCFY15.97%
OCF(TTM)28.21
OCFY16.59%
SpS448.92
BVpS69.09
TBVpS59.6
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.62% | ||
| ROE | 28.99% | ||
| ROCE | 28.28% | ||
| ROIC | 21.42% | ||
| ROICexc | 22.09% | ||
| ROICexgc | 24.54% | ||
| OM | 6.16% | ||
| PM (TTM) | 4.46% | ||
| GM | 24.32% | ||
| FCFM | 6.05% |
ROA(3y)7.86%
ROA(5y)4.35%
ROE(3y)24.43%
ROE(5y)12.98%
ROIC(3y)12.89%
ROIC(5y)8.93%
ROICexc(3y)13.37%
ROICexc(5y)9.26%
ROICexgc(3y)14.83%
ROICexgc(5y)10.26%
ROCE(3y)17.02%
ROCE(5y)11.79%
ROICexgc growth 3Y101.79%
ROICexgc growth 5Y49.59%
ROICexc growth 3Y100.86%
ROICexc growth 5Y49.44%
OM growth 3Y87.53%
OM growth 5Y46.31%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y6.12%
GM growth 5Y4.55%
F-Score7
Asset Turnover3.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.2 | ||
| Debt/EBITDA | 0.15 | ||
| Cap/Depr | 36.16% | ||
| Cap/Sales | 0.24% | ||
| Interest Coverage | 23.59 | ||
| Cash Conversion | 92.2% | ||
| Profit Quality | 135.5% | ||
| Current Ratio | 2.02 | ||
| Quick Ratio | 1.34 | ||
| Altman-Z | 5.85 |
F-Score7
WACC7.93%
ROIC/WACC2.7
Cap/Depr(3y)41.96%
Cap/Depr(5y)54.9%
Cap/Sales(3y)0.33%
Cap/Sales(5y)0.39%
Profit Quality(3y)312.57%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-9.19%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-35.57%
EPS Next Y-11.35%
EPS Next 2Y-12.22%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-17.09%
Revenue growth 3Y-2.28%
Revenue growth 5Y-3.1%
Sales Q2Q%-19.02%
Revenue Next Year-11.98%
Revenue Next 2Y-5.73%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-8.56%
EBIT growth 3Y83.25%
EBIT growth 5Y41.77%
EBIT Next Year0.1%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y348.05%
FCF growth 3Y-2.27%
FCF growth 5Y123.86%
OCF growth 1Y282.42%
OCF growth 3Y-3.51%
OCF growth 5Y47.14%
Veritiv Corporation / VRTV FAQ
What is the ChartMill fundamental rating of Veritiv Corporation (VRTV) stock?
ChartMill assigns a fundamental rating of 6 / 10 to VRTV.
What is the valuation status of Veritiv Corporation (VRTV) stock?
ChartMill assigns a valuation rating of 7 / 10 to Veritiv Corporation (VRTV). This can be considered as Undervalued.
What is the profitability of VRTV stock?
Veritiv Corporation (VRTV) has a profitability rating of 6 / 10.
What is the valuation of Veritiv Corporation based on its PE and PB ratios?
The Price/Earnings (PE) ratio for Veritiv Corporation (VRTV) is 8.6 and the Price/Book (PB) ratio is 2.46.
How financially healthy is Veritiv Corporation?
The financial health rating of Veritiv Corporation (VRTV) is 9 / 10.