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Veritiv Corporation (VRTV) Stock Fundamental Analysis

NYSE:VRTV - New York Stock Exchange, Inc. - US9234541020 - Common Stock - Currency: USD

169.99  +0.03 (+0.02%)

After market: 170 +0.01 (+0.01%)

Fundamental Rating

5

Overall VRTV gets a fundamental rating of 5 out of 10. We evaluated VRTV against 48 industry peers in the Trading Companies & Distributors industry. VRTV has an excellent financial health rating, but there are some minor concerns on its profitability. VRTV has a bad growth rate and is valued cheaply. This makes VRTV very considerable for value investing!


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

In the past year VRTV was profitable.
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.
VRTV had a positive operating cash flow in each of the past 5 years.
VRTV Yearly Net Income VS EBIT VS OCF VS FCFVRTV Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 0 100M 200M 300M 400M

1.2 Ratios

With an excellent Return On Assets value of 13.62%, VRTV belongs to the best of the industry, outperforming 90.38% of the companies in the same industry.
VRTV has a better Return On Equity (28.99%) than 76.92% of its industry peers.
VRTV has a better Return On Invested Capital (21.42%) than 90.38% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VRTV is above the industry average of 9.69%.
The 3 year average ROIC (12.89%) for VRTV is below the current ROIC(21.42%), indicating increased profibility in the last year.
Industry RankSector 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%
VRTV Yearly ROA, ROE, ROICVRTV Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 0 10 20 30 40

1.3 Margins

VRTV has a Profit Margin (4.46%) which is comparable to the rest of the industry.
VRTV has a Operating Margin of 6.16%. This is in the lower half of the industry: VRTV underperforms 65.38% of its industry peers.
VRTV's Operating Margin has improved in the last couple of years.
VRTV has a worse Gross Margin (24.32%) than 75.00% of its industry peers.
VRTV's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
VRTV Yearly Profit, Operating, Gross MarginsVRTV Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 0 5 10 15 20

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8

2. Health

2.1 Basic Checks

VRTV has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, VRTV has less shares outstanding
The debt/assets ratio for VRTV has been reduced compared to a year ago.
VRTV Yearly Shares OutstandingVRTV Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 5M 10M 15M
VRTV Yearly Total Debt VS Total AssetsVRTV Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 500M 1B 1.5B 2B 2.5B

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.
VRTV has a Altman-Z score of 5.85. This is amongst the best in the industry. VRTV outperforms 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.
With an excellent Debt to FCF ratio value of 0.20, VRTV belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
A Debt/Equity ratio of 0.07 indicates that VRTV is not too dependend on debt financing.
VRTV has a better Debt to Equity ratio (0.07) than 82.69% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.07
Debt/FCF 0.2
Altman-Z 5.85
ROIC/WACC2.7
WACC7.93%
VRTV Yearly LT Debt VS Equity VS FCFVRTV Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 0 200M 400M 600M 800M 1B

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.
The Current ratio of VRTV (2.02) 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.
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 RankSector Rank
Current Ratio 2.02
Quick Ratio 1.34
VRTV Yearly Current Assets VS Current LiabilitesVRTV Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 500M 1B 1.5B 2B

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0

3. Growth

3.1 Past

VRTV shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.19%.
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 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

VRTV is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -12.22% yearly.
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

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.
VRTV Yearly Revenue VS EstimatesVRTV Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B
VRTV Yearly EPS VS EstimatesVRTV Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 10 15 20

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7

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 8.60, the valuation of VRTV can be described as reasonable.
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 26.34. 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.03, VRTV is valued rather cheaply.
Industry RankSector Rank
PE 8.6
Fwd PE 9.47
VRTV Price Earnings VS Forward Price EarningsVRTV Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

78.85% of the companies in the same industry are more expensive than VRTV, based on the Enterprise Value to EBITDA ratio.
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 RankSector Rank
P/FCF 6.26
EV/EBITDA 5.64
VRTV Per share dataVRTV EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 100 200 300 400

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

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3

5. Dividend

5.1 Amount

VRTV has a Yearly Dividend Yield of 1.48%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.41, VRTV pays a bit more dividend than its industry peers.
VRTV's Dividend Yield is slightly below the S&P500 average, which is at 2.44.
Industry RankSector 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
VRTV Yearly Dividends per shareVRTV Yearly Dividends per shareYearly Dividends per share 2022 2023 0.5 1 1.5

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
VRTV Yearly Income VS Free CF VS DividendVRTV Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 0 100M 200M 300M
VRTV Dividend Payout.VRTV Dividend Payout, showing the Payout Ratio.VRTV Dividend Payout.PayoutRetained Earnings

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Veritiv Corporation

NYSE:VRTV (11/29/2023, 8:04:00 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)11-03 2023-11-03/bmo
Earnings (Next)02-26 2024-02-26/amc
Inst Owners0.2%
Inst Owner Change0%
Ins Owners6.92%
Ins Owner Change0%
Market Cap2.31B
Analysts85.71
Price Target161.16 (-5.19%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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 RankSector 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
Profitability
Industry RankSector 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%
ROICexcg growth 3Y101.79%
ROICexcg 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 RankSector 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%