Veritiv Corporation (VRTV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VRTV - US9234541020 - Common Stock
169.99 USD
+0.03 (+0.02%)
170 USD
+0.01 (+0.01%)
We assign a fundamental rating of 5 out of 10 to VRTV. VRTV was compared to 49 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 is cheap, but on the other hand it scores bad on growth. These ratings would make VRTV suitable for value investing!
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.
The reported net income has been mixed in the past 5 years: VRTV reported negative net income in multiple years.
In the past 5 years VRTV always reported a positive cash flow from operatings.
1.2 Ratios
VRTV has a better Return On Assets (13.62%) than 90.38% of its industry peers.
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.
VRTV has a better Return On Invested Capital (21.42%) 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 above the industry average of 9.22%.
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 (4.46%) which is comparable to the rest of the industry.
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 worse Gross Margin (24.32%) than 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
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
VRTV has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.85 indicates that VRTV is not in any danger for 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.
The Debt to FCF ratio of VRTV (0.20) is better than 92.31% of its industry peers.
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 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.
The Current ratio of VRTV (2.02) is comparable to the rest of the industry.
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 has a Quick ratio of 1.34. This is in the better half 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.
Looking at the last year, VRTV shows a very negative growth in Revenue. The Revenue has decreased by -17.09% in the last year.
VRTV shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.10% yearly.
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.
The Revenue is expected to decrease by -5.73% on average over the next years.
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
With a Price/Earnings ratio of 8.60, the valuation of VRTV can be described as very 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.
Compared to an average S&P500 Price/Earnings ratio of 26.46, VRTV is valued rather cheaply.
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's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.10.
| 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.
90.38% of the companies in the same industry are more expensive than VRTV, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.26 | ||
| EV/EBITDA | 5.64 |
4.3 Compensation for Growth
VRTV has a very decent profitability rating, which 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%. Purely for dividend investing, there may be better candidates out there.
VRTV's Dividend Yield is a higher than the industry average which is at 1.95.
Compared to the average S&P500 Dividend Yield of 2.32, VRTV is paying slightly less dividend.
| 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.