Veris Residential, Inc.
Veris Residential, Inc. Fundamental Analysis
Veris Residential, Inc. (VRE) shows moderate financial fundamentals with a PE ratio of 23.44, profit margin of 26.09%, and ROE of 6.73%. The company generates $0.3B in annual revenue with moderate year-over-year growth of 6.40%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 37.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze VRE's fundamental strength across five key dimensions:
Efficiency Score
WeakVRE struggles to generate sufficient returns from assets.
Valuation Score
ExcellentVRE trades at attractive valuation levels.
Growth Score
ModerateVRE shows steady but slowing expansion.
Financial Health Score
WeakVRE carries high financial risk with limited liquidity.
Profitability Score
ModerateVRE maintains healthy but balanced margins.
Key Financial Metrics
Is VRE Expensive or Cheap?
P/E Ratio
VRE trades at 23.44 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, VRE's PEG of 1.12 indicates fair valuation.
Price to Book
The market values Veris Residential, Inc. at 1.53 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.65 times EBITDA. This is generally considered low.
How Well Does VRE Make Money?
Net Profit Margin
For every $100 in sales, Veris Residential, Inc. keeps $26.09 as profit after all expenses.
Operating Margin
Core operations generate 17.12 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.73 in profit for every $100 of shareholder equity.
ROA
Veris Residential, Inc. generates $2.78 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Veris Residential, Inc. generates strong operating cash flow of $78.11M, reflecting robust business health.
Free Cash Flow
Veris Residential, Inc. generates strong free cash flow of $60.98M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.65 in free cash annually.
FCF Yield
VRE converts 3.46% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
23.44
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.12
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.53
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.11
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.19
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.08
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How VRE Stacks Against Its Sector Peers
| Metric | VRE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 23.44 | 23.18 | Neutral |
| ROE | 6.73% | 709.00% | Weak |
| Net Margin | 26.09% | -21241.00% (disorted) | Strong |
| Debt/Equity | 1.19 | -21.97 (disorted) | Distorted |
| Current Ratio | 0.08 | 26.77 | Weak Liquidity |
| ROA | 2.78% | 176.00% | Weak |
VRE outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Veris Residential, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-10.68%
Industry Style: Income, Inflation Hedge, REIT
DecliningEPS CAGR
238.56%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
-100.00%
Industry Style: Income, Inflation Hedge, REIT
Declining