Veritiv Corporation
Veritiv Corporation Fundamental Analysis
Veritiv Corporation (VRTV) shows moderate financial fundamentals with a PE ratio of 7.13, profit margin of 4.73%, and ROE of 48.55%. The company generates $6.8B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 81.1/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze VRTV's fundamental strength across five key dimensions:
Efficiency Score
ExcellentVRTV demonstrates superior asset utilization.
Valuation Score
ExcellentVRTV trades at attractive valuation levels.
Growth Score
ModerateVRTV shows steady but slowing expansion.
Financial Health Score
ExcellentVRTV maintains a strong and stable balance sheet.
Profitability Score
ModerateVRTV maintains healthy but balanced margins.
Key Financial Metrics
Is VRTV Expensive or Cheap?
P/E Ratio
VRTV trades at 7.13 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, VRTV's PEG of 0.07 indicates potential undervaluation.
Price to Book
The market values Veritiv Corporation at 3.19 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 4.43 times EBITDA. This is generally considered low.
How Well Does VRTV Make Money?
Net Profit Margin
For every $100 in sales, Veritiv Corporation keeps $4.73 as profit after all expenses.
Operating Margin
Core operations generate 6.17 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $48.55 in profit for every $100 of shareholder equity.
ROA
Veritiv Corporation generates $16.17 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Veritiv Corporation generates limited operating cash flow of $241.66M, signaling weaker underlying cash strength.
Free Cash Flow
Veritiv Corporation produces free cash flow of $220.70M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $16.27 in free cash annually.
FCF Yield
VRTV converts 9.99% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
7.13
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.07
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.19
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.32
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.37
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.006
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.49
vs 25 benchmark
ROA
Return on assets percentage
0.16
vs 25 benchmark
ROCE
Return on capital employed
0.32
vs 25 benchmark
How VRTV Stacks Against Its Sector Peers
| Metric | VRTV Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 7.13 | 26.32 | Better (Cheaper) |
| ROE | 48.55% | 1290.00% | Weak |
| Net Margin | 4.73% | -43768.00% (disorted) | Weak |
| Debt/Equity | 0.37 | 116.05 | Strong (Low Leverage) |
| Current Ratio | 2.01 | 10.65 | Strong Liquidity |
| ROA | 16.17% | -1541671.00% (disorted) | Strong |
VRTV outperforms its industry in 4 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Veritiv Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
EPS CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
FCF CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure