New Risk • Nov 20
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: €93.6m (US$98.6m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (29% average weekly change). Minor Risks High level of debt (59% net debt to equity). Market cap is less than US$100m (€93.6m market cap, or US$98.6m). Announcement • Jul 24
Varta AG(XTRA:VAR1) dropped from S&P Global BMI Index Varta AG(XTRA:VAR1) dropped from S&P Global BMI Index New Risk • Jul 23
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: €85.4m (US$92.6m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (24% average weekly change). Minor Risks High level of debt (59% net debt to equity). Market cap is less than US$100m (€85.4m market cap, or US$92.6m). Announcement • Jul 13
Varta AG to Report Fiscal Year 2023 Final Results on Aug 16, 2024 Varta AG announced that they will report fiscal year 2023 final results at 9:00 AM, Central European Standard Time on Aug 16, 2024 Announcement • May 11
Varta AG(XTRA:VAR1) dropped from Germany SDAX (Total Return) Index Varta AG has been dropped from Germany Small DAX (Total Return) Index (SDAX) . Announcement • Apr 23
Varta AG to Report Fiscal Year 2023 Results on Jun 28, 2024 Varta AG announced that they will report fiscal year 2023 results at 9:00 AM, Central European Standard Time on Jun 28, 2024 Buy Or Sell Opportunity • Apr 12
Now 30% undervalued after recent price drop Over the last 90 days, the stock has fallen 50% to €9.59. The fair value is estimated to be €13.62, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Meanwhile, the company became loss making. Revenue is forecast to grow by 15% in 2 years. Earnings are forecast to grow by 96% in the next 2 years. Buy Or Sell Opportunity • Feb 16
Now 22% undervalued after recent price drop Over the last 90 days, the stock has fallen 29% to €16.26. The fair value is estimated to be €20.95, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Meanwhile, the company became loss making. Revenue is forecast to grow by 16% in 2 years. Earnings are forecast to grow by 98% in the next 2 years. New Risk • Nov 19
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 59% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (6.2% average weekly change). Minor Risks High level of debt (59% net debt to equity). Shareholders have been diluted in the past year (5.5% increase in shares outstanding). Reported Earnings • Nov 15
Third quarter 2023 earnings released: €0.13 loss per share (vs €0.57 loss in 3Q 2022) Third quarter 2023 results: €0.13 loss per share (improved from €0.57 loss in 3Q 2022). Revenue: €234.8m (up 20% from 3Q 2022). Net loss: €5.40m (loss narrowed 76% from 3Q 2022). Revenue is forecast to grow 9.1% p.a. on average during the next 3 years, compared to a 6.4% growth forecast for the Electrical industry in Europe. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 64 percentage points per year, which is a significant difference in performance. Buying Opportunity • Oct 12
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 17%. The fair value is estimated to be €22.14, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 3.9% over the last 3 years. Meanwhile, the company became loss making. Revenue is forecast to grow by 16% in 2 years. Earnings is forecast to grow by 97% in the next 2 years. Buying Opportunity • Sep 25
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 4.1%. The fair value is estimated to be €22.13, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 3.9% over the last 3 years. Meanwhile, the company became loss making. Revenue is forecast to grow by 16% in 2 years. Earnings is forecast to grow by 97% in the next 2 years. Reported Earnings • Aug 13
Second quarter 2023 earnings released: €1.70 loss per share (vs €0.08 loss in 2Q 2022) Second quarter 2023 results: €1.70 loss per share (further deteriorated from €0.08 loss in 2Q 2022). Revenue: €191.0m (down 2.0% from 2Q 2022). Net loss: €72.6m (loss widened €69.4m from 2Q 2022). Revenue is forecast to grow 8.3% p.a. on average during the next 3 years, compared to a 6.8% growth forecast for the Electrical industry in Europe. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 51 percentage points per year, which is a significant difference in performance. Announcement • Jul 27
Varta AG Revises Earnings Guidance for the Year 2023 Varta AG revised earnings guidance for the year 2023. On the basis of preliminary figures, the company is revising its forecast for the 2023 financial year. The now expects sales at the lower end of the previous guidance of around EUR 820 million. New Risk • Jul 07
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 5.5% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). Share price has been highly volatile over the past 3 months (7.5% average weekly change). Minor Risk Shareholders have been diluted in the past year (5.5% increase in shares outstanding). Reported Earnings • May 01
Full year 2022 earnings released: €4.96 loss per share (vs €3.12 profit in FY 2021) Full year 2022 results: €4.96 loss per share (down from €3.12 profit in FY 2021). Revenue: €896.5m (down 1.7% from FY 2021). Net loss: €200.4m (down 259% from profit in FY 2021). Revenue is forecast to grow 5.7% p.a. on average during the next 3 years, compared to a 6.7% growth forecast for the Electrical industry in Europe. Over the last 3 years on average, earnings per share has fallen by 36% per year whereas the company’s share price has fallen by 31% per year. Valuation Update With 7 Day Price Move • Mar 22
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to €24.41, the stock trades at a trailing P/E ratio of 32.1x. Average forward P/E is 18x in the Electrical industry in Europe. Total loss to shareholders of 58% over the past three years. Valuation Update With 7 Day Price Move • Jan 04
Investor sentiment improved over the past week After last week's 15% share price gain to €25.45, the stock trades at a trailing P/E ratio of 34.5x. Average forward P/E is 17x in the Electrical industry in Europe. Total loss to shareholders of 71% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at €25.24 per share. Valuation Update With 7 Day Price Move • Dec 16
Investor sentiment deteriorated over the past week After last week's 20% share price decline to €23.48, the stock trades at a trailing P/E ratio of 31.6x. Average forward P/E is 17x in the Electrical industry in Europe. Total loss to shareholders of 79% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at €25.17 per share. Reported Earnings • Nov 17
Third quarter 2022 earnings released: €0.57 loss per share (vs €0.74 profit in 3Q 2021) Third quarter 2022 results: €0.57 loss per share (down from €0.74 profit in 3Q 2021). Revenue: €256.6m (up 14% from 3Q 2021). Net loss: €22.9m (down 176% from profit in 3Q 2021). Revenue is forecast to grow 7.6% p.a. on average during the next 3 years, compared to a 6.6% growth forecast for the Electrical industry in Europe. Over the last 3 years on average, earnings per share has increased by 5% per year but the company’s share price has fallen by 34% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Nov 11
Investor sentiment improved over the past week After last week's 18% share price gain to €33.65, the stock trades at a forward P/E ratio of 64x. Average forward P/E is 18x in the Electrical industry in Europe. Total loss to shareholders of 66% over the past three years. Buying Opportunity • Sep 23
Now -8.5% undervalued after recent price drop Over the last 90 days, the stock is down 53%. The fair value is estimated to be €36.09, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 33% over the last 3 years. Earnings per share has grown by 26%. Revenue is forecast to grow by 18% in 2 years. Earnings is forecast to grow by 19% in the next 2 years. Valuation Update With 7 Day Price Move • Sep 23
Investor sentiment deteriorated over the past week After last week's 38% share price decline to €39.17, the stock trades at a forward P/E ratio of 34x. Average forward P/E is 17x in the Electrical industry in Europe. Total loss to shareholders of 54% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at €36.09 per share. Announcement • Jul 31
Varta AG Updates Financial Guidance for the Year 2022 Varta AG updated financial guidance for the year 2022. The Executive Board expects a revenue of EUR 880 million to EUR 920 million (previously EUR 950 million to EUR 1 billion). Announcement • Jul 30
Varta AG Appoints Markus Hackstein as Board Member, Effective August 1, 2022 Varta AG announced that Markus Hackstein becomes the new board member for the system integration of batteries in the field of e-mobility and energy storage. Markus Hackstein will become a new member of the Executive Board from 1st August 2022. He will have overall responsibility for the V4Drive (E-Mobility), Energy Storage Systems and Power Pack Solutions divisions, making him the fourth member of the Board alongside Armin Hessenberger, Rainer Hald and the Chairman of the Board, Herbert Schein. Markus Hackstein has been successfully working in various management positions for the VARTA Group since 2018. Among other things, he was responsible for the successful establishment of the production site in Brasov, Romania, as well as the Solutions and V4Drive division. Upcoming Dividend • Jun 15
Upcoming dividend of €2.48 per share Eligible shareholders must have bought the stock before 22 June 2022. Payment date: 24 June 2022. Payout ratio is on the higher end at 93% but the company is not cash flow positive. Trailing yield: 3.0%. Lower than top quartile of Austrian dividend payers (4.7%). Higher than average of industry peers (2.2%). Reported Earnings • May 18
First quarter 2022 earnings released First quarter 2022 results: Revenue: €208.3m (up 1.6% from 1Q 2021). Net income: €6.03m (down 75% from 1Q 2021). Profit margin: 2.9% (down from 12% in 1Q 2021). The decrease in margin was driven by higher expenses. Over the next year, revenue is forecast to grow 11%, compared to a 16% growth forecast for the industry in Austria. Announcement • May 13
Varta AG Provides Group Revenue Guidance for the Second Quarter and Full Year of 2022 Varta AG provided group revenue guidance for the second quarter and full year of 2022. For the year, the company expects group revenue still set to be between EUR 950 million and EUR 1 billion. For the second quarter of 2022, revenue is expected to total between EUR 195 million and EUR 205 million. Buying Opportunity • May 12
Now 24% undervalued after recent price drop Over the last 90 days, the stock is down 21%. The fair value is estimated to be €96.29, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 44% over the last 3 years. Earnings per share has grown by 40%. For the next 3 years, revenue is forecast to grow by 14% per annum. Earnings is also forecast to grow by 8.4% per annum over the same time period. Reported Earnings • Apr 02
Full year 2021 earnings released: EPS: €3.12 (vs €2.36 in FY 2020) Full year 2021 results: EPS: €3.12 (up from €2.36 in FY 2020). Revenue: €984.3m (up 13% from FY 2020). Net income: €126.0m (up 32% from FY 2020). Profit margin: 13% (up from 11% in FY 2020). The increase in margin was driven by higher revenue. Over the next year, revenue is forecast to stay flat compared to a 17% growth forecast for the industry in Austria. Over the last 3 years on average, earnings per share has increased by 40% per year but the company’s share price has only increased by 30% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Jan 24
Investor sentiment deteriorated over the past week After last week's 18% share price decline to €87.66, the stock trades at a forward P/E ratio of 29x. Average forward P/E is 22x in the Electrical industry in Europe. Total returns to shareholders of 186% over the past three years. Reported Earnings • Nov 12
Third quarter 2021 earnings released The company reported a soft third quarter result with weaker earnings and profit margins, although revenues improved. Third quarter 2021 results: Revenue: €267.5m (up 11% from 3Q 2020). Net income: €30.3m (down 21% from 3Q 2020). Profit margin: 11% (down from 16% in 3Q 2020). Over the last 3 years on average, earnings per share has increased by 52% per year but the company’s share price has increased by 60% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Nov 05
Investor sentiment deteriorated over the past week After last week's 16% share price decline to €111, the stock trades at a forward P/E ratio of 33x. Average forward P/E is 22x in the Electrical industry in Europe. Total returns to shareholders of 293% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at €195 per share. Reported Earnings • Aug 14
Second quarter 2021 earnings released: EPS €0.53 (vs €0.38 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: €215.8m (up 11% from 2Q 2020). Net income: €21.2m (up 39% from 2Q 2020). Profit margin: 9.8% (up from 7.9% in 2Q 2020). Over the last 3 years on average, earnings per share has increased by 53% per year but the company’s share price has increased by 81% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • May 16
First quarter 2021 earnings released The company reported a mediocre first quarter result with weaker profit margins, although earnings were flat and revenues improved. First quarter 2021 results: Revenue: €215.4m (up 7.9% from 1Q 2020). Net income: €24.3m (flat on 1Q 2020). Profit margin: 11% (down from 12% in 1Q 2020). Reported Earnings • Apr 03
Full year 2020 earnings released: EPS €2.36 (vs €1.28 in FY 2019) The company reported a solid full year result with improved earnings and revenues, although profit margins were weaker. Full year 2020 results: Revenue: €912.0m (up 149% from FY 2019). Net income: €95.4m (up 89% from FY 2019). Profit margin: 11% (down from 14% in FY 2019). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 65% per year but the company’s share price has increased by 82% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Mar 19
Investor sentiment improved over the past week After last week's 15% share price gain to €132, the stock trades at a forward P/E ratio of 34x. Average forward P/E is 24x in the Electrical industry in Europe. Total returns to shareholders of 594% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at €200 per share. Valuation Update With 7 Day Price Move • Feb 20
Investor sentiment deteriorated over the past week After last week's 15% share price decline to €130, the stock is trading at a trailing P/E ratio of 74.7x, down from the previous P/E ratio of 88.4x. This compares to an average P/E of 31x in the Electrical industry in Europe. Total returns to shareholders over the past three years are 548%. Announcement • Feb 19
Varta AG to Report Fiscal Year 2020 Results on Mar 31, 2021 Varta AG announced that they will report fiscal year 2020 results on Mar 31, 2021 Is New 90 Day High Low • Feb 16
New 90-day high: €160 The company is up 44% from its price of €111 on 18 November 2020. The Austrian market is up 20% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Electrical industry, which is up 16% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €158 per share. Announcement • Jan 27
Varta AG to Report Fiscal Year 2020 Results on Feb 18, 2021 Varta AG announced that they will report fiscal year 2020 results on Feb 18, 2021 Is New 90 Day High Low • Jan 09
New 90-day high: €127 The company is up 9.0% from its price of €116 on 09 October 2020. The Austrian market is up 32% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electrical industry, which is up 28% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €162 per share. Analyst Estimate Surprise Post Earnings • Nov 13
Revenue beats expectations Revenue exceeded analyst estimates by 9.5%. Over the next year, revenue is forecast to grow 37%, compared to a 8.4% growth forecast for the Electrical industry in Austria. 
