SWX:VARN

Stock Analysis Report

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Executive Summary

Varia US Properties AG, a real estate investment company, acquires, holds, and sells properties in the United States.


Snowflake Analysis

Second-rate dividend payer and slightly overvalued.

Share Price & News

How has Varia US Properties's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: VARN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.3%

VARN

-0.3%

CH Real Estate

0.8%

CH Market


1 Year Return

5.7%

VARN

-5.8%

CH Real Estate

2.3%

CH Market

Return vs Industry: VARN exceeded the Swiss Real Estate industry which returned -5% over the past year.

Return vs Market: VARN matched the Swiss Market which returned 5% over the past year.


Shareholder returns

VARNIndustryMarket
7 Day0.3%-0.3%0.8%
30 Day-1.8%-3.2%-0.8%
90 Day4.9%-6.2%3.6%
1 Year9.7%5.7%-2.7%-5.8%5.9%2.3%
3 Year10.8%-7.6%16.7%4.4%20.5%8.0%
5 Yearn/a40.4%16.6%26.5%6.6%

Price Volatility Vs. Market

How volatile is Varia US Properties's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Varia US Properties undervalued compared to its fair value and its price relative to the market?

8.97x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: VARN (CHF38.8) is trading above our estimate of fair value (CHF31.06)

Significantly Below Fair Value: VARN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: VARN is good value based on its PE Ratio (9x) compared to the CH Real Estate industry average (12.7x).

PE vs Market: VARN is good value based on its PE Ratio (9x) compared to the Swiss market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate VARN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: VARN's PB Ratio (1.1x) is in line with the CH Real Estate industry average.


Next Steps

Future Growth

How is Varia US Properties forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

-11.6%

Forecasted Real Estate industry annual growth in earnings


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if VARN's forecast earnings growth is above the savings rate (-0.2%).

Earnings vs Market: Insufficient data to determine if VARN's earnings are forecast to grow faster than the Swiss market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if VARN's revenue is forecast to grow faster than the Swiss market.

High Growth Revenue: Insufficient data to determine if VARN's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if VARN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Varia US Properties performed over the past 5 years?

71.6%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: VARN has a large one-off gain of $40.7M impacting its December 31 2019 financial results.

Growing Profit Margin: VARN's current net profit margins (43.3%) are higher than last year (29.6%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if VARN's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare VARN's past year earnings growth to its 5-year average.

Earnings vs Industry: VARN earnings growth over the past year (71.6%) exceeded the Real Estate industry 45.8%.


Return on Equity

High ROE: VARN's Return on Equity (12.7%) is considered low.


Next Steps

Financial Health

How is Varia US Properties's financial position?


Financial Position Analysis

Short Term Liabilities: VARN's short term assets ($35.3M) exceed its short term liabilities ($30.5M).

Long Term Liabilities: VARN's short term assets ($35.3M) do not cover its long term liabilities ($595.3M).


Debt to Equity History and Analysis

Debt Level: VARN's debt to equity ratio (168.5%) is considered high.

Reducing Debt: Insufficient data to determine if VARN's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: VARN's debt is not well covered by operating cash flow (6.8%).

Interest Coverage: VARN's interest payments on its debt are not well covered by EBIT (1.7x coverage).


Balance Sheet


Next Steps

Dividend

What is Varia US Properties's current dividend yield, its reliability and sustainability?

4.80%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: VARN's dividend (4.8%) is higher than the bottom 25% of dividend payers in the Swiss market (1.84%).

High Dividend: VARN's dividend (4.8%) is in the top 25% of dividend payers in the Swiss market (3.88%)


Stability and Growth of Payments

Stable Dividend: VARN has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: VARN's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (43.5%), VARN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.6yrs

Average management tenure


CEO

Patrick Richard (49 yo)

no data

Tenure

US$68,750

Compensation

Mr. Patrick Richard Founded Stoneweg US LLC, an asset manager of Varia US Properties AG and serves as its member of the Board of Directors since 2016 and also serves as its Chief Executive Officer since 20 ...


Leadership Team

NamePositionTenureCompensationOwnership
Patrick Richard
CEO, Founder of Stoneweg US LLC & Executive Directorno dataUS$68.75k0.44%
$ 1.6m
Jaume Sabater Martos
Executive Vice Chairman5.58yrsUS$57.46k0.081%
$ 281.3k
Taner Alicehic
Executive Director5.58yrsUS$73.69k0.37%
$ 1.3m
Robert Brehl
Executive VP & CFO of Stoneweg US LLC2.33yrsno datano data
Ryan Reyes
Executive VP & Chief Investment Officer of Stoneweg US LLC1.5yrsno datano data
Michael Dueringer
Investor Relations & Corporate Communicationsno datano datano data
Brandon Rosser
Executive VP & Chief Legal Officer1.58yrsno datano data

1.6yrs

Average Tenure

47.5yo

Average Age

Experienced Management: VARN's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Patrick Richard
CEO, Founder of Stoneweg US LLC & Executive Directorno dataUS$68.75k0.44%
$ 1.6m
Jaume Sabater Martos
Executive Vice Chairman5.58yrsUS$57.46k0.081%
$ 281.3k
Taner Alicehic
Executive Director5.58yrsUS$73.69k0.37%
$ 1.3m
Beat Schwab
Independent Non Executive Director4.58yrsUS$81.04k0.034%
$ 119.0k
Manuel Leuthold
Independent Non-Executive Chairman4.58yrsUS$94.64k0.028%
$ 97.0k
Stefan Buser
Independent Non Executive Director3.25yrsUS$78.54k0.026%
$ 89.7k
Dany Roizman
Non Executive Director5.58yrsUS$57.46k0.36%
$ 1.2m
Pierre Baudin
Director0.17yrno datano data

4.6yrs

Average Tenure

49yo

Average Age

Experienced Board: VARN's board of directors are considered experienced (4.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Varia US Properties AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Varia US Properties AG
  • Ticker: VARN
  • Exchange: SWX
  • Founded: 2015
  • Industry: Real Estate Operating Companies
  • Sector: Real Estate
  • Market Cap: CHF349.239m
  • Shares outstanding: 9.00m
  • Website: https://variausproperties.com

Location

  • Varia US Properties AG
  • Gubelstrasse 19
  • Zug
  • Zug
  • 6300
  • Switzerland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VARNSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFDec 2016
VAUDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2016
0RKWLSE (London Stock Exchange)YesOrdinary SharesGBCHFDec 2016

Biography

Varia US Properties AG, a real estate investment company, acquires, holds, and sells properties in the United States. It invests in low-moderate income and workforce multifamily housing properties. The com ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/06 20:47
End of Day Share Price2020/08/06 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.