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VAR1

Varta XTRA:VAR1 Stock Report

Last Price

€80.18

Market Cap

€3.2b

7D

1.2%

1Y

-50.0%

Updated

07 Aug, 2022

Data

Company Financials +
VAR1 fundamental analysis
Snowflake Score
Valuation4/6
Future Growth3/6
Past Performance2/6
Financial Health6/6
Dividends1/6

VAR1 Stock Overview

Varta AG, through its subsidiaries, researches, develops, produces, and sells microbatteries, household batteries, and energy storage solutions worldwide.

Varta Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Varta
Historical stock prices
Current Share Price€80.18
52 Week High€165.90
52 Week Low€67.88
Beta1.2
1 Month Change-3.51%
3 Month Change2.32%
1 Year Change-50.01%
3 Year Change11.98%
5 Year Changen/a
Change since IPO52.52%

Recent News & Updates

Jul 05
At €79.80, Is It Time To Put Varta AG (ETR:VAR1) On Your Watch List?

At €79.80, Is It Time To Put Varta AG (ETR:VAR1) On Your Watch List?

While Varta AG ( ETR:VAR1 ) might not be the most widely known stock at the moment, it received a lot of attention from...

Shareholder Returns

VAR1DE ElectricalDE Market
7D1.2%1.7%1.1%
1Y-50.0%-29.7%-20.0%

Return vs Industry: VAR1 underperformed the German Electrical industry which returned -29.6% over the past year.

Return vs Market: VAR1 underperformed the German Market which returned -20% over the past year.

Price Volatility

Is VAR1's price volatile compared to industry and market?
VAR1 volatility
VAR1 Average Weekly Movement6.2%
Electrical Industry Average Movement6.3%
Market Average Movement5.7%
10% most volatile stocks in DE Market10.7%
10% least volatile stocks in DE Market2.8%

Stable Share Price: VAR1 is not significantly more volatile than the rest of German stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: VAR1's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
18874,724Herbert Scheinhttps://www.varta-ag.com

Varta AG, through its subsidiaries, researches, develops, produces, and sells microbatteries, household batteries, and energy storage solutions worldwide. It operates in two segments, Lithium-Ion Solutions & Microbatteries and Household Batteries. The Lithium-Ion Solutions & Microbatteries segment offers zinc-air batteries primarily for use in hearing aid devices; lithium-ion battery solutions for wireless headphones; wearables, which include medical devices to measure hypertension, blood sugar, and other bodily functions, as well as the power supply for COVID19 antibody tests; and rechargeable battery solutions for industrial and original equipment manufacturers for use in various applications, such as servers, car keys, alarm systems, or smart meters.

Varta Fundamentals Summary

How do Varta's earnings and revenue compare to its market cap?
VAR1 fundamental statistics
Market Cap€3.24b
Earnings (TTM)€107.66m
Revenue (TTM)€895.19m

30.1x

P/E Ratio

3.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
VAR1 income statement (TTM)
Revenue€895.19m
Cost of Revenue€335.25m
Gross Profit€559.94m
Other Expenses€452.28m
Earnings€107.66m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 11, 2022

Earnings per share (EPS)2.66
Gross Margin62.55%
Net Profit Margin12.03%
Debt/Equity Ratio0%

How did VAR1 perform over the long term?

See historical performance and comparison

Dividends

3.1%

Current Dividend Yield

93%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is VAR1 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for VAR1?

Other financial metrics that can be useful for relative valuation.

VAR1 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.4x
Enterprise Value/EBITDA12.6x
PEG Ratio2.7x

Price to Earnings Ratio vs Peers

How does VAR1's PE Ratio compare to its peers?

VAR1 PE Ratio vs Peers
The above table shows the PE ratio for VAR1 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average32x
SGL SGL Carbon
8.4x6.7%€885.2m
CY1K SBF
17.2x17.9%€81.5m
EKT Energiekontor
36.7x15.6%€1.3b
KU2 KUKA
65.8xn/a€3.3b
VAR1 Varta
30.1x11.0%€3.2b

Price-To-Earnings vs Peers: VAR1 is good value based on its Price-To-Earnings Ratio (30.1x) compared to the peer average (32x).


Price to Earnings Ratio vs Industry

How does VAR1's PE Ratio compare vs other companies in the European Electrical Industry?

Price-To-Earnings vs Industry: VAR1 is good value based on its Price-To-Earnings Ratio (30.1x) compared to the German Electrical industry average (32.5x)


Price to Earnings Ratio vs Fair Ratio

What is VAR1's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

VAR1 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio30.1x
Fair PE Ratio24.5x

Price-To-Earnings vs Fair Ratio: VAR1 is expensive based on its Price-To-Earnings Ratio (30.1x) compared to the estimated Fair Price-To-Earnings Ratio (24.5x).


Share Price vs Fair Value

What is the Fair Price of VAR1 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: VAR1 (€80.18) is trading below our estimate of fair value (€264.76)

Significantly Below Fair Value: VAR1 is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

How is Varta forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


11.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VAR1's forecast earnings growth (11% per year) is above the savings rate (-0.01%).

Earnings vs Market: VAR1's earnings (11% per year) are forecast to grow faster than the German market (7.7% per year).

High Growth Earnings: VAR1's earnings are forecast to grow, but not significantly.

Revenue vs Market: VAR1's revenue (12.8% per year) is forecast to grow faster than the German market (4.7% per year).

High Growth Revenue: VAR1's revenue (12.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VAR1's Return on Equity is forecast to be low in 3 years time (18.5%).


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Past Performance

How has Varta performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


45.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: VAR1 has a high level of non-cash earnings.

Growing Profit Margin: VAR1's current net profit margins (12%) are higher than last year (10.8%).


Past Earnings Growth Analysis

Earnings Trend: VAR1's earnings have grown significantly by 45.4% per year over the past 5 years.

Accelerating Growth: VAR1's earnings growth over the past year (13.1%) is below its 5-year average (45.4% per year).

Earnings vs Industry: VAR1 earnings growth over the past year (13.1%) underperformed the Electrical industry 77.3%.


Return on Equity

High ROE: VAR1's Return on Equity (19.8%) is considered low.


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Financial Health

How is Varta's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: VAR1's short term assets (€640.4M) exceed its short term liabilities (€412.5M).

Long Term Liabilities: VAR1's short term assets (€640.4M) exceed its long term liabilities (€533.1M).


Debt to Equity History and Analysis

Debt Level: VAR1 is debt free.

Reducing Debt: VAR1 has no debt compared to 5 years ago when its debt to equity ratio was 0%.

Debt Coverage: VAR1 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: VAR1 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is Varta current dividend yield, its reliability and sustainability?

Dividend Score

1/6

Dividend Score 1/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


3.09%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: VAR1's dividend (3.09%) is higher than the bottom 25% of dividend payers in the German market (1.46%).

High Dividend: VAR1's dividend (3.09%) is low compared to the top 25% of dividend payers in the German market (4.4%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether VAR1's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if VAR1's dividend payments are increasing as they only just started paying a dividend.


Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (92.9%), VAR1's dividend payments are not well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: VAR1 is paying a dividend but the company has no free cash flows.


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Management

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

1.8yrs

Average management tenure


CEO

Herbert Schein (57 yo)

6.08yrs

Tenure

Mr. Herbert Schein has been the Chairman of the Management Board and Chief Executive Officer at Varta Microbattery GmbH since November 2008 and serves as a Member of Executive Board. Mr. Schein has been Ma...


Leadership Team

Experienced Management: VAR1's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: VAR1'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

Varta AG's employee growth, exchange listings and data sources


Key Information

  • Name: Varta AG
  • Ticker: VAR1
  • Exchange: XTRA
  • Founded: 1887
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Implied Market Cap: €3.241b
  • Shares outstanding: 40.42m
  • Website: https://www.varta-ag.com

Number of Employees


Location

  • Varta AG
  • VARTA-Platz 1
  • Ellwangen
  • Baden-Württemberg
  • 73479
  • Germany

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/07 00:00
End of Day Share Price2022/08/05 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.