Market Cap
€2.8b
Last Updated
2020/03/30 21:31 UTC
Data Sources
Company Financials +
Executive Summary
Varta AG, through its subsidiaries, researches, develops, produces, and sells microbatteries and energy storage solutions worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet with high growth potential.
Similar Companies
Share Price & News
How has Varta's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: VAR1's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
22.3%
VAR1
9.2%
DE Electrical
9.9%
DE Market
1 Year Return
70.4%
VAR1
-8.2%
DE Electrical
-17.5%
DE Market
Return vs Industry: VAR1 exceeded the German Electrical industry which returned -6.8% over the past year.
Return vs Market: VAR1 exceeded the German Market which returned -17.7% over the past year.
Shareholder returns
| VAR1 | Industry | Market | |
|---|---|---|---|
| 7 Day | 22.3% | 9.2% | 9.9% |
| 30 Day | 2.8% | -20.6% | -16.6% |
| 90 Day | -42.7% | -35.2% | -24.8% |
| 1 Year | 70.4%70.4% | -7.9%-8.2% | -15.0%-17.5% |
| 3 Year | n/a | -41.8%-43.7% | -17.4%-24.5% |
| 5 Year | n/a | -39.9%-44.1% | -16.6%-28.1% |
Price Volatility Vs. Market
How volatile is Varta's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
How Does Varta's (ETR:VAR1) P/E Compare To Its Industry, After The Share Price Drop?2 weeks ago | Simply Wall St
Is Now An Opportune Moment To Examine Varta AG (ETR:VAR1)?1 month ago | Simply Wall St
Should You Be Worried About Varta AG's (ETR:VAR1) 9.8% Return On Equity?Valuation
Is Varta undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: VAR1 (€69.6) is trading below our estimate of fair value (€189.64)
Significantly Below Fair Value: VAR1 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: VAR1 is poor value based on its PE Ratio (84.3x) compared to the Electrical industry average (24x).
PE vs Market: VAR1 is poor value based on its PE Ratio (84.3x) compared to the German market (16.4x).
Price to Earnings Growth Ratio
PEG Ratio: VAR1 is poor value based on its PEG Ratio (2.4x)
Price to Book Ratio
PB vs Industry: VAR1 is overvalued based on its PB Ratio (7.4x) compared to the DE Electrical industry average (1.5x).
Next Steps
Future Growth
How is Varta forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
34.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: VAR1's forecast earnings growth (34.5% per year) is above the savings rate (-0.4%).
Earnings vs Market: VAR1's earnings (34.5% per year) are forecast to grow faster than the German market (14.3% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: VAR1's revenue (21.4% per year) is forecast to grow faster than the German market (4.1% per year).
High Growth Revenue: VAR1's revenue (21.4% per year) is forecast to grow faster 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 (18.6%).
Next Steps
Past Performance
How has Varta performed over the past 5 years?
154.6%
Last years earnings growth
Earnings and Revenue History
Quality Earnings: VAR1 has high quality earnings.
Growing Profit Margin: VAR1's current net profit margins (12%) are higher than last year (5.7%).
Past Earnings Growth Analysis
Earnings Trend: Insufficient data to determine if VAR1's year-on-year earnings growth rate was positive over the past 5 years.
Accelerating Growth: Insufficient data to compare VAR1's past year earnings growth to its 5-year average.
Earnings vs Industry: VAR1 earnings growth over the past year (154.6%) exceeded the Electrical industry 17.2%.
Return on Equity
High ROE: VAR1's Return on Equity (9.8%) is considered low.
Next Steps
Financial Health
How is Varta's financial position?
Financial Position Analysis
Short Term Liabilities: VAR1's short term assets (€362.3M) exceed its short term liabilities (€145.3M).
Long Term Liabilities: VAR1's short term assets (€362.3M) exceed its long term liabilities (€70.4M).
Debt to Equity History and Analysis
Debt Level: VAR1 is debt free.
Reducing Debt: VAR1 had no debt 5 years ago.
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
Inventory Level: VAR1 has a high level of physical assets or inventory.
Debt Coverage by Assets: Insufficient data to determine if VAR1's debt is covered by short term assets.
Next Steps
Dividend
What is Varta's current dividend yield, its reliability and sustainability?
1.09%
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate VAR1's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate VAR1's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if VAR1's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if VAR1's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of VAR1's dividend in 3 years as they are not forecast to pay a notable one for the German market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.6yrs
Average board tenure
CEO
Herbert Schein (54yo)
3.5s
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 Ch ...
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman of Supervisory Board | 3.5yrs | €50.00k | no data | |
| Member of Supervisory Board | 3.67yrs | no data | no data | |
| Member of Supervisory Board | 3.67yrs | €30.00k | no data | |
| Member of Supervisory Board | 3.5yrs | €33.00k | no data | |
| Supervisory Board Member | 0.83yr | no data | no data | |
| Deputy Chairman of the Supervisory Board | 3.67yrs | €50.00k | no data |
3.6yrs
Average Tenure
61yo
Average Age
Experienced Board: VAR1's board of directors are considered experienced (3.6 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 been diluted in the past year, with total shares outstanding growing by 11.2%.
Top Shareholders
Company Information
Varta AG's company bio, 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
- Market Cap: €2.813b
- Shares outstanding: 40.42m
- Website: https://www.varta-ag.com
Number of Employees
Location
- Varta AG
- Daimlerstrasse 1
- Ellwangen
- Baden-Württemberg
- 73479
- Germany
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| VAR1 | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 1992 |
| VAR1 | XTRA (XETRA Trading Platform) | Yes | Ordinary Shares | DE | EUR | Jan 1992 |
| 0GYQ | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | EUR | Jan 1992 |
| VAR1 | SWX (SIX Swiss Exchange) | Yes | Ordinary Shares | CH | CHF | Jan 1992 |
| VAR1D | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | EUR | Jan 1992 |
| VAR1 | WBAG (Wiener Boerse AG) | Yes | Ordinary Shares | AT | EUR | Jan 1992 |
| VAR1 | ETLX (Eurotlx) | Yes | Ordinary Shares | IT | EUR | Jan 1992 |
| VARG.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jan 1992 |
Biography
Varta AG, through its subsidiaries, researches, develops, produces, and sells microbatteries and energy storage solutions worldwide. It operates through two segments, Microbatteries and Power & Energy. The Microbatteries segment offers zinc-air batteries for use in hearing aid devices; lithium-ion battery solutions for wireless headphones, and other wearable applications, as well as for electrical devices, including Bluetooth headsets and medical devices for high blood pressure, blood sugar, and body monitors; and rechargeable battery solutions for server applications, including car keys, alarm systems, or smart meters for industrial and original equipment manufacturers (OEMs). The Power & Energy segment is involved in the development, system integration, and assembly of rechargeable battery packs for portable industrial, communication, power tool, home and garden, and medical applications; and energy storage devices for private households and commercial applications. The company was founded in 1887 and is headquartered in Ellwangen, Germany. Varta AG is a subsidiary of Montana Tech Components AG.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/30 21:31 |
| End of Day Share Price | 2020/03/30 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.