XTRA:VAR1

Stock Analysis Report

Executive Summary

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


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

VAR1IndustryMarket
7 Day22.3%9.2%9.9%
30 Day2.8%-20.6%-16.6%
90 Day-42.7%-35.2%-24.8%
1 Year70.4%70.4%-7.9%-8.2%-15.0%-17.5%
3 Yearn/a-41.8%-43.7%-17.4%-24.5%
5 Yearn/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

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

NamePositionTenureCompensationOwnership
Michael Tojner
Chairman of Supervisory Board3.5yrs€50.00kno data
Sven Quandt
Member of Supervisory Board3.67yrsno datano data
Frank Maier
Member of Supervisory Board3.67yrs€30.00kno data
Georg Blumauer
Member of Supervisory Board3.5yrs€33.00kno data
Michael Pistauer
Supervisory Board Member0.83yrno datano data
Harald Sommerer
Deputy Chairman of the Supervisory Board3.67yrs€50.00kno 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VAR1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
VAR1XTRA (XETRA Trading Platform)YesOrdinary SharesDEEURJan 1992
0GYQLSE (London Stock Exchange)YesOrdinary SharesGBEURJan 1992
VAR1SWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFJan 1992
VAR1DBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1992
VAR1WBAG (Wiener Boerse AG)YesOrdinary SharesATEURJan 1992
VAR1ETLX (Eurotlx)YesOrdinary SharesITEURJan 1992
VARG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 21:31
End of Day Share Price2020/03/30 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.