XTRA:VAR1

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

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


Market Performance


7 Day Return

1.4%

VAR1

3.4%

DE Electrical

2.4%

DE Market


1 Year Return

209.4%

VAR1

37.3%

DE Electrical

4.9%

DE Market

Return vs Industry: VAR1 exceeded the German Electrical industry which returned 37.3% over the past year.

Return vs Market: VAR1 exceeded the German Market which returned 4.9% over the past year.


Shareholder returns

VAR1IndustryMarket
7 Day1.4%3.4%2.4%
30 Day-1.2%2.1%2.3%
90 Day35.7%11.8%2.7%
1 Year209.4%209.4%39.3%37.3%8.2%4.9%
3 Yearn/a-24.5%-28.2%18.3%8.0%
5 Yearn/a24.7%15.0%44.2%24.6%

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

No news available

Valuation

Is Varta undervalued compared to its fair value and its price relative to the market?

104.05x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: VAR1 (€85.9) is trading above our estimate of fair value (€5.48)

Significantly Below Fair Value: VAR1 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: VAR1 is poor value based on its PE Ratio (104x) compared to the Electrical industry average (63.9x).

PE vs Market: VAR1 is poor value based on its PE Ratio (104x) compared to the German market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: VAR1 is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: VAR1 is overvalued based on its PB Ratio (9.1x) compared to the DE Electrical industry average (2x).


Next Steps

Future Growth

How is Varta forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

39.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VAR1's forecast earnings growth (39.2% per year) is above the savings rate (0.2%).

Earnings vs Market: VAR1's earnings (39.2% per year) are forecast to grow faster than the German market (12.8% per year).

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

Revenue vs Market: VAR1's revenue (26.4% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: VAR1's revenue (26.4% 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 (15.7%).


Next Steps

Past Performance

How has Varta performed over the past 5 years?

112.8%

Last years earnings growth


Earnings and Revenue History


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 (112.8%) exceeded the Electrical industry -10.5%.


Return on Equity

High ROE: VAR1's Return on Equity (8.4%) is considered low.


Return on Assets

ROA vs Industry: VAR1 has a higher Return on Assets than the Electrical industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate VAR1's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Varta's financial position?


Financial Position Analysis

Short Term Liabilities: VAR1's short term assets (€361.6M) exceeds its short term liabilities (€121.8M)

Long Term Liabilities: VAR1's short term assets (361.6M) exceeds its long term liabilities (72.4M)


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: VAR1's debt is not covered by short term assets (assets are -1.0176840372964E+17x debt).


Next Steps

Dividend

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

0.52%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%1.5%markettop25%3.8%industryaverage2.5%forecastin3Years0.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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: VAR1 is not paying a notable dividend for the German market.


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

What is the CEO of Varta's salary, the management and board of directors tenure and is there insider trading?

3.2yrs

Average board tenure


CEO

Herbert Schein (54yo)

3.1yrs

Tenure

0

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 Age and Tenure

3.2yrs

Average Tenure

61yo

Average Age

Experienced Board: VAR1's board of directors are considered experienced (3.2 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Bernhard Wolf

    Head of Investor Relations

    • Tenure: 0yrs
  • Herbert Schein (54yo)

    CEO & Chairman of Management Board

    • Tenure: 3.1yrs
  • Steffen Munz

    CFO, Director of Investor Relations and M&A and Member of Management Board

    • Tenure: 1.7yrs

Board Members

  • Michael Tojner (53yo)

    Chairman of Supervisory Board

    • Tenure: 3.1yrs
    • Compensation: €50.00k
  • Sven Quandt (63yo)

    Member of Supervisory Board

    • Tenure: 3.3yrs
  • Frank Maier (81yo)

    Member of Supervisory Board

    • Tenure: 3.3yrs
    • Compensation: €30.00k
  • Georg Blumauer

    Member of Supervisory Board

    • Tenure: 3.1yrs
    • Compensation: €33.00k
  • Michael Pistauer (59yo)

    Supervisory Board Member

    • Tenure: 0.4yrs
  • Harald Sommerer

    Deputy Chairman of the Supervisory Board

    • Tenure: 3.3yrs
    • Compensation: €50.00k

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: €3.472b
  • 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
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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 20:56
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
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.