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Market Cap

€4.8b

Last Updated

2021/04/11 19:38 UTC

Data Sources

Company Financials +

Executive Summary

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


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 is more volatile than 90% of German stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: VAR1's weekly volatility (12%) has been stable over the past year, but is still higher than 75% of German stocks.


Market Performance


7 Day Return

-5.7%

VAR1

-2.8%

DE Electrical

0.8%

DE Market


1 Year Return

71.5%

VAR1

95.9%

DE Electrical

44.3%

DE Market

Return vs Industry: VAR1 underperformed the German Electrical industry which returned 95.9% over the past year.

Return vs Market: VAR1 exceeded the German Market which returned 44.3% over the past year.


Shareholder returns

VAR1IndustryMarket
7 Day-5.7%-2.8%0.8%
30 Day5.3%-0.9%5.1%
90 Day-0.9%-5.1%10.0%
1 Year71.5%71.5%96.2%95.9%49.0%44.3%
3 Year466.4%466.4%57.7%54.5%24.6%13.8%
5 Yearn/a33.7%27.1%54.8%32.9%

Long-Term 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?

50.39x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: VAR1 (€118.95) is trading above our estimate of fair value (€63.81)

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 (50.4x) compared to the DE Electrical industry average (45.9x).

PE vs Market: VAR1 is poor value based on its PE Ratio (50.4x) compared to the German market (28.2x).


Price to Earnings Growth Ratio

PEG Ratio: VAR1 is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: VAR1 is overvalued based on its PB Ratio (9.6x) compared to the DE Electrical industry average (4.8x).


Future Growth

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

31.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VAR1's forecast earnings growth (31.2% per year) is above the savings rate (0.07%).

Earnings vs Market: VAR1's earnings (31.2% per year) are forecast to grow faster than the German market (20.6% per year).

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

Revenue vs Market: VAR1's revenue (15.3% per year) is forecast to grow faster than the German market (5.3% per year).

High Growth Revenue: VAR1's revenue (15.3% 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 high in 3 years time (24.8%)


Past Performance

How has Varta performed over the past 5 years?

57.9%

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 (10.9%) are lower than last year (13.7%).


Past Earnings Growth Analysis

Earnings Trend: VAR1's earnings have grown significantly by 57.9% per year over the past 5 years.

Accelerating Growth: VAR1's earnings growth over the past year (88.7%) exceeds its 5-year average (57.9% per year).

Earnings vs Industry: VAR1 earnings growth over the past year (88.7%) exceeded the Electrical industry 70.9%.


Return on Equity

High ROE: VAR1's Return on Equity (19.1%) is considered low.


Financial Health

How is Varta's financial position?


Financial Position Analysis

Short Term Liabilities: VAR1's short term assets (€435.9M) exceed its short term liabilities (€377.7M).

Long Term Liabilities: VAR1's short term assets (€435.9M) exceed its long term liabilities (€246.0M).


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


Dividend

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

2.08%

Current Dividend Yield


Upcoming Dividend Payment

TodayApr 12 2021Ex Dividend DateJun 18 2021Dividend Pay DateJun 22 20214 days from Ex DividendBuy in the next 66 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: VAR1's dividend (2.08%) is higher than the bottom 25% of dividend payers in the German market (1.06%).

High Dividend: VAR1's dividend (2.08%) is low compared to the top 25% of dividend payers in the German market (3.2%).


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.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (105.1%), VAR1's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: VAR1's dividends in 3 years are forecast to be thoroughly covered by earnings (9.3% payout ratio).


Next Steps

Management

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

4.7yrs

Average board tenure


CEO

Herbert Schein (55 yo)

4.58yrs

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...


Board Members

Experienced Board: VAR1's board of directors are considered experienced (4.7 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 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: €4.808b
  • 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


Biography

Varta AG, through its subsidiaries, researches, develops, produces, and sells microbatteries, household batteries, and energy storage solutions worldwide. It operates through two segments, Microbatteries &...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/11 19:38
End of Day Share Price2021/04/09 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.