XTRA:VAR1

Stock Analysis Report

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Executive Summary

Varta AG, through its subsidiaries, researches, develops, produces, and sells microbatteries 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 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.


Market Performance


7 Day Return

6.3%

VAR1

6.1%

DE Electrical

0.8%

DE Market


1 Year Return

13.9%

VAR1

28.3%

DE Electrical

1.0%

DE Market

Return vs Industry: VAR1 underperformed the German Electrical industry which returned 28.3% over the past year.

Return vs Market: VAR1 exceeded the German Market which returned 1.2% over the past year.


Shareholder returns

VAR1IndustryMarket
7 Day6.3%6.1%0.8%
30 Day11.3%17.3%3.6%
90 Day-8.7%13.3%1.1%
1 Year13.9%13.9%28.5%28.3%4.2%1.0%
3 Year407.1%407.1%27.9%24.1%3.3%-5.7%
5 Yearn/a6.2%0.2%20.3%3.2%

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?

40.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VAR1 (€111.7) is trading below our estimate of fair value (€192.77)

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 (63.5x) compared to the DE Electrical industry average (35.4x).

PE vs Market: VAR1 is poor value based on its PE Ratio (63.5x) compared to the German market (23x).


Price to Earnings Growth Ratio

PEG Ratio: VAR1 is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: VAR1 is overvalued based on its PB Ratio (10x) compared to the DE Electrical industry average (3.2x).


Next Steps

Future Growth

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

34.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VAR1's forecast earnings growth (34.8% per year) is above the savings rate (0.2%).

Earnings vs Market: VAR1's earnings (34.8% per year) are forecast to grow faster than the German market (27% per year).

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

Revenue vs Market: VAR1's revenue (18.1% per year) is forecast to grow faster than the German market (5.9% per year).

High Growth Revenue: VAR1's revenue (18.1% 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 (25.3%)


Next Steps

Past Performance

How has Varta performed over the past 5 years?

59.3%

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 (12.7%) are higher than last year (12%).


Past Earnings Growth Analysis

Earnings Trend: VAR1's earnings have grown significantly by 59.3% per year over the past 5 years.

Accelerating Growth: VAR1's earnings growth over the past year (148.2%) exceeds its 5-year average (59.3% per year).

Earnings vs Industry: VAR1 earnings growth over the past year (148.2%) exceeded the Electrical industry 20.1%.


Return on Equity

High ROE: VAR1's Return on Equity (19.7%) is considered low.


Next Steps

Financial Health

How is Varta's financial position?


Financial Position Analysis

Short Term Liabilities: VAR1's short term assets (€471.6M) exceed its short term liabilities (€376.2M).

Long Term Liabilities: VAR1's short term assets (€471.6M) exceed its long term liabilities (€208.1M).


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


Next Steps

Dividend

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

0.28%

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 recent payouts.

High Dividend: Unable to evaluate VAR1's dividend yield against the top 25% of dividend payers, as the company has not reported any recent 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?

2.8yrs

Average management tenure


CEO

Herbert Schein (55 yo)

4.17yrs

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

NamePositionTenureCompensationOwnership
Michael Tojner
Owner & Chairman of Supervisory Board4.17yrs€50.00kno data
Herbert Schein
CEO & Chairman of Management Board4.17yrsno datano data
Steffen Munz
CFO, Director of Investor Relations and M&A and Member of Management Board2.75yrsno datano data
Armin Hessenberger
Member of Management Board0.083yrno datano data
Bernhard Wolf
Head of Investor Relationsno datano datano data

2.8yrs

Average Tenure

54yo

Average Age

Experienced Management: VAR1's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Tojner
Owner & Chairman of Supervisory Board4.17yrs€50.00kno data
Sven Quandt
Member of Supervisory Board4.33yrs€30.00kno data
Frank Maier
Member of Supervisory Board4.33yrs€30.00kno data
Georg Blumauer
Member of Supervisory Board4.17yrs€63.00kno data
Michael Pistauer
Supervisory Board Member1.5yrs€18.00kno data
Harald Sommerer
Deputy Chairman of the Supervisory Board4.33yrs€50.00kno data

4.3yrs

Average Tenure

53.5yo

Average Age

Experienced Board: VAR1's board of directors are considered experienced (4.3 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: €4.515b
  • 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

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...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/23 21:49
End of Day Share Price2020/11/23 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.