BME:VID

Stock Analysis Report

Executive Summary

Vidrala, S.A. manufactures and sells glass containers in Spain, the United Kingdom/Ireland, France, Italy, Portugal, and internationally.

Rewards

Trading at 3.4% below its fair value

Earnings are forecast to grow 5.83% per year

Earnings grew by 29.2% over the past year

Risk Analysis

Has a high level of debt



Snowflake Analysis

Solid track record with adequate balance sheet.


Similar Companies

Share Price & News

How has Vidrala's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: VID has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.5%

VID

-1.5%

ES Packaging

1.1%

ES Market


1 Year Return

22.4%

VID

16.6%

ES Packaging

9.4%

ES Market

Return vs Industry: VID exceeded the Spanish Packaging industry which returned 17.7% over the past year.

Return vs Market: VID exceeded the Spanish Market which returned 9.2% over the past year.


Shareholder returns

VIDIndustryMarket
7 Day0.5%-1.5%1.1%
30 Day-0.1%0.6%2.9%
90 Day9.2%4.5%7.8%
1 Year23.6%22.4%20.4%16.6%13.2%9.4%
3 Year125.2%118.7%24.7%12.0%17.1%5.9%
5 Year165.3%151.0%62.9%38.8%11.5%-7.1%

Price Volatility Vs. Market

How volatile is Vidrala's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

3.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VID (€97.1) is trading below our estimate of fair value (€100.51)

Significantly Below Fair Value: VID is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: VID is poor value based on its PE Ratio (20.6x) compared to the Packaging industry average (16.2x).

PE vs Market: VID is poor value based on its PE Ratio (20.6x) compared to the Spanish market (17x).


Price to Earnings Growth Ratio

PEG Ratio: VID is poor value based on its PEG Ratio (3.5x)


Price to Book Ratio

PB vs Industry: VID is overvalued based on its PB Ratio (4x) compared to the XE Packaging industry average (1.5x).


Next Steps

Future Growth

How is Vidrala forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

5.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VID's forecast earnings growth (5.8% per year) is above the savings rate (0.4%).

Earnings vs Market: VID's earnings (5.8% per year) are forecast to grow slower than the Spanish market (10.2% per year).

High Growth Earnings: VID's earnings are forecast to grow, but not significantly.

Revenue vs Market: VID's revenue (2.5% per year) is forecast to grow slower than the Spanish market (4.7% per year).

High Growth Revenue: VID's revenue (2.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VID's Return on Equity is forecast to be low in 3 years time (16.6%).


Next Steps

Past Performance

How has Vidrala performed over the past 5 years?

19.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VID has high quality earnings.

Growing Profit Margin: VID's current net profit margins (12.9%) are higher than last year (11%).


Past Earnings Growth Analysis

Earnings Trend: VID's earnings have grown by 19.7% per year over the past 5 years.

Accelerating Growth: VID's earnings growth over the past year (29.2%) exceeds its 5-year average (19.7% per year).

Earnings vs Industry: VID earnings growth over the past year (29.2%) exceeded the Packaging industry 9.5%.


Return on Equity

High ROE: VID's Return on Equity (19.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Vidrala's financial position?


Financial Position Analysis

Short Term Liabilities: VID's short term assets (€500.0M) exceed its short term liabilities (€360.7M).

Long Term Liabilities: VID's short term assets (€500.0M) exceed its long term liabilities (€418.4M).


Debt to Equity History and Analysis

Debt Level: VID's debt to equity ratio (57.8%) is considered high.

Reducing Debt: VID's debt to equity ratio has increased from 29.7% to 57.8% over the past 5 years.

Debt Coverage: VID's debt is well covered by operating cash flow (55.9%).

Interest Coverage: VID's interest payments on its debt are well covered by EBIT (28.8x coverage).


Balance Sheet

Inventory Level: VID has a high level of physical assets or inventory.

Debt Coverage by Assets: VID's debt is covered by short term assets (assets are 1.3x debt).


Next Steps

Dividend

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

1.04%

Current Dividend Yield


Dividend Yield vs Market

company1.0%marketbottom25%2.2%markettop25%5.3%industryaverage2.8%forecastin3Years1.5%

Current dividend yield vs market & industry

Notable Dividend: VID's dividend (1.04%) isn’t notable compared to the bottom 25% of dividend payers in the Spanish market (2.21%).

High Dividend: VID's dividend (1.04%) is low compared to the top 25% of dividend payers in the Spanish market (5.3%).


Stability and Growth of Payments

Stable Dividend: VID is not paying a notable dividend for the Spanish market, therefore no need to check if payments are stable.

Growing Dividend: VID is not paying a notable dividend for the Spanish market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: VID is not paying a notable dividend for the Spanish market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of VID's dividend in 3 years as they are not forecast to pay a notable one for the Spanish market.


Next Steps

Management

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

7.9yrs

Average board tenure


CEO

Gorka Schmitt Zalbide 0

0

Mr. Gorka Schmitt Zalbide serves as Chief Executive Officer at Vidrala, S.A.. Mr. Zalbide served as Commercial Director of Vidrala SA. 


Board Members

NamePositionTenureCompensationOwnership
Carlos Delclaux Zulueta
Chairman & President0yrs€135.00k7.52% 198.3m
Jan Gunnar Åstrand
Independent Director3.8yrsno datano data
Virginia Urigüen Villalba
External Independent Director16.1yrs€73.00k0.57% 15.0m
Eduardo Zavala Ortiz de la Torre
External Independent Director0yrs€73.00k0.94% 24.9m
Luis Delclaux Muller
External Independent Director0yrs€73.00k0.42% 11.2m
Esteban Errandonea Delclaux
External Proprietary Director0yrs€73.00k0.0043% 112.4k
Ramón Delclaux de la Sota
External Proprietary Director0yrs€71.00k0.47% 12.4m
Teresa Zubizarreta Delclaux
Independent Director0yrs€42.00k0.77% 20.4m
Rita Maria de Noronha e Melo Santos Gallo
Director2.1yrsno datano data
Aitor Salegui
Director12.1yrsno datano data

7.9yrs

Average Tenure

Experienced Board: VID's board of directors are considered experienced (7.9 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

Vidrala, S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Vidrala, S.A.
  • Ticker: VID
  • Exchange: BME
  • Founded: 1965
  • Industry: Metal and Glass Containers
  • Sector: Materials
  • Market Cap: €2.639b
  • Shares outstanding: 27.18m
  • Website: https://www.vidrala.com

Number of Employees


Location

  • Vidrala, S.A.
  • Barrio Munegazo, 22
  • Laudio/Llodio
  • Basque Country
  • 1400
  • Spain

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VIDBME (Bolsas y Mercados Espanoles)YesOrdinary Bearer SharesESEURJan 1992
0NV7LSE (London Stock Exchange)YesOrdinary Bearer SharesGBEURJan 1992
VIDEBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary Bearer SharesGBEURJan 1992
VIRDB (Deutsche Boerse AG)YesOrdinary Bearer SharesDEEURJan 1992

Biography

Vidrala, S.A. manufactures and sells glass containers in Spain, the United Kingdom/Ireland, France, Italy, Portugal, and internationally. The company was founded in 1965 and is based in Laudio/Llodio, Spain. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 20:54
End of Day Share Price2020/02/18 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.