ENXTPA:VRLA

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Verallia Société Anonyme

Executive Summary

Verallia Société Anonyme produces and sells glass packaging products for beverages and food industry worldwide. More Details


Snowflake Analysis

Solid track record and good value.


Similar Companies

Share Price & News

How has Verallia Société Anonyme's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: VRLA is less volatile than 75% of French stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: VRLA's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-2.6%

VRLA

-2.0%

FR Packaging

0.9%

FR Market


1 Year Return

-0.6%

VRLA

0.3%

FR Packaging

13.7%

FR Market

Return vs Industry: VRLA matched the French Packaging industry which returned 0.1% over the past year.

Return vs Market: VRLA underperformed the French Market which returned 10.6% over the past year.


Shareholder returns

VRLAIndustryMarket
7 Day-2.6%-2.0%0.9%
30 Day2.1%-0.06%2.6%
90 Day6.8%4.0%2.9%
1 Year2.7%-0.6%2.7%0.3%16.3%13.7%
3 Yearn/a-20.8%-26.2%21.3%10.3%
5 Yearn/a27.3%12.6%62.3%37.1%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Verallia Société Anonyme undervalued compared to its fair value and its price relative to the market?

40.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VRLA (€29.65) is trading below our estimate of fair value (€49.96)

Significantly Below Fair Value: VRLA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: VRLA is good value based on its PE Ratio (17.8x) compared to the FR Packaging industry average (18.3x).

PE vs Market: VRLA is good value based on its PE Ratio (17.8x) compared to the French market (23.7x).


Price to Earnings Growth Ratio

PEG Ratio: VRLA is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: VRLA is overvalued based on its PB Ratio (6.8x) compared to the FR Packaging industry average (1.7x).


Next Steps

Future Growth

How is Verallia Société Anonyme forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

11.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VRLA's forecast earnings growth (11.7% per year) is above the savings rate (0.4%).

Earnings vs Market: VRLA's earnings (11.7% per year) are forecast to grow slower than the French market (22.4% per year).

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

Revenue vs Market: VRLA's revenue (3% per year) is forecast to grow slower than the French market (7.2% per year).

High Growth Revenue: VRLA's revenue (3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VRLA's Return on Equity is forecast to be high in 3 years time (36.7%)


Next Steps

Past Performance

How has Verallia Société Anonyme performed over the past 5 years?

59.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VRLA has high quality earnings.

Growing Profit Margin: VRLA's current net profit margins (8%) are higher than last year (4.5%).


Past Earnings Growth Analysis

Earnings Trend: VRLA's earnings have grown significantly by 59.4% per year over the past 5 years.

Accelerating Growth: VRLA's earnings growth over the past year (74.7%) exceeds its 5-year average (59.4% per year).

Earnings vs Industry: VRLA earnings growth over the past year (74.7%) exceeded the Packaging industry 2.3%.


Return on Equity

High ROE: Whilst VRLA's Return on Equity (36.28%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Verallia Société Anonyme's financial position?


Financial Position Analysis

Short Term Liabilities: VRLA's short term assets (€1.0B) exceed its short term liabilities (€884.8M).

Long Term Liabilities: VRLA's short term assets (€1.0B) do not cover its long term liabilities (€1.9B).


Debt to Equity History and Analysis

Debt Level: VRLA's debt to equity ratio (294.5%) is considered high.

Reducing Debt: Insufficient data to determine if VRLA's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: VRLA's debt is well covered by operating cash flow (35.8%).

Interest Coverage: VRLA's interest payments on its debt are well covered by EBIT (8.2x coverage).


Balance Sheet


Next Steps

Dividend

What is Verallia Société Anonyme current dividend yield, its reliability and sustainability?

3.20%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VRLA's dividend (3.2%) is higher than the bottom 25% of dividend payers in the French market (1.33%).

High Dividend: VRLA's dividend (3.2%) is low compared to the top 25% of dividend payers in the French market (4.51%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether VRLA's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if VRLA's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (56.9%), VRLA's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: VRLA's dividends in 3 years are forecast to be well covered by earnings (48.8% payout ratio).


Next Steps

Management

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

1.2yrs

Average management tenure


CEO

Michel Giannuzzi (56 yo)

3.5yrs

Tenure

€3,709,665

Compensation

Mr. Michel Giannuzzi is the Chairman and Chief Executive Officer at Verallia SA since September 2017. He has been the Chief Executive Officer of Tarkett Holding GmbH since September 2007. Mr. Giannuzzi ser...


CEO Compensation Analysis

Compensation vs Market: Michel's total compensation ($USD4.47M) is above average for companies of similar size in the French market ($USD1.64M).

Compensation vs Earnings: Michel's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Michel Giannuzzi
Chairman & CEO3.5yrs€3.71m2.08%
€ 76.1m
Nathalie Delbreuve
Chief Financial Officer0.33yrno datano data
Romain Barral
Director of Operations of Verallia Group0.58yrno datano data
Wendy Kool-Foulon
General Counsel0.83yrno datano data
Quintin Dominguez
MD of Latin America & Member of Executive Committee2.5yrsno datano data
Hugues Denissel
Director of Northern & Eastern Europe and Member of Executive Committee5.17yrsno datano data
Olivier Rousseau
Managing Director of Verallia France1.17yrsno datano data
Marco Ravasi
Managing Director of Verallia Italia1.17yrsno datano data
Paulo Pinto
Managing Director of Verallia Ibérie1.17yrsno datano data
Denis Michel
General Secretary7.42yrsno datano data

1.2yrs

Average Tenure

47yo

Average Age

Experienced Management: VRLA's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Michel Giannuzzi
Chairman & CEO3.5yrs€3.71m2.08%
€ 76.1m
Robert Seminara
Directorno datano datano data
Pierre Vareille
Directorno data€63.05kno data
Sébastien Moynot
Directorno datano datano data
Marie-José Donsion
Independent Directorno data€25.60kno data
Dieter Muller
Employee Representative Director1.17yrsno datano data
Guilherme Bottura
Non-Voting Directorno datano datano data
Cécile de Marsac
Independent Directorno data€25.60kno data
Claudia Scarico
Observer0.25yrno datano data
Virginie Helias
Independent Directorno data€19.60kno data
Jose Arozamena
Independent Directorno data€128.07kno data
João Salles
Independent Directorno data€22.07kno data

1.2yrs

Average Tenure

52yo

Average Age

Experienced Board: VRLA's board of directors are not considered experienced ( 1.2 years average tenure), which suggests a new board.


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 4.1%.


Top Shareholders

Company Information

Verallia Société Anonyme's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Verallia Société Anonyme
  • Ticker: VRLA
  • Exchange: ENXTPA
  • Founded: 1827
  • Industry: Metal and Glass Containers
  • Sector: Materials
  • Market Cap: €3.655b
  • Shares outstanding: 123.27m
  • Website: https://www.verallia.com

Number of Employees


Location

  • Verallia Société Anonyme
  • 31 Place des Corolles
  • Tour Carpe Diem
  • Courbevoie
  • Ile-de-France
  • 92400
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VRLAWBAG (Wiener Boerse AG)YesCommon SharesATEUROct 2019
1VRABST (Boerse-Stuttgart)YesCommon SharesDEEUROct 2019
VRLAENXTPA (Euronext Paris)YesCommon SharesFREUROct 2019
VRLAPBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBEUROct 2019
1VRADB (Deutsche Boerse AG)YesCommon SharesDEEUROct 2019

Biography

Verallia Société Anonyme produces and sells glass packaging products for beverages and food industry worldwide. It provides bottles and jars for still and sparkling wines, spirits, food products, beers, an...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/05 20:23
End of Day Share Price2021/03/05 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.