NYSE:VRTV

Stock Analysis Report

Executive Summary

Veritiv Corporation operates as a business-to-business distributor of packaging, facility solutions, print, and publishing products and services in the United States, Canada, Mexico, and internationally.

Rewards

Trading at 98.4% below its fair value

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months



Snowflake Analysis

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: VRTV's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.3%

VRTV

-0.2%

US Trade Distributors

0.06%

US Market


1 Year Return

-63.3%

VRTV

9.6%

US Trade Distributors

19.4%

US Market

Return vs Industry: VRTV underperformed the US Trade Distributors industry which returned 9.9% over the past year.

Return vs Market: VRTV underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

VRTVIndustryMarket
7 Day-3.3%-0.2%0.06%
30 Day-18.0%-2.5%1.1%
90 Day-23.8%1.7%8.9%
1 Year-63.3%-63.3%11.6%9.6%21.9%19.4%
3 Year-76.9%-76.9%19.8%14.2%48.9%39.3%
5 Year-74.0%-74.0%42.8%32.1%71.9%53.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VRTV ($13) is trading below our estimate of fair value ($817.86)

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


Price To Earnings Ratio

PE vs Industry: VRTV is unprofitable, so we can't compare its PE Ratio to the Trade Distributors industry average.

PE vs Market: VRTV is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate VRTV's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: VRTV is good value based on its PB Ratio (0.4x) compared to the US Trade Distributors industry average (1.7x).


Next Steps

Future Growth

How is Veritiv forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

124.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VRTV is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: VRTV is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: VRTV is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: VRTV's revenue is expected to decline over the next 3 years (-9.5% per year).

High Growth Revenue: VRTV's revenue is forecast to decline over the next 3 years (-9.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if VRTV's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Veritiv performed over the past 5 years?

-25.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VRTV is currently unprofitable.

Growing Profit Margin: VRTV is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: VRTV is unprofitable, and losses have increased over the past 5 years at a rate of -25.5% per year.

Accelerating Growth: Unable to compare VRTV's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: VRTV is unprofitable, making it difficult to compare its past year earnings growth to the Trade Distributors industry (3.5%).


Return on Equity

High ROE: VRTV has a negative Return on Equity (-4.5%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Veritiv's financial position?


Financial Position Analysis

Short Term Liabilities: VRTV's short term assets ($1.8B) exceed its short term liabilities ($883.2M).

Long Term Liabilities: VRTV's short term assets ($1.8B) exceed its long term liabilities ($1.2B).


Debt to Equity History and Analysis

Debt Level: VRTV's debt to equity ratio (126.9%) is considered high.

Reducing Debt: VRTV's debt to equity ratio has reduced from 183.5% to 126.9% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: VRTV's debt is covered by short term assets (assets are 2.7x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable VRTV has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: VRTV is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 14.8% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate VRTV's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

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


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if VRTV's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if VRTV'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 VRTV's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

4.5yrs

Average management tenure


CEO

Mary Laschinger (58yo)

5.6yrs

Tenure

US$6,832,009

Compensation

Ms. Mary A. Laschinger has been the Chairman and Chief Executive Officer at Veritiv Corporation since July 2014 and served as its President and Principal Financial Officer. Ms. Laschinger served as the Pre ...


CEO Compensation Analysis

Compensation vs Market: Mary's total compensation ($USD6.83M) is above average for companies of similar size in the US market ($USD1.11M).

Compensation vs Earnings: Mary's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Mary Laschinger
Chairman & CEO5.6yrsUS$6.83m1.64% $3.5m
Stephen Smith
Senior VP & CFO5.9yrsUS$2.08m0.62% $1.3m
Salvatore Abbate
Chief Operating Officer0.08yrsUS$2.12m0.25% $534.9k
Daniel Watkoske
Senior Vice President of Print5.6yrsUS$2.34m0.43% $905.6k
Thomas Lazzaro
Executive Officer0.2yrsUS$3.38m0.33% $704.7k
Andrew Magley
Chief Accounting Officer1.9yrsno data0.049% $103.7k
Adam Noble
Senior VP & Chief Information Officer0.7yrsno data0.068% $144.3k
Thomas Morabito
Director of Investor Relations5.1yrsno datano data
Mark Hianik
Senior VP6.1yrsUS$1.49m0.24% $499.1k
Peter Troup
Vice President of Corporate Development4yrsno datano data

4.5yrs

Average Tenure

55yo

Average Age

Experienced Management: VRTV's management team is considered experienced (4.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mary Laschinger
Chairman & CEO5.6yrsUS$6.83m1.64% $3.5m
Charles Ward
Independent Director5.7yrsUS$225.00k0.12% $263.2k
Michael Muldowney
Independent Director5.7yrsUS$225.00kno data
Tracy Leinbach
Independent Director5.7yrsUS$237.00k0.10% $221.4k
William Mitchell
Independent Director5.7yrsUS$250.00kno data
John Zillmer
Presiding Director1.1yrsUS$240.00k0.073% $154.9k
David Flitman
Independent Director2.6yrsUS$225.00k0.0075% $15.8k
Daniel Henry
Independent Director5.7yrsUS$250.00k0.10% $220.7k

5.7yrs

Average Tenure

61.5yo

Average Age

Experienced Board: VRTV's board of directors are considered experienced (5.7 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Veritiv Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Veritiv Corporation
  • Ticker: VRTV
  • Exchange: NYSE
  • Founded: 2013
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: US$211.872m
  • Shares outstanding: 16.10m
  • Website: https://www.veritivcorp.com

Number of Employees


Location

  • Veritiv Corporation
  • Building 400
  • Suite 1700
  • Atlanta
  • Georgia
  • 30328
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VRTVNYSE (New York Stock Exchange)YesNew Common SharesUSUSDJun 2014
288DB (Deutsche Boerse AG)YesNew Common SharesDEEURJun 2014
0LP2LSE (London Stock Exchange)YesNew Common SharesGBUSDJun 2014

Biography

Veritiv Corporation operates as a business-to-business distributor of packaging, facility solutions, print, and publishing products and services in the United States, Canada, Mexico, and internationally. It operates through four segments: Packaging, Facility Solutions, Print, and Publishing. The Packaging segment offers standard, custom, and comprehensive packaging solutions. The Facility Solutions segment sources and sells cleaning, break-room, and other supplies, such as towels, tissues, wipers and dispensers, can liners, commercial cleaning chemicals, soaps and sanitizers, sanitary maintenance supplies and equipment, safety and hazard supplies, and shampoos and amenities. The Print segment sells and distributes commercial printing, writing, copying, digital, wide format, and specialty paper products; and graphics consumables and equipment. It also provides customized paper conversion services of commercial printing paper for distribution to document centers and form printers. The Publishing segment sells and distributes coated and uncoated commercial printing papers to publishers, retailers, converters, printers, and specialty businesses for use in magazines, catalogs, books, directories, gaming, couponing, retail inserts, and direct mail. This segment also provides print management, procurement, and supply chain management solutions. The company also offers logistics and supply chain management solutions. It offers its products under the Endurance, nordic+, Econosource, Comet, Starbrite Opaque Select, TUFflex, Reliable, and Spring Grove brands, as well as other brands to printers, publishers, data centers, manufacturers, higher education institutions, healthcare facilities, sporting and performance arenas, retail stores, government agencies, property managers, and building service contractors. As of February 28, 2019, the company operated 160 distribution centers. Veritiv Corporation was incorporated in 2013 and is headquartered in Atlanta, Georgia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 02:06
End of Day Share Price2020/02/18 00:00
Earnings2019/09/30
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.