NasdaqGS:VRA

Stock Analysis Report

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Executive Summary

Vera Bradley, Inc., together with its subsidiaries, designs, manufactures, and sells women’s handbags, luggage and travel items, fashion and home accessories, and gifts. More Details


Snowflake Analysis

Excellent balance sheet and good value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: VRA is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 13% a week.

Volatility Over Time: VRA's weekly volatility (13%) has been stable over the past year, but is still higher than 75% of US stocks.


Market Performance


7 Day Return

8.7%

VRA

3.9%

US Luxury

2.8%

US Market


1 Year Return

-18.1%

VRA

26.6%

US Luxury

19.7%

US Market

Return vs Industry: VRA underperformed the US Luxury industry which returned 26.6% over the past year.

Return vs Market: VRA underperformed the US Market which returned 19.7% over the past year.


Shareholder returns

VRAIndustryMarket
7 Day8.7%3.9%2.8%
30 Day31.8%8.9%8.0%
90 Day70.1%21.9%6.8%
1 Year-18.1%-18.1%28.0%26.6%22.4%19.7%
3 Year3.1%3.1%83.0%74.6%47.3%37.5%
5 Year-19.8%-19.8%76.3%64.7%93.6%72.3%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Vera Bradley 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: VRA ($9.12) is trading below our estimate of fair value ($18.51)

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


Price To Earnings Ratio

PE vs Industry: VRA is poor value based on its PE Ratio (68.4x) compared to the US Luxury industry average (23.8x).

PE vs Market: VRA is poor value based on its PE Ratio (68.4x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: VRA is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: VRA is good value based on its PB Ratio (1x) compared to the US Luxury industry average (1.7x).


Next Steps

Future Growth

How is Vera Bradley forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

131.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VRA's forecast earnings growth (131.8% per year) is above the savings rate (2.2%).

Earnings vs Market: VRA's earnings (131.8% per year) are forecast to grow faster than the US market (22% per year).

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

Revenue vs Market: VRA's revenue (12.8% per year) is forecast to grow faster than the US market (10.2% per year).

High Growth Revenue: VRA's revenue (12.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Vera Bradley performed over the past 5 years?

-25.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VRA has a large one-off loss of $13.7M impacting its August 1 2020 financial results.

Growing Profit Margin: VRA's current net profit margins (0.9%) are lower than last year (3.8%).


Past Earnings Growth Analysis

Earnings Trend: VRA's earnings have declined by 25.7% per year over the past 5 years.

Accelerating Growth: VRA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: VRA had negative earnings growth (-72.6%) over the past year, making it difficult to compare to the Luxury industry average (-43.6%).


Return on Equity

High ROE: VRA's Return on Equity (1.5%) is considered low.


Next Steps

Financial Health

How is Vera Bradley's financial position?


Financial Position Analysis

Short Term Liabilities: VRA's short term assets ($261.0M) exceed its short term liabilities ($82.2M).

Long Term Liabilities: VRA's short term assets ($261.0M) exceed its long term liabilities ($136.4M).


Debt to Equity History and Analysis

Debt Level: VRA's debt to equity ratio (9.3%) is considered satisfactory.

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

Debt Coverage: VRA's debt is well covered by operating cash flow (64.9%).

Interest Coverage: VRA's interest payments on its debt are well covered by EBIT (73.2x coverage).


Balance Sheet


Next Steps

Dividend

What is Vera Bradley current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate VRA'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 VRA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if VRA'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 VRA'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?

3.3yrs

Average management tenure


CEO

Robert Wallstrom (54 yo)

7yrs

Tenure

US$2,691,300

Compensation

Mr. Robert T. Wallstrom has been the Chief Executive Officer and President of Vera Bradley, Inc. since November 11, 2013. Mr. Wallstrom served as the President of Saks Fifth Avenue Off 5Th at Saks Inc. fro...


CEO Compensation Analysis

Compensation vs Market: Robert's total compensation ($USD2.69M) is above average for companies of similar size in the US market ($USD1.79M).

Compensation vs Earnings: Robert's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Robert Wallstrom
CEO, President & Director7yrsUS$2.69m1.39%
$ 4.2m
Patricia Miller
Co-Founder38.83yrsUS$118.01k16.23%
$ 49.4m
John Enwright
Executive VP & CFO3.67yrsUS$845.61k0.32%
$ 960.5k
Mark Dely
Chief Administrative & Legal Officer and Corporate Secretary3.17yrsUS$780.75k0.12%
$ 366.2k
Beatrice Cabe
Chief Creative Officer3.17yrsUS$847.53k0.31%
$ 950.5k
Daren Hull
Chief Customer Officer2.33yrsUS$1.07m0.10%
$ 310.1k
Pamela Sours
Senior Vice President of Operations6.75yrsno datano data
Julia Bentley
Vice President of Investor Relations & Communications6.83yrsno datano data
Stephanie Scheele
Chief Marketing Officer3.25yrsno data0.15%
$ 469.3k
Mary Trypus
Chief Sales Officer2.67yrsUS$506.99k0.21%
$ 626.2k
Kevin Korney
Chief Merchandising Officer2.83yrsUS$777.33k0.18%
$ 553.5k

3.3yrs

Average Tenure

48.5yo

Average Age

Experienced Management: VRA's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Wallstrom
CEO, President & Director7yrsUS$2.69m1.39%
$ 4.2m
Mary Kelley
Independent Director4.92yrsUS$143.51k0.064%
$ 195.6k
Kristina Cashman
Independent Director0.42yrno datano data
John Kyees
Lead Independent Director9.83yrsUS$157.01k0.24%
$ 740.6k
Barbara Baekgaard
Co-Founder & Director38.83yrsUS$876.26k8.49%
$ 25.9m
Edward Schmults
Independent Director10.17yrsUS$148.91k0.092%
$ 279.8k
Robert Hall
Chairman10.17yrsUS$161.51k1.8%
$ 5.5m
P. Miller
Director30.83yrsUS$134.51k0.34%
$ 1.0m
Frances Philip
Independent Director9.5yrsUS$148.68k0.11%
$ 331.8k
Carrie Tharp
Independent Director0.42yrno datano data

9.7yrs

Average Tenure

60.5yo

Average Age

Experienced Board: VRA's board of directors are considered experienced (9.7 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

Vera Bradley, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Vera Bradley, Inc.
  • Ticker: VRA
  • Exchange: NasdaqGS
  • Founded: 1982
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: US$304.693m
  • Shares outstanding: 33.41m
  • Website: https://www.verabradley.com

Number of Employees


Location

  • Vera Bradley, Inc.
  • 12420 Stonebridge Road
  • Roanoke
  • Indiana
  • 46783
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VRANasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDOct 2010
ELIDB (Deutsche Boerse AG)YesCommon StockDEEUROct 2010

Biography

Vera Bradley, Inc., together with its subsidiaries, designs, manufactures, and sells women’s handbags, luggage and travel items, fashion and home accessories, and gifts. It operates through three segments:...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/27 00:12
End of Day Share Price2020/11/25 00:00
Earnings2020/08/01
Annual Earnings2020/02/01


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.