NYSE:VRS

Stock Analysis Report

Executive Summary

Verso Corporation produces and sells coated papers in North America.


Snowflake Analysis

Flawless balance sheet and undervalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.4%

VRS

10.2%

US Forestry

9.9%

US Market


1 Year Return

-47.6%

VRS

-38.9%

US Forestry

-11.9%

US Market

Return vs Industry: VRS underperformed the US Forestry industry which returned -38.6% over the past year.

Return vs Market: VRS underperformed the US Market which returned -11.5% over the past year.


Shareholder returns

VRSIndustryMarket
7 Day-0.4%10.2%9.9%
30 Day-31.1%-30.5%-15.0%
90 Day-37.3%-39.9%-21.5%
1 Year-47.6%-47.6%-37.0%-38.9%-10.0%-11.9%
3 Year87.2%87.2%-32.1%-37.3%12.3%5.1%
5 Yearn/a-39.4%-46.8%32.5%18.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Verso 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: VRS ($11.23) is trading below our estimate of fair value ($32.47)

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


Price To Earnings Ratio

PE vs Industry: VRS is good value based on its PE Ratio (4.1x) compared to the Forestry industry average (10.4x).

PE vs Market: VRS is good value based on its PE Ratio (4.1x) compared to the US market (13x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: VRS is good value based on its PB Ratio (0.4x) compared to the US Forestry industry average (0.8x).


Next Steps

Future Growth

How is Verso forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

47.2%

Forecasted Materials industry annual growth in earnings


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if VRS's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if VRS's earnings are forecast to grow faster than the US market

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

Revenue vs Market: Insufficient data to determine if VRS's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if VRS's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Verso performed over the past 5 years?

48.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VRS has a large one-off loss of $135.0M impacting its December 31 2019 financial results.

Growing Profit Margin: VRS's current net profit margins (3.9%) are lower than last year (6.4%).


Past Earnings Growth Analysis

Earnings Trend: VRS has become profitable over the past 5 years, growing earnings by 48.9% per year.

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

Earnings vs Industry: VRS had negative earnings growth (-43.9%) over the past year, making it difficult to compare to the Forestry industry average (-9.6%).


Return on Equity

High ROE: VRS's Return on Equity (9.5%) is considered low.


Next Steps

Financial Health

How is Verso's financial position?


Financial Position Analysis

Short Term Liabilities: VRS's short term assets ($599.0M) exceed its short term liabilities ($293.0M).

Long Term Liabilities: VRS's short term assets ($599.0M) exceed its long term liabilities ($415.0M).


Debt to Equity History and Analysis

Debt Level: VRS is debt free.

Reducing Debt: VRS currently has no debt however we can't compare to 5 years ago as we have no data for that period.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if VRS's debt is covered by short term assets.


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: VRS is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: VRS is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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

5.2yrs

Average management tenure


CEO

Adam John (55yo)

0.33

Tenure

US$2,648,693

Compensation

Mr. Adam St. John has been Chief Executive Officer and Director of Verso Corporation since November 11, 2019 and its President since March 13, 2020. He had been Senior Vice President of Manufacturing at Ve ...


CEO Compensation Analysis

Compensation vs Market: Adam's total compensation ($USD2.65M) is about average for companies of similar size in the US market ($USD2.14M).

Compensation vs Earnings: Adam's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Adam John
CEO, President & Director0.33yrUS$2.65m0.24% $934.9k
Allen Campbell
Senior VP & CFO4.5yrsUS$3.16m0.25% $995.6k
Kenneth Sawyer
Senior Vice President of Human Resources & Communications5.17yrsUS$2.56m0.17% $680.5k
Clint Landman
Vice President and Chief Accounting Officerno datano datano data
St. Daugherty
VP of Legal & Corporate Affairs and Secretaryno datano datano data
Aaron Haas
Senior Vice President of Sales & Marketingno datano data0.037% $146.6k
Leslie Lederer
Senior Transaction Advisorno datano data0.19% $760.5k
Timothy Nusbaum
Treasurer5.17yrsno datano data
Craig Liska
Vice President of Sustainability13.42yrsno datano data

5.2yrs

Average Tenure

62yo

Average Age

Experienced Management: VRS's management team is seasoned and experienced (5.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Adam John
CEO, President & Director0.33yrUS$2.65m0.24% $934.9k
Nancy Taylor
Independent Director0.33yrno data0.020% $78.7k
Jeffrey Kirt
Director0.17yrno data0.045% $179.5k
Marvin Cooper
Director0.17yrno data0.017% $67.2k
Sean Erwin
Chairman of Board0.17yrno data0.017% $67.2k
Robert Beckler
Director0.17yrno data0.017% $67.2k
Randy Nebel
Independent Director0.33yrno data0.020% $78.7k

0.2yrs

Average Tenure

59yo

Average Age

Experienced Board: VRS's board of directors are not considered experienced ( 0.2 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: VRS 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

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


Key Information

  • Name: Verso Corporation
  • Ticker: VRS
  • Exchange: NYSE
  • Founded: 2006
  • Industry: Paper Products
  • Sector: Materials
  • Market Cap: US$395.106m
  • Shares outstanding: 35.18m
  • Website: https://www.versoco.com

Number of Employees


Location

  • Verso Corporation
  • 8540 Gander Creek Drive
  • Miamisburg
  • Ohio
  • 45342
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VRSNYSE (New York Stock Exchange)YesClass A Common StockUSUSDJul 2016
4OMADB (Deutsche Boerse AG)YesClass A Common StockDEEURJul 2016
0F27LSE (London Stock Exchange)YesClass A Common StockGBUSDJul 2016

Biography

Verso Corporation produces and sells coated papers in North America. It operates through two segments, Paper and Pulp. The company offers coated freesheet and coated groundwood, specialty, packaging, inkjet and digital, supercalendered, and uncoated freesheet papers; and bleached and unbleached market kraft pulp to manufacture printing, writing, and tissue products, as well as paper grades. Its paper products are used primarily in media and marketing applications, including catalogs, magazines, and commercial printing applications, such as high-end advertising brochures, annual reports, and direct-mail advertising; and specialty applications comprising flexible packaging, and label and converting. The company was formerly known as Verso Paper Corp. and changed its name to Verso Corporation in January 2015. Verso Corporation was founded in 2006 and is headquartered in Miamisburg, Ohio. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 03:33
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
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.