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VRS

VersoNYSE:VRS Stock Report

Last Price

US$26.68

Market Cap

US$775.4m

7D

-0.4%

1Y

104.9%

Updated

19 Jan, 2022

Data

Company Financials +
VRS fundamental analysis
Snowflake Score
Valuation0/6
Future Growth3/6
Past Performance0/6
Financial Health6/6
Dividends1/6

VRS Stock Overview

Verso Corporation produces and sells coated papers in North America.

Verso Competitors

Domtar

NYSE:UFS

US$2.8b

Resolute Forest Products

NYSE:RFP

US$1.2b

Schweitzer-Mauduit International

NYSE:SWM

US$962.6m

Neenah

NYSE:NP

US$802.4m

Price History & Performance

Summary of all time highs, changes and price drops for Verso
Historical stock prices
Current Share PriceUS$26.68
52 Week HighUS$27.29
52 Week LowUS$11.25
Beta2.04
1 Month Change-1.33%
3 Month Change23.12%
1 Year Change104.92%
3 Year Change6.51%
5 Year Change256.21%
Change since IPO122.33%

Recent News & Updates

Nov 08

Verso Corp.: Investors Continue To Benefit From Shareholder Activism

Verso outperformed in the third quarter and ended the period with a strong cash position. Shareholder calls for a return of capital could be catalyst for yet another special one-time dividend or repurchase program. The Atlas non-binding proposal to acquire the company is still being considered by Verso's board. A deal could potentially bring pay investors $27/share or higher.

Shareholder Returns

VRSUS ForestryUS Market
7D-0.4%-4.9%-4.6%
1Y104.9%37.4%7.7%

Return vs Industry: VRS exceeded the US Forestry industry which returned 41.9% over the past year.

Return vs Market: VRS exceeded the US Market which returned 10.2% over the past year.

Price Volatility

Is VRS's price volatile compared to industry and market?
VRS volatility
VRS Average Weekly Movement10.5%
Forestry Industry Average Movement6.2%
Market Average Movement6.6%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.4%

Stable Share Price: VRS is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: VRS's weekly volatility (11%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

FoundedEmployeesCEOWebsite
20061,700Randy Nebelhttps://www.versoco.com

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.

Verso Fundamentals Summary

How do Verso's earnings and revenue compare to its market cap?
VRS fundamental statistics
Market CapUS$775.38m
Earnings (TTM)-US$106.00m
Revenue (TTM)US$1.26b

0.6x

P/S Ratio

-7.3x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
VRS income statement (TTM)
RevenueUS$1.26b
Cost of RevenueUS$1.11b
Gross ProfitUS$152.00m
ExpensesUS$258.00m
Earnings-US$106.00m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-3.65
Gross Margin12.03%
Net Profit Margin-8.39%
Debt/Equity Ratio0%

How did VRS perform over the long term?

See historical performance and comparison

Dividends

1.5%

Current Dividend Yield

-12%

Payout Ratio

Valuation

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

1.33x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: VRS ($26.68) is trading above our estimate of fair value ($6.59)

Significantly Below Fair Value: VRS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: VRS is unprofitable, so we can't compare its PE Ratio to the US Forestry industry average.

PE vs Market: VRS 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 VRS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: VRS's PB Ratio (1.3x) is in line with the US Forestry industry average.


Future Growth

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

170.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VRS is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: VRS is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: VRS's is expected to become profitable in the next 3 years.

Revenue vs Market: VRS's revenue (5.9% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: VRS's revenue (5.9% 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 VRS's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Verso performed over the past 5 years?

-37.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VRS is currently unprofitable.

Growing Profit Margin: VRS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: VRS is unprofitable, and losses have increased over the past 5 years at a rate of 37.8% per year.

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

Earnings vs Industry: VRS is unprofitable, making it difficult to compare its past year earnings growth to the Forestry industry (172.7%).


Return on Equity

High ROE: VRS has a negative Return on Equity (-18.18%), as it is currently unprofitable.


Financial Health

How is Verso's financial position?


Financial Position Analysis

Short Term Liabilities: VRS's short term assets ($433.0M) exceed its short term liabilities ($201.0M).

Long Term Liabilities: VRS's short term assets ($433.0M) exceed its long term liabilities ($350.0M).


Debt to Equity History and Analysis

Debt Level: VRS is debt free.

Reducing Debt: VRS has no debt compared to 5 years ago when its debt to equity ratio was 47.6%.


Balance Sheet


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 VRS has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: VRS is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 30.4% per year.


Dividend

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

1.50%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VRS's dividend (1.5%) is higher than the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: VRS's dividend (1.5%) is low compared to the top 25% of dividend payers in the US market (3.48%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, VRS has been paying a dividend for less than 10 years.

Growing Dividend: VRS has only been paying a dividend for 2 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: VRS is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

0.8yrs

Average management tenure


CEO

Randy Nebel (64 yo)

1.33yrs

Tenure

US$1,049,422

Compensation

Mr. Randy J. Nebel serves as the President and Chief Executive Officer of Verso Corporation since January 27, 2021. He served as Interim President and Chief Executive Officer of Verso Corporation since Sep...


CEO Compensation Analysis

Compensation vs Market: Randy's total compensation ($USD1.05M) is below average for companies of similar size in the US market ($USD2.39M).

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


Leadership Team

Experienced Management: VRS's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

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


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 employee growth, exchange listings and data sources


Key Information

  • Name: Verso Corporation
  • Ticker: VRS
  • Exchange: NYSE
  • Founded: 2006
  • Industry: Paper Products
  • Sector: Materials
  • Implied Market Cap: US$775.382m
  • Shares outstanding: 29.06m
  • Website: https://www.versoco.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/19 23:45
End of Day Share Price2022/01/19 00:00
Earnings2021/09/30
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.