Market Cap
US$395.1m
Last Updated
2020/03/29 03:33 UTC
Data Sources
Company Financials +
Executive Summary
Verso Corporation produces and sells coated papers in North America.
Rewards
Risk Analysis
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
| VRS | Industry | Market | |
|---|---|---|---|
| 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 Year | 87.2%87.2% | -32.1%-37.3% | 12.3%5.1% |
| 5 Year | n/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
4 months ago | Simply Wall St
What Is Verso's (NYSE:VRS) P/E Ratio After Its Share Price Rocketed?4 months ago | Simply Wall St
Are Verso Corporation’s (NYSE:VRS) High Returns Really That Great?5 months ago | Simply Wall St
Did Business Growth Power Verso's (NYSE:VRS) Share Price Gain of 102%?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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Director | 0.33yr | US$2.65m | 0.24% $934.9k | |
| Senior VP & CFO | 4.5yrs | US$3.16m | 0.25% $995.6k | |
| Senior Vice President of Human Resources & Communications | 5.17yrs | US$2.56m | 0.17% $680.5k | |
| Vice President and Chief Accounting Officer | no data | no data | no data | |
| VP of Legal & Corporate Affairs and Secretary | no data | no data | no data | |
| Senior Vice President of Sales & Marketing | no data | no data | 0.037% $146.6k | |
| Senior Transaction Advisor | no data | no data | 0.19% $760.5k | |
| Treasurer | 5.17yrs | no data | no data | |
| Vice President of Sustainability | 13.42yrs | no data | no 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Director | 0.33yr | US$2.65m | 0.24% $934.9k | |
| Independent Director | 0.33yr | no data | 0.020% $78.7k | |
| Director | 0.17yr | no data | 0.045% $179.5k | |
| Director | 0.17yr | no data | 0.017% $67.2k | |
| Chairman of Board | 0.17yr | no data | 0.017% $67.2k | |
| Director | 0.17yr | no data | 0.017% $67.2k | |
| Independent Director | 0.33yr | no data | 0.020% $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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| VRS | NYSE (New York Stock Exchange) | Yes | Class A Common Stock | US | USD | Jul 2016 |
| 4OMA | DB (Deutsche Boerse AG) | Yes | Class A Common Stock | DE | EUR | Jul 2016 |
| 0F27 | LSE (London Stock Exchange) | Yes | Class A Common Stock | GB | USD | Jul 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.Â
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/29 03:33 |
| End of Day Share Price | 2020/03/27 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.