NYSE:VRS

Stock Analysis Report

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Executive Summary

Verso Corporation produces and sells coated papers in North America. More Details


Snowflake Analysis

Adequate balance sheet and fair value.


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: VRS's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-2.8%

VRS

0.9%

US Forestry

-3.6%

US Market


1 Year Return

-23.4%

VRS

42.6%

US Forestry

36.5%

US Market

Return vs Industry: VRS underperformed the US Forestry industry which returned 42.6% over the past year.

Return vs Market: VRS underperformed the US Market which returned 36.4% over the past year.


Shareholder returns

VRSIndustryMarket
7 Day-2.8%0.9%-3.6%
30 Day8.7%19.8%2.7%
90 Day15.6%31.9%7.5%
1 Year-0.8%-23.4%48.5%42.6%39.5%36.5%
3 Year-8.9%-29.7%21.2%9.9%53.5%43.6%
5 Yearn/a71.7%50.1%117.5%93.2%

Long-Term 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?

39.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VRS ($12.5) is trading below our estimate of fair value ($20.5)

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


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 is good value based on its PB Ratio (0.6x) compared to the US Forestry industry average (1.2x).


Next Steps

Future Growth

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

140.5%

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 is expected to decline over the next 3 years (-5.2% per year).

High Growth Revenue: VRS's revenue is forecast to decline over the next 3 years (-5.2% 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?

25.6%

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, but has reduced losses over the past 5 years at a rate of 25.6% 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 (16.9%).


Return on Equity

High ROE: VRS has a negative Return on Equity (-13.89%), as it is currently unprofitable.


Next Steps

Financial Health

How is Verso's financial position?


Financial Position Analysis

Short Term Liabilities: VRS's short term assets ($506.0M) exceed its short term liabilities ($183.0M).

Long Term Liabilities: VRS's short term assets ($506.0M) exceed its long term liabilities ($472.0M).


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


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: Insufficient data to determine if VRS has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if VRS has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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

3.20%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: VRS's dividend (3.2%) is higher than the bottom 25% of dividend payers in the US market (1.34%).

High Dividend: VRS's dividend (3.2%) is low compared to the top 25% of dividend payers in the US market (3.77%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether VRS's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if VRS's dividend payments are increasing as they only just started paying a dividend.


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?

0.9yrs

Average management tenure


CEO

Randy Nebel (63 yo)

0.42

Tenure

US$35,864

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...


Leadership Team

NamePositionTenureCompensationOwnership
Randy Nebel
President0.42yrUS$35.86k0.044%
$ 187.5k
Allen Campbell
Senior VP & CFO5.42yrsUS$1.34m0.44%
$ 1.9m
Clint Landman
Vice President and Chief Accounting Officerno datano datano data
St. Daugherty
VP of Legal & Corporate Affairs and Secretaryno datano datano data
Terrence Dyer
Senior Vice President of Human Resources & Communications0.67yrno data0.0079%
$ 33.2k
Aaron Haas
Senior Vice President of Sales & Marketing0.92yrno data0.019%
$ 78.3k
Matthew Archambeau
Senior Vice President of Manufacturing & Energy0.83yrno data0.12%
$ 487.3k
Timothy Nusbaum
Treasurer6.08yrsno datano data
Craig Liska
Vice President of Sustainability14.33yrsno datano data

0.9yrs

Average Tenure

57.5yo

Average Age

Experienced Management: VRS's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Randy Nebel
President0.42yrUS$35.86k0.044%
$ 187.5k
Nancy Taylor
Independent Director1.25yrsUS$35.86k0.0030%
$ 12.8k
Jeffrey Kirt
Independent Vice Chairman of Board0.083yrno data0.059%
$ 250.0k
Marvin Cooper
Independent Director1yrno datano data
Sean Erwin
Independent Chairman of Board1.08yrsno datano data
Robert Beckler
Independent Director1.08yrsno datano data

1.1yrs

Average Tenure

61.5yo

Average Age

Experienced Board: VRS's board of directors are not considered experienced ( 1.1 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$421.539m
  • Shares outstanding: 33.72m
  • 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, inkje...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/01 00:43
End of Day Share Price2021/02/26 00:00
Earnings2020/12/31
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.