Verallia SAS (VRLA) AI Stock Analysis

• Market Cap: €2.77B
• Dividend Yield: 7.56%
• Average Volume (3M): 61.11K
• Price to Earnings (P/E): 15.1
• Beta (1Y): 0.71
• Revenue Growth: -3.17%
• EPS Growth: -37.20%
• Country: FR
• Employees: 11,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): N/A
• Shares Outstanding: 120,805,100
• 10 Day Avg. Volume: 40,458
• 30 Day Avg. Volume: 61,110
• PEG Ratio: -0.24
• Price to Book (P/B): 2.86
• Price to Sales (P/S): 0.82
• P/FCF Ratio: 10.82
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €28.00
• Price Target Upside: 22.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 67 Neutral
• Price Target: €25.00 ▲(8.98% Upside)

Verallia SAS's stock score is primarily driven by its solid financial performance and attractive valuation, particularly the high dividend yield. However, the technical analysis indicates a bearish trend, which tempers the overall score. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Sustainability Initiatives

Verallia's commitment to sustainability through recycled materials and energy-efficient processes strengthens its competitive position and aligns with global environmental trends, potentially leading to long-term cost savings and enhanced brand reputation.

Operational Efficiency

Stable EBIT and EBITDA margins indicate strong operational efficiency, allowing Verallia to maintain profitability even in challenging revenue environments, providing a solid foundation for future growth strategies.

Cash Flow Management

Robust operating cash flow demonstrates Verallia's ability to generate cash from operations, ensuring liquidity and financial flexibility to support strategic investments and weather economic fluctuations.

Negative Factors

Revenue Growth Challenges

A decline in revenue growth poses a challenge for Verallia, potentially impacting its ability to expand market share and invest in new opportunities, necessitating strategic adjustments to stimulate future growth.

Free Cash Flow Concerns

A decrease in free cash flow growth raises concerns about Verallia's ability to fund discretionary spending and capital investments, which could limit strategic flexibility and growth potential.

Debt Financing

A high level of asset financing through debt could strain Verallia's financial structure, increasing vulnerability to interest rate changes and limiting capacity for additional borrowing to fund growth initiatives.

Verallia SAS Business Overview & Revenue Model

Company Description

Verallia Société Anonyme produces and sells glass packaging products for beverages and food industry worldwide. It provides bottles and jars for still and sparkling wines, spirits, food products, beers, soft drinks, and mineral water. The company was founded in 1827 and is headquartered in Courbevoie, France.

How the Company Makes Money

Verallia generates revenue primarily through the sale of glass packaging products to various industries, with significant emphasis on the food and beverage sector. The company's revenue model is based on direct sales to customers, including major brands and producers in the wine, spirits, and food markets. Key revenue streams include the production of standard and custom glass bottles, jars, and other packaging solutions. Additionally, Verallia benefits from strategic partnerships with its clients, which often result in long-term contracts that provide stable income. The company also invests in innovation and sustainability, which not only enhances its product offerings but can lead to cost savings and efficiency improvements, further contributing to its profitability.

Verallia SAS Financial Statement Overview

Summary

Verallia SAS demonstrates strong profitability and operational efficiency with stable EBIT and EBITDA margins. Despite a setback in revenue growth, the company's financial structure remains stable with a balanced approach to leverage. Cash flow management shows strength in operating cash flow, though free cash flow trends suggest attention to capital investments is necessary.

Income Statement

Verallia SAS exhibits a strong gross profit margin and improving net profit margins over the years. However, recent revenue growth has been challenging with a decline in total revenue from 2023 to 2024. The company maintains healthy EBIT and EBITDA margins, indicating efficient operational management.

Balance Sheet

The company has a moderate debt-to-equity ratio, reflecting a stable financial structure. Return on equity has shown improvements, suggesting better profitability for shareholders. However, the equity ratio indicates that a significant portion of the company's assets is financed through debt.

Cash Flow

Operating cash flow remains robust, but there is a notable decrease in free cash flow growth, raising concerns about cash generation after capital expenditures. The operating cash flow to net income ratio suggests strong cash earnings, but the free cash flow to net income ratio indicates tighter cash availability for discretionary spending.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.41B	3.46B	3.90B	3.35B	2.67B	2.54B
Gross Profit	591.40M	716.70M	1.05B	763.90M	571.40M	507.30M
EBITDA	749.70M	786.30M	1.06B	825.60M	672.80M	591.70M
Net Income	179.10M	235.70M	470.00M	342.00M	242.60M	202.10M
Balance Sheet
Total Assets	4.51B	4.68B	4.46B	4.49B	3.82B	3.34B
Cash, Cash Equivalents and Short-Term Investments	371.30M	470.00M	474.60M	330.80M	494.60M	476.20M
Total Debt	2.32B	2.25B	1.84B	1.76B	1.77B	1.75B
Total Liabilities	3.59B	3.61B	3.50B	3.42B	3.02B	2.76B
Stockholders Equity	850.30M	996.80M	907.90M	1.00B	746.40M	538.30M
Cash Flow
Free Cash Flow	295.50M	263.40M	439.90M	304.10M	350.30M	327.10M
Operating Cash Flow	551.20M	587.60M	857.90M	671.10M	610.10M	578.00M
Investing Cash Flow	-444.70M	-540.40M	-459.60M	-540.00M	-271.50M	-246.40M
Financing Cash Flow	-146.40M	-36.70M	-150.80M	-288.00M	-320.10M	-57.60M

Verallia SAS Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 22.94
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:VRLA, the sentiment is Negative. The current price of 22.94 is below the 20-day moving average (MA) of 22.97, below the 50-day MA of 23.86, and below the 200-day MA of 26.36, indicating a bearish trend. The MACD of -0.34 indicates Negative momentum. The RSI at 45.47 is Neutral, neither overbought nor oversold. The STOCH value of 78.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:VRLA.

Verallia SAS Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OPM	―	€2.09B	13.14	7.91%	4.16%	-0.29%	-1.66%
ALCAT	―	€94.56M	3.87	26.21%	6.10%	-6.05%	-0.45%
ALDEL	―	€85.74M	6.38	9.65%	2.31%	-7.45%	―
VRLA	―	€2.77B	15.08	―	7.56%	-3.17%	-37.20%
ALGIL	―	€508.36M	10.21	―	3.64%	1.82%	-28.43%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ALBI	―	€93.35M	106.44	―	―	7.25%	―