Viscofan (VIS) AI Stock Analysis

• Market Cap: €2.81B
• Dividend Yield: 4.79%
• Average Volume (3M): 43.44K
• Price to Earnings (P/E): 17.6
• Beta (1Y): 0.17
• Revenue Growth: 3.30%
• EPS Growth: 7.97%
• Country: ES
• Employees: 5,480
• Sector: Consumer Defensive
• Sector Strength: 45
• Industry: Packaging & Containers
• EPS (TTM): 0.84
• Shares Outstanding: 46,500,000
• 10 Day Avg. Volume: 30,039
• 30 Day Avg. Volume: 43,441
• PEG Ratio: 1.35
• Price to Book (P/B): 2.96
• Price to Sales (P/S): 2.31
• P/FCF Ratio: 17.28
• 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: €73.33
• Price Target Upside: 20.61% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 75 Outperform
• Price Target: €68.00 ▲(11.84% Upside)

Viscofan's overall stock score is driven by its strong financial performance and solid valuation metrics. The company's consistent revenue growth, high profitability, and effective balance sheet management are significant strengths. The technical analysis suggests stable price trends, supporting a positive investment outlook.

Viscofan Business Overview & Revenue Model

Company Description

Viscofan (VIS) is a leading global manufacturer of casings for the meat industry, specializing in both artificial and natural casings. Founded in 1975 and headquartered in Spain, the company operates in the food sector, focusing on providing high-quality products that enhance the flavor, appearance, and preservation of processed meats. Viscofan's core product offerings include cellulose, collagen, and fibrous casings, which are used in various applications, from sausages to cold cuts, catering to a diverse range of customers worldwide.

How the Company Makes Money

Viscofan generates revenue primarily through the sale of its casings to meat processors and food manufacturers. The company operates a diversified revenue model that includes both direct sales and long-term contracts with key clients in the food industry. Key revenue streams consist of the sale of artificial casings, natural casings, and other by-products, which are essential for meat production. Additionally, Viscofan benefits from strategic partnerships with major meat producers, enhancing its market position and allowing for better distribution. Factors contributing to its earnings include a growing demand for processed meat products globally, expansion into new markets, and continuous innovation in product development to meet changing consumer preferences.

Viscofan Financial Statement Overview

Summary

Viscofan shows strong and consistent financial performance with robust revenue growth, high profitability, effective cost management, and operational efficiency. The balance sheet is strong with a favorable debt-to-equity ratio, though rising debt requires monitoring. Cash flow is strong, with positive operating and free cash flow supporting reinvestment and potential dividends.

Income Statement

Viscofan demonstrates strong financial performance with consistent revenue growth and high profitability. The company achieved a notable revenue growth from 2020 to 2024, showcasing resilience and demand in its industry. With a robust gross profit margin and a solid net profit margin over the years, it indicates effective cost management and operational efficiency. The EBIT and EBITDA margins further reflect the company's strong earnings capability before non-operating expenses and taxes, positioning it well within the industry.

Balance Sheet

The balance sheet of Viscofan indicates solid financial health with a favorable debt-to-equity ratio, reflecting prudent leverage management. The equity ratio remains strong, showcasing the company's reliance on equity financing and reduced financial risk. The consistent increase in stockholders’ equity over years reflects sound reinvestment and profit retention strategies. However, the increase in total debt warrants monitoring to ensure continued financial stability amidst growth.

Cash Flow

Viscofan's cash flow statement highlights a robust operating cash flow, emphasizing its strong cash-generating capability from core operations. The free cash flow growth remains positive, supporting reinvestment and potential dividends. However, variations in capital expenditures suggest strategic investments, which must be balanced to maintain cash flow stability. The operating cash flow to net income ratio is healthy, indicating effective cash conversion from earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.22B	1.20B	1.23B	1.20B	969.24M	912.16M
Gross Profit	651.94M	813.58M	771.15M	811.72M	686.02M	639.63M
EBITDA	298.33M	299.97M	259.52M	263.47M	249.62M	232.33M
Net Income	156.79M	157.02M	140.96M	139.43M	133.00M	122.51M
Balance Sheet
Total Assets	1.45B	1.40B	1.41B	1.34B	1.17B	1.04B
Cash, Cash Equivalents and Short-Term Investments	72.37M	55.94M	52.76M	51.93M	92.11M	52.74M
Total Debt	242.18M	212.95M	201.12M	162.82M	106.83M	105.75M
Total Liabilities	506.20M	463.94M	449.74M	437.80M	346.02M	304.19M
Stockholders Equity	938.61M	937.20M	957.77M	906.87M	822.78M	736.25M
Cash Flow
Free Cash Flow	0.00	160.79M	68.58M	5.16M	125.52M	123.02M
Operating Cash Flow	0.00	235.82M	145.71M	120.73M	221.30M	178.34M
Investing Cash Flow	0.00	-79.08M	-75.12M	-113.95M	-94.68M	-53.58M
Financing Cash Flow	0.00	-152.71M	-70.72M	-48.45M	-90.94M	-119.96M

Viscofan Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 60.80
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:VIS, the sentiment is Positive. The current price of 60.8 is above the 20-day moving average (MA) of 60.02, above the 50-day MA of 59.94, and above the 200-day MA of 60.64, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 60.80 is Neutral, neither overbought nor oversold. The STOCH value of 74.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES:VIS.

Viscofan Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VIS	75 Outperform	€2.81B	17.57	17.37%	4.79%	3.30%	7.97%
Sector *	63 Neutral	$20.50B	14.76	-2.72%	3.09%	1.90%	-4.74%
0DZC	―	€3.24B	9.88	23.31%	―	―	―
0K97	―	€2.07B	16.61	-6.79%	―	―	―
0O6D	―	€534.77M	11.42	13.16%	2.67%	―	―
0KD1	―	€440.82M	14.46	11.13%	4.31%	―	―
0NV7	―	€3.04B	10.68	17.47%	―	―	―

Viscofan Corporate Events

Viscofan Approves Key Financial Resolutions and Incentive Plans

Viscofan’s General Shareholders’ Meeting approved several key resolutions, including the annual accounts for 2024, a new dividend system, and capital increases to support this system. The meeting also approved a long-term incentive plan for the management team and re-elected PricewaterhouseCoopers as the auditor. These decisions reflect Viscofan’s strategic focus on financial flexibility and rewarding stakeholders, potentially strengthening its market position.

Viscofan Announces 2025 Flexible Dividend Schedule

Viscofan has announced the estimated schedule for its optional dividend system, ‘Viscofan Flexible Remuneration,’ for the fiscal year 2025. Shareholders can choose to receive their dividends in new shares, cash, or transfer their rights in the market. This initiative, approved by the General Shareholders’ Meeting, aims to provide flexibility and enhance shareholder engagement. The execution involves a detailed timeline for capital increase and dividend payments, indicating a strategic move to strengthen its market position and offer varied financial benefits to its stakeholders.

Viscofan Achieves Revenue Growth Amidst Currency Challenges in Q1 2025

Viscofan reported a 6.1% increase in turnover to €307.3 million for the first quarter of 2025, with growth across all geographical areas. EBITDA rose by 11.7% to €68.8 million, though net results slightly declined by 0.7% due to negative exchange differences. Despite this, the company maintained strong operational performance, driven by increased volumes in main casing families and higher revenues from cogeneration in Spain, aligning with its strategic plan Beyond25.