Verallia SAS (VRLA) AI Stock Analysis

• Market Cap: €3.41B
• Dividend Yield: 5.86%
• Average Volume (3M): 164.78K
• Price to Earnings (P/E): 18.5
• Beta (1Y): 0.77
• Revenue Growth: -3.17%
• EPS Growth: -37.20%
• Country: FR
• Employees: 11,000
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Packaging & Containers
• EPS (TTM): 0.57
• Shares Outstanding: 120,805,100
• 10 Day Avg. Volume: 98,601
• 30 Day Avg. Volume: 164,779
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €31.60
• Price Target Upside: 12.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 75 Outperform
• Price Target: €32.00 ▲(13.48% Upside)

Verallia SAS scores well due to strong technical indicators and a solid valuation with an attractive dividend yield. While financial performance indicates operational efficiency and stability, the focus should be on enhancing revenue growth and managing capital investments effectively to sustain future performance.

Positive Factors

Bid Offer

BWGI is expected to file its €30/share bid shortly followed by the BoD's reasoned opinion on the offer. The bid provides support for the share, overshadowing Q1 results weakness and an uncertain outlook.

Free Cash Flow

Free cash flow is guided to more than double to around €200m.

Volume Growth

Sales volumes grew for the second consecutive quarter, which is critical for continued earnings recovery.

Negative Factors

Price Decline Impact

The carryover from price declines in 2024 should primarily impact the first half of 2025, leading to a negative price / cost spread for the year.

Price-Mix/Cost Spread

Verallia's Q1 revenues were broadly in line with expectations, yet EBITDA plunged 23% below consensus on a highly unfavourable price-mix/cost spread, compressing margins by 650bps (q/q) and 640bps (y/y).

Revenue Miss

FY 24 revenue was €16m below Stifel estimates and €14m behind Visible Alpha consensus.

Verallia SAS Business Overview & Revenue Model

Company Description

Verallia SAS (VRLA) is a leading global manufacturer and supplier of glass packaging for beverages and food products. The company operates in the glass container industry, focusing on producing sustainable, innovative, and high-quality glass bottles and jars. Verallia serves a diverse clientele, including wine, spirits, food, beer, and non-alcoholic beverage industries, with a commitment to environmental sustainability and energy efficiency.

How the Company Makes Money

Verallia makes money primarily through the manufacturing and sale of glass packaging solutions. The company's key revenue streams include the production and supply of glass bottles and jars to manufacturers in the wine, spirits, beer, and food industries. Verallia leverages long-term contracts and relationships with major beverage and food producers, enabling consistent sales and revenue generation. Additionally, the company invests in recycling and sustainable practices, enhancing its competitive edge and appeal in markets increasingly focused on environmental impact. Strategic partnerships and continuous innovation in glass packaging design also contribute to its financial success.

Verallia SAS Financial Statement Overview

Summary

Verallia SAS demonstrates strong profitability with healthy EBIT and EBITDA margins, despite challenges in revenue growth. The financial structure is stable, with moderate leverage and improving return on equity, although cash flow trends suggest a need for better capital investment strategies.

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

Verallia SAS Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:VRLA, the sentiment is Positive. The current price of 28.2 is below the 20-day moving average (MA) of 28.31, below the 50-day MA of 28.23, and above the 200-day MA of 26.23, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 84.30 is Negative, neither overbought nor oversold. The STOCH value of 53.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:VRLA.

Verallia SAS Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VRLA	75 Outperform	€3.41B	18.54		5.86%	-3.17%	-37.20%
ALGIL	75 Outperform	€564.75M	9.45	9.79%	3.31%	-1.69%	-20.80%
OPM	74 Outperform	€1.88B	11.83	7.91%	4.55%	-0.29%	-1.66%
ALCAT	72 Outperform	€112.98M	4.62	26.21%	4.83%	-6.05%	-0.45%
Sector *	63 Neutral	€17.61B	13.44	15.56%	3.59%	-0.67%	-125.81%
ALDEL	60 Neutral	€79.32M	―	-0.08%	2.62%	-7.23%	-101.72%