Verallia SAS (VRLA) AI Stock Analysis

• Market Cap: €2.34B
• Dividend Yield: 7.54%
• Average Volume (3M): 61.11K
• Price to Earnings (P/E): 25.2
• Beta (1Y): 0.56
• Revenue Growth: -3.17%
• EPS Growth: -37.20%
• Country: FR
• Employees: 11,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): 0.20
• Shares Outstanding: 120,805,100
• 10 Day Avg. Volume: 40,458
• 30 Day Avg. Volume: 61,110
• PEG Ratio: -0.48
• Price to Book (P/B): 3.09
• Price to Sales (P/S): 0.81
• P/FCF Ratio: 14.36
• 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: €26.50
• Price Target Upside: 36.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 1.94
• Revenue Forecast (FY): €3.43B

• Rating: 46 Neutral
• Price Target: €19.00 ▼(-1.91% Downside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is primarily weighed down by deteriorating financial performance (contracting revenue, compressed margins, weakening free cash flow) alongside elevated and rising leverage. Technicals add further pressure with a clear downtrend and bearish momentum. The main offset is the very high dividend yield, though a higher P/E reduces valuation support.

Positive Factors

Recurring glass packaging revenue

Verallia’s core business is supplying glass containers to recurrent end-markets (beer, wine, spirits, non‑alcoholic beverages, food). That contract-driven, repeat order model supports predictable demand, stable volumes and long-term customer relationships that underpin steady revenue streams and pricing negotiations.

Resilient operating profitability

Despite pressure on net margins, Verallia’s EBIT and EBITDA margins remain solid, indicating efficient production and cost control at the plant level. Sustained mid‑double digit EBITDA supports coverage of fixed costs, funds reinvestment, and helps absorb cyclical volatility in raw material and energy costs over the medium term.

Positive free cash flow generation

Verallia continues to convert operations into cash, producing meaningful FCF even after declining year‑over‑year. Positive FCF provides ongoing ability to fund maintenance capex, pay dividends and service debt, giving the company a financial buffer while it works to restore revenue and margins.

Negative Factors

Top-line and margin deterioration

Revenue declines alongside large gross and net margin erosion point to sustained pricing, cost or mix pressures. Over multiple periods this reduces profit retention, impairs reinvestment capacity and makes earnings less resilient to future demand shocks, weakening long‑term return generation.

Elevated and rising leverage

Higher debt-to-equity and large absolute debt limit financial flexibility, raise interest and refinancing risk, and magnify downside when profitability weakens. With compressed margins and falling equity, leverage increases the chance that cash flow volatility could constrain investment or require deleveraging measures.

Weakened cash conversion trend

A steep drop in FCF and lower cash conversion versus prior years reduces the company’s cushion for debt repayment, capex and dividends. Persistently weaker cash conversion would force tougher tradeoffs between growth investment, shareholder payouts and debt reduction, constraining strategic flexibility.

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

Financial profile has weakened since 2023: revenue contraction in 2024–2025, sharp margin compression (net margin ~12.0% to ~2.7%; gross margin ~26.9% to ~17.4%), and lower free cash flow (down ~36% in 2025 vs prior year). Balance-sheet risk is elevated with rising leverage (debt-to-equity ~2.59 in 2025 vs ~2.03 in 2023) alongside softer profitability, partially offset by still-solid 2025 operating margins (EBIT ~11.6%, EBITDA ~23.7%).

Income Statement

Profitability has weakened materially from 2023 to 2025: net margin fell from ~12.0% (2023) to ~2.7% (2025), while gross margin declined from ~26.9% to ~17.4%. Revenue growth also turned negative in 2024 and 2025, indicating a softer top-line environment. Offsetting this, operating profitability remains comparatively resilient versus net results, with EBIT margin still ~11.6% and EBITDA margin ~23.7% in 2025, suggesting costs below the operating line (e.g., financing/taxes/other) are pressuring bottom-line earnings.

Balance Sheet

Leverage is elevated and trending worse: debt-to-equity increased to ~2.59 in 2025 from ~2.03 in 2023, while equity has declined (from ~€0.91B in 2023 to ~€0.87B in 2025). Total debt remains high at ~€2.26B against ~€4.45B of assets, which limits balance-sheet flexibility. While the business has operated with leverage for years, the combination of higher leverage and lower recent profitability increases financial risk.

Cash Flow

Cash generation remains positive, with operating cash flow of ~€460.5M and free cash flow of ~€188.3M in 2025, but the trajectory has deteriorated: free cash flow fell ~36.3% in 2025 and is well below 2023 levels (~€439.9M). Cash conversion versus earnings is not strong in 2025, with free cash flow running at ~41% of net income, and operating cash flow relative to key obligations appears thinner than prior years based on the provided coverage ratio trend (down versus 2023). Overall, cash flow is still supportive but weakening at the same time leverage is rising.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.33B	3.46B	3.90B	3.35B	2.67B
Gross Profit	578.30M	716.70M	1.05B	763.90M	571.40M
EBITDA	788.60M	786.30M	1.05B	825.60M	672.80M
Net Income	90.60M	235.70M	470.00M	342.00M	242.60M
Balance Sheet
Total Assets	4.45B	4.68B	4.46B	4.49B	3.82B
Cash, Cash Equivalents and Short-Term Investments	397.80M	470.00M	474.60M	330.80M	494.60M
Total Debt	2.26B	2.25B	1.84B	1.76B	1.77B
Total Liabilities	3.51B	3.61B	3.50B	3.42B	3.02B
Stockholders Equity	874.70M	996.80M	907.90M	1.00B	746.40M
Cash Flow
Free Cash Flow	188.30M	263.40M	439.90M	304.10M	350.30M
Operating Cash Flow	460.50M	587.60M	857.90M	671.10M	610.10M
Investing Cash Flow	-293.80M	-540.40M	-459.60M	-540.00M	-271.50M
Financing Cash Flow	-226.80M	-36.70M	-150.80M	-288.00M	-320.10M

Verallia SAS Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 19.37
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 19.37 is below the 20-day moving average (MA) of 21.67, below the 50-day MA of 22.26, and below the 200-day MA of 24.70, indicating a bearish trend. The MACD of -0.82 indicates Positive momentum. The RSI at 26.42 is Positive, neither overbought nor oversold. The STOCH value of 14.03 is Positive, 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
ALDEL	68 Neutral	€73.52M	5.48	9.65%	2.13%	-7.45%	―
OPM	66 Neutral	€2.42B	13.15	7.91%	3.86%	-0.29%	-1.66%
ALGIL	65 Neutral	€461.23M	9.29	8.03%	3.76%	1.82%	-28.64%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ALCAT	56 Neutral	€82.89M	5.67	13.33%	6.23%	-23.79%	-56.20%
VRLA	46 Neutral	€2.34B	25.19	―	7.54%	-3.17%	-37.20%
ALBI	46 Neutral	€82.06M	88.98	―	―	7.25%	―