Verallia SAS (VRLA) AI Stock Analysis

• Market Cap: €2.88B
• Dividend Yield: 7.21%
• Average Volume (3M): 96.58K
• Price to Earnings (P/E): 15.7
• Beta (1Y): 0.76
• Revenue Growth: -3.17%
• EPS Growth: -37.20%
• Country: FR
• Employees: 11,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): 0.57
• Shares Outstanding: 120,805,100
• 10 Day Avg. Volume: 104,556
• 30 Day Avg. Volume: 96,576
• 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: €31.50
• Price Target Upside: 33.59% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 66 Neutral
• Price Target: €29.00 ▲(22.99% Upside)

The overall stock score is primarily driven by strong valuation metrics, including an attractive dividend yield and reasonable P/E ratio. Financial performance is solid, with strong profitability and operational efficiency, though revenue growth challenges and free cash flow concerns are noted. Technical analysis suggests potential bearish trends, which could impact short-term performance.

Positive Factors

Operational Efficiency

Stable EBIT and EBITDA margins indicate effective cost management and operational efficiency, supporting long-term profitability and competitiveness.

Sustainability Focus

Commitment to sustainability and recycling aligns with industry trends, enhancing brand reputation and meeting increasing consumer demand for eco-friendly products.

Strong Cash Flow Management

Robust operating cash flow ensures liquidity and financial stability, allowing for reinvestment in growth opportunities and resilience against market fluctuations.

Negative Factors

Revenue Growth Challenges

Declining revenue growth may indicate market saturation or competitive pressures, potentially impacting long-term expansion and market share.

Free Cash Flow Concerns

Reduced free cash flow growth limits financial flexibility, potentially affecting the company's ability to invest in new projects or return capital to shareholders.

High Debt Levels

High debt levels can increase financial risk, constrain cash flow, and limit strategic options, impacting long-term financial health and stability.

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 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 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: 23.58
• 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 23.58 is below the 20-day moving average (MA) of 23.83, below the 50-day MA of 26.07, and below the 200-day MA of 26.27, indicating a bearish trend. The MACD of -0.66 indicates Negative momentum. The RSI at 33.19 is Neutral, neither overbought nor oversold. The STOCH value of 44.07 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	74 Outperform	1.93B	12.16	8.26%	4.41%	-0.29%	-1.66%
ALCAT	71 Outperform	103.77M	4.25	31.73%	5.44%	-6.05%	-0.45%
ALGIL	68 Neutral	535.17M	8.96	9.45%	3.47%	-1.69%	-20.80%
VRLA	66 Neutral	€2.88B	15.67	―	7.21%	-3.17%	-37.20%
ALDEL	60 Neutral	82.92M	6.17	-0.08%	2.38%	-7.45%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%