Veridis (VRDS) AI Stock Analysis

• Market Cap: 5.20B
• Dividend Yield: N/A
• Average Volume (3M): 78.34K
• Price to Earnings (P/E): 23.6
• Beta (1Y): 1.33
• Revenue Growth: -2.06%
• EPS Growth: N/A
• Country: IL
• Employees: 1,231
• Sector: Services
• Sector Strength: N/A
• Industry: Waste Management
• EPS (TTM): 141.80
• Shares Outstanding: 145,165,310
• 10 Day Avg. Volume: 130,935
• 30 Day Avg. Volume: 78,338
• PEG Ratio: 2.43
• Price to Book (P/B): 2.09
• Price to Sales (P/S): 1.34
• P/FCF Ratio: 210.50
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: 3,809.00 ▲(3.22% Upside)

Veridis's overall stock score is driven by its mixed financial performance and positive technical indicators. While profitability and cash flow have improved, high leverage and declining revenue growth are concerns. The stock's valuation is moderate, and the absence of a dividend yield may deter some investors.

Positive Factors

Cash Generation

Robust cash generation enhances financial flexibility, allowing Veridis to invest in growth opportunities and manage debt effectively.

Profitability Improvement

Improved profitability indicates better cost management and operational efficiency, supporting long-term financial health.

Business Model

A diversified revenue model provides stability and resilience against market fluctuations, supporting sustained growth.

Negative Factors

High Leverage

Significant leverage poses financial risk, potentially limiting the company's ability to invest in growth or weather economic downturns.

Revenue Decline

Declining revenue growth could indicate market challenges or competitive pressures, impacting future profitability and expansion.

Industry Misalignment

Operating in an industry not aligned with core tech focus may dilute strategic efforts and confuse market positioning.

Veridis Business Overview & Revenue Model

Company Description

Veridis Environment Ltd provides environmental services in the areas of waste management, water, and energy in Israel. The company offers waste collection and transportation, separation, sorting, recycling, and disposal; and produces recycled raw materials and renewable energies using waste. It also operates a desalination plant that supplies renewable water for consumers, as well as for the industrial and agriculture sectors. In addition, the company develops and operates power stations and energy facilities based on renewable energies, such as biomass, cogeneration, biogas, etc. Further, it designs and operates energy centers and other energy efficiency projects; and provides installation and maintenance services for heating, ventilation, and air-conditioning systems. The company was founded in 1993 and is based in Herzliya, Israel. Veridis Environment Ltd is a subsidiary of Delek Automotive Systems Ltd.

How the Company Makes Money

Veridis generates revenue through a multifaceted business model that includes software licensing, subscription services, and consulting fees. The company offers its analytics platforms on a subscription basis, allowing clients to access continuous updates and support. Additionally, Veridis provides customized consulting services to help businesses implement and optimize their data solutions, which contributes a significant portion to their earnings. Key partnerships with major technology firms and industry leaders enhance their market presence and drive sales through co-marketing initiatives and joint product development, further solidifying their revenue streams.

Veridis Financial Statement Overview

Summary

Veridis shows strong revenue growth at 31% TTM, but profitability is a concern with a negative net profit margin of -0.76% and low returns on equity. The high debt-to-equity ratio of 1.59 indicates significant leverage, posing financial risks. Cash flow generation is improving with a 233.81% growth in free cash flow, but operational efficiency needs enhancement.

Income Statement

Veridis has shown a mixed performance in its income statement. The TTM data indicates a slight improvement in gross profit margin to 12.37% from 12.34% in the previous year, but the net profit margin remains negative at -0.76%, reflecting ongoing profitability challenges. Revenue growth is strong at 31% TTM, indicating robust top-line expansion. However, EBIT and EBITDA margins are relatively low at 6.17% and 18.88% respectively, suggesting limited operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.59 TTM, indicating significant leverage which could pose financial risks. Return on equity is negative at -1.16%, reflecting poor profitability relative to shareholder equity. The equity ratio stands at 32.06%, showing a moderate level of equity financing. Overall, the balance sheet suggests financial instability due to high leverage and negative returns.

Cash Flow

Cash flow analysis shows a significant improvement in free cash flow growth at 233.81% TTM, indicating better cash generation capabilities. The operating cash flow to net income ratio is 0.21, suggesting that operating cash flow is not fully covering net income, which is a concern. However, the free cash flow to net income ratio is 0.12, indicating some level of cash flow support for earnings. Overall, cash flow performance is improving but still faces challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.69B	2.73B	2.54B	1.05B	954.59M	885.61M
Gross Profit	341.85M	336.88M	260.42M	157.17M	138.42M	136.88M
EBITDA	545.61M	502.14M	383.99M	312.06M	211.08M	375.74M
Net Income	21.46M	-18.48M	-81.36M	142.14M	61.16M	248.38M
Balance Sheet
Total Assets	5.47B	5.57B	5.63B	1.67B	1.78B	1.55B
Cash, Cash Equivalents and Short-Term Investments	146.96M	93.00M	108.05M	127.25M	126.44M	31.80M
Total Debt	2.71B	2.77B	2.76B	518.31M	735.78M	662.99M
Total Liabilities	3.62B	3.72B	3.77B	781.68M	1.01B	953.76M
Stockholders Equity	1.75B	1.76B	1.86B	891.72M	764.65M	599.95M
Cash Flow
Free Cash Flow	102.44M	17.43M	249.43M	161.86M	157.63M	215.16M
Operating Cash Flow	302.95M	246.75M	456.77M	210.50M	255.02M	324.20M
Investing Cash Flow	-97.58M	-185.60M	-2.21B	44.14M	-314.83M	-183.98M
Financing Cash Flow	-160.12M	-76.19M	1.73B	-253.84M	154.46M	-143.36M

Veridis Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3690.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:VRDS, the sentiment is Positive. The current price of 3690 is above the 20-day moving average (MA) of 3520.05, above the 50-day MA of 3476.74, and above the 200-day MA of 2678.23, indicating a bullish trend. The MACD of 48.60 indicates Positive momentum. The RSI at 55.32 is Neutral, neither overbought nor oversold. The STOCH value of 53.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:VRDS.

Veridis Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VRDS	67 Neutral	5.20B	23.64	―	―	-2.06%	―
DNYA	63 Neutral	5.19B	29.95	―	3.41%	15.47%	-3.42%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
ELCRE	48 Neutral	3.83B	-26.01	―	―	-4.06%	65.26%