VRG S.A. (VRG) AI Stock Analysis

• Market Cap: €1.13B
• Dividend Yield: 1.81%
• Average Volume (3M): 18.16K
• Price to Earnings (P/E): 12.0
• Beta (1Y): 0.26
• Revenue Growth: 8.25%
• EPS Growth: 13.21%
• Country: PL
• Employees: 2,157
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.05
• Shares Outstanding: 234,455,840
• 10 Day Avg. Volume: 30,027
• 30 Day Avg. Volume: 18,162
• PEG Ratio: -0.49
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 0.59
• P/FCF Ratio: 15.72
• 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): 1.74
• Revenue Forecast (FY): €5.39B

• Rating: 76 Outperform
• Price Target: zł5.50 ▲(10.44% Upside)

VRG S.A. scores well due to its strong financial performance, characterized by consistent revenue growth and robust cash flow generation. Technical analysis indicates positive momentum, although caution is advised due to potential overbought conditions. The valuation is reasonable, with a moderate P/E ratio and dividend yield, making the stock an attractive option for both growth and income investors.

VRG S.A. Business Overview & Revenue Model

Company Description

VRG S.A. (VRG) is a leading company in the virtual reality and augmented reality sectors, specializing in the development of immersive technology solutions for various industries, including gaming, education, healthcare, and training. With a focus on innovative software and hardware products, VRG creates cutting-edge applications that enhance user experiences and drive engagement in both consumer and enterprise markets.

How the Company Makes Money

VRG generates revenue through multiple key streams, primarily by selling proprietary VR and AR software applications and platforms to businesses and consumers. The company also earns income from hardware sales, including VR headsets and accessories. Additionally, VRG has established strategic partnerships with educational institutions and healthcare providers, which allows it to offer tailored solutions and services, further expanding its revenue base. Licensing its technology to other developers and content creators also contributes significantly to its earnings, as does providing training and support services to clients utilizing its products.

VRG S.A. Financial Statement Overview

Summary

VRG S.A. presents a strong financial position with consistent revenue growth, solid profitability, and robust cash flow generation. The company has a balanced capital structure, though increasing debt levels warrant attention. Continued focus on operational efficiencies could enhance margins further.

Income Statement

VRG S.A. has demonstrated consistent revenue growth with a TTM increase of 2.64% and strong gross profit margins above 55%. The net profit margin is stable at around 6.4%, indicating efficient cost management. However, the EBIT margin shows room for improvement, suggesting potential operational efficiencies could be explored.

Balance Sheet

The company maintains a healthy debt-to-equity ratio of 0.39, reflecting a balanced approach to leverage. Return on equity is solid at 8.66%, indicating effective use of shareholder funds. The equity ratio is robust, suggesting a strong capital structure, though there is a slight increase in debt levels that should be monitored.

Cash Flow

VRG S.A. exhibits impressive free cash flow growth of 99.08% in the TTM, highlighting strong cash generation capabilities. The operating cash flow to net income ratio is healthy, indicating good cash conversion. However, the free cash flow to net income ratio suggests some variability in cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.43B	1.38B	1.30B	1.27B	1.07B	853.71M
Gross Profit	795.89M	762.83M	705.78M	683.13M	568.19M	417.34M
EBITDA	273.13M	262.77M	267.11M	237.31M	194.96M	73.49M
Net Income	91.99M	87.80M	101.73M	92.96M	66.31M	-48.17M
Balance Sheet
Total Assets	1.76B	1.68B	1.53B	1.51B	1.49B	1.46B
Cash, Cash Equivalents and Short-Term Investments	17.10M	17.02M	78.14M	95.97M	114.57M	48.84M
Total Debt	432.61M	367.48M	320.95M	362.22M	388.79M	428.76M
Total Liabilities	659.77M	618.22M	532.19M	568.89M	604.73M	642.88M
Stockholders Equity	1.10B	1.06B	997.60M	942.76M	889.66M	815.12M
Cash Flow
Free Cash Flow	107.01M	51.28M	170.53M	145.17M	173.74M	126.11M
Operating Cash Flow	147.57M	98.34M	210.46M	174.96M	191.52M	143.21M
Investing Cash Flow	-37.31M	-38.25M	-36.29M	-24.54M	-16.54M	-16.14M
Financing Cash Flow	-114.56M	-121.05M	-191.93M	-169.10M	-109.25M	-103.50M

VRG S.A. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PL:VRG, the sentiment is Positive. The current price of 4.98 is above the 20-day moving average (MA) of 4.74, above the 50-day MA of 4.67, and above the 200-day MA of 4.12, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 72.29 is Negative, neither overbought nor oversold. The STOCH value of 90.61 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PL:VRG.

VRG S.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VRG	76 Outperform	€1.13B	11.99	8.85%	1.81%	8.25%	13.21%
SNK	71 Outperform	€543.01M	16.06	―	7.43%	2.24%	-20.27%
DBC	64 Neutral	€1.13B	8.50	9.61%	5.14%	15.21%	-19.13%
ANR	64 Neutral	€554.25M	30.22	12.12%	―	21.94%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%