Vera Bradley Story

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VRA -- USA Stock  

USD 6.93  0.08  1.17%

While some baby boomers are getting worried about consumer cyclical space, it is reasonable to go over Vera Bradley. We will try to explain if it is still possible for Vera Bradley to generate above-average margins. Is the firm valuation sustainable? Here I will cover a perspective on valuation of Vera Bradley to give you a better outlook on taking a position in this stock.
Published over three weeks ago
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Should I rely on Vera Bradley management in October 2020?
Vera Bradley has 194.75 M in debt with debt to equity (D/E) ratio of 0.62, which is OK given its current industry classification. The entity has a current ratio of 3.7, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Vera Bradley has an asset utilization ratio of 124.38 percent. This suggests that the company is making $1.24 for each dollar of assets. An increasing asset utilization means that Vera Bradley is more efficient with each dollar of assets it utilizes for everyday operations.
We determine the current worth of Vera Bradley using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Vera Bradley based exclusively on its fundamental and basic technical indicators. By analyzing Vera Bradley's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Vera Bradley's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Vera Bradley. We calculate exposure to Vera Bradley's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Vera Bradley's related companies.

Vera Bradley Investment Alerts

Vera Bradley investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Vera Bradley performance across your portfolios.Please check all investment alerts for Vera Bradley

Vera Bradley Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Vera Bradley value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Vera Bradley competition to find correlations between indicators driving the intrinsic value of Vera Bradley.

How Vera Bradley utilizes its cash?

To perform a cash flow analysis of Vera Bradley, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Vera Bradley is receiving and how much cash it distributes out in a given period. The Vera Bradley cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Vera Bradley Net Cash Flow from Operations is projected to decrease significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 20.62 Million

Payment of 5224 shares by Robert Wallstrom of Vera Bradley subject to Rule 16b-3

Legal trades by Vera Bradley insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Vera Bradley insider trading alert for payment of common shares by Robert Wallstrom, President & Chief Exec Officer, on 23rd of August 2020. This event was filed by Vera Bradley Inc with SEC on 2020-04-01. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down Vera Bradley Indicators

Vera Bradley price slip over the last few months may raise some interest from investors as it closed today at a share price of 5.04 on 470,046 in trading volume. The company directors and management were not very successful in positioning the company resources to exploit market volatility in August. However, diversifying your holdings with Vera Bradley or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 5.06. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Vera Bradley partners.

Margins Breakdown

Vera Bradley profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Vera Bradley itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Vera Bradley profit margins.
5.68
Profit Margin
8.7
Operating Margin
12.72
EBITDA Margin
Operating Margin8.7
EBITDA Margin12.72
Gross Margin56.7
Profit Margin5.68


Vera Bradley Earnings Before Interest Taxes and Depreciation Amortization USD is somewhat stable at the moment. Vera Bradley Earnings Before Interest Taxes and Depreciation Amortization USD is decreasing over the last 5 years. The current value of Vera Bradley Earnings Before Interest Taxes and Depreciation Amortization USD is 69,825,947.

Is Vera Bradley showing appearance of lower volatility?

Current semi variance is at 23.12. Vera Bradley exhibits above-average semi-deviation for your current time horizon. We encourage investors to investigate Vera Bradley individually to make sure intended market timing strategies and available technical indicagtors are consistent with their estimates about Vera Bradley future systematic risk.

The Current Takeaway on Vera Bradley Investment

Whereas some firms in the footwear & accessories industry are either recovering or due for a correction, Vera Bradley may not be performing as strong as the other in terms of long-term growth potentials. To conclude, as of the 1st of September 2020, we believe that Vera Bradley is currently undervalued with close to average probability of bankruptcy in the next two years. However, our present 30 days buy-hold-sell recommendation on the company is Strong Sell.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Vera Bradley. Please refer to our Terms of Use for any information regarding our disclosure principles.

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