Vera Bradley Story

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VRA -- USA Stock  

USD 6.46  0.39  5.69%

Vera Bradley is scheduled to announce its earnings today. The next earnings report is expected on the 9th of December 2020. Vera Bradley Earnings before Tax are projected to decrease significantly based on the last few years of reporting. The past year's Earnings before Tax were at 55.15 Million. The current year Enterprise Value is expected to grow to about 999.9 M, whereas Average Assets are forecasted to decline to about 287.1 M. While some millenniums are indifferent towards consumer cyclical space, it makes sense to go over Vera Bradley as a unique investment alternative. We will evaluate why recent Vera Bradley price moves suggest a bounce in October.
Published over three weeks ago
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Is Vera Bradley (NASDAQ:VRA) having difficulty to pay out its debt?
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 company has Net Profit Margin of 0.66 %, which implies that it may need a different competitive strategy as even a very small decline in it revenue may erase profits and result in a net loss. This is way below average. In the same way, it shows Net Operating Margin of 8.98 %, which entails that for every 100 dollars of revenue, it generated 0.09 of operating income.
Vera Bradley financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Vera Bradley, including all of Vera Bradley's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Vera Bradley assets, the company is considered highly leveraged. Understanding the composition and structure of overall Vera Bradley debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding Vera Bradley Total Debt

Vera Bradley liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Vera Bradley has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Vera Bradley balance sheet include debt obligations and money owed to different Vera Bradley vendors, workers, and loan providers. Below is the chart of Vera Bradley main long-term debt accounts currently reported on its balance sheet.
You can use Vera Bradley financial leverage analysis tool to get a better grip on understanding its financial position

How important is Vera Bradley's Liquidity

Vera Bradley financial leverage refers to using borrowed capital as a funding source to finance Vera Bradley ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Vera Bradley financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Vera Bradley's total debt and its cash.

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

The firm reported the last year's revenue of 473.49 M. Reported Net Loss for the year was (3.69 M) with profit before taxes, overhead, and interest of 280.07 M.

Liabilities Breakdown

79.2 M
Current Liabilities
38.6 M
Long-Term Liabilities
Total Liabilities170.58 Million
Current Liabilities79.19 Million
Long-Term Liabilities38.57 Million
Tax Liabilities8.42 Million

Over 3 percent rise for Vera Bradley. What does it mean for investors?

Vera Bradley current downside deviation builds up over 5.1. 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 Bottom Line

Whereas some other entities in the footwear & accessories industry are either recovering or due for a correction, Vera Bradley may not be as strong as the others in terms of longer-term growth potentials. The inconsistency in the assessment between current Vera Bradley valuation and our trade advice on Vera Bradley is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Vera Bradley.

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 Vlad Skutelnik 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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