Vera Bradley Story

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VRA -- USA Stock  

USD 10.51  0.42  3.84%

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. Vera Bradley is scheduled to announce its earnings today. The next earnings report is expected on the 10th of March 2021. The stock is undergoing an active downward rally. Consumer cyclical space may be getting hot again, let's check if Vera Bradley is sending any bullish signals to investors. We will evaluate why we are still confident in anticipation of a recovery. Vera Bradley responds to the market. We can now analyze Vera Bradley as a potential investment option for your portfolios.
Published over three months ago
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Should you sell your Vera Bradley (NASDAQ:VRA) holdings?
We provide advice to complement the current expert consensus on Vera Bradley. Our dynamic recommendation engine harnesses a multidimensional algorithm to analyze the firm's potential to grow using all technical and fundamental data available at the time. This firm dividends can provide a clue to the current value of the stock. Vera Bradley is not expected to issue dividends this year as it is trying to preserve or re-invest any of the funds available for distribution to stakeholders.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Vera Bradley income statement, its balance sheet, and the statement of cash flows. Potential Vera Bradley investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Vera Bradley investors may use each financial statement separately, they are all related. The changes in Vera Bradley's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Vera Bradley's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
The goal of Vera Bradley fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Vera Bradley performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Vera Bradley shares is the value that is considered the true value of the share. If the intrinsic value of Vera Bradley is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Vera Bradley.
Please read more on our fundamental analysis page.

Are Vera Bradley Earnings Expected to grow?

The future earnings power of Vera Bradley involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Vera Bradley factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Vera Bradley stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Vera Bradley expected earnings.

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 20.7 Million

Vera Bradley Gross Profit

Vera Bradley Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Vera Bradley previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Vera Bradley Gross Profit growth over the last 10 years.
Please check Gross Profit in more details.

Payment of 4749 shares by Hull Daren 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 Hull Daren, Vera Bradley Brand President, on 7th of April 2021. This event was filed by Vera Bradley Inc with SEC on 2021-04-07. 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.

A Deeper Perspective

Although in the United States, the Securities and Exchange Commission has enforced strong rules to prevent insiders from engaging in insider trading, finding insiders among active shareholders of Vera Bradley is not uncomon. Institutional investor usually refers to an organization that invests money in Vera Bradley on behalf of clients or other money managers. Buying and selling of large positions of Vera Bradley stock by institutional investors can create supply and demand imbalances that result in sudden price moves of Vera Bradley stock. Let's take a look at how the ownership of Vera Bradley is distributed among investors.

Ownership Allocation

Vera Bradley maintains a total of 33.41 Million outstanding shares. Over half of Vera Bradley outstanding shares are owned by institutional holders. These institutional holders are typically referred to corporate investors that take positions in a given instrument to benefit from reduced trade commissions. Consequently, these institutions are subject to different rules and regulation than regular investors in Vera Bradley. Please watch out for any change in the institutional holdings of Vera Bradley as this could mean something significant has changed or about to change at the company. Note that regardless of who owns the company, if the true value of the entity is less than the market is willing to pay for it, you may not be able to generate positive returns over time.

Retail Investors
13.92%
Insiders
26.11%
Institutions
59.97%
Retail Investors13.92
Insiders26.11
Institutions59.97
 2010 2014 2020 (projected)
Receivables27.72 M24.29 M29.3 M
Inventories136.92 M123.61 M116.85 M

Asset Utilization

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 127.53 percent. This suggests that the company is making $1.28 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.

Current Assets
115.2 M
Assets Non Current
84.6 M
Current Assets115.15 Million54.19
Assets Non Current84.61 Million39.82
Tax Assets12.73 Million5.99

Are you still ambivalent about Vera Bradley?

Current Sortino Ratio is up to 0.03. Price may slip again. Vera Bradley shows above-average downside volatility for the selected time horizon. We advise investors to inspect Vera Bradley further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Vera Bradley future alpha.

Our Conclusion on Vera Bradley

When is the right time to buy or sell Vera Bradley? Buying stocks such as Vera Bradley isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis. To conclude, as of the 9th of December 2020, our analysis shows that Vera Bradley responds to the market. The company is undervalued and projects below average chance of financial distress for the next 2 years. Our concluding 30 days 'Buy-Sell' recommendation on the company is Cautious Hold.

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 Achuva Shats 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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