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Strategies & Market Trends : Value Investing

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To: Spekulatius who wrote (69171)	11/21/2021 5:00:01 PM
From: bruwin	Read Replies (1) of 78814

"re VTRS - well the reason are restructuring charges." Yes, I believe I already referred to "Mergers & Restructuring" in my previous post. But one can look back at the time when that "M&R" cost was less than 10% of what it was most recently, i.e. in VTRS's 3rd. Quarter 2020. That was the last time that VTRS's TTM showed a profit ...... And that Net Profit Margin was 266.4/11514 = ~2.3%, which I'd say is not exactly a "Stellar Performance". And when we look at VTRS's chart over the last ~4 years we see a decline of about (46.6-13.6)/46.6 = ~71% in its price ...... And if we go back to that time when VTRS last made a TTM Profit before the onerous "Restructuring Charges" ....... ....... we find a good Gross Margin but only about ~15% left over after "Running Expenses", which gets reduced by over 26% due the expense of VTRS's very high Long Term Debt. That Interest Expense could be higher in the future if Interest Rates go up in order to combat the US's very high, and increasing, Inflation. That leaves that Net Earning's percentage of only about 2.3% ..... not much margin for error ...... If we take VTRS's latest EBT number of ~1636 and deduct a reduced M&R number of about 250 (assuming there's not much more of that to come) and apply a Tax percentage of about 25%, VTRS's Net Income could be about 1040 giving an improved Profit Margin of ~6%. At the end of the day it's the upcoming Quarterlies that will show how well, or otherwise, VTRS performs.

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