VAR1 Profitability Analysis: Past Growth, Margins, Return on Capital, Free Cash Flow, and more - Varta AG - Alpha Spread

Varta AG
XETRA:VAR1

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Varta AG
XETRA:VAR1
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Price: 1.513 EUR -11.98% Market Closed
Market Cap: 64.5m EUR
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Profitability Summary

We take all the information about a company's profitability (such as its margins, capital efficiency, free cash flow generating ability, and more) and consolidate it into one single number - the profitability score. The higher the profitability score, the more profitable the company is.

Past Growth

To be successful and remain in business, both growth and profitability are important and necessary. Net Income growth is often seen as a sign of a company's efficiency from an operational standpoint, but is influenced heavily by a company's goals and challenges and should therefore be assessed in conjunction with other metrics like revenue and operating income growth.

Margins

Profit margins represent what percentage of sales has turned into profits. Simply put, the percentage figure indicates how many cents of profit the company has generated for each dollar of sale.

Profit margins help investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Earnings Waterfall
Varta AG

Revenue
1.1B EUR
Cost of Revenue
-566.9m EUR
Gross Profit
581.6m EUR
Operating Expenses
-899.5m EUR
Operating Income
-317.9m EUR
Other Expenses
-38.9m EUR
Net Income
-356.8m EUR

Margins Comparison
Varta AG Competitors

Country Company Market Cap Gross
Margin
Operating
Margin
Net
Margin
DE
Varta AG
XETRA:VAR1
64.5m EUR
51%
-28%
-31%
FR
Schneider Electric SE
PAR:SU
120.3B EUR
42%
17%
11%
CN
Contemporary Amperex Technology Co Ltd
SZSE:300750
818B CNY
25%
14%
12%
IE
Eaton Corporation PLC
NYSE:ETN
113.4B USD
38%
19%
15%
CH
Abb Ltd
SIX:ABBN
83.6B CHF
36%
15%
12%
KR
LG Energy Solution Ltd
KRX:373220
92.4T KRW
14%
5%
-1%
US
Emerson Electric Co
NYSE:EMR
56.2B USD
50%
15%
10%
BR
WEG SA
BOVESPA:WEGE3
221.9B BRL
33%
20%
17%
US
AMETEK Inc
NYSE:AME
37.9B USD
36%
26%
20%
US
Rockwell Automation Inc
NYSE:ROK
29B USD
40%
15%
12%
FR
Legrand SA
PAR:LR
25.3B EUR
52%
19%
14%
Country DE
Market Cap 64.5m EUR
Gross Margin
51%
Operating Margin
-28%
Net Margin
-31%
Country FR
Market Cap 120.3B EUR
Gross Margin
42%
Operating Margin
17%
Net Margin
11%
Country CN
Market Cap 818B CNY
Gross Margin
25%
Operating Margin
14%
Net Margin
12%
Country IE
Market Cap 113.4B USD
Gross Margin
38%
Operating Margin
19%
Net Margin
15%
Country CH
Market Cap 83.6B CHF
Gross Margin
36%
Operating Margin
15%
Net Margin
12%
Country KR
Market Cap 92.4T KRW
Gross Margin
14%
Operating Margin
5%
Net Margin
-1%
Country US
Market Cap 56.2B USD
Gross Margin
50%
Operating Margin
15%
Net Margin
10%
Country BR
Market Cap 221.9B BRL
Gross Margin
33%
Operating Margin
20%
Net Margin
17%
Country US
Market Cap 37.9B USD
Gross Margin
36%
Operating Margin
26%
Net Margin
20%
Country US
Market Cap 29B USD
Gross Margin
40%
Operating Margin
15%
Net Margin
12%
Country FR
Market Cap 25.3B EUR
Gross Margin
52%
Operating Margin
19%
Net Margin
14%

Return on Capital

Return on capital ratios give a sense of how well a company is using its capital (equity, assets, capital employed, etc.) to generate profits (operating income, net income, etc.). In simple words, these ratios show how much income is generated for each dollar of capital invested.

Return on Capital Comparison
Varta AG Competitors

Country Company Market Cap ROE ROA ROCE ROIC
DE
Varta AG
XETRA:VAR1
64.5m EUR
-119%
-28%
-39%
-29%
FR
Schneider Electric SE
PAR:SU
120.3B EUR
15%
6%
14%
10%
CN
Contemporary Amperex Technology Co Ltd
SZSE:300750
818B CNY
25%
7%
13%
13%
IE
Eaton Corporation PLC
NYSE:ETN
113.4B USD
20%
10%
15%
11%
CH
Abb Ltd
SIX:ABBN
83.6B CHF
30%
9%
22%
13%
KR
LG Energy Solution Ltd
KRX:373220
92.4T KRW
-1%
0%
4%
3%
US
Emerson Electric Co
NYSE:EMR
56.2B USD
8%
4%
7%
5%
BR
WEG SA
BOVESPA:WEGE3
221.9B BRL
34%
18%
33%
24%
US
AMETEK Inc
NYSE:AME
37.9B USD
15%
10%
15%
12%
US
Rockwell Automation Inc
NYSE:ROK
29B USD
30%
9%
17%
10%
FR
Legrand SA
PAR:LR
25.3B EUR
35%
15%
25%
20%
Country DE
Market Cap 64.5m EUR
ROE
-119%
ROA
-28%
ROCE
-39%
ROIC
-29%
Country FR
Market Cap 120.3B EUR
ROE
15%
ROA
6%
ROCE
14%
ROIC
10%
Country CN
Market Cap 818B CNY
ROE
25%
ROA
7%
ROCE
13%
ROIC
13%
Country IE
Market Cap 113.4B USD
ROE
20%
ROA
10%
ROCE
15%
ROIC
11%
Country CH
Market Cap 83.6B CHF
ROE
30%
ROA
9%
ROCE
22%
ROIC
13%
Country KR
Market Cap 92.4T KRW
ROE
-1%
ROA
0%
ROCE
4%
ROIC
3%
Country US
Market Cap 56.2B USD
ROE
8%
ROA
4%
ROCE
7%
ROIC
5%
Country BR
Market Cap 221.9B BRL
ROE
34%
ROA
18%
ROCE
33%
ROIC
24%
Country US
Market Cap 37.9B USD
ROE
15%
ROA
10%
ROCE
15%
ROIC
12%
Country US
Market Cap 29B USD
ROE
30%
ROA
9%
ROCE
17%
ROIC
10%
Country FR
Market Cap 25.3B EUR
ROE
35%
ROA
15%
ROCE
25%
ROIC
20%

Free Cash Flow

Free cash flow (FCF) is the money a company has left over after paying its operating expenses and capital expenditures. The more free cash flow a company has, the more it can allocate to dividends, paying down debt, and growth opportunities.

If a company has a decreasing free cash flow, that is not necessarily bad if the company is investing in its growth.

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