As part of a new series here at The Acquirer’s Multiple, we’re providing a new feature called ‘Stock in Focus‘ where we focus on one of the stocks from our Stock Screeners.
One of the cheapest stocks in our Stock Screeners is Verso Corp (NYSE: VRS).
Verso Corp is a North American producer of printing papers, specialty papers, and pulp. The company produces a wide range of paper products, including coated freesheet, coated groundwood, coated digital, inkjet, supercalendered, and uncoated freesheet. These paper products are used primarily in media and marketing applications, such as catalogs, magazines, advertising brochures, and annual reports. The company also sells kraft pulp, which is used to manufacture tissue products and printing and writing grade paper; however, the group derives the majority of its revenue from its paper products.
A quick look at Verso Corp’s share price history (below) over the past twelve months shows that the price is down 40%. Here’s why the company is undervalued.
Market Cap: $453 Million
Enterprise Value: $432 Million
Operating Earnings: $95 Million
Acquirer’s Multiple: 4.55
Free Cash Flow (TTM)
Free Cash Flow: $20 Million
FCF/EV Yield: 5%
Piotroski F-Score: 4
Altman Z-Score: 2.15
Beneish M Score: -1.77
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