Now trading at a price of $208.88, Vistra has moved 1.1% so far today.
Vistra returned gains of 66.4% last year, with its stock price reaching a high of $219.82 and a low of $90.51. Over the same period, the stock outperformed the S&P 500 index by 49.6%. More recently, the company's 50-day average price was $201.02. Vistra Corp., together with its subsidiaries, operates as an integrated retail electricity and power generation company in the United States. Based in Irving, TX, the Large-Cap Utilities company has 6,850 full time employees. Vistra has offered a 0.4% dividend yield over the last 12 months.
The Company May Be Profitable, but Its Balance Sheet Is Highly Leveraged:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $11,809 | $11,443 | $12,077 | $13,728 | $14,779 | $17,224 |
| Operating Margins | 17% | 13% | -13% | -9% | 18% | 24% |
| Net Margins | 8% | 6% | -11% | -9% | 10% | 15% |
| Net Income (M) | $928 | $636 | -$1,274 | -$1,227 | $1,493 | $2,659 |
| Net Interest Expense (M) | $797 | $630 | $384 | $368 | $740 | $910 |
| Depreciation & Amort. (M) | $1,640 | $1,737 | $1,753 | $1,596 | $1,502 | $1,670 |
| Diluted Shares (M) | 500 | 491 | 482 | 422 | 375 | 353 |
| Earnings Per Share | $1.86 | $1.3 | -$2.69 | -$3.26 | $3.58 | $7.0 |
| EPS Growth | n/a | -30.107526881720432% | -306.92307692307696% | -21.189591078066908% | 209.8159509202454% | 95.53072625698323% |
| Free Cash Flow (M) | $2,023 | $2,078 | -$1,239 | -$816 | $3,777 | $2,485 |
| CAPEX (M) | $713 | $1,259 | $1,033 | $1,301 | $1,676 | $2,078 |
| Total Debt (M) | $20,204 | $18,470 | $20,954 | $23,866 | $24,232 | $31,716 |
| Net Debt / EBITDA | 5.48 | 5.55 | 82.47 | 55.87 | 4.98 | 5.31 |
| Current Ratio | 0.9 | 1.13 | 1.35 | 1.08 | 1.18 | 0.96 |
Vistra has growing revenues and increasing reinvestment in the business and exceptional EPS growth. Additionally, the company's financial statements display decent operating margins with a positive growth rate and generally positive cash flows. However, the firm suffers from not enough current assets to cover current liabilities because its current ratio is 0.96 and a highly leveraged balance sheet.
The Market May Be Overvaluing Vistra's Earnings and Assets:
Vistra has a trailing twelve month P/E ratio of 32.2, compared to an average of 21.16 for the Utilities sector. Based on its EPS guidance of $6.9, the company has a forward P/E ratio of 29.1. Vistra's PEG ratio is 2.32 on the basis of the 13.9% weighted average of the company and the broader market's EPS compound average growth rates. This suggests that the company's shares are overvalued. Furthermore, Vistra is likely overvalued compared to the book value of its equity, since its P/B ratio of 30.18 is higher than the sector average of 2.36. The company's shares are currently trading 318.8% below their Graham number. Overall, Vistra's lofty valuation in terms of earnings and assets is to some extent attenuated by its strong cash flow trend and reasonable levels of debt.
Vistra Has an Analyst Consensus of Some Upside Potential:
The 18 analysts following Vistra have set target prices ranging from $86.0 to $325.0 per share, for an average of $223.92 with a buy rating. The company is trading -6.7% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Vistra has an average amount of shares sold short because 2.5% of the company's shares are sold short. Institutions own 93.0% of the company's shares, and the insider ownership rate stands at 0.7%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 12% stake in the company is worth $8,723,684,158.
