Veritiv: Despite Some Headwinds, Its FCF Yield Is Too High To Ignore

Geoffrey Seiler
4.44K Followers

Summary

  • VRTV has done a great job reducing its debt and deleveraging its balance sheet.
  • This will give the company a number of attractive capital allocation options.
  • With an over 13% FCF yield, the stock is a "Buy."

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While Veritiv (VRTV) is seeing some headwinds in its business from customer inventory destocking, its greatly improved balance sheet and strong free cash flow (FCF) open up a lot of capital allocation options. Its FCF yield of over

This article was written by

4.44K Followers
Former Senior Equity Analyst at $600M long-short hedge fund Raging Capital.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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