Vera Bradley, Inc. (VRA)
Valuation Overview•Is Vera Bradley, Inc. Overvalued or Undervalued?
Trading at a relative discount to industry peers, suggesting a specific risk premium is applied.
Fragile underlying quality score of 36/100; weak margins or elevated debt leverage warrant caution.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Mixed fundamental profile with offsetting strengths and weaknesses.
Wall Street sentiment is generally neutral. The company currently retains all capital for reinvestment and growth rather than returning it to shareholders.
VRA struggles with subpar profitability and pressured margins. However, the balance sheet carries elevated leverage, requiring careful monitoring of debt servicing capabilities.
The company is facing top-line contraction (-18.6% 3Y CAGR) paired with stable bottom-line earnings. However, profitability remains a major concern with severely compressed operating margins (-6.6%).
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $55.7M | -27.5% | -18.6% | -10.5% | -6.0% | |
| EBITDA | $2.5M | — | — | — | — | |
| Net Income | -$4.8M | +23.1% | +7.1% | — | — | |
| EPS (Diluted) | $-0.17 | +20.5% | — | — | — | |
| Free Cash Flow | -$5.6M | +141.2% | — | -7.6% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 47.9% | 50.4% | 50.4% | 53.4% |
| Operating Margin | -6.6% | -6.5% | -6.7% | -1.1% |
| Net Margin | -7.0% | -10.9% | -8.3% | -2.6% |
| FCF Margin | 8.9% | 2.2% | 1.7% | 3.8% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $-0.33 | $-0.09 | +72.7% | ||
| Q1'26 | $0.01 | $0.09 | +800.0% | ||
| Q4'25 | $-0.11 | $-0.30 | -172.7% | ||
| Q3'25 | $-0.15 | $-0.02 | +86.7% | ||
| Q2'25 | $-0.13 | $-0.36 | -176.9% | ||
| Q1'25 | $0.10 | $-0.30 | -400.0% | ||
| Q4'24 | $0.06 | $-0.27 | -550.0% | ||
| Q3'24 | $0.31 | $0.13 | -58.1% |
Total return is +83.1% (1Y), outperforming the benchmark by +58.1%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +51.2% | +41.9% | — |
| 1Y | +83.1% | +58.1% | — |
| 3YCAGR | -14.8% | -35.3% | — |
| 5YCAGR | -19.4% | -33.2% | — |
| 10YCAGR | -12.6% | -26.4% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Vera Bradley, Inc. (VRA) valuation, health, and returns.
Based on peer relative multiples, Vera Bradley, Inc. appears Cheap versus peers compared to industry peers.
Vera Bradley, Inc. has multiple valuation anchors: Peer Relative Fair Value: $5.92. A convergence of these signals offers higher conviction.
Vera Bradley, Inc. displays weak financial health with a composite quality score of 36/100, supported by a Altman Z-Score of 2.6 (grey zone), Piotroski F-Score of 4/9, Return on Invested Capital (ROIC) of -9.8%.
Vera Bradley, Inc. does not return material capital to shareholders via dividends or share repurchases, electing to retain earnings to fund internal growth.
Vera Bradley, Inc.'s current growth trajectory is Decelerating. The company achieved -27.5% 1Y revenue growth and +20.5% 1Y EPS growth, compared to its 3Y revenue CAGR of -18.6%.
Wall Street consensus is Hold based on 20 analysts, beating EPS expectations in 42% of recent quarters with a 2-quarter streak. The consensus price target represents a N/A change from current levels.
Investment risks for Vera Bradley, Inc. include: -40.2% 1-year max drawdown. Volatility risk is characterized by a beta of 0.80x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.