Verso Corporation: Responding To The Downturn In Style (NYSE:VRS)

Verso Corporation (VRS) came across a screen we ran where the objective was to find stocks with compelling valuations, low debt and a paying dividend. The other prerequisites of the screen were to ensure the respective companies were profitable and had plenty of liquidity (high current ratio). Verso satisfied all of the parameters, as we can see below, and definitely warranted more research after this step. Since we like investing in low-priced stocks (usually under $20 in case we write options against our positions), the screen also only gave results for stocks under $20.

Price-to-earnings ratio

1.54

Price-to-book ratio

0.28

Price-to-sales ratio

0.14

Price-to-cash/flow ratio

6.7

Debt-to-equity ratio

0

Dividend

4.94%

Price of shares

$8.09 per share

What stood out from the screen immediately was how cheap Verso’s earnings, sales and assets are at present. Furthermore, the stated dividend yield of just under 5% does not include the special cash

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