Vera Bradley Inc. Common Stock (VRA)

FairStock Score: 58/100 — STEADY

Key Financials

Strengths

• Generates $36 million in annual free cash flow (32.4% yield on market cap)
• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics

Concerns

• Revenue declining at 15.1% year-over-year signals potential demand weakness or market share loss

AI Analysis

Vera Bradley Inc. Common Stock is a micro-cap consumer cyclical company valued at $111 million. Revenue stands at $270 million. From a quality standpoint, Vera shows solid Piotroski F-Score of 7/9 and Altman Z-Score of 2.5 in the grey zone. On valuation, the stock is strong 15.4% free cash flow yield. Growth dynamics show revenue growing at -15.1% and profit growth of 105.7%. Our composite FairStock Score of 58/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $36 million in annual free cash flow (32.4% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the consumer cyclical space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer