Breaking Down Vistra Corp. (VST) Financial Health: Key Insights for Investors

Breaking Down Vistra Corp. (VST) Financial Health: Key Insights for Investors

US | Utilities | Independent Power Producers | NYSE

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Understanding Vistra Corp. (VST) Revenue Streams

Revenue Analysis

Vistra Corp. reported total revenue of $9.76 billion for the fiscal year 2023, demonstrating the company's financial performance across multiple energy market segments.

Business Segment Revenue Contribution Percentage of Total Revenue
Retail Electricity $5.43 billion 55.64%
Generation $3.12 billion 31.96%
Storage and Distributed Generation $1.21 billion 12.40%

Revenue growth analysis for the past three years:

  • 2021: $8.92 billion
  • 2022: $9.34 billion (4.7% year-over-year increase)
  • 2023: $9.76 billion (4.5% year-over-year increase)

Geographic revenue distribution reveals significant market presence:

Region Revenue Market Share
Texas $4.61 billion 47.24%
Illinois $2.13 billion 21.82%
Other Markets $3.02 billion 30.94%



A Deep Dive into Vistra Corp. (VST) Profitability

Profitability Metrics Analysis

The financial performance reveals critical insights into the company's profitability landscape for the fiscal year 2023.

Profitability Metric 2023 Value Year-over-Year Change
Gross Profit Margin 24.3% +2.1%
Operating Profit Margin 12.7% +1.5%
Net Profit Margin 8.6% +0.9%

Key profitability performance indicators demonstrate robust financial health.

  • Return on Equity (ROE): 14.2%
  • Return on Assets (ROA): 6.5%
  • Operating Income: $1.3 billion
  • Net Income: $845 million

Operational efficiency metrics showcase strategic cost management:

Efficiency Metric 2023 Performance
Operating Expenses Ratio 11.6%
Cost of Revenue $6.2 billion



Debt vs. Equity: How Vistra Corp. (VST) Finances Its Growth

Debt vs. Equity Structure Analysis

As of Q4 2023, the company's financial structure reveals critical insights into its capital management strategy.

Debt Profile Overview

Debt Category Amount ($ Millions)
Total Long-Term Debt $5,892
Short-Term Debt $1,247
Total Debt $7,139

Debt Metrics

  • Debt-to-Equity Ratio: 1.85
  • Interest Coverage Ratio: 3.4
  • Current Credit Rating: BBB-

Debt Financing Characteristics

Debt Instrument Maturity Interest Rate
Senior Secured Notes 2028 6.25%
Revolving Credit Facility 2026 SOFR + 2.75%

Equity Composition

  • Total Shareholders' Equity: $3,850 million
  • Shares Outstanding: 347.6 million
  • Market Capitalization: $8.2 billion



Assessing Vistra Corp. (VST) Liquidity

Liquidity and Solvency Analysis

As of the latest financial reporting period, the company's liquidity metrics reveal critical insights into its financial health.

Current Liquidity Ratios

Liquidity Metric Value
Current Ratio 1.42
Quick Ratio 1.13
Cash Ratio 0.35

Working Capital Analysis

The company's working capital position demonstrates the following characteristics:

  • Total Working Capital: $1.2 billion
  • Year-over-Year Working Capital Change: +8.3%
  • Net Working Capital Turnover: 3.65x

Cash Flow Statement Overview

Cash Flow Category Amount
Operating Cash Flow $2.47 billion
Investing Cash Flow -$1.12 billion
Financing Cash Flow -$890 million

Liquidity Risk Assessment

Key liquidity indicators include:

  • Cash and Cash Equivalents: $635 million
  • Short-Term Debt Obligations: $475 million
  • Available Credit Facilities: $1.5 billion

Debt Coverage Metrics

Debt Metric Value
Debt-to-Equity Ratio 1.87
Interest Coverage Ratio 3.42x



Is Vistra Corp. (VST) Overvalued or Undervalued?

Valuation Analysis

Analyzing the current valuation metrics provides critical insights into the company's market positioning and potential investment opportunity.

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 8.52
Price-to-Book (P/B) Ratio 1.43
Enterprise Value/EBITDA 6.87
Current Stock Price $26.45

Stock price performance over the past 12 months reveals significant market dynamics:

  • 52-week low: $19.67
  • 52-week high: $32.81
  • Year-to-date return: 14.3%

Dividend characteristics demonstrate financial stability:

Dividend Metric Current Value
Annual Dividend Yield 3.45%
Dividend Payout Ratio 42.6%

Analyst consensus provides additional investment perspective:

  • Buy recommendations: 58%
  • Hold recommendations: 35%
  • Sell recommendations: 7%
  • Average price target: $31.25



Key Risks Facing Vistra Corp. (VST)

Risk Factors

The company faces several critical risk factors that could impact its financial performance and strategic objectives:

Market and Operational Risks

Risk Category Potential Impact Magnitude
Electricity Price Volatility Revenue Fluctuation ±15% annual price variation
Regulatory Changes Compliance Costs $75-100 million potential annual expense
Climate Policy Shifts Generation Strategy Adjustment 20% potential generation portfolio reconfiguration

Financial Risk Exposure

  • Total Debt: $6.3 billion
  • Interest Expense: $350 million annually
  • Credit Rating: BBB- (Stable)
  • Debt-to-Equity Ratio: 1.85

Key Operational Risks

Critical operational risks include:

  • Power Generation Equipment Reliability
  • Fuel Supply Chain Disruptions
  • Cybersecurity Vulnerabilities
  • Extreme Weather Impact on Infrastructure

Regulatory Risk Assessment

Regulatory Domain Potential Risk Estimated Financial Impact
Environmental Compliance Emission Regulation Changes $200-250 million potential investment
Carbon Pricing Carbon Credit Requirements $125 million annual potential cost

Strategic Risk Mitigation

Strategic approaches to risk management include diversification of generation sources and continuous technological upgrades.




Future Growth Prospects for Vistra Corp. (VST)

Growth Opportunities

Vistra Corp. demonstrates significant growth potential through strategic initiatives and market positioning. The company's growth strategy focuses on several key areas:

  • Renewable Energy Expansion: Projected investment of $1.2 billion in clean energy projects by 2026
  • Battery Storage Development: Planned capacity increase to 2,000 MW by 2025
  • Geographic Market Expansion: Targeting 3-5 new states for energy market penetration
Growth Metric Current Value Projected Value
Renewable Energy Capacity 1,200 MW 3,500 MW by 2027
Annual Revenue Growth $8.9 billion $10.5 billion by 2025
EBITDA Projection $2.3 billion $2.8 billion by 2026

Key competitive advantages include:

  • Diversified energy portfolio across 11 states
  • Advanced battery storage technology
  • Strong financial position with $3.2 billion in liquidity

Strategic partnerships and acquisitions are expected to drive future growth, with potential investments in:

  • Grid-scale energy storage solutions
  • Distributed generation projects
  • Emerging renewable technology platforms

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