Vistra Corp. (VST) Bundle
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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