ASX:VRS

Stock Analysis Report

Executive Summary

Veris Limited provides surveying, professional and advisory, and geospatial services in Australia.

Snowflake

Adequate balance sheet and fair value.

Share Price & News

How has Veris's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: VRS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

9.8%

VRS

0.7%

AU Professional Services

0.7%

AU Market


1 Year Return

-23.9%

VRS

21.7%

AU Professional Services

17.7%

AU Market

Return vs Industry: VRS underperformed the Australian Professional Services industry which returned 21.7% over the past year.

Return vs Market: VRS underperformed the Australian Market which returned 17.7% over the past year.


Shareholder returns

VRSIndustryMarket
7 Day9.8%0.7%0.7%
30 Day28.8%3.6%2.0%
90 Day8.1%6.6%4.9%
1 Year-23.9%-23.9%25.3%21.7%24.5%17.7%
3 Year-73.1%-74.4%48.2%36.6%40.5%21.3%
5 Year-64.2%-66.5%64.2%41.0%57.1%22.1%

Price Volatility Vs. Market

How volatile is Veris's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Veris undervalued compared to its fair value and its price relative to the market?

45.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VRS (A$0.07) is trading below our estimate of fair value (A$0.12)

Significantly Below Fair Value: VRS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: VRS is unprofitable, so we can't compare its PE Ratio to the Professional Services industry average.

PE vs Market: VRS is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate VRS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: VRS is good value based on its PB Ratio (0.9x) compared to the AU Professional Services industry average (2.1x).


Next Steps

Future Growth

How is Veris forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

15.7%

Forecasted Commercial Services industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Veris has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Veris performed over the past 5 years?

-66.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VRS has large one-off items impacting its financial results.

Growing Profit Margin: VRS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: VRS is unprofitable, and losses have increased over the past 5 years at a rate of -66.1% per year.

Accelerating Growth: Unable to compare VRS's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: VRS is unprofitable, making it difficult to compare its past year earnings growth to the Professional Services industry (26.7%).


Return on Equity

High ROE: VRS has a negative Return on Equity (-147.96%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Veris's financial position?


Financial Position Analysis

Short Term Liabilities: VRS's short term assets (A$40.9M) exceeds its short term liabilities (A$35.4M)

Long Term Liabilities: VRS's short term assets (A$40.9M) exceeds its long term liabilities (20.0M)


Debt to Equity History and Analysis

Debt Level: VRS's debt to equity ratio (42.1%) is considered high.

Reducing Debt: VRS's debt to equity ratio has increased from 0.4% to 42.1% over the past 5 years.


Balance Sheet

Inventory Level: VRS has a low level of unsold assets or inventory.

Debt Coverage by Assets: VRS's debt is covered by short term assets (assets are 3.6x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable VRS has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: VRS is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -59.7% per year.


Next Steps

Dividend

What is Veris's current dividend yield, its reliability and sustainability?

7.46%

Current Dividend Yield


Dividend Yield vs Market

company7.5%marketbottom25%2.3%markettop25%5.6%industryaverage2.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: VRS's dividend (7.46%) is higher than the bottom 25% of dividend payers in the Australian market (2.34%).

High Dividend: VRS's dividend (7.46%) is in the top 25% of dividend payers in the Australian market (5.63%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, VRS has been paying a dividend for less than 10 years.

Growing Dividend: VRS has only been paying a dividend for 3 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: VRS is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Veris's salary, the management and board of directors tenure and is there insider trading?

0.4yrs

Average management tenure


CEO

Michael Shirley 0

0.08yrs

Tenure

0

Dr. Michael Shirley, BSc (Hons), Phd serves as Chief Executive Officer of Veris Limited since October 2019. Dr. Shirley has been Managing Director of Clients at Aurecon Australasia Pty Ltd. since February  ...


Management Age and Tenure

0.4yrs

Average Tenure

Experienced Management: VRS's management team is not considered experienced ( 0.4 years average tenure), which suggests a new team.


Board Age and Tenure

8.1yrs

Average Tenure

Experienced Board: VRS's board of directors are considered experienced (8.1 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellAU$137,35023 Sep 19
Perennial Value Management Limited
EntityCompany
Shares2,353,965
Max PriceAU$0.06
BuyAU$3,19423 Sep 19
Perennial Value Management Limited
EntityCompany
Shares55,820
Max PriceAU$0.057
BuyAU$124,62719 Aug 19
Chapman Graeme
EntityIndividual
Shares2,294,249
Max PriceAU$0.06
BuyAU$44,71315 Aug 19
Perennial Value Management Limited
EntityCompany
Shares363,525
Max PriceAU$0.17
SellAU$215,78515 Aug 19
Perennial Value Management Limited
EntityCompany
Shares3,418,832
Max PriceAU$0.083
BuyAU$4,25313 Jun 19
Karl Paganin
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares75,940
Max PriceAU$0.056
BuyAU$70,09407 May 19
Karl Paganin
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares1,251,681
Max PriceAU$0.056
BuyAU$56,99916 Apr 19
Brian Elton
EntityIndividual
Shares1,000,000
Max PriceAU$0.057
BuyAU$20,37814 Jan 19
Thomas Lawrence
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares188,495
Max PriceAU$0.11
BuyAU$2,88024 Dec 18
Brian Elton
EntityIndividual
Shares30,000
Max PriceAU$0.096
BuyAU$124,79913 Dec 18
Brian Elton
EntityIndividual
Shares1,250,000
Max PriceAU$0.10
BuyAU$359,99922 Nov 18
Thomas Lawrence
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares4,000,000
Max PriceAU$0.09

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8.6%.


Management Team

  • Lisa Wynne

    CFO, Company Secretary & Head of Commercial

    • Tenure: 0.4yrs
    • Compensation: AU$176.92k
  • Adam Lamond

    Founder

    • Tenure: 8.1yrs
    • Compensation: AU$435.82k
  • Michael Shirley

    Chief Executive Officer

    • Tenure: 0.08yrs
  • Travis Young

    Chief Executive Officer of Aqura Technologies

    • Tenure: 0.8yrs
  • Kim Anson

    Chief Executive of Elton Consulting

    • Tenure: 0.4yrs
  • Ron Pettit

    Head of People & Culture

    • Tenure: 0.4yrs
  • Joshua Bovell

    Chief Digital Officer

    • Tenure: 0.3yrs

Board Members

  • Karl Paganin

    Independent Non-Executive Director

    • Tenure: 4.1yrs
    • Compensation: AU$77.31k
  • Derek La Ferla (60yo)

    Independent Non-Executive Chairman

    • Tenure: 8.1yrs
    • Compensation: AU$125.74k
  • Adam Lamond

    Founder

    • Tenure: 8.1yrs
    • Compensation: AU$435.82k
  • Tom Lawrence

    Independent Non-Executive Director

    • Tenure: 8.1yrs
    • Compensation: AU$77.31k

Company Information

Veris Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Veris Limited
  • Ticker: VRS
  • Exchange: ASX
  • Founded:
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: AU$24.814m
  • Shares outstanding: 370.37m
  • Website: https://www.veris.com.au

Number of Employees


Location

  • Veris Limited
  • 3 Hasler Road
  • Level 12
  • Osborne Park
  • Western Australia
  • 6017
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VRSASX (Australian Securities Exchange)YesOrdinary SharesAUAUDOct 2011
VRSCHIA (Chi-X Australia)YesOrdinary SharesAUAUDOct 2011

Biography

Veris Limited provides surveying, professional and advisory, and geospatial services in Australia. The company operates through three segments: Veris Australia, Aqura Technologies, and Elton Consulting. Th ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/20 10:35
End of Day Share Price2019/11/19 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.