ASX:VRS

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Fair value with imperfect balance sheet.

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

-5.1%

VRS

1.9%

AU Professional Services

-2.0%

AU Market


1 Year Return

-32.7%

VRS

-13.0%

AU Professional Services

-12.0%

AU Market

Return vs Industry: VRS underperformed the Australian Professional Services industry which returned -13% over the past year.

Return vs Market: VRS underperformed the Australian Market which returned -12% over the past year.


Shareholder returns

VRSIndustryMarket
7 Day-5.1%1.9%-2.0%
30 Day15.6%2.3%1.5%
90 Day48.0%12.2%12.0%
1 Year-32.7%-32.7%-10.3%-13.0%-8.4%-12.0%
3 Year-70.1%-71.5%3.9%-6.2%15.3%0.003%
5 Year-57.1%-59.8%25.8%3.1%28.8%0.9%

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?

22.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VRS (A$0.04) is trading below our estimate of fair value (A$0.05)

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 AU 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 (1.3x) compared to the AU Professional Services industry average (1.9x).


Next Steps

Future Growth

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

23.2%

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?

-63.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VRS is currently unprofitable.

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 -63% 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 (11.6%).


Return on Equity

High ROE: VRS has a negative Return on Equity (-158.16%), as it is currently unprofitable.


Next Steps

Financial Health

How is Veris's financial position?


Financial Position Analysis

Short Term Liabilities: VRS's short term assets (A$31.2M) do not cover its short term liabilities (A$36.3M).

Long Term Liabilities: VRS's short term assets (A$31.2M) exceed its long term liabilities (A$20.5M).


Debt to Equity History and Analysis

Debt Level: VRS's debt to equity ratio (54.8%) is considered high.

Reducing Debt: VRS's debt to equity ratio has increased from 24% to 54.8% over the past 5 years.


Balance Sheet


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: VRS has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: VRS has less than a year of cash runway if free cash flow continues to reduce at historical rates of 14.7% each year


Next Steps

Dividend

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

13.51%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VRS's dividend (13.51%) is higher than the bottom 25% of dividend payers in the Australian market (2.53%).

High Dividend: VRS's dividend (13.51%) is in the top 25% of dividend payers in the Australian market (6.54%)


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 4 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

How experienced are the management team and are they aligned to shareholders interests?

1.0yrs

Average management tenure


CEO

Michael Shirley

0.75

Tenure

Dr. Michael Shirley, BSc (Hons), Phd serves as Chief Executive Officer of Veris Limited since October 2019. He served as General Manager of Buildings & Infrastructure of Jacobs Group (Australia) Pty Ltd (a ...


Leadership Team

NamePositionTenureCompensationOwnership
Adam Lamond
Founder & Executive Director of Corporate and Strategy8.75yrsAU$435.82k11.99% A$1.8m
Lisa Wynne
Company Secretary & Head of Commercial8yrsAU$176.92k0.21% A$31.7k
Michael Shirley
Chief Executive Officer0.75yrno datano data
Steven Harding
Chief Financial Officer0.25yrno datano data
Ron Pettit
Executive Manager of People & Culture1.08yrsno datano data
Joshua Bovell
Chief Digital Officer1yrno datano data
Travis Young
Chief Executive Officer of Aqura Technologies1.5yrsno datano data

1.0yrs

Average Tenure

Experienced Management: VRS's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Adam Lamond
Founder & Executive Director of Corporate and Strategy8.75yrsAU$435.82k11.99% A$1.8m
Karl Paganin
Independent Non-Executive Chairman0.67yrAU$77.31k3.25% A$488.0k
Thomas Lawrence
Independent Non-Executive Director8.75yrsAU$77.31k3.24% A$486.0k
Brian Elton
Non-Executive Director2.33yrsAU$350.00k8.22% A$1.2m

5.5yrs

Average Tenure

Experienced Board: VRS's board of directors are considered experienced (5.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: VRS insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.6%.


Top Shareholders

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$14.994m
  • Shares outstanding: 405.25m
  • 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. The Veris Australia segment examines and records the features of a land or infrastructure to create maps, plans, and detailed descriptions, as well as to facilitate construction. The Aqura Technologies segment offers ICT and communications services. The Elton Consulting segment provides advice to businesses, governments, and not-for-profit organizations in making policy, strategy, city-making, and service delivery decisions. It serves industries, such as infrastructure; land and property; energy, mining, and resource; and defense, agribusiness, tourism, leisure, and governmental sectors. The company was formerly known as OTOC Limited and changed its name to Veris Limited in November 2016. Veris Limited is based in Osborne Park, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/13 10:36
End of Day Share Price2020/07/13 00:00
Earnings2019/12/31
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.