ASX:VEA

Stock Analysis Report

Viva Energy Group

Executive Summary

Viva Energy Group Limited operates as an integrated downstream petroleum company in Australia.

Snowflake

Fundamentals

Proven track record with mediocre balance sheet.

Share Price & News

How has Viva Energy Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: VEA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

VEA

-1.1%

AU Oil and Gas

-1.0%

AU Market


1 Year Return

15.6%

VEA

5.7%

AU Oil and Gas

16.2%

AU Market

Return vs Industry: VEA exceeded the Australian Oil and Gas industry which returned 5.7% over the past year.

Return vs Market: VEA matched the Australian Market which returned 16.2% over the past year.


Shareholder returns

VEAIndustryMarket
7 Day0%-1.1%-1.0%
30 Day11.5%2.3%-0.2%
90 Day-3.9%4.7%2.2%
1 Year19.1%15.6%10.2%5.7%21.9%16.2%
3 Yearn/a17.5%5.3%36.3%17.7%
5 Yearn/a-6.3%-23.0%52.7%18.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Viva Energy Group undervalued compared to its fair value and its price relative to the market?

8.39x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: VEA (A$2.19) is trading above our estimate of fair value (A$1.94)

Significantly Below Fair Value: VEA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: VEA is good value based on its PE Ratio (8.4x) compared to the Oil and Gas industry average (9.4x).

PE vs Market: VEA is good value based on its PE Ratio (8.4x) compared to the Australian market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: VEA is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: VEA is overvalued based on its PB Ratio (1.6x) compared to the AU Oil and Gas industry average (1.4x).


Next Steps

Future Growth

How is Viva Energy Group forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

8.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VEA's forecast earnings growth (8.3% per year) is above the savings rate (2.3%).

Earnings vs Market: VEA's earnings (8.3% per year) are forecast to grow slower than the Australian market (9.6% per year).

High Growth Earnings: VEA's earnings are forecast to grow, but not significantly.

Revenue vs Market: VEA's revenue (2.3% per year) is forecast to grow slower than the Australian market (3.6% per year).

High Growth Revenue: VEA's revenue (2.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VEA's Return on Equity is forecast to be low in 3 years time (11.7%).


Next Steps

Past Performance

How has Viva Energy Group performed over the past 5 years?

11.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VEA has high quality earnings.

Growing Profit Margin: VEA's current net profit margins (3.2%) are higher than last year (2.9%).


Past Earnings Growth Analysis

Earnings Trend: VEA's earnings have grown by 11.8% per year over the past 5 years.

Accelerating Growth: VEA's earnings growth over the past year (16.4%) exceeds its 5-year average (11.8% per year).

Earnings vs Industry: VEA earnings growth over the past year (16.4%) underperformed the Oil and Gas industry 68.1%.


Return on Equity

High ROE: VEA's Return on Equity (18.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Viva Energy Group's financial position?


Financial Position Analysis

Short Term Liabilities: VEA's short term assets (A$2.6B) exceeds its short term liabilities (A$2.4B)

Long Term Liabilities: VEA's short term assets (A$2.6B) do not cover its long term liabilities (2.6B)


Debt to Equity History and Analysis

Debt Level: VEA's debt to equity ratio (9%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if VEA's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: VEA's debt is well covered by operating cash flow (207.4%).

Interest Coverage: VEA's interest payments on its debt are not well covered by EBIT (1.9x coverage).


Balance Sheet

Inventory Level: VEA has a high level of physical assets or inventory.

Debt Coverage by Assets: VEA's debt is covered by short term assets (assets are 10.4x debt).


Next Steps

Dividend

What is Viva Energy Group's current dividend yield, its reliability and sustainability?

1.92%

Current Dividend Yield


Dividend Yield vs Market

company1.9%marketbottom25%2.4%markettop25%5.6%industryaverage4.4%forecastin3Years3.6%

Current dividend yield vs market & industry

Notable Dividend: VEA's dividend (1.92%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.38%).

High Dividend: VEA's dividend (1.92%) is low compared to the top 25% of dividend payers in the Australian market (5.58%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether VEA's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if VEA's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.4%), VEA's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: VEA's dividends in 3 years are forecast to be covered by earnings (60.6% payout ratio).


Next Steps

Management

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

0.8yrs

Average management tenure


CEO

Scott Wyatt 0

5.3yrs

Tenure

0

Mr. Scott A. Wyatt, BCA has been the Chief Executive Officer and Director at Viva Energy Group Limited since August 13, 2014 and June 7, 2018 respectively. Mr. Wyatt serves as the Chief Executive Officer o ...


Management Age and Tenure

0.8yrs

Average Tenure

Experienced Management: VEA's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Age and Tenure

1.4yrs

Average Tenure

54yo

Average Age

Experienced Board: VEA's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

SellAU$2,342,22415 Nov 19
Legg Mason, Inc.
EntityCompany
Shares1,129,921
Max PriceAU$2.07
BuyAU$5,219,88815 Nov 19
Legg Mason, Inc.
EntityCompany
Shares2,430,185
Max PriceAU$2.15
BuyAU$30,94106 Nov 19
Sarah Ryan
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares15,000
Max PriceAU$2.08
BuyAU$316,15006 Nov 19
Legg Mason, Inc.
EntityCompany
Shares160,592
Max PriceAU$2.07
SellAU$485,10606 Nov 19
Legg Mason, Inc.
EntityCompany
Shares257,278
Max PriceAU$1.97
SellAU$37,967,18927 Sep 19
Perpetual Limited
EntityCompany
Shares19,628,687
Max PriceAU$1.93
SellAU$4,943,16517 Sep 19
Legg Mason, Inc.
EntityCompany
Shares2,310,773
Max PriceAU$2.14
BuyAU$15,251,67417 Sep 19
Legg Mason, Inc.
EntityCompany
Shares6,930,569
Max PriceAU$2.20
SellAU$106,789,71909 Sep 19
Perpetual Limited
EntityCompany
Shares53,578,322
Max PriceAU$1.99
BuyAU$23,052,23409 Sep 19
Perpetual Limited
EntityCompany
Shares10,740,822
Max PriceAU$2.15
BuyAU$55,12006 Sep 19
Legg Mason, Inc.
EntityCompany
Shares28,051
Max PriceAU$1.97
SellAU$269,90406 Sep 19
Legg Mason, Inc.
EntityCompany
Shares143,185
Max PriceAU$1.88
BuyAU$13,771,06502 Sep 19
Legg Mason, Inc.
EntityCompany
Shares6,165,453
Max PriceAU$2.23
SellAU$4,121,06702 Sep 19
Legg Mason, Inc.
EntityCompany
Shares1,969,817
Max PriceAU$2.09
BuyAU$19,55030 Aug 19
Sarah Ryan
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares10,000
Max PriceAU$1.96
BuyAU$100,70728 Aug 19
Arnoud De Meyer
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares48,900
Max PriceAU$2.06
BuyAU$301,64629 Jul 19
Nikko Asset Management Co., Ltd.
EntityCompany
Shares145,385
Max PriceAU$2.20
SellAU$20,497,27929 Jul 19
Nikko Asset Management Co., Ltd.
EntityCompany
Shares8,754,745
Max PriceAU$2.34
BuyAU$75,806,95828 Jul 19
Nikko Asset Management Co., Ltd.
EntityCompany
Shares33,934,954
Max PriceAU$2.26
SellAU$68,681,95921 Jun 19
Perpetual Limited
EntityCompany
Shares31,102,643
Max PriceAU$2.21
SellAU$79,482,64014 Jun 19
Perpetual Limited
EntityCompany
Shares34,640,490
Max PriceAU$2.29
BuyAU$33,094,65214 Jun 19
Perpetual Limited
EntityCompany
Shares14,426,244
Max PriceAU$2.29
BuyAU$59,96629 May 19
Jane McAloon
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares27,692
Max PriceAU$2.17
BuyAU$43,20029 May 19
Sarah Ryan
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares20,000
Max PriceAU$2.16
BuyAU$68,419,12220 Mar 19
Pendal Group Limited
EntityCompany
Shares30,679,030
Max PriceAU$2.24
SellAU$2,258,11320 Mar 19
Pendal Group Limited
EntityCompany
Shares1,069,755
Max PriceAU$2.16
BuyAU$2,283,95220 Mar 19
Legg Mason, Inc.
EntityCompany
Shares5,475,895
Max PriceAU$0.42
SellAU$1,391,75120 Mar 19
Legg Mason, Inc.
EntityCompany
Shares3,183,481
Max PriceAU$0.44
SellAU$105,266,41906 Mar 19
Perpetual Limited
EntityCompany
Shares47,368,180
Max PriceAU$2.22
BuyAU$19,295,83006 Mar 19
Perpetual Limited
EntityCompany
Shares9,762,249
Max PriceAU$1.98
BuyAU$9,52001 Mar 19
Sarah Ryan
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares4,000
Max PriceAU$2.38
BuyAU$2,799,30631 Dec 18
Legg Mason, Inc.
EntityCompany
Shares1,402,621
Max PriceAU$2.00
SellAU$1,410,46231 Dec 18
Legg Mason, Inc.
EntityCompany
Shares658,163
Max PriceAU$2.14

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Amanda Fleming

    Chief People & Technology Officer

    • Tenure: 0.08yrs
  • Scott Wyatt

    CEO & Executive Director

    • Tenure: 5.3yrs
  • Daniel Ridgway

    Chief Operating Officer

    • Tenure: 0.8yrs
  • Lachlan Pfeiffer

    EGM of Legal & External Affairs

    • Tenure: 0yrs
  • Jevan Bouzo

    Chief Financial Officer

    • Tenure: 1.4yrs
    • Compensation: AU$1.21m
  • Karla Wynne

    Head of Investor Relations & Strategy

    • Tenure: 0yrs
  • Julia Kagan

    Additional Company Secretary

    • Tenure: 0.3yrs

Board Members

  • Arnoud De Meyer (65yo)

    Independent Non-Executive Director

    • Tenure: 1.4yrs
  • Jane McAloon (55yo)

    Independent Non-Executive Director

    • Tenure: 1.4yrs
  • Sarah Ryan (53yo)

    Independent Non-Executive Director

    • Tenure: 1.4yrs
  • Dat Duong (44yo)

    Non-Executive Director

    • Tenure: 1.4yrs
  • Robert Hill

    Independent Non-Executive Chairman

    • Tenure: 1.4yrs
    • Compensation: AU$584.34k
  • Scott Wyatt

    CEO & Executive Director

    • Tenure: 5.3yrs
  • Hui Kho

    Non-Executive Director

    • Tenure: 1.4yrs

Company Information

Viva Energy Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Viva Energy Group Limited
  • Ticker: VEA
  • Exchange: ASX
  • Founded: 2018
  • Industry: Oil and Gas Refining and Marketing
  • Sector: Energy
  • Market Cap: AU$4.259b
  • Shares outstanding: 1.94b
  • Website: https://www.vivaenergy.com.au

Location

  • Viva Energy Group Limited
  • 720 Bourke Street
  • Level 16
  • Docklands
  • Victoria
  • 3008
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VEAASX (Australian Securities Exchange)YesNew Ordinary SharesAUAUDJul 2018
VEACHIA (Chi-X Australia)YesNew Ordinary SharesAUAUDJul 2018

Biography

Viva Energy Group Limited operates as an integrated downstream petroleum company in Australia. The company operates in three segments: Retail, Fuels and Marketing; Refining; and Supply, Corporate and Overh ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/22 10:45
End of Day Share Price2019/11/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.