ASX:VEA

Stock Analysis Report

Viva Energy Group

Executive Summary

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


Snowflake Analysis

Solid track record and fair value.

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

11.2%

VEA

0.2%

AU Oil and Gas

0.02%

AU Market


1 Year Return

-19.9%

VEA

-8.4%

AU Oil and Gas

14.6%

AU Market

Return vs Industry: VEA underperformed the Australian Oil and Gas industry which returned -8.4% over the past year.

Return vs Market: VEA underperformed the Australian Market which returned 14.6% over the past year.


Shareholder returns

VEAIndustryMarket
7 Day11.2%0.2%0.02%
30 Day3.6%-8.0%0.2%
90 Day-14.9%-3.8%5.7%
1 Year-17.4%-19.9%-5.5%-8.4%19.7%14.6%
3 Yearn/a12.8%1.3%38.7%20.2%
5 Yearn/a5.0%-12.0%50.6%17.1%

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?

7.24x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: VEA (A$1.89) is trading above our estimate of fair value (A$1.52)

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 (7.2x) compared to the Oil and Gas industry average (8.6x).

PE vs Market: VEA is good value based on its PE Ratio (7.2x) compared to the Australian market (18.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: VEA is overvalued based on its PB Ratio (1.3x) compared to the AU Oil and Gas industry average (1.2x).


Next Steps

Future Growth

How is Viva Energy Group forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

7.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VEA's forecast earnings growth (7.4% per year) is above the savings rate (1.1%).

Earnings vs Market: VEA's earnings (7.4% per year) are forecast to grow slower than the Australian market (9.3% per year).

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

Revenue vs Market: VEA's revenue (2.5% per year) is forecast to grow slower than the Australian market (4.2% per year).

High Growth Revenue: VEA's revenue (2.5% 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 (11.5%).


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%) exceeded the Oil and Gas industry 14.4%.


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) exceed 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 (A$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?

2.22%

Current Dividend Yield


Dividend Yield vs Market

company2.2%marketbottom25%2.3%markettop25%5.3%industryaverage4.1%forecastin3Years4.6%

Current dividend yield vs market & industry

Notable Dividend: VEA's dividend (2.22%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.29%).

High Dividend: VEA's dividend (2.22%) is low compared to the top 25% of dividend payers in the Australian market (5.35%).


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 (62.3% payout ratio).


Next Steps

Management

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

1.1yrs

Average management tenure


CEO

Scott Wyatt 0

5.5yrs

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 ...


Leadership Team

NamePositionTenureCompensationOwnership
Jevan Bouzo
Chief Financial Officer1.7yrsAU$1.21m0.0079% A$290.7k
Scott Wyatt
CEO & Executive Director5.5yrsno data0.56% A$20.7m
Daniel Ridgway
Chief Operating Officer1.1yrsno datano data
Amanda Fleming
Chief People & Technology Officer0.3yrsno datano data
Karla Wynne
Head of Investor Relations & Strategy0yrsno datano data
Lachlan Pfeiffer
EGM of Legal & External Affairs0yrsno datano data
Julia Kagan
Additional Company Secretary0.6yrsno datano data

1.1yrs

Average Tenure

Experienced Management: VEA's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Scott Wyatt
CEO & Executive Director5.5yrsno data0.56% A$20.7m
Arnoud De Meyer
Independent Non-Executive Director1.7yrsno data0.0035% A$130.1k
Jane McAloon
Independent Non-Executive Director1.7yrsno data0.0024% A$90.0k
Sarah Ryan
Independent Non-Executive Director1.7yrsno data0.0038% A$138.6k
Dat Duong
Non-Executive Director1.7yrsno datano data
Robert Hill
Independent Non-Executive Chairman1.7yrsAU$584.34k0.0021% A$75.7k
Hui Kho
Non-Executive Director1.7yrsno datano data

1.7yrs

Average Tenure

54yo

Average Age

Experienced Board: VEA's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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$3.675b
  • 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 Overheads. The Retail, Fuels and Marketing segment supplies and markets fuel products to a network of approximately 1,250 retail sites under the Shell, Coles Alliance, and Liberty brand names, as well as to other retail operators and wholesalers. It is also involved in supplying fuel, lubricants, and specialty products to commercial customers in the aviation, marine, transport, resources, and construction and manufacturing industries. The Refining segment owns and operates a refinery in Geelong, Victoria. It offers petroleum products, such as gasoline, diesel, jet fuel, aviation gasoline, gas, solvents, bitumen, and other specialty products. The Supply, Corporate and Overheads segment owns or has contracted access to an infrastructure network comprising terminals, storage tanks, depots, and pipelines across metropolitan and regional Australia. The company also engages in site lease and brand licensing activities. Viva Energy Group Limited was incorporated in 2018 and is headquartered in Docklands, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 10:49
End of Day Share Price2020/02/21 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.