ASX:VRL

Stock Analysis Report

Village Roadshow

Executive Summary

Village Roadshow Limited engages in theme park and water park, cinema exhibition, film distribution, and sales promotion and loyalty program operations businesses in Australia, the United States, Europe, and internationally.

Snowflake

Fundamentals

Fair value with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

9.5%

VRL

2.6%

AU Entertainment

0.1%

AU Market


1 Year Return

37.2%

VRL

6.3%

AU Entertainment

11.9%

AU Market

Return vs Industry: VRL exceeded the Australian Entertainment industry which returned 6.3% over the past year.

Return vs Market: VRL exceeded the Australian Market which returned 11.9% over the past year.


Shareholder returns

VRLIndustryMarket
7 Day9.5%2.6%0.1%
30 Day13.6%2.0%-1.1%
90 Day14.0%9.2%-1.4%
1 Year39.6%37.2%9.9%6.3%18.5%11.9%
3 Year-35.8%-38.2%-8.8%-16.7%36.4%18.1%
5 Year-48.3%-55.1%13.3%-3.7%50.9%16.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VRL (A$3.1) is trading below our estimate of fair value (A$12.19)

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


Price To Earnings Ratio

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

PE vs Market: VRL 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 VRL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: VRL is good value based on its PB Ratio (1.4x) compared to the AU Entertainment industry average (2.3x).


Next Steps

Future Growth

How is Village Roadshow forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

42.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VRL is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.3%).

Earnings vs Market: VRL is forecast to become profitable over the next 3 year, which is considered above average market growth.

High Growth Earnings: VRL's loss is forecast to worsen by 0% next year.

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

High Growth Revenue: VRL'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: VRL's Return on Equity is forecast to be low in 3 years time (7.9%).


Next Steps

Past Performance

How has Village Roadshow performed over the past 5 years?

-48.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: VRL is unprofitable, and losses have increased over the past 5 years at a rate of -48.1% per year.

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

Earnings vs Industry: VRL is unprofitable, making it difficult to compare its past year earnings growth to the Entertainment industry (11%).


Return on Equity

High ROE: VRL has a negative Return on Equity (-2.2%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: VRL is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: VRL is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Village Roadshow's financial position?


Financial Position Analysis

Short Term Liabilities: VRL's short term assets (A$272.8M) do not cover its short term liabilities (A$330.1M)

Long Term Liabilities: VRL's short term assets (272.8M) do not cover its long term liabilities (517.6M)


Debt to Equity History and Analysis

Debt Level: VRL's debt to equity ratio (64.7%) is considered high

Reducing Debt: VRL's debt to equity ratio has reduced from 92.6% to 64.7% over the past 5 years.

Debt Coverage: VRL's debt is well covered by operating cash flow (29.3%).

Interest Coverage: VRL is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

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

Debt Coverage by Assets: VRL's debt is not covered by short term assets (assets are 1x debt).


Next Steps

Dividend

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

1.61%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%2.4%markettop25%5.6%industryaverage1.4%forecastin3Years3.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: VRL's dividend (1.61%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: VRL's dividend (1.61%) is low compared to the top 25% of dividend payers in the Australian market (5.58%).

Stable Dividend: VRL's dividend payments have been volatile in the past 10 years.

Growing Dividend: VRL's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: VRL's dividends in 3 years are forecast to be covered by earnings (67.2% payout ratio).


Next Steps

Management

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

7.4yrs

Average management tenure


CEO

Graham Burke (77yo)

1.2yrs

Tenure

AU$1,250,126

Compensation

Mr. Graham William Burke, AO serves as the Chief Executive Officer of Village Roadshow Limited since August 22, 2018. Mr. Burke served as Co-Executive Chairman and Co-Chief Executive Officer of Village Roa ...


CEO Compensation Analysis

Compensation vs. Market: Graham has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Australian market.

Compensation vs Earnings: Graham's compensation has been consistent with company performance over the past year.


Management Age and Tenure

7.4yrs

Average Tenure

68yo

Average Age

Experienced Management: VRL's management team is seasoned and experienced (7.4 years average tenure).


Board Age and Tenure

7.4yrs

Average Tenure

64.5yo

Average Age

Experienced Board: VRL's board of directors are considered experienced (7.4 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$5,741,56216 May 19
Mittleman Brothers, LLC
EntityCompany
Shares1,722,346
Max PriceAU$3.33
BuyAU$9,466,76216 May 19
Mittleman Brothers, LLC
EntityCompany
Shares4,124,233
Max PriceAU$2.30
BuyAU$500,00007 Dec 18
Julie Raffe
EntityIndividual
Role
Alternate Director
Finance Director & Joint Company Secretary
Shares200,000
Max PriceAU$2.50

Ownership Breakdown


Management Team

  • Julie Raffe (57yo)

    Finance Director & Joint Company Secretary

    • Tenure: 7.4yrs
    • Compensation: AU$921.50k
  • Simon Phillipson

    Director of Corporate Affairs

    • Tenure: 23.4yrs
    • Compensation: AU$758.86k
  • Phil Oneile

    Chief Marketing Officer of Roadshow Films

    • Tenure: 3.3yrs
  • Graham McHugh

    Chief Financial Officer of Warner Village Theme Parks

    • Tenure: 0yrs
  • Robert Kirby (68yo)

    Executive Chairman

    • Tenure: 1.2yrs
    • Compensation: AU$1.25m
  • Graham Burke (77yo)

    CEO & Executive Director

    • Tenure: 1.2yrs
    • Compensation: AU$1.25m
  • Eduardo Novillo Astrada

    Managing Director - Argentina - Village Gold Class Cinemas

    • Tenure: 0yrs
  • Antonio Maldonado

    Managing Director of Italy - Village Gold Class Cinemas

    • Tenure: 0yrs
  • Glen Barros

    Chief Operating Officer of Concord Music

    • Tenure: 0yrs
  • Clark Kirby

    Chief Operating Officer

    • Tenure: 7.4yrs
    • Compensation: AU$1.03m

Board Members

  • Julie Raffe (57yo)

    Finance Director & Joint Company Secretary

    • Tenure: 7.4yrs
    • Compensation: AU$921.50k
  • Robert Kirby (68yo)

    Executive Chairman

    • Tenure: 1.2yrs
    • Compensation: AU$1.25m
  • John Kirby (72yo)

    Non-Executive Director

    • Tenure: 31.2yrs
    • Compensation: AU$100.21k
  • Graham Burke (77yo)

    CEO & Executive Director

    • Tenure: 1.2yrs
    • Compensation: AU$1.25m
  • Bruce Berman

    Chairman & CEO of Village Roadshow Pictures Entertainment Inc

    • Tenure: 19.8yrs
    • Compensation: AU$2.06m
  • Jennifer Fox Gambrell (61yo)

    Independent Non-Executive Director

    • Tenure: 3.9yrs
    • Compensation: AU$118.64k
  • Robert Le Tet (75yo)

    Independent Non Executive Director

    • Tenure: 12.5yrs
    • Compensation: AU$121.59k
  • Tim Antonie (53yo)

    Lead Independent Director

    • Tenure: 2.1yrs
    • Compensation: AU$150.00k
  • Peter Tonagh (52yo)

    Independent Non-Executive Director

    • Tenure: 0.3yrs

Company Information

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


Key Information

  • Name: Village Roadshow Limited
  • Ticker: VRL
  • Exchange: ASX
  • Founded: 1954
  • Industry: Movies and Entertainment
  • Sector: Media
  • Market Cap: AU$612.789m
  • Shares outstanding: 195.16m
  • Website: https://www.villageroadshow.com.au

Location

  • Village Roadshow Limited
  • 500 Chapel Street
  • Level 1
  • South Yarra
  • Victoria
  • 3141
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VRLASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
VLRD.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
VRLCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992

Biography

Village Roadshow Limited engages in theme park and water park, cinema exhibition, film distribution, and sales promotion and loyalty program operations businesses in Australia, the United States, Europe, a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 10:32
End of Day Share Price2019/10/23 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.