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VCX

Vicinity CentresASX:VCX Stock Report

Last Price

AU$1.68

Market Cap

AU$7.6b

7D

-2.0%

1Y

4.7%

Updated

17 Jan, 2022

Data

Company Financials +
VCX fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance0/6
Financial Health3/6
Dividends4/6

VCX Stock Overview

Vicinity Centres (Vicinity or the Group) is one of Australia’s leading retail property groups.

Vicinity Centres Competitors

Scentre Group

ASX:SCG

AU$15.9b

Shopping Centres Australasia Property Group

ASX:SCP

AU$3.2b

BWP Trust

ASX:BWP

AU$2.6b

Charter Hall Retail Real Estate Investment Trust

ASX:CQR

AU$2.4b

Price History & Performance

Summary of all time highs, changes and price drops for Vicinity Centres
Historical stock prices
Current Share PriceAU$1.68
52 Week HighAU$1.83
52 Week LowAU$1.46
Beta1.64
1 Month Change-2.04%
3 Month Change-6.15%
1 Year Change4.67%
3 Year Change-35.63%
5 Year Change-41.87%
Change since IPO-44.55%

Recent News & Updates

Shareholder Returns

VCXAU REITsAU Market
7D-2.0%-3.8%-0.5%
1Y4.7%19.5%10.4%

Return vs Industry: VCX underperformed the Australian REITs industry which returned 19.5% over the past year.

Return vs Market: VCX underperformed the Australian Market which returned 10.4% over the past year.

Price Volatility

Is VCX's price volatile compared to industry and market?
VCX volatility
VCX Average Weekly Movement3.5%
REITs Industry Average Movement3.2%
Market Average Movement8.4%
10% most volatile stocks in AU Market15.2%
10% least volatile stocks in AU Market3.6%

Stable Share Price: VCX is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: VCX's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/a1,200Grant Lewis Kelleyhttps://www.vicinity.com.au

Vicinity Centres (Vicinity or the Group) is one of Australia’s leading retail property groups. With a fully integrated asset management platform, and $24 billion in retail assets under management across 63 shopping centres, it is the second largest listed manager of Australian retail property. Vicinity has a Direct Portfolio with interests in 60 shopping centres (including the DFO Brisbane business) and manages 31 assets on behalf of Strategic Partners, 28 of which are co-owned by the Group.

Vicinity Centres Fundamentals Summary

How do Vicinity Centres's earnings and revenue compare to its market cap?
VCX fundamental statistics
Market CapAU$7.65b
Earnings (TTM)-AU$258.00m
Revenue (TTM)AU$1.14b

6.7x

P/S Ratio

-29.6x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
VCX income statement (TTM)
RevenueAU$1.14b
Cost of RevenueAU$299.00m
Gross ProfitAU$836.00m
ExpensesAU$1.09b
Earnings-AU$258.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Feb 16, 2022

Earnings per share (EPS)-0.057
Gross Margin73.66%
Net Profit Margin-22.73%
Debt/Equity Ratio35.0%

How did VCX perform over the long term?

See historical performance and comparison

Dividends

7.9%

Current Dividend Yield

28%

Payout Ratio

Valuation

Is Vicinity Centres 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: VCX (A$1.68) is trading below our estimate of fair value (A$3.92)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: VCX is good value based on its PB Ratio (0.8x) compared to the AU REITs industry average (1.2x).


Future Growth

How is Vicinity Centres forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

31.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VCX is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

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

High Growth Earnings: VCX's is expected to become profitable in the next 3 years.

Revenue vs Market: VCX's revenue is expected to decline over the next 3 years (-3.1% per year).

High Growth Revenue: VCX's revenue is forecast to decline over the next 3 years (-3.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VCX's Return on Equity is forecast to be low in 3 years time (5.9%).


Past Performance

How has Vicinity Centres performed over the past 5 years?

-60.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VCX is currently unprofitable.

Growing Profit Margin: VCX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: VCX is unprofitable, and losses have increased over the past 5 years at a rate of 60% per year.

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

Earnings vs Industry: VCX is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (106.4%).


Return on Equity

High ROE: VCX has a negative Return on Equity (-2.61%), as it is currently unprofitable.


Financial Health

How is Vicinity Centres's financial position?


Financial Position Analysis

Short Term Liabilities: VCX's short term assets (A$156.6M) do not cover its short term liabilities (A$562.5M).

Long Term Liabilities: VCX's short term assets (A$156.6M) do not cover its long term liabilities (A$3.9B).


Debt to Equity History and Analysis

Debt Level: VCX's net debt to equity ratio (34.5%) is considered satisfactory.

Reducing Debt: VCX's debt to equity ratio has reduced from 37.9% to 35% over the past 5 years.

Debt Coverage: VCX's debt is not well covered by operating cash flow (18.7%).

Interest Coverage: VCX's interest payments on its debt are well covered by EBIT (3.6x coverage).


Balance Sheet


Dividend

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

7.86%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VCX's dividend (7.86%) is higher than the bottom 25% of dividend payers in the Australian market (2.18%).

High Dividend: VCX's dividend (7.86%) is in the top 25% of dividend payers in the Australian market (5.39%)


Stability and Growth of Payments

Stable Dividend: VCX has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: VCX has only been paying a dividend for 6 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.7%), VCX's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: VCX's dividends in 3 years are forecast to be covered by earnings (78.1% payout ratio).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Grant Lewis Kelley (56 yo)

4yrs

Tenure

AU$2,781,458

Compensation

Mr. Grant Lewis Kelley has been the Chief Executive Officer, Managing Director and Director of Vicinity Centres since January 01, 2018. Mr. Kelley had been the Chief Executive Officer at City Developments...


CEO Compensation Analysis

Compensation vs Market: Grant Lewis's total compensation ($USD2.01M) is about average for companies of similar size in the Australian market ($USD2.36M).

Compensation vs Earnings: Grant Lewis's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: VCX's management team is considered experienced (2.8 years average tenure).


Board Members

Experienced Board: VCX's board of directors are considered experienced (6.6 years average tenure).


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

Vicinity Centres's employee growth, exchange listings and data sources


Key Information

  • Name: Vicinity Centres
  • Ticker: VCX
  • Exchange: ASX
  • Founded: NaN
  • Industry: Retail REITs
  • Sector: Real Estate
  • Implied Market Cap: AU$7.648b
  • Shares outstanding: 4.55b
  • Website: https://www.vicinity.com.au

Number of Employees


Location

  • Vicinity Centres
  • Chadstone Tower One
  • Level 4
  • Chadstone
  • Victoria
  • 3148
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/17 16:17
End of Day Share Price2022/01/17 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.