ASX:VCX

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has Vicinity Centres's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: VCX is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: VCX's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

2.4%

VCX

-0.7%

AU REITs

-1.1%

AU Market


1 Year Return

-34.6%

VCX

-7.0%

AU REITs

1.7%

AU Market

Return vs Industry: VCX underperformed the Australian REITs industry which returned -7% over the past year.

Return vs Market: VCX underperformed the Australian Market which returned 1.7% over the past year.


Shareholder returns

VCXIndustryMarket
7 Day2.4%-0.7%-1.1%
30 Day30.3%10.4%10.8%
90 Day24.2%9.2%8.1%
1 Year-32.6%-34.6%-3.2%-7.0%5.2%1.7%
3 Year-29.0%-39.0%24.8%7.9%24.1%8.7%
5 Year-17.0%-36.8%59.9%24.4%58.8%26.5%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Vicinity Centres undervalued compared to its fair value and its price relative to the market?

26.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VCX (A$1.72) is trading below our estimate of fair value (A$2.35)

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 AU 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 (0.7x) compared to the AU REITs industry average (1.1x).


Next Steps

Future Growth

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

52.7%

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 (2.3%).

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 (-1.1% per year).

High Growth Revenue: VCX's revenue is forecast to decline over the next 3 years (-1.1% 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 (5.6%).


Next Steps

Past Performance

How has Vicinity Centres performed over the past 5 years?

-29.4%

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 29.4% 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 (6.8%).


Return on Equity

High ROE: VCX has a negative Return on Equity (-17.06%), as it is currently unprofitable.


Next Steps

Financial Health

How is Vicinity Centres's financial position?


Financial Position Analysis

Short Term Liabilities: VCX's short term assets (A$360.9M) exceed its short term liabilities (A$356.3M).

Long Term Liabilities: VCX's short term assets (A$360.9M) do not cover its long term liabilities (A$4.3B).


Debt to Equity History and Analysis

Debt Level: VCX's debt to equity ratio (39.6%) is considered satisfactory.

Reducing Debt: VCX's debt to equity ratio has reduced from 40.7% to 39.6% over the past 5 years.

Debt Coverage: VCX's debt is not well covered by operating cash flow (11.3%).

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


Balance Sheet


Next Steps

Dividend

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

5.74%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate VCX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate VCX's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if VCX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if VCX's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: VCX is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of VCX's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

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

1.9yrs

Average management tenure


CEO

Grant Lewis Kelley (55 yo)

2.92yrs

Tenure

AU$2,266,341

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 ($USD1.67M) is below average for companies of similar size in the Australian market ($USD2.46M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Grant Lewis Kelley
CEO, MD & Director2.92yrsAU$2.27m0.0074%
A$ 570.2k
Peter Huddle
Chief Operating Officer1.75yrsAU$1.45m0.0011%
A$ 88.0k
Nicholas Schiffer
Chief Financial Officer1.25yrsno datano data
Ian Padgham
Acting Chief Information Officer1.92yrsno datano data
Penny Berger
Head of Investor Relationsno datano datano data
Carolyn Reynolds
General Counsel & Company Secretaryno datano datano data
Katherine Rellos
Head of Corporate Communicationsno datano datano data
Tanya Southey
Chief People & Culture Officer1.17yrsno datano data
Justin Mills
Chief Strategy Officer2yrsno datano data
Carolyn Viney
Chief Development Officer1.92yrsno datano data
Rohan Abeyewardene
Company Secretary2.83yrsno datano data
Troy Dahms
Senior Investor Relations Managerno datano datano data

1.9yrs

Average Tenure

Experienced Management: VCX's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Grant Lewis Kelley
CEO, MD & Director2.92yrsAU$2.27m0.0074%
A$ 570.2k
Timothy Edward Hammon
Independent Non-Executive Director9yrsAU$226.60k0.0014%
A$ 108.0k
Trevor Gerber
Independent Chairman of the Board1.08yrsAU$206.00k0.0049%
A$ 374.2k
David Thurin
Non-Executive Director5.5yrsAU$185.40k0.31%
A$ 23.6m
Peter Kahan
Independent Non Executive Directorno dataAU$226.60k0.00095%
A$ 73.3k
Clive Appleton
Non-Executive Director2.25yrsAU$137.33k0.00071%
A$ 54.8k
Karen Lee Penrose
Independent Non-Executive Director5.5yrsAU$226.60k0.0013%
A$ 98.0k
Janette Kendall
Independent Non-Executive Director3yrsAU$185.40k0.0014%
A$ 107.3k

3.0yrs

Average Tenure

61yo

Average Age

Experienced Board: VCX's board of directors are considered experienced (3 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 been diluted in the past year, with total shares outstanding growing by 21%.


Top Shareholders

Company Information

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


Key Information

  • Name: Vicinity Centres
  • Ticker: VCX
  • Exchange: ASX
  • Founded:
  • Industry: Retail REITs
  • Sector: Real Estate
  • Market Cap: AU$7.716b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VCXASX (Australian Securities Exchange)YesStapled SecuritiesAUAUDJun 2015
CNRA.FOTCPK (Pink Sheets LLC)YesStapled SecuritiesUSUSDJun 2015
VCXCHIA (Chi-X Australia)YesStapled SecuritiesAUAUDJun 2015
C98DB (Deutsche Boerse AG)YesStapled SecuritiesDEEURJun 2015

Biography

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...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/03 07:00
End of Day Share Price2020/12/03 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.