ASX:VLW

Stock Analysis Report

Executive Summary

Villa World Limited develops and sells residential land in Australia.


Snowflake Analysis

Good value with adequate balance sheet.


Similar Companies

Share Price & News

How has Villa World's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

VLW

-2.2%

AU Real Estate

0.8%

AU Market


1 Year Return

16.3%

VLW

27.2%

AU Real Estate

15.3%

AU Market

Return vs Industry: VLW underperformed the Australian Real Estate industry which returned 44.4% over the past year.

Return vs Market: VLW underperformed the Australian Market which returned 19.4% over the past year.


Shareholder returns

VLWIndustryMarket
7 Day0%-2.2%0.8%
30 Day0.4%-4.5%0.3%
90 Day0.4%-6.0%5.3%
1 Year39.6%16.3%31.6%27.2%20.5%15.3%
3 Year46.4%4.4%19.3%6.9%37.4%18.8%
5 Year112.6%29.8%29.7%6.8%50.7%16.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Villa World 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: VLW (A$2.35) is trading below our estimate of fair value (A$19.65)

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


Price To Earnings Ratio

PE vs Industry: VLW is good value based on its PE Ratio (12.9x) compared to the Real Estate industry average (14.4x).

PE vs Market: VLW is good value based on its PE Ratio (12.9x) compared to the Australian market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate VLW's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: VLW is overvalued based on its PB Ratio (1x) compared to the AU Real Estate industry average (1x).


Next Steps

Future Growth

How is Villa World forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

21.3%

Forecasted Real Estate industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Villa World has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Villa World performed over the past 5 years?

9.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VLW has high quality earnings.

Growing Profit Margin: VLW's current net profit margins (5.9%) are lower than last year (9.9%).


Past Earnings Growth Analysis

Earnings Trend: VLW's earnings have grown by 9.9% per year over the past 5 years.

Accelerating Growth: VLW's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: VLW had negative earnings growth (-47.4%) over the past year, making it difficult to compare to the Real Estate industry average (-2.4%).


Return on Equity

High ROE: VLW's Return on Equity (8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Villa World's financial position?


Financial Position Analysis

Short Term Liabilities: VLW's short term assets (A$196.3M) exceed its short term liabilities (A$52.7M).

Long Term Liabilities: VLW's short term assets (A$196.3M) exceed its long term liabilities (A$146.4M).


Debt to Equity History and Analysis

Debt Level: VLW's debt to equity ratio (42.7%) is considered high.

Reducing Debt: VLW's debt to equity ratio has increased from 39.6% to 42.7% over the past 5 years.

Debt Coverage: VLW's debt is well covered by operating cash flow (72.3%).

Interest Coverage: VLW's interest payments on its debt are well covered by EBIT (10.5x coverage).


Balance Sheet

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

Debt Coverage by Assets: VLW's debt is covered by short term assets (assets are 1.6x debt).


Next Steps

Dividend

What is Villa World's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.3%markettop25%5.5%industryaverage2.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of VLW'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?

4.5yrs

Average management tenure


CEO

Craig Treasure (57yo)

7.1yrs

Tenure

AU$1,597,627

Compensation

Mr. Craig Granville Treasure, BASc (Surveying) (QUT), MDIA has been the Chief Executive Officer and Managing Director of Villa World Limited since October 5, 2012 and served as its Executive Director sinc ...


CEO Compensation Analysis

Compensation vs Market: Craig's total compensation ($USD1.10M) is above average for companies of similar size in the Australian market ($USD509.47K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Craig Treasure
CEO & MD7.1yrsAU$1.60mno data
Lorelei Nieves
Chief Financial Officer1.6yrsAU$299.20k0.0036% A$10.8k
Michael Vinodolac
Chief Operating Officer0yrsAU$678.97k0.080% A$237.9k
Robyn Valmadre
General Manager of Sales & Marketing1.8yrsAU$592.36k0.0059% A$17.7k
Bradley Scale
General Counsel & Company Secretary7.1yrsno datano data

4.5yrs

Average Tenure

Experienced Management: VLW's management team is considered experienced (4.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: VLW insiders have only sold shares 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

Villa World Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Villa World Limited
  • Ticker: VLW
  • Exchange: ASX
  • Founded: 1986
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: AU$298.735m
  • Shares outstanding: 127.12m
  • Website: https://www.villaworld.com.au

Number of Employees


Location

  • Villa World Limited
  • 19 Elizabeth Avenue
  • Level 1
  • Broadbeach
  • Queensland
  • 4218
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VLWASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2011
VLWCHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 2011

Biography

Villa World Limited develops and sells residential land in Australia. It operates through two segments, Property Development and Construction - New South Wales and Queensland, and Property Development and Construction - Victoria. The company also develops, constructs, and sells house and land packages. Villa World Limited was founded in 1986 and is headquartered in Broadbeach, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/01 10:36
End of Day Share Price2019/10/16 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.