ASX:VP7

Stock Analysis Report

Velocity Property Group

Executive Summary

Velocity Property Group Limited, together with its subsidiaries, engages in the property development business in Australia.

Snowflake

Fundamentals

Adequate balance sheet with acceptable track record.

Risks

  • Velocity Property Group has significant price volatility in the past 3 months.
  • Velocity Property Group is not covered by any analysts.

Share Price & News

How has Velocity Property Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

ASX:VP7

1.9%

AU Real Estate

0.5%

AU Market


1 Year Return

-15.2%

ASX:VP7

-5.7%

AU Real Estate

6.3%

AU Market

VP7 underperformed the Real Estate industry which returned -5.7% over the past year.

VP7 underperformed the Market in Australia which returned 6.3% over the past year.


Share holder returns

VP7IndustryMarket
7 Day0%1.9%0.5%
30 Day21.7%16.0%4.5%
90 Day-6.7%20.1%2.5%
1 Year-15.2%-15.2%-2.8%-5.7%12.4%6.3%
3 Yearn/a22.5%9.6%41.3%22.3%
5 Yearn/a40.2%15.7%47.8%14.7%

Price Volatility Vs. Market

How volatile is Velocity Property Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Velocity Property Group undervalued based on future cash flows and its price relative to the stock market?

16.76x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for Velocity Property Group to establish if it is available at moderate discount.

Unable to calculate intrinsic value for Velocity Property Group to establish if it is available at substantial discount.


Price Based on Earnings

Velocity Property Group is overvalued based on earnings compared to the AU Real Estate industry average.

Velocity Property Group is good value based on earnings compared to the Australia market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Velocity Property Group, we can't assess if its growth is good value.


Price Based on Value of Assets

Velocity Property Group is good value based on assets compared to the AU Real Estate industry average.


Next Steps

Future Growth

How is Velocity Property Group expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

16.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Velocity Property Group is high growth as no revenue estimate data is available.

Velocity Property Group's earnings are expected to grow by 16% yearly, however this is not considered high growth (20% yearly).

Unable to compare Velocity Property Group's revenue growth to the Australia market average as no estimate data is available.

Velocity Property Group's earnings growth is expected to exceed the Australia market average.

Velocity Property Group's earnings growth is expected to exceed the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Velocity Property Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Velocity Property Group performed over the past 5 years?

24.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Velocity Property Group has delivered over 20% year on year earnings growth in the past 5 years.

Velocity Property Group's 1-year earnings growth exceeds its 5-year average (283.3% vs 24.8%)

Velocity Property Group's earnings growth has exceeded the AU Real Estate industry average in the past year (283.3% vs -2.5%).


Return on Equity

Velocity Property Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Velocity Property Group used its assets less efficiently than the AU Real Estate industry average last year based on Return on Assets.


Return on Capital Employed

Velocity Property Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Velocity Property Group's financial position?


Financial Position Analysis

Velocity Property Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Velocity Property Group's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Velocity Property Group's level of debt (334%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (2170.6% vs 334% today).

Operating cash flow is negative therefore debt is not well covered.

Interest payments on debt are well covered by earnings (EBIT is 15.8x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.3x debt.


Next Steps

Dividend

What is Velocity Property Group's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Velocity Property Group's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Velocity Property Group's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Velocity Property Group has not reported any payouts.

Unable to verify if Velocity Property Group's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Velocity Property Group has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Velocity Property Group's salary, the management and board of directors tenure and is there insider trading?

0.3yrs

Average management tenure


CEO

Brendon Ansell 0

0yrs

Tenure

AU$219,119

Compensation

Mr. Brendon Craig Ansell serves as Chief Executive Officer of Velocity Property Group Limited and has been its Managing Director since 2015. Mr. Ansell is a Property Developer with over ten years experienc ...


CEO Compensation Analysis

Brendon's remuneration is lower than average for companies of similar size in Australia.

Brendon's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

0.3yrs

Average Tenure

The average tenure for the Velocity Property Group management team is less than 2 years, this suggests a new team.


Board Age and Tenure

3.1yrs

Average Tenure

The tenure for the Velocity Property Group board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyAU$5,00007 Mar 19
Michael Pearson
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares142,857
Max PriceAU$0.035
BuyAU$8,29109 Jan 19
Cherie Leatham
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares165,828
Max PriceAU$0.05

Ownership Breakdown


Management Team

  • Brendon Ansell

    CEO, MD & Executive Director

    • Tenure: 0yrs
    • Compensation: AU$219.12k
  • Philip Raff

    Commercial Manager & Executive Director

    • Tenure: 3.1yrs
    • Compensation: AU$124.00k
  • Phillip Young

    CFO & Company Secretary

    • Tenure: 3.2yrs
    • Compensation: AU$170.82k
  • Nicole Fisher

    Marketing Manager

    • Tenure: 0yrs
  • Caroline Humbert

    National Sales Director

    • Tenure: 0.3yrs
  • Michelle Ng

    Accounts Manager

    • Tenure: 0.3yrs

Board Members

  • Michael Pearson

    Non-Executive Chairman

    • Tenure: 0yrs
    • Compensation: AU$82.13k
  • Brendon Ansell

    CEO, MD & Executive Director

    • Tenure: 0yrs
    • Compensation: AU$219.12k
  • Philip Raff

    Commercial Manager & Executive Director

    • Tenure: 3.1yrs
    • Compensation: AU$124.00k
  • Cherie Leatham

    Independent Non-Executive Director

    • Tenure: 2.9yrs
    • Compensation: AU$65.70k

Company Information

Velocity Property Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Velocity Property Group Limited
  • Ticker: VP7
  • Exchange: ASX
  • Founded: 2015
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: AU$10.134m
  • Shares outstanding: 361.92m
  • Website: https://www.velocitypropertygroup.com.au

Location

  • Velocity Property Group Limited
  • Unit 6/59 Oxford Street
  • Bulimba
  • Queensland
  • 4171
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VP7ASX (Australian Securities Exchange)YesOrdinary SharesAUAUDFeb 2017

Biography

Velocity Property Group Limited, together with its subsidiaries, engages in the property development business in Australia. It is involved in the development of residential multi-unit apartments, townhouse ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/15 10:41
End of Day Share Price2019/08/29 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.