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 Analysis

Mediocre balance sheet and overvalued.

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

Stable Share Price: VP7's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-59.2%

VP7

-8.8%

AU Real Estate

0.3%

AU Market


1 Year Return

n/a

VP7

-16.2%

AU Real Estate

-22.9%

AU Market

Return vs Industry: Insufficient data to determine how VP7 performed against the Australian Real Estate industry.

Return vs Market: Insufficient data to determine how VP7 performed against the Australian Market.


Shareholder returns

VP7IndustryMarket
7 Day-59.2%-8.8%0.3%
30 Day-52.4%-39.0%-27.8%
90 Day-52.4%-40.0%-30.0%
1 Yearn/a-13.1%-16.2%-19.4%-22.9%
3 Year-92.9%-92.9%-27.8%-35.2%-8.3%-20.8%
5 Yearn/a-19.4%-33.7%2.9%-20.3%

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 compared to its fair value and its price relative to the market?

0.27x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate VP7's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate VP7's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: VP7 is unprofitable, so we can't compare its PE Ratio to the Real Estate industry average.

PE vs Market: VP7 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 VP7's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: VP7 is good value based on its PB Ratio (0.3x) compared to the AU Real Estate industry average (0.7x).


Next Steps

Future Growth

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

31.1%

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

-8.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VP7 is currently unprofitable.

Growing Profit Margin: VP7 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: VP7 is unprofitable, and losses have increased over the past 5 years at a rate of -8.4% per year.

Accelerating Growth: Unable to compare VP7's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: VP7 is unprofitable, making it difficult to compare its past year earnings growth to the Real Estate industry (-19.3%).


Return on Equity

High ROE: VP7 has a negative Return on Equity (-0.82%), as it is currently unprofitable.


Next Steps

Financial Health

How is Velocity Property Group's financial position?


Financial Position Analysis

Short Term Liabilities: VP7's short term assets (A$82.9M) exceed its short term liabilities (A$32.8M).

Long Term Liabilities: VP7's short term assets (A$82.9M) exceed its long term liabilities (A$36.3M).


Debt to Equity History and Analysis

Debt Level: VP7's debt to equity ratio (301.9%) is considered high.

Reducing Debt: VP7 had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


Balance Sheet

Inventory Level: VP7 has a high level of physical assets or inventory.

Debt Coverage by Assets: VP7's debt is covered by short term assets (assets are 1.3x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: VP7 has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: VP7 has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate VP7's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate VP7'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 VP7's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if VP7's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of VP7'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?

0.8yrs

Average management tenure


CEO

Brendon Ansell

no data

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

Compensation vs Market: Brendon's total compensation ($USD134.40K) is below average for companies of similar size in the Australian market ($USD242.11K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Brendon Ansell
CEO, MD & Executive Directorno dataAU$219.12k10.78% A$614.0k
Phillip Young
CFO & Company Secretary3.67yrsAU$170.82kno data
Philip Raff
Commercial Manager & Executive Director3.58yrsAU$124.00k9.28% A$528.4k
Michelle Ng
Accounts Manager0.83yrno datano data
Nicole Fisher
Marketing Managerno datano datano data
Caroline Humbert
National Sales Director0.83yrno datano data

0.8yrs

Average Tenure

Experienced Management: VP7's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Brendon Ansell
CEO, MD & Executive Directorno dataAU$219.12k10.78% A$614.0k
Philip Raff
Commercial Manager & Executive Director3.58yrsAU$124.00k9.28% A$528.4k
Tony Pitt
Chairmanno datano data19.99% A$1.1m
James Storey
Non-Executive Director1.17yrsno datano data

3.6yrs

Average Tenure

Experienced Board: VP7's board of directors are considered experienced (3.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: VP7 insiders have sold more shares than they have bought 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

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$5.695m
  • Shares outstanding: 11.39m
  • Website: https://www.velocitypropertygroup.com.au

Location

  • Velocity Property Group Limited
  • 6/57–59 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, townhouses, and homes; and residential property investment activities. The company was incorporated in 2015 and is based in Bulimba, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 10:52
End of Day Share Price2020/03/26 00:00
Earnings2019/12/31
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.