ASX:VTG

Stock Analysis Report

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Executive Summary

Vita Group Limited markets and sells information and communications technology (ICT) products in Australia. More Details


Snowflake Analysis

Undervalued with excellent balance sheet and pays a dividend.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: VTG is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: VTG's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

1.9%

VTG

3.5%

AU Specialty Retail

2.3%

AU Market


1 Year Return

-1.8%

VTG

17.9%

AU Specialty Retail

-0.3%

AU Market

Return vs Industry: VTG underperformed the Australian Specialty Retail industry which returned 17.9% over the past year.

Return vs Market: VTG underperformed the Australian Market which returned -0.3% over the past year.


Shareholder returns

VTGIndustryMarket
7 Day1.9%3.5%2.3%
30 Day7.5%-1.9%7.2%
90 Day-2.7%7.5%8.7%
1 Year0.3%-1.8%21.9%17.9%3.1%-0.3%
3 Year-5.4%-19.5%81.5%59.2%24.2%8.8%
5 Year-23.4%-41.4%83.5%45.9%55.4%24.4%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Vita Group 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: VTG (A$1.07) is trading below our estimate of fair value (A$2.56)

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


Price To Earnings Ratio

PE vs Industry: VTG is good value based on its PE Ratio (7.8x) compared to the AU Specialty Retail industry average (18x).

PE vs Market: VTG is good value based on its PE Ratio (7.8x) compared to the Australian market (22.7x).


Price to Earnings Growth Ratio

PEG Ratio: VTG is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: VTG is good value based on its PB Ratio (1.4x) compared to the AU Specialty Retail industry average (2.7x).


Next Steps

Future Growth

How is Vita Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

7.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VTG's forecast earnings growth (7.3% per year) is above the savings rate (2.3%).

Earnings vs Market: VTG's earnings (7.3% per year) are forecast to grow slower than the Australian market (17.8% per year).

High Growth Earnings: VTG's earnings are forecast to grow, but not significantly.

Revenue vs Market: VTG's revenue (1.1% per year) is forecast to grow slower than the Australian market (5.1% per year).

High Growth Revenue: VTG's revenue (1.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VTG's Return on Equity is forecast to be low in 3 years time (15.3%).


Next Steps

Past Performance

How has Vita Group performed over the past 5 years?

-9.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VTG has a large one-off gain of A$10.7M impacting its June 30 2020 financial results.

Growing Profit Margin: VTG's current net profit margins (2.9%) are lower than last year (3.2%).


Past Earnings Growth Analysis

Earnings Trend: VTG's earnings have declined by 9.2% per year over the past 5 years.

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

Earnings vs Industry: VTG had negative earnings growth (-7.7%) over the past year, making it difficult to compare to the Specialty Retail industry average (-0.04%).


Return on Equity

High ROE: VTG's Return on Equity (17.7%) is considered low.


Next Steps

Financial Health

How is Vita Group's financial position?


Financial Position Analysis

Short Term Liabilities: VTG's short term assets (A$93.9M) do not cover its short term liabilities (A$111.4M).

Long Term Liabilities: VTG's short term assets (A$93.9M) exceed its long term liabilities (A$41.6M).


Debt to Equity History and Analysis

Debt Level: VTG's debt to equity ratio (10.1%) is considered satisfactory.

Reducing Debt: VTG's debt to equity ratio has reduced from 14.6% to 10.1% over the past 5 years.

Debt Coverage: VTG's debt is well covered by operating cash flow (323.4%).

Interest Coverage: VTG's interest payments on its debt are well covered by EBIT (8.7x coverage).


Balance Sheet


Next Steps

Dividend

What is Vita Group current dividend yield, its reliability and sustainability?

4.49%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VTG's dividend (4.49%) is higher than the bottom 25% of dividend payers in the Australian market (2.09%).

High Dividend: VTG's dividend (4.49%) is low compared to the top 25% of dividend payers in the Australian market (5%).


Stability and Growth of Payments

Stable Dividend: VTG's dividend payments have been volatile in the past 10 years.

Growing Dividend: VTG's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (17.5%), VTG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: VTG's dividends in 3 years are forecast to be well covered by earnings (31.4% payout ratio).


Next Steps

Management

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

7.8yrs

Average management tenure


CEO

Maxine Horne

7.83yrs

Tenure

AU$1,468,207

Compensation

Ms. Maxine Joan Horne co-founded Vita Group Limited (formerly known as Fone Zone Group Limited) in 1995 and serves as its Chief Executive Officer since January 30, 2013. Ms. Horne serves as Managing Direct...


CEO Compensation Analysis

Compensation vs Market: Maxine's total compensation ($USD1.08M) is above average for companies of similar size in the Australian market ($USD277.79K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Maxine Horne
Co-Founder7.83yrsAU$1.47m1.79%
A$ 3.1m
Peter Connors
Chief Operating Officerno dataAU$1.27m0.067%
A$ 117.1k
Kendra Hammond
Chief People Officer9.25yrsAU$654.04kno data
Andrew Ryan
Chief Financial Officerno datano datano data
Justin Maskey
Chief Technology Officerno datano datano data
George E. Southgate
Company Secretary & Chief Legal and Risk Officer2.17yrsno datano data
Rebecca McLeod
Chief Strategy & Communications Officerno datano datano data

7.8yrs

Average Tenure

Experienced Management: VTG's management team is seasoned and experienced (7.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Maxine Horne
Co-Founder7.83yrsAU$1.47m1.79%
A$ 3.1m
Richard Simpson
Independent Non-Executive Chairman12yrsAU$189.33k0.073%
A$ 128.4k
Paul Wilson
Independent Non-Executive Director6.5yrsAU$93.89k0.045%
A$ 78.1k
Paul Mirabelle
Independent Non-Executive Director1.83yrsAU$93.89k0.016%
A$ 27.2k
Neil Osborne
Independent Non-Executive Director13.42yrsAU$93.89k0.16%
A$ 284.4k

9.3yrs

Average Tenure

Experienced Board: VTG's board of directors are considered experienced (9.3 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Vita Group Limited
  • Ticker: VTG
  • Exchange: ASX
  • Founded: 1995
  • Industry: Computer and Electronics Retail
  • Sector: Retail
  • Market Cap: AU$175.359m
  • Shares outstanding: 164.66m
  • Website: https://www.vitagroup.com.au

Number of Employees


Location

  • Vita Group Limited
  • Vita Place
  • Ground Floor
  • Albion
  • Queensland
  • 4010
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VTGASX (Australian Securities Exchange)YesOrdinary SharesAUAUDNov 2005
VTGCHIA (Chi-X Australia)YesOrdinary SharesAUAUDNov 2005

Biography

Vita Group Limited markets and sells information and communications technology (ICT) products in Australia. It operates in two segments, ICT, and Skin-Health and Wellness. The company also offers services,...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/25 10:41
End of Day Share Price2020/11/25 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.