ASX:VTG

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Excellent balance sheet with solid track record 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


Market Performance


7 Day Return

-0.8%

VTG

-0.2%

AU Specialty Retail

1.3%

AU Market


1 Year Return

28.0%

VTG

22.6%

AU Specialty Retail

9.9%

AU Market

Return vs Industry: VTG exceeded the Australian Specialty Retail industry which returned 22.6% over the past year.

Return vs Market: VTG exceeded the Australian Market which returned 9.9% over the past year.


Share holder returns

VTGIndustryMarket
7 Day-0.8%-0.2%1.3%
30 Day-1.7%4.4%-0.7%
90 Day-12.2%18.0%-0.4%
1 Year36.7%28.0%28.2%22.6%16.3%9.9%
3 Year-69.9%-75.6%21.1%5.5%35.8%17.6%
5 Year60.4%13.3%89.9%54.8%51.9%17.8%

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 based on future cash flows and its price relative to the stock market?

24%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: VTG (A$1.19) is trading below our estimate of fair value (A$1.57)

Significantly Undervalued: VTG is trading below fair value, but not by a significant amount.


Price Based on Earnings

PE vs Industry: VTG is good value based on its PE Ratio (7.9x) compared to the Specialty Retail industry average (16x).

PE vs Market: VTG is good value based on its PE Ratio (7.9x) compared to the Australian market (17.9x).


Price Based on Expected Growth

Low PEG Ratio: VTG is poor value based on its PEG Ratio (3.8x)


Price Based on Value of Assets

PB vs Industry: VTG is good value based on its PB Ratio (1.8x) compared to the AU Specialty Retail industry average (2.2x).


Next Steps

Future Growth

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

2.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: VTG's forecast earnings growth (2.1% per year) is below the savings rate (2.3%).

Earnings vs Market: VTG's earnings (2.1% per year) are forecast to grow slower than the Australian market (10.2% per year).

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

Revenue vs Market: VTG's revenue (2.2% per year) is forecast to grow slower than the Australian market (3.6% per year).

High Growth Revenue: VTG's revenue (2.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: VTG's Return on Equity is forecast to be low in 3 years time (18%).


Next Steps

Past Performance

How has Vita Group performed over the past 5 years?

6.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: VTG has become profitable over the past 5 years, growing earnings by 6.4% per year.

Accelerating Growth: VTG's earnings growth over the past year (10.6%) exceeds its 5-year average (6.4% per year).

Earnings vs Industry: VTG earnings growth over the past year (10.6%) exceeded the Specialty Retail industry -2.1%.


Return on Equity

High ROE: VTG's Return on Equity (22.2%) is considered high.


Return on Assets

ROA vs Industry: VTG has a higher Return on Assets than the Specialty Retail industry average last year.


Return on Capital Employed

ROCE Improving: VTG's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Vita Group's financial position?


Financial Position Analysis

Short Term Liabilities: VTG's short term assets (A$77.0M) do not cover its short term liabilities (A$96.4M)

Long Term Liabilities: VTG's short term assets (77.0M) exceeds its long term liabilities (10.9M)


Debt to Equity History and Analysis

Debt Level: VTG's debt to equity ratio (7.9%) is considered satisfactory

Reducing Debt: VTG's debt to equity ratio has reduced from 45.6% to 7.9% over the past 5 years.

Debt Coverage: VTG's debt is well covered by operating cash flow (447.1%).

Interest Coverage: VTG earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: VTG's debt is covered by short term assets (assets are 8.904600x debt).


Next Steps

Dividend

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

8.10%

Expected Dividend Yield


Dividend Yield vs Market

company7.7%marketbottom25%2.5%markettop25%5.6%industryaverage4.2%forecastin3Years8.1%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: VTG's dividend (7.73%) is higher than the bottom 25% of dividend payers in the Australian market (2.5%).

High Dividend: VTG's dividend (7.73%) is in the top 25% of dividend payers in the Australian market (5.6%)

Stable Dividend: VTG has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: VTG's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (61.2%), VTG's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: VTG's dividends in 3 years are forecast to be covered by earnings (65.1% payout ratio).


Next Steps

Management

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

7.6yrs

Average management tenure


CEO

Maxine Horne 0

6.8yrs

Tenure

AU$1,374,608

Compensation

Ms. Maxine Joan Horne is the Co-Founder of Vita Group Ltd. (formerly known as Fone Zone Group Limited) and serves as its Chief Executive Officer since January 30, 2013 and serves as Managing Director. Ms.  ...


CEO Compensation Analysis

Compensation vs. Market: Maxine's total compensation ($USD935.94K) is above average for companies of similar size in the Australian market ($USD257.37K).

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


Management Age and Tenure

7.6yrs

Average Tenure

Experienced Management: VTG's management team is seasoned and experienced (7.6 years average tenure).


Board Age and Tenure

7.9yrs

Average Tenure

Experienced Board: VTG's board of directors are considered experienced (7.9 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellAU$135,90302 Sep 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares112,141
Max PriceAU$1.21
BuyAU$986,24806 Aug 19
Realindex Investments Pty Limited
EntityCompany
Shares726,089
Max PriceAU$1.76
SellAU$4,048,85405 Aug 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares2,915,455
Max PriceAU$1.39
BuyAU$2,519,41005 Aug 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares1,848,825
Max PriceAU$1.36
BuyAU$2,634,84012 Jul 19
Spheria Asset Management Pty Ltd
EntityCompany
Shares2,043,427
Max PriceAU$1.36
BuyAU$4,098,14118 Jun 19
Spheria Asset Management Pty Ltd
EntityCompany
Shares3,017,257
Max PriceAU$1.36
SellAU$3,793,85518 Jun 19
Spheria Asset Management Pty Ltd
EntityCompany
Shares2,329,167
Max PriceAU$1.63
SellAU$532,23617 Dec 18
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares492,812
Max PriceAU$1.08
BuyAU$1,748,25917 Dec 18
Realindex Investments Pty Limited
EntityCompany
Shares1,682,777
Max PriceAU$1.04
BuyAU$611,15117 Dec 18
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares588,079
Max PriceAU$1.04
BuyAU$1,910,32529 Nov 18
Spheria Asset Management Pty Ltd
EntityCompany
Shares1,796,104
Max PriceAU$1.20

Ownership Breakdown


Management Team

  • Maxine Horne

    Co-Founder

    • Tenure: 6.8yrs
    • Compensation: AU$1.37m
  • Pete Connors

    Chief Operating Officer

    • Tenure: 0yrs
    • Compensation: AU$878.43k
  • Andrew Leyden

    Chief Financial Officer

    • Tenure: 8.4yrs
    • Compensation: AU$826.05k
  • Kendra Hammond

    Chief People Officer

    • Tenure: 8.8yrs
    • Compensation: AU$505.68k
  • George E. Southgate

    General Manager Legal Services & Group Company Secretary

    • Tenure: 1.1yrs

Board Members

  • Dick Simpson

    Independent Non-Executive Chairman

    • Tenure: 10.9yrs
    • Compensation: AU$210.00k
  • Paul Wilson

    Independent Non-Executive Director

    • Tenure: 5.4yrs
    • Compensation: AU$105.00k
  • Paul Mirabelle (61yo)

    Independent Non-Executive Director

    • Tenure: 0.8yrs
    • Compensation: AU$52.50k
  • Robyn Watts (65yo)

    Independent Non-Executive Director

    • Tenure: 7.9yrs
    • Compensation: AU$105.00k
  • Maxine Horne

    Co-Founder

    • Tenure: 6.8yrs
    • Compensation: AU$1.37m
  • Neil Osborne

    Independent Non-Executive Director

    • Tenure: 12.3yrs
    • Compensation: AU$105.00k

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$195.689m
  • Shares outstanding: 163.76m
  • 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 through two segments, ICT and Skin-Health and Wellness. The company also offers servi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 10:33
End of Day Share Price2019/10/14 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.

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