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VR1

Vection TechnologiesASX:VR1 Stock Report

Market Cap

AU$85.3m

7D

8.9%

1Y

-46.3%

Updated

19 Oct, 2021

Data

Company Financials
VR1 fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance0/6
Financial Health4/6
Dividends0/6

VR1 Overview

Vection Technologies Limited, a multinational software company, offers real-time technologies for industrial companies digital transformation in Australia.

Price History & Performance

Summary of all time highs, changes and price drops for Vection Technologies
Historical stock prices
Current Share PriceAU$0.086
52 Week HighAU$0.053
52 Week LowAU$0.17
Beta1.06
1 Month Change-10.42%
3 Month Change22.86%
1 Year Change-46.25%
3 Year Changen/a
5 Year Changen/a
Change since IPO352.63%

Recent News & Updates

Sep 06
Is Vection Technologies (ASX:VR1) Using Debt In A Risky Way?

Is Vection Technologies (ASX:VR1) Using Debt In A Risky Way?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

VR1AU SoftwareAU Market
7D8.9%4.1%1.7%
1Y-46.3%23.3%20.3%

Return vs Industry: VR1 underperformed the Australian Software industry which returned 23.3% over the past year.

Return vs Market: VR1 underperformed the Australian Market which returned 20.3% over the past year.

Price Volatility

Is VR1's price volatile compared to industry and market?
VR1 volatility
VR1 Beta1.06
Industry Beta0.85
Market Beta1

Stable Share Price: VR1 is more volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: VR1's weekly volatility (12%) has been stable over the past year, but is still higher than 75% of Australian stocks.

About the Company

FoundedEmployeesCEOWebsite
2016100Gianmarco Biagihttps://www.vection.com.au

Vection Technologies Limited, a multinational software company, offers real-time technologies for industrial companies digital transformation in Australia. The company operates in two segments, IT Development and Outsourced Services. It offers Frame-S, a collaborative platform for viewing 3D projects in virtual reality; virtual and augmented reality products; 3D real-time configurator; 3D-modeling; 3D rendering, which transfers 3D models into images or videos with graphic details; and Mindesk that helps in designing and editing CAD project in virtual reality.

Vection Technologies Fundamentals Summary

How do Vection Technologies's earnings and revenue compare to its market cap?
VR1 fundamental statistics
Market CapAU$85.33m
Earnings (TTM)-AU$2.41m
Revenue (TTM)AU$3.47m

24.0x

P/S Ratio

-34.7x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
VR1 income statement (TTM)
RevenueAU$3.47m
Cost of RevenueAU$2.01m
Gross ProfitAU$1.46m
ExpensesAU$3.87m
Earnings-AU$2.41m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.0025
Gross Margin42.06%
Net Profit Margin-69.32%
Debt/Equity Ratio34.8%

How did VR1 perform over the long term?

See historical performance and comparison

Valuation

Is Vection Technologies undervalued compared to its fair value and its price relative to the market?

6.8x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate VR1's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate VR1's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: VR1 is unprofitable, so we can't compare its PE Ratio to the Australian Software industry average.

PE vs Market: VR1 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 VR1's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: VR1 is overvalued based on its PB Ratio (6.8x) compared to the AU Software industry average (5.2x).


Future Growth

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

41.1%

Forecasted Software 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 Vection Technologies 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.


Past Performance

How has Vection Technologies performed over the past 5 years?

-21.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VR1 is currently unprofitable.

Growing Profit Margin: VR1 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: VR1 is unprofitable, and losses have increased over the past 5 years at a rate of 21.7% per year.

Accelerating Growth: Unable to compare VR1's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: VR1 is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (37.5%).


Return on Equity

High ROE: VR1 has a negative Return on Equity (-19.81%), as it is currently unprofitable.


Financial Health

How is Vection Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: VR1's short term assets (A$13.1M) do not cover its short term liabilities (A$14.8M).

Long Term Liabilities: VR1's short term assets (A$13.1M) exceed its long term liabilities (A$6.5M).


Debt to Equity History and Analysis

Debt Level: VR1's debt to equity ratio (34.8%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if VR1's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


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: VR1 has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: VR1 has sufficient cash runway for 1.6 years if free cash flow continues to grow at historical rates of 1.4% each year.


Dividend

What is Vection Technologies's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate VR1's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate VR1's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if VR1's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if VR1'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 VR1'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?

2.5yrs

Average board tenure


CEO

Gianmarco Biagi

2.5yrs

Tenure

AU$178,951

Compensation

Mr. Gianmarco Biagi, MEng, serves as Managing Director and Director at Vection Technologies Ltd. (formerly known as Vection Technologies Limited) since April 12, 2019. Mr. Biagi has an experience of servin...


CEO Compensation Analysis

Compensation vs Market: Gianmarco's total compensation ($USD132.63K) is below average for companies of similar size in the Australian market ($USD301.95K).

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


Board Members

Experienced Board: VR1's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Vection Technologies Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Vection Technologies Limited
  • Ticker: VR1
  • Exchange: ASX
  • Founded: 2016
  • Industry: Application Software
  • Sector: Software
  • Market Cap: AU$85.326m
  • Shares outstanding: 969.62m
  • Website: https://www.vection.com.au

Number of Employees


Location

  • Vection Technologies Limited
  • Building C
  • Level 4
  • Osborne Park
  • Western Australia
  • 6017
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/19 07:04
End of Day Share Price2021/10/19 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.