ASX:VN8

Stock Analysis Report

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Executive Summary

Vonex Limited provides telecommunications services in Australia and the United States. More Details


Snowflake Analysis

Exceptional growth potential with flawless balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: VN8 is more volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 14% a week.

Volatility Over Time: VN8's weekly volatility (14%) has been stable over the past year, but is still higher than 75% of Australian stocks.


Market Performance


7 Day Return

2.0%

VN8

0.1%

AU Telecom

1.7%

AU Market


1 Year Return

79.3%

VN8

-14.3%

AU Telecom

-1.6%

AU Market

Return vs Industry: VN8 exceeded the Australian Telecom industry which returned -14.3% over the past year.

Return vs Market: VN8 exceeded the Australian Market which returned -1.6% over the past year.


Shareholder returns

VN8IndustryMarket
7 Day2.0%0.1%1.7%
30 Day52.9%13.3%9.5%
90 Day85.7%4.8%9.2%
1 Year79.3%79.3%-10.4%-14.3%1.8%-1.6%
3 Yearn/a9.1%-6.1%24.8%9.2%
5 Yearn/a-23.8%-42.0%56.1%25.0%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

6.42x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate VN8's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate VN8's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: VN8 is unprofitable, so we can't compare its PE Ratio to the AU Telecom industry average.

PE vs Market: VN8 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 VN8's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: VN8 is overvalued based on its PB Ratio (6.4x) compared to the AU Telecom industry average (2.8x).


Next Steps

Future Growth

How is Vonex forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

110.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VN8 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.3%).

Earnings vs Market: VN8 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: VN8's is expected to become profitable in the next 3 years.

Revenue vs Market: VN8's revenue (34.1% per year) is forecast to grow faster than the Australian market (5% per year).

High Growth Revenue: VN8's revenue (34.1% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VN8's Return on Equity is forecast to be high in 3 years time (27%)


Next Steps

Past Performance

How has Vonex performed over the past 5 years?

22.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VN8 is currently unprofitable.

Growing Profit Margin: VN8 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: VN8 is unprofitable, but has reduced losses over the past 5 years at a rate of 22.8% per year.

Accelerating Growth: Unable to compare VN8's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: VN8 is unprofitable, making it difficult to compare its past year earnings growth to the Telecom industry (6.8%).


Return on Equity

High ROE: VN8 has a negative Return on Equity (-8.62%), as it is currently unprofitable.


Next Steps

Financial Health

How is Vonex's financial position?


Financial Position Analysis

Short Term Liabilities: VN8's short term assets (A$6.8M) exceed its short term liabilities (A$3.9M).

Long Term Liabilities: VN8's short term assets (A$6.8M) exceed its long term liabilities (A$758.4K).


Debt to Equity History and Analysis

Debt Level: VN8 is debt free.

Reducing Debt: VN8 currently has no debt however we can't compare to 5 years ago as we have no data for that period.


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: Whilst unprofitable VN8 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: VN8 is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 10.2% per year.


Next Steps

Dividend

What is Vonex current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate VN8's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate VN8'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 VN8's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if VN8'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 VN8'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?

2.8yrs

Average management tenure


CEO

Matt Fahey

2.83yrs

Tenure

AU$335,047

Compensation

Mr. Matthew Fahey, also known as Matt, serves as the Managing Director at Vonex Limited and is part of the executive leadership team responsible for commercial strategy and development. He is the Chief Exe...


CEO Compensation Analysis

Compensation vs Market: Matt's total compensation ($USD246.61K) is about average for companies of similar size in the Australian market ($USD280.83K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Matthew Fahey
MD, CEO & Executive Director2.83yrsAU$335.05k3.42%
A$ 1.7m
David Vilensky
Executive Director4.42yrsAU$252.56k1.36%
A$ 663.0k
Greg King
Chief Financial Officer4.75yrsAU$553.22kno data
Christo Da Silva
Chief Technology Officer0.42yrno datano data
Angus Parker
Chief Executive Officer of Oper8tor0.42yrAU$311.62k0%
A$ 0
Daniel John Edward Alexander Smith
Company Secretary4.42yrsno datano data

2.8yrs

Average Tenure

Experienced Management: VN8's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Matthew Fahey
MD, CEO & Executive Director2.83yrsAU$335.05k3.42%
A$ 1.7m
David Vilensky
Executive Director4.42yrsAU$252.56k1.36%
A$ 663.0k
Jason Gomersall
Non-executive Director0.75yrAU$18.62kno data
Chen Chik Ong
Non-Executive Chairman4.42yrsAU$252.56k1.41%
A$ 687.6k
Tak Lai Hadad
Non-Executive Director2.83yrsAU$62.42kno data

4.4yrs

Average Tenure

Experienced Board: VN8's board of directors are considered experienced (4.4 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 been diluted in the past year, with total shares outstanding growing by 25.6%.


Top Shareholders

Company Information

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


Key Information

  • Name: Vonex Limited
  • Ticker: VN8
  • Exchange: ASX
  • Founded:
  • Industry: Alternative Carriers
  • Sector: Telecom
  • Market Cap: AU$48.752m
  • Shares outstanding: 187.51m
  • Website: https://www.vonex.com.au

Location

  • Vonex Limited
  • 303 Coronation Drive
  • Level 6
  • Milton
  • Queensland
  • 4064
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VN8ASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJun 2018
VN8CHIA (Chi-X Australia)YesOrdinary SharesAUAUDJun 2018

Biography

Vonex Limited provides telecommunications services in Australia and the United States. The company operates through Retail and Wholesale segments. It offers mobile, internet, traditional fixed lines, and h...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/27 07:04
End of Day Share Price2020/11/27 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.