ASX:VN8

Stock Analysis Report

Executive Summary

Vonex Limited operates as a telecommunication service company worldwide.

Risk Analysis

Earnings have declined by -10.59% per year over past 5 years

Shareholders have been substantially diluted in the past year

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

+ 1 more risk


Snowflake Analysis

Flawless balance sheet with weak fundamentals.

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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.8%

VN8

1.1%

AU Telecom

2.0%

AU Market


1 Year Return

9.9%

VN8

25.0%

AU Telecom

19.8%

AU Market

Return vs Industry: VN8 underperformed the Australian Telecom industry which returned 24.3% over the past year.

Return vs Market: VN8 underperformed the Australian Market which returned 19.4% over the past year.


Shareholder returns

VN8IndustryMarket
7 Day-4.8%1.1%2.0%
30 Day0%4.6%3.3%
90 Day-13.0%7.4%5.8%
1 Year9.9%9.9%29.8%25.0%25.2%19.8%
3 Yearn/a-8.9%-22.4%39.6%20.9%
5 Yearn/a-15.3%-35.0%61.8%25.3%

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?

4.48x

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 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 (4.7x) compared to the AU Telecom industry average (2.5x).


Next Steps

Future Growth

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

2.4%

Forecasted Telecom 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 Vonex 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 Vonex performed over the past 5 years?

-10.6%

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, and losses have increased over the past 5 years at a rate of -10.6% 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 (-40%).


Return on Equity

High ROE: VN8 has a negative Return on Equity (-83.72%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Vonex's financial position?


Financial Position Analysis

Short Term Liabilities: VN8's short term assets (A$4.1M) exceed its short term liabilities (A$2.1M).

Long Term Liabilities: VN8's short term assets (A$4.1M) exceed its long term liabilities (A$22.8K).


Debt to Equity History and Analysis

Debt Level: VN8 is debt free.

Reducing Debt: VN8 had no debt 5 years ago.


Balance Sheet

Inventory Level: VN8 has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if VN8's debt is covered by short term assets.


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: VN8 has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: VN8 has sufficient cash runway for 1.2 years if free cash flow continues to reduce at historical rates of -49.6% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%5.4%industryaverage3.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate VN8'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 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

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

2.8yrs

Average management tenure


CEO

Matt Fahey 0

2yrs

Tenure

AU$346,189

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 ($USD238.92K) is about average for companies of similar size in the Australian market ($USD262.68K).

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


Management Age and Tenure

2.8yrs

Average Tenure

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


Board Age and Tenure

3.6yrs

Average Tenure

Experienced Board: VN8's board of directors are considered experienced (3.6 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 115.9%.


Management Team

  • Angus Parker

    Chief Technology Officer

    • Tenure: 2yrs
    • Compensation: AU$311.62k
  • Greg King

    Chief Financial Officer

    • Tenure: 3.9yrs
    • Compensation: AU$553.22k
  • Matt Fahey

    MD, CEO & Executive Director

    • Tenure: 2yrs
    • Compensation: AU$346.19k
  • Dan Smith (35yo)

    Company Secretary

    • Tenure: 3.6yrs

Board Members

  • David Vilensky

    Non-Executive Director

    • Tenure: 3.6yrs
    • Compensation: AU$207.37k
  • Nicholas Ong (41yo)

    Non-Executive Chairman

    • Tenure: 3.6yrs
    • Compensation: AU$207.37k
  • Matt Fahey

    MD, CEO & Executive Director

    • Tenure: 2yrs
    • Compensation: AU$346.19k
  • Winnie Lai Hadad

    Non-Executive Director

    • Tenure: 2yrs
    • Compensation: AU$65.70k

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$14.934m
  • Shares outstanding: 149.34m
  • Website: https://www.vonex.com.au

Location

  • Vonex Limited
  • 99 St Georges Terrace
  • Level 8
  • Perth
  • Western Australia
  • 6000
  • Australia

Listings

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

Biography

Vonex Limited operates as a telecommunication service company worldwide. The company’s Retail segment engages in the sale of hardware and telecommunication services, including the provision of data, Internet, voice, and other services. Its Wholesale segment offers wholesale of white-label hosted PBX services under license for Internet Service Providers, Telco’s, and Cloud Vendors. The company also provides Oper8tor, a multi-platform phone call and messaging communication app. Vonex Limited is based in Perth, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/18 10:40
End of Day Share Price2020/01/17 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.