ASX:VOC

Stock Analysis Report

Executive Summary

Vocus Group Limited provides integrated telecommunications services in Australia and New Zealand.


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: VOC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

8.2%

VOC

0.9%

AU Telecom

0.7%

AU Market


1 Year Return

3.4%

VOC

16.1%

AU Telecom

15.5%

AU Market

Return vs Industry: VOC underperformed the Australian Telecom industry which returned 16.1% over the past year.

Return vs Market: VOC underperformed the Australian Market which returned 15.5% over the past year.


Shareholder returns

VOCIndustryMarket
7 Day8.2%0.9%0.7%
30 Day11.2%0.9%0.8%
90 Day12.5%8.2%6.1%
1 Year3.4%3.4%20.6%16.1%20.6%15.5%
3 Year-18.5%-19.7%-3.6%-17.9%38.1%19.7%
5 Year-35.4%-38.7%-17.6%-35.3%51.8%17.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

48.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VOC (A$3.68) is trading below our estimate of fair value (A$7.18)

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


Price To Earnings Ratio

PE vs Industry: VOC is poor value based on its PE Ratio (75.4x) compared to the Telecom industry average (33.6x).

PE vs Market: VOC is poor value based on its PE Ratio (75.4x) compared to the Australian market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: VOC is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: VOC is good value based on its PB Ratio (1x) compared to the AU Telecom industry average (2.9x).


Next Steps

Future Growth

How is Vocus Group forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

44.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VOC's forecast earnings growth (44% per year) is above the savings rate (1.1%).

Earnings vs Market: VOC's earnings (44% per year) are forecast to grow faster than the Australian market (9.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: VOC's revenue (1.7% per year) is forecast to grow slower than the Australian market (4.1% per year).

High Growth Revenue: VOC's revenue (1.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VOC's Return on Equity is forecast to be low in 3 years time (4.7%).


Next Steps

Past Performance

How has Vocus Group performed over the past 5 years?

-9.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VOC has high quality earnings.

Growing Profit Margin: VOC's current net profit margins (1.7%) are lower than last year (2.1%).


Past Earnings Growth Analysis

Earnings Trend: VOC has become profitable over the past 5 years, growing earnings by -9.8% per year.

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

Earnings vs Industry: VOC had negative earnings growth (-24.6%) over the past year, making it difficult to compare to the Telecom industry average (-14.2%).


Return on Equity

High ROE: VOC's Return on Equity (1.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Vocus Group's financial position?


Financial Position Analysis

Short Term Liabilities: VOC's short term assets (A$315.5M) do not cover its short term liabilities (A$474.5M).

Long Term Liabilities: VOC's short term assets (A$315.5M) do not cover its long term liabilities (A$1.5B).


Debt to Equity History and Analysis

Debt Level: VOC's debt to equity ratio (46.1%) is considered high.

Reducing Debt: VOC's debt to equity ratio has reduced from 49.3% to 46.1% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: VOC's debt is not covered by short term assets (assets are 0.3x debt).


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: VOC is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: VOC is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

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

0.64%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if VOC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: VOC is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of VOC'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?

1.0yrs

Average management tenure


CEO

Kevin Russell (52yo)

1.8yrs

Tenure

AU$3,228,903

Compensation

Mr. Kevin Steven Russell, B Acc/CompSc, MICAS, has been Group Managing Director, Chief Executive Officer and Director of Vocus Group Ltd since May 28, 2018. Mr. Russell served as Group Executive of Consume ...


CEO Compensation Analysis

Compensation vs Market: Kevin's total compensation ($USD2.14M) is above average for companies of similar size in the Australian market ($USD1.39M).

Compensation vs Earnings: Kevin's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Kevin Russell
Group MD1.8yrsAU$3.23m0.032% A$736.1k
Ellie Sweeney
Chief Operating Officer0.9yrsAU$815.05kno data
Mark Callander
CEO of New Zealand1.8yrsAU$1.69m0.012% A$273.7k
Mark Wratten
Executive Officer0.08yrsAU$1.24m0.0054% A$123.9k
Antony De Jong
Chief Executive of Business & Consumer0yrsAU$1.17m0.0048% A$110.5k
Andrew Wildblood
Chief Executive of Enterprise & Government1.1yrsAU$1.27m0.00086% A$19.6k
Nitesh Naidoo
Group Chief Financial Officer0.08yrsno datano data
Simon Lewin
General Counsel & Company Secretary1.1yrsno datano data
Amber Kristof
Head of People & Culture0yrsno datano data

1.0yrs

Average Tenure

Experienced Management: VOC's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Kevin Russell
Group MD1.8yrsAU$3.23m0.032% A$736.1k
Mark Callander
CEO of New Zealand1.8yrsAU$1.69m0.012% A$273.7k
Bruce Akhurst
Non-Executive Director1.4yrsAU$128.60k0.0081% A$184.0k
Robert Mansfield
Non-Executive Chairman1.9yrsAU$375.00k0.020% A$461.7k
Matthew Hanning
Non-Executive Director1.4yrsAU$134.82k0.081% A$1.8m
Chi On Ho
Non-Executive Director2.1yrsno datano data
Julie Fahey
Non Executive Director2yrsAU$189.23k0.0012% A$27.6k
David Wiadrowski
Non-Executive Director2.6yrsAU$198.89k0.0037% A$84.7k
Zheng Chua
Alternate Director1.5yrsno datano data

1.8yrs

Average Tenure

59yo

Average Age

Experienced Board: VOC's board of directors are not considered experienced ( 1.8 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: VOC 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

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


Key Information

  • Name: Vocus Group Limited
  • Ticker: VOC
  • Exchange: ASX
  • Founded: 2008
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: AU$2.282b
  • Shares outstanding: 620.24m
  • Website: https://vocusgroup.com.au

Number of Employees


Location

  • Vocus Group Limited
  • 452 Flinders Street
  • Level 10
  • Melbourne
  • Victoria
  • 3000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VOCASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJul 2010
VOCCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJul 2010
VOQDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2010
VCMM.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2010

Biography

Vocus Group Limited provides integrated telecommunications services in Australia and New Zealand. It offers fiber optic cable network services under the VOCUS communications brand; business communication and technology solutions under the commander brand; IP voice solutions under the engin brand; and Internet, mobile, and energy products under the dodo brand. The company also provides broadband solutions under the iPRIMUS, slingshot, flip, and Orcon brands; and VoIP solution for small businesses and wholesale customers under the 2talk brand. The company was formerly known as Vocus Communications Limited and changed its name to Vocus Group Limited in December 2016. Vocus Group Limited was incorporated in 2008 and is based in Melbourne, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 10:38
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
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.