ASX:VOC

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Moderate growth potential and slightly overvalued.

Risks

  • Vocus Group has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

-3.2%

ASX:VOC

-1.4%

AU Telecom

0.02%

AU Market


1 Year Return

23.1%

ASX:VOC

27.9%

AU Telecom

4.8%

AU Market

VOC underperformed the Telecom industry which returned 27.9% over the past year.

VOC outperformed the Market in Australia which returned 4.8% over the past year.


Share holder returns

VOCIndustryMarket
7 Day-3.2%-1.4%0.02%
30 Day-10.5%-1.4%0.9%
90 Day-24.2%7.0%6.8%
1 Year23.1%23.1%34.2%27.9%10.8%4.8%
3 Year-64.5%-65.3%-26.4%-37.3%38.0%20.1%
5 Year-38.7%-41.9%-3.0%-26.0%44.6%12.2%

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

37%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Vocus Group's share price is below the future cash flow value, and at a moderate discount (> 20%).

Vocus Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Vocus Group is overvalued based on earnings compared to the AU Telecom industry average.

Vocus Group is overvalued based on earnings compared to the Australia market.


Price Based on Expected Growth

Vocus Group is poor value based on expected growth next year.


Price Based on Value of Assets

Vocus Group is good value based on assets compared to the AU Telecom industry average.


Next Steps

Future Growth

How is Vocus Group expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

35.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Vocus Group's revenue is expected to grow by 1.8% yearly, however this is not considered high growth (20% yearly).

Vocus Group's earnings are expected to grow significantly at over 20% yearly.

Vocus Group's revenue growth is positive but not above the Australia market average.

Vocus Group's earnings growth is expected to exceed the Australia market average.

Vocus Group's earnings growth is expected to exceed the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Vocus Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Vocus Group performed over the past 5 years?

-48.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Vocus Group's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

Vocus Group has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.

Vocus Group has become profitable in the last year making it difficult to compare the AU Telecom industry average.


Return on Equity

Vocus Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Vocus Group used its assets less efficiently than the AU Telecom industry average last year based on Return on Assets.


Return on Capital Employed

Vocus Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Vocus Group's financial position?


Financial Position Analysis

Vocus Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Vocus Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Vocus Group's level of debt (48.7%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (78.9% vs 48.7% today).

Debt is well covered by operating cash flow (26.4%, greater than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.5x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.3x debt.


Next Steps

Dividend

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

0.70%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Unable to evaluate Vocus Group's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Vocus Group's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Vocus Group has not reported any payouts.

Unable to verify if Vocus Group's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Vocus Group has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Vocus Group's dividends in 3 years as they are not expected to pay a notable one for Australia.


Next Steps

Management

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

1.2yrs

Average management tenure


CEO

Kevin Russell (52yo)

1.2yrs

Tenure

AU$1,073,051

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

Kevin's remuneration is lower than average for companies of similar size in Australia.

Insufficient data for Kevin to compare compensation growth.


Management Age and Tenure

1.2yrs

Average Tenure

The average tenure for the Vocus Group management team is less than 2 years, this suggests a new team.


Board Age and Tenure

1.2yrs

Average Tenure

59yo

Average Age

The average tenure for the Vocus Group board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by Vocus Group individual insiders in the past 3 months.


Recent Insider Transactions

SellAU$6,553,73527 Jun 19
Janchor Partners Ltd.
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BuyAU$13,83201 Nov 18
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Shares66,000
Max PriceAU$2.97
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Shares4,000
Max PriceAU$2.94
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BuyAU$37,789,52206 Aug 18
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Ownership Breakdown


Management Team

  • Kevin Russell (52yo)

    Group MD

    • Tenure: 1.2yrs
    • Compensation: A$1.07m
  • Ashe-Lee Jegathesan

    General Counsel & Company Secretary

    • Tenure: 3.4yrs
  • Mark Wratten (53yo)

    Chief Financial Officer

    • Tenure: 2.5yrs
    • Compensation: A$1.23m
  • Andrew Wildblood

    Chief Executive of Enterprise & Government

    • Tenure: 0.4yrs
  • Mark Callander

    CEO of New Zealand

    • Compensation: A$920.77k
  • Ellie Sweeney

    Chief Operating Officer

    • Tenure: 0.3yrs
  • Amber Kristof

    Head of People & Culture

  • Antony De Jong

    Chief Executive of Business & Consumer


Board Members

  • Mark Callander

    CEO of New Zealand

    • Tenure: 1.2yrs
    • Compensation: A$920.77k
  • John Ho (43yo)

    Non-Executive Director

    • Tenure: 1.5yrs
  • Matt Hanning

    Non-Executive Director

    • Tenure: 0.8yrs
  • Julie Fahey (62yo)

    Non Executive Director

    • Tenure: 1.4yrs
    • Compensation: A$73.45k
  • David Wiadrowski

    Non-Executive Director

    • Tenure: 2.0yrs
    • Compensation: A$174.94k
  • Zheng Chua

    Alternate Director

    • Tenure: 0.9yrs
  • Bruce Akhurst (59yo)

    Non-Executive Director

    • Tenure: 0.8yrs
  • Kevin Russell (52yo)

    Group MD

    • Tenure: 1.2yrs
    • Compensation: A$1.07m
  • Bob Mansfield (67yo)

    Non-Executive Chairman

    • Tenure: 1.3yrs
    • Compensation: A$243.51k

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$1.849b
  • Shares outstanding: 620.57m
  • Website: Click here

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 a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/20 10:37
End of Day Share Price2019/07/19 00:00
Earnings2018/12/31
Annual Earnings2018/06/30


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.