ASX:VAH

Stock Analysis Report

Virgin Australia Holdings

Executive Summary

Virgin Australia Holdings Limited engages in the operation of domestic and international passenger and cargo airline business in Australia.

Snowflake

Fundamentals

Moderate growth potential and slightly overvalued.


Similar Companies

Share Price & News

How has Virgin Australia Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

VAH

0.1%

AU Airlines

1.0%

AU Market


1 Year Return

-30.4%

VAH

-3.6%

AU Airlines

7.2%

AU Market

VAH underperformed the Airlines industry which returned -3.6% over the past year.

VAH underperformed the Market in Australia which returned 7.2% over the past year.


Share holder returns

VAHIndustryMarket
7 Day0%0.1%1.0%
30 Day0%5.9%3.2%
90 Day-5.9%9.8%1.4%
1 Year-30.4%-30.4%1.4%-3.6%13.4%7.2%
3 Year-33.3%-33.3%77.1%58.5%40.7%21.8%
5 Year-59.5%-59.5%114.7%79.3%50.8%17.0%

Price Volatility Vs. Market

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


Simply Wall St News

1 year ago | Simply Wall St

What does Virgin Australia Holdings Limited's (ASX:VAH) Balance Sheet Tell Us About Its Future?

Valuation

Is Virgin Australia Holdings undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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

Virgin Australia Holdings's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Virgin Australia Holdings is loss making, we can't compare its value to the Global Airlines industry average.

Virgin Australia Holdings is loss making, we can't compare the value of its earnings to the Australia market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Virgin Australia Holdings, we can't assess if its growth is good value.


Price Based on Value of Assets

Virgin Australia Holdings is overvalued based on assets compared to the Oceania Airlines industry average.


Next Steps

Future Growth

How is Virgin Australia Holdings expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

114.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Virgin Australia Holdings's revenue is expected to grow by 1.7% yearly, however this is not considered high growth (20% yearly).

Virgin Australia Holdings's earnings are expected to grow significantly at over 20% yearly.

Virgin Australia Holdings's revenue growth is positive but not above the Australia market average.

Virgin Australia Holdings's earnings growth is expected to exceed the Australia market average.

Virgin Australia Holdings's earnings growth is expected to exceed the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

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


Next Steps

Past Performance

How has Virgin Australia Holdings performed over the past 5 years?

-20.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Virgin Australia Holdings does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Virgin Australia Holdings's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Virgin Australia Holdings's 1-year growth to the Global Airlines industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Virgin Australia Holdings has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Virgin Australia Holdings has efficiently used its assets last year compared to the Global Airlines industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Virgin Australia Holdings improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Virgin Australia Holdings's financial position?


Financial Position Analysis

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

Virgin Australia Holdings's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Virgin Australia Holdings's level of debt (484.4%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (183.8% vs 484.4% today).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.7x 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.

Virgin Australia Holdings has sufficient cash runway for more than 3 years based on current free cash flow.

Unable to confirm if Virgin Australia Holdings has at least 1 year of cash runway based on growing free cash flows without relevant data.


Next Steps

Dividend

What is Virgin Australia Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

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

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

Unable to perform a dividend volatility check as Virgin Australia Holdings has not reported any payouts.

Unable to verify if Virgin Australia Holdings's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Virgin Australia Holdings has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Virgin Australia Holdings'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 Virgin Australia Holdings's salary, the management and board of directors tenure and is there insider trading?

1.2yrs

Average management tenure


CEO

Paul Scurrah (51yo)

0.5yrs

Tenure

0

Mr. Paul Darren Scurrah, MAICD, has been the Chief Executive Officer and Managing Director of the Virgin Australia Holdings Limited since March 25, 2019 and also serves as its Director since March 25, 2019 ...


Management Age and Tenure

1.2yrs

Average Tenure

58yo

Average Age

The average tenure for the Virgin Australia Holdings management team is less than 2 years, this suggests a new team.


Board Age and Tenure

1.9yrs

Average Tenure

64yo

Average Age

The average tenure for the Virgin Australia Holdings board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Keith Neate (58yo)

    Chief Financial Officer

    • Tenure: 0yrs
  • Mike Hockin (60yo)

    General Manager of Engineering Operations

    • Tenure: 8.5yrs
    • Compensation: AU$670.00k
  • Paul Scurrah (51yo)

    CEO, MD & Director

    • Tenure: 0.5yrs
  • Karl Schuster

    Chief Executive Officer of Velocity Frequent Flyer

    • Tenure: 3.9yrs
    • Compensation: AU$632.00k
  • Merren McArthur

    Chief Commercial Officer

    • Tenure: 0yrs
    • Compensation: AU$1.19m
  • Danielle Keighery

    Chief Experience Officer

    • Tenure: 0.08yrs
  • Geoff Smith

    Executive Offcer

    • Tenure: 0yrs
    • Compensation: AU$1.41m
  • Dayna Field

    Chief Legal & Risk Officer

    • Tenure: 1.8yrs
  • Stu Aggs

    Chief Operations Officer

    • Tenure: 0.3yrs
  • Lucinda Gemmell

    Chief People & Culture Officer

    • Tenure: 0yrs

Board Members

  • Ken Dean (66yo)

    Independent Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: AU$215.00k
  • Trevor Bourne (73yo)

    Independent Non-Executive Director

    • Tenure: 1.7yrs
    • Compensation: AU$85.00k
  • Elizabeth Bryan (73yo)

    Chairman

    • Tenure: 4.3yrs
    • Compensation: AU$377.00k
  • Mark Chellew (62yo)

    Independent Non-Executive Director

    • Tenure: 1.7yrs
    • Compensation: AU$84.00k
  • Paul Scurrah (51yo)

    CEO, MD & Director

    • Tenure: 0.5yrs
  • Warwick Negus

    Non-Executive Director

    • Tenure: 2.7yrs
  • Marvin Tan (48yo)

    Non-Executive Director

    • Tenure: 3.7yrs
  • Angus Houston

    Independent Non-Executive Director

    • Tenure: 0.8yrs
  • Xiang Lan

    Non-Executive Director

    • Tenure: 2.2yrs
  • Hou Wei

    Non-Executive Director

    • Tenure: 0.3yrs

Company Information

Virgin Australia Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Virgin Australia Holdings Limited
  • Ticker: VAH
  • Exchange: ASX
  • Founded: 2000
  • Industry: Airlines
  • Sector: Transportation
  • Market Cap: AU$1.393b
  • Shares outstanding: 8.44b
  • Website: https://www.virginaustralia.com

Number of Employees


Location

  • Virgin Australia Holdings Limited
  • 56 Edmondstone Road
  • Bowen Hills
  • Queensland
  • 4006
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VBHL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 2003
VAHASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2003
VBLDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2003
VAHCHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 2003

Biography

Virgin Australia Holdings Limited engages in the operation of domestic and international passenger and cargo airline business in Australia. The company operates through Virgin Australia Domestic, Virgin Au ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/20 10:33
End of Day Share Price2019/09/20 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.