TSXV:VTX

Stock Analysis Report

Executive Summary

Vertex Resource Group Ltd. provides environmental and industrial services in Canada and the United States.

Snowflake

Fundamentals

Undervalued with imperfect balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

2.9%

VTX

1.5%

CA Commercial Services

0.2%

CA Market


1 Year Return

-31.4%

VTX

-12.7%

CA Commercial Services

2.4%

CA Market

Return vs Industry: VTX underperformed the Canadian Commercial Services industry which returned -12.7% over the past year.

Return vs Market: VTX underperformed the Canadian Market which returned 2.4% over the past year.


Shareholder returns

VTXIndustryMarket
7 Day2.9%1.5%0.2%
30 Day-5.4%-4.9%-3.3%
90 Day11.1%-3.0%-1.8%
1 Year-31.4%-31.4%-9.6%-12.7%6.0%2.4%
3 Yearn/a0.09%-7.9%14.2%4.0%
5 Yearn/a-19.7%-34.3%27.2%8.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VTX (CA$0.35) is trading below our estimate of fair value (CA$1.52)

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


Price To Earnings Ratio

PE vs Industry: VTX is good value based on its PE Ratio (6.4x) compared to the Commercial Services industry average (12.7x).

PE vs Market: VTX is good value based on its PE Ratio (6.4x) compared to the Canadian market (13.7x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate VTX's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: VTX is good value based on its PB Ratio (0.5x) compared to the CA Commercial Services industry average (0.8x).


Next Steps

Future Growth

How is Vertex Resource Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

7.9%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if VTX's forecast earnings growth is above the savings rate (1.9%).

Earnings vs Market: Insufficient data to determine if VTX's earnings are forecast to grow faster than the Canadian market

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

Revenue vs Market: VTX's revenue (7.9% per year) is forecast to grow faster than the Canadian market (5.5% per year).

High Growth Revenue: VTX's revenue (7.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if VTX's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Vertex Resource Group performed over the past 5 years?

88.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: VTX's earnings have grown significantly by 88.4% per year over the past 5 years.

Accelerating Growth: VTX has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: VTX has become profitable in the last year, making it difficult to compare its past year earnings growth to the Commercial Services industry (-2.1%).


Return on Equity

High ROE: VTX's Return on Equity (8%) is considered low.


Return on Assets

ROA vs Industry: VTX's Return on Assets is below or equal to the Commercial Services industry average last year.


Return on Capital Employed

ROCE Improving: VTX's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Vertex Resource Group's financial position?


Financial Position Analysis

Short Term Liabilities: VTX's short term assets (CA$45.6M) exceeds its short term liabilities (CA$36.9M)

Long Term Liabilities: VTX's short term assets (45.6M) do not cover its long term liabilities (100.9M)


Debt to Equity History and Analysis

Debt Level: VTX's debt to equity ratio (118.1%) is considered high

Reducing Debt: Insufficient data to determine if VTX's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: VTX's debt is well covered by operating cash flow (21.3%).

Interest Coverage: VTX's interest payments on its debt are not well covered by EBIT (0.2x coverage).


Balance Sheet

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

Debt Coverage by Assets: VTX's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%6.0%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

Stable Dividend: Insufficient data to determine if VTX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if VTX'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 VTX's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

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

2.9yrs

Average management tenure


CEO

Terry Stephenson (45yo)

0yrs

Tenure

CA$355,000

Compensation

Mr. Terry A. Stephenson, CPA serves as President at Vertex Resource Services Ltd. Mr. Stephenson has been President of Vertex Resource Group Ltd. and serves as its Chief Executive Officer. In 2005, Mr. Ste ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Terry's total compensation is reasonable compared to companies of similar size in the Canadian market.

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


Management Age and Tenure

2.9yrs

Average Tenure

43yo

Average Age

Experienced Management: VTX's management team is considered experienced (2.9 years average tenure).


Board Age and Tenure

6.3yrs

Average Tenure

58yo

Average Age

Experienced Board: VTX's board of directors are considered experienced (6.3 years average tenure).


Insider Trading

Insider Buying: VTX insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$41809 Sep 19
Michael Zvonkovic
EntityIndividual
Role
Secretary
Corporate Secretary
Shares1,131
Max PriceCA$0.37
BuyCA$1,15109 Sep 19
Terry Stephenson
EntityIndividual
Role
Chief Executive Officer
President
Shares3,110
Max PriceCA$0.37
BuyCA$77409 Sep 19
Paul Blenkhorn
EntityIndividual
Role
Senior Key Executive
Vice President of Consulting Services
Shares2,092
Max PriceCA$0.37
BuyCA$41809 Sep 19
Deon Walsh
EntityIndividual
Role
Other Key Executive
Vice President of Environmental Services
Shares1,131
Max PriceCA$0.37
BuyCA$40109 Sep 19
Sherry Bielopotocky
EntityIndividual
Role
Other Key Executive
Vice President of Corporate
Shares1,085
Max PriceCA$0.37
BuyCA$57309 Sep 19
Howard Start
EntityIndividual
Shares1,549
Max PriceCA$0.37
BuyCA$57208 Aug 19
Howard Start
EntityIndividual
Shares1,504
Max PriceCA$0.38
BuyCA$41708 Aug 19
Deon Walsh
EntityIndividual
Role
Other Key Executive
Vice President of Environmental Services
Shares1,098
Max PriceCA$0.38
BuyCA$40108 Aug 19
Sherry Bielopotocky
EntityIndividual
Role
Other Key Executive
Vice President of Corporate
Shares1,054
Max PriceCA$0.38
BuyCA$41708 Aug 19
Michael Zvonkovic
EntityIndividual
Role
Secretary
Corporate Secretary
Shares1,098
Max PriceCA$0.38
BuyCA$77208 Aug 19
Paul Blenkhorn
EntityIndividual
Role
Senior Key Executive
Vice President of Consulting Services
Shares2,031
Max PriceCA$0.38
BuyCA$1,14708 Aug 19
Terry Stephenson
EntityIndividual
Role
Chief Executive Officer
President
Shares3,019
Max PriceCA$0.38
BuyCA$1,14404 Jul 19
Terry Stephenson
EntityIndividual
Role
Chief Executive Officer
President
Shares3,010
Max PriceCA$0.38
BuyCA$57004 Jul 19
Howard Start
EntityIndividual
Shares1,499
Max PriceCA$0.38
BuyCA$41604 Jul 19
Deon Walsh
EntityIndividual
Role
Other Key Executive
Vice President of Environmental Services
Shares1,094
Max PriceCA$0.38
BuyCA$39904 Jul 19
Sherry Bielopotocky
EntityIndividual
Role
Other Key Executive
Vice President of Corporate
Shares1,051
Max PriceCA$0.38
BuyCA$41604 Jul 19
Michael Zvonkovic
EntityIndividual
Role
Secretary
Corporate Secretary
Shares1,094
Max PriceCA$0.38
BuyCA$77004 Jul 19
Paul Blenkhorn
EntityIndividual
Role
Senior Key Executive
Vice President of Consulting Services
Shares2,025
Max PriceCA$0.38
BuyCA$38017 Jun 19
Michael Zvonkovic
EntityIndividual
Role
Secretary
Corporate Secretary
Shares1,000
Max PriceCA$0.38
BuyCA$1,19413 Jun 19
Michael Zvonkovic
EntityIndividual
Role
Secretary
Corporate Secretary
Shares3,000
Max PriceCA$0.40
BuyCA$41705 Jun 19
Michael Zvonkovic
EntityIndividual
Role
Secretary
Corporate Secretary
Shares926
Max PriceCA$0.45
BuyCA$57105 Jun 19
Howard Start
EntityIndividual
Shares1,269
Max PriceCA$0.45
BuyCA$41705 Jun 19
Deon Walsh
EntityIndividual
Role
Other Key Executive
Vice President of Environmental Services
Shares926
Max PriceCA$0.45
BuyCA$1,14605 Jun 19
Terry Stephenson
EntityIndividual
Role
Chief Executive Officer
President
Shares2,546
Max PriceCA$0.45
BuyCA$77105 Jun 19
Paul Blenkhorn
EntityIndividual
Role
Senior Key Executive
Vice President of Consulting Services
Shares1,713
Max PriceCA$0.45
BuyCA$40005 Jun 19
Sherry Bielopotocky
EntityIndividual
Role
Other Key Executive
Vice President of Corporate
Shares889
Max PriceCA$0.45
BuyCA$88003 Jun 19
Michael Zvonkovic
EntityIndividual
Role
Secretary
Corporate Secretary
Shares2,000
Max PriceCA$0.44
BuyCA$2,15023 May 19
Michael Zvonkovic
EntityIndividual
Role
Secretary
Corporate Secretary
Shares5,000
Max PriceCA$0.43
BuyCA$5,82523 May 19
Paul Blenkhorn
EntityIndividual
Role
Senior Key Executive
Vice President of Consulting Services
Shares13,000
Max PriceCA$0.45
BuyCA$3,86417 May 19
Michael Zvonkovic
EntityIndividual
Role
Secretary
Corporate Secretary
Shares9,500
Max PriceCA$0.42
BuyCA$3,80016 May 19
Michael Zvonkovic
EntityIndividual
Role
Secretary
Corporate Secretary
Shares10,000
Max PriceCA$0.38
BuyCA$3,40022 Dec 18
Michael Zvonkovic
EntityIndividual
Role
Secretary
Corporate Secretary
Shares8,500
Max PriceCA$0.40
BuyCA$60020 Dec 18
Michael Zvonkovic
EntityIndividual
Role
Secretary
Corporate Secretary
Shares1,500
Max PriceCA$0.40
BuyCA$4,40028 Nov 18
Michael Zvonkovic
EntityIndividual
Role
Secretary
Corporate Secretary
Shares10,000
Max PriceCA$0.44

Ownership Breakdown


Management Team

  • Imran Ally

    Chief Financial Officer

    • Tenure: 0.08yrs
  • Mike Zvonkovic (42yo)

    Corporate Secretary

    • Tenure: 2.1yrs
    • Compensation: CA$220.00k
  • Deon Walsh (52yo)

    Vice President of Environmental Services

    • Tenure: 3.7yrs
    • Compensation: CA$225.80k
  • Terry Stephenson (45yo)

    President

    • Tenure: 0yrs
    • Compensation: CA$355.00k
  • Paul Blenkhorn (43yo)

    Vice President of Consulting Services

    • Tenure: 0yrs
    • Compensation: CA$230.80k
  • Sherry Bielopotocky (40yo)

    Vice President of Corporate

    • Tenure: 4.5yrs
    • Compensation: CA$190.00k

Board Members

  • Brian Butlin (69yo)

    Chairman

    • Tenure: 12.7yrs
    • Compensation: CA$55.50k
  • Stuart O'Connor (58yo)

    Independent Director

    • Tenure: 2yrs
    • Compensation: CA$33.50k
  • Terry Freeman (59yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: CA$36.00k
  • Trent Baker (38yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: CA$32.00k
  • Terry Stephenson (45yo)

    President

    • Tenure: 0yrs
    • Compensation: CA$355.00k

Company Information

Vertex Resource Group Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Vertex Resource Group Ltd.
  • Ticker: VTX
  • Exchange: TSXV
  • Founded: 1976
  • Industry: Environmental and Facilities Services
  • Sector: Commercial Services
  • Market Cap: CA$32.695m
  • Shares outstanding: 93.41m
  • Website: https://www.vertex.ca

Number of Employees


Location

  • Vertex Resource Group Ltd.
  • 161, 2055 Premier Way
  • Sherwood Park
  • Alberta
  • T8H 0G2
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VTXTSXV (TSX Venture Exchange)YesCommon SharesCACADNov 2017

Biography

Vertex Resource Group Ltd. provides environmental and industrial services in Canada and the United States. It operates through two segments, Environmental Services and Industrial Services. The company offe ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 00:53
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.