TSXV:VTX

Stock Analysis Report

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Executive Summary

Vertex Resource Group Ltd. provides environmental, consulting and engineering services in Canada and the United States. More Details


Snowflake Analysis

Fair value with mediocre 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

Stable Share Price: VTX's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.3%

VTX

0.9%

CA Commercial Services

1.1%

CA Market


1 Year Return

-31.3%

VTX

17.3%

CA Commercial Services

-7.0%

CA Market

Return vs Industry: VTX underperformed the Canadian Commercial Services industry which returned 17.6% over the past year.

Return vs Market: VTX underperformed the Canadian Market which returned -6.3% over the past year.


Shareholder returns

VTXIndustryMarket
7 Day-4.3%0.9%1.1%
30 Day-18.5%2.0%-1.2%
90 Day-18.5%10.8%6.8%
1 Year-31.3%-31.3%19.2%17.3%-3.7%-7.0%
3 Yearn/a49.2%39.3%10.3%-0.4%
5 Yearn/a80.7%58.3%43.7%21.6%

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$0.22) is trading below our estimate of fair value (CA$0.48)

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


Price To Earnings Ratio

PE vs Industry: VTX is unprofitable, so we can't compare its PE Ratio to the CA Commercial Services industry average.

PE vs Market: VTX is unprofitable, so we can't compare its PE Ratio to the Canadian market.


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 (0.4x) compared to the CA Commercial Services industry average (1.3x).


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?

14.0%

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 (1.7%).

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 (14% per year) is forecast to grow faster than the Canadian market (5.1% per year).

High Growth Revenue: VTX's revenue (14% 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?

-3.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VTX is currently unprofitable.

Growing Profit Margin: VTX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: VTX is unprofitable, and losses have increased over the past 5 years at a rate of 3.8% per year.

Accelerating Growth: Unable to compare VTX's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: VTX is unprofitable, making it difficult to compare its past year earnings growth to the Commercial Services industry (-7.3%).


Return on Equity

High ROE: VTX has a negative Return on Equity (-33.24%), as it is currently unprofitable.


Next Steps

Financial Health

How is Vertex Resource Group's financial position?


Financial Position Analysis

Short Term Liabilities: VTX's short term assets (CA$38.7M) exceed its short term liabilities (CA$33.3M).

Long Term Liabilities: VTX's short term assets (CA$38.7M) do not cover its long term liabilities (CA$76.9M).


Debt to Equity History and Analysis

Debt Level: VTX's debt to equity ratio (145.5%) is considered high.

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


Balance Sheet


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: Whilst unprofitable VTX has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: VTX is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 41.9% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

How experienced are the management team and are they aligned to shareholders interests?

4.6yrs

Average management tenure


CEO

Terry Stephenson (46 yo)

no data

Tenure

CA$284,166

Compensation

Mr. Terry A. Stephenson, CPA has been as President and Chief Executive Officer at Vertex Resource Services Ltd since 2005. As President and CEO, Mr. Stephenson is responsible for Vertex’s strategic directi ...


CEO Compensation Analysis

Compensation vs Market: Terry's total compensation ($USD215.82K) is about average for companies of similar size in the Canadian market ($USD178.24K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Terry Stephenson
Presidentno dataCA$284.17k15.79%
CA$ 3.2m
Imran Ally
CFO & Secretary1yrCA$54.41k0.018%
CA$ 3.6k
Paul Blenkhorn
Vice President of Consulting Servicesno dataCA$261.97k0.42%
CA$ 83.6k
Sherry Bielopotocky
Vice President of Corporate5.42yrsCA$153.77k0.092%
CA$ 18.4k
Deon Walsh
Vice President of Environmental Services4.58yrsCA$221.33k0.075%
CA$ 15.1k

4.6yrs

Average Tenure

46yo

Average Age

Experienced Management: VTX's management team is considered experienced (4.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Terry Stephenson
Presidentno dataCA$284.17k15.79%
CA$ 3.2m
Brian Butlin
Chairman13.58yrsCA$55.50k11.04%
CA$ 2.2m
Stuart O'Connor
Independent Director2.92yrsCA$33.50kno data
Terry Freeman
Independent Director7.25yrsCA$37.00kno data
Trent Baker
Independent Director4.5yrsCA$24.25kno data

7.3yrs

Average Tenure

59yo

Average Age

Experienced Board: VTX's board of directors are considered experienced (7.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: VTX insiders have sold more shares than they have bought 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

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: 1962
  • Industry: Environmental and Facilities Services
  • Sector: Commercial Services
  • Market Cap: CA$20.076m
  • Shares outstanding: 91.25m
  • 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
4X8DB (Deutsche Boerse AG)YesCommon SharesDEEURNov 2017

Biography

Vertex Resource Group Ltd. provides environmental, consulting and engineering services in Canada and the United States. It operates through two segments, Environmental Consulting and Environmental Services ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/17 06:21
End of Day Share Price2020/09/15 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.