VAT Group (SWX:VACN) - Share price, News & Analysis

Q: What is the Fair Price of VACN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

VACN (CHF246) is trading below our estimate of [[fair value]] (CHF376.77)

VACN fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	4/6
Past Performance	6/6
Financial Health	6/6
Dividends	3/6

VACN Stock Overview

Rewards

Trading at 34.7% below our estimate of its fair value

Earnings are forecast to grow 12.19% per year

Earnings grew by 70% over the past year

Risk Analysis

Unstable dividend track record

VAT Group Competitors

SFS Group

SWX:SFSN

CHF3.9b

Georg Fischer

SWX:GF

CHF4.0b

Schindler Holding

SWX:SCHN

CHF18.6b

Dätwyler Holding

SWX:DAE

CHF3.4b

Price History & Performance

Summary of all time highs, changes and price drops for VAT Group
Historical stock prices
Current Share Price	CHF246.00
52 Week High	CHF496.60
52 Week Low	CHF225.20
Beta	1.18
1 Month Change	-11.51%
3 Month Change	-31.86%
1 Year Change	-19.61%
3 Year Change	98.79%
5 Year Change	105.51%
Change since IPO	423.40%

Recent News & Updates

Jun 26

We Think VAT Group (VTX:VACN) Might Have The DNA Of A Multi-Bagger

What are the early trends we should look for to identify a stock that could multiply in value over the long term...

May 29

If You Like EPS Growth Then Check Out VAT Group (VTX:VACN) Before It's Too Late

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

May 14

VAT Group (VTX:VACN) Will Pay A Larger Dividend Than Last Year At CHF5.50

VAT Group AG ( VTX:VACN ) has announced that it will be increasing its dividend on the 24th of May to CHF5.50. Based on...

Shareholder Returns

	VACN	CH Machinery	CH Market
7D	6.4%	-0.08%	3.4%
1Y	-19.6%	-31.7%	-12.4%

Return vs Industry: VACN exceeded the Swiss Machinery industry which returned -31.7% over the past year.

Return vs Market: VACN underperformed the Swiss Market which returned -12.4% over the past year.

Price Volatility

Is VACN's price volatile compared to industry and market?
VACN volatility
VACN Average Weekly Movement	5.8%
Machinery Industry Average Movement	5.1%
Market Average Movement	4.6%
10% most volatile stocks in CH Market	7.6%
10% least volatile stocks in CH Market	2.4%

Stable Share Price: VACN is not significantly more volatile than the rest of Swiss stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: VACN's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1965	2,540	Mike Allison	https://www.vatvalve.com

VAT Group AG, together with its subsidiaries, develops, manufactures, and supplies vacuum valves in Switzerland, rest of Europe, the United States, Japan, Korea, Singapore, China, rest of Asia, and internationally. The company operates through two segments, Valves and Global Service. The Valves segment offers vacuum valves for the semiconductor, displays, photovoltaics, and vacuum coating industries, as well as for the industrial and research sectors.

VAT Group Fundamentals Summary

How do VAT Group's earnings and revenue compare to its market cap?
VACN fundamental statistics
Market Cap	CHF7.38b
Earnings (TTM)	CHF217.44m
Revenue (TTM)	CHF901.16m

33.9x

P/E Ratio

8.2x

P/S Ratio

Is VACN overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
VACN income statement (TTM)
Revenue	CHF901.16m
Cost of Revenue	CHF351.19m
Gross Profit	CHF549.97m
Other Expenses	CHF332.53m
Earnings	CHF217.44m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 04, 2022

Earnings per share (EPS)	7.25
Gross Margin	61.03%
Net Profit Margin	24.13%
Debt/Equity Ratio	31.5%

How did VACN perform over the long term?

See historical performance and comparison

Dividends

2.2%

Current Dividend Yield

76%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is VACN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for VACN?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for VACN. This is calculated by dividing VACN's market cap by their current preferred multiple.
What is VACN's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CHF7.38b

VACN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	8.3x
Enterprise Value/EBITDA	25.5x
PEG Ratio	2.8x

Price to Earnings Ratio vs Peers

How does VACN's PE Ratio compare to its peers?

VACN PE Ratio vs Peers

The above table shows the PE ratio for VACN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	21.8x
SFSN SFS Group	16.1x	5.8%	CHF3.9b
GF Georg Fischer	18.9x	13.8%	CHF4.0b
SCHN Schindler Holding	24.4x	15.3%	CHF18.6b
DAE Dätwyler Holding	27.8x	16.9%	CHF3.4b
VACN VAT Group	33.9x	12.2%	CHF7.4b

Forward PE

Price-To-Earnings vs Peers: VACN is expensive based on its Price-To-Earnings Ratio (33.9x) compared to the peer average (21.8x).

Price to Earnings Ratio vs Industry

How does VACN's PE Ratio compare vs other companies in the CH Machinery Industry?

Price-To-Earnings vs Industry: VACN is expensive based on its Price-To-Earnings Ratio (33.9x) compared to the Swiss Machinery industry average (17.5x)

Price to Earnings Ratio vs Fair Ratio

What is VACN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

VACN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	33.9x
Fair PE Ratio	31.6x

Price-To-Earnings vs Fair Ratio: VACN is expensive based on its Price-To-Earnings Ratio (33.9x) compared to the estimated Fair Price-To-Earnings Ratio (31.6x).

Share Price vs Fair Value

What is the Fair Price of VACN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: VACN (CHF246) is trading below our estimate of fair value (CHF376.77)

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

Price to Earnings Growth Ratio

PEG Ratio: VACN is poor value based on its PEG Ratio (2.8x)

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Future Growth

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

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

12.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: VACN's forecast earnings growth (12.2% per year) is above the savings rate (-0.3%).

Earnings vs Market: VACN's earnings (12.2% per year) are forecast to grow faster than the Swiss market (6.1% per year).

High Growth Earnings: VACN's earnings are forecast to grow, but not significantly.

Revenue vs Market: VACN's revenue (11.2% per year) is forecast to grow faster than the Swiss market (4.2% per year).

High Growth Revenue: VACN's revenue (11.2% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: VACN's Return on Equity is forecast to be high in 3 years time (35.9%)

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Past Performance

How has VAT Group performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

12.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: VACN has high quality earnings.

Growing Profit Margin: VACN's current net profit margins (24.1%) are higher than last year (18.5%).

Past Earnings Growth Analysis

Earnings Trend: VACN's earnings have grown by 12.9% per year over the past 5 years.

Accelerating Growth: VACN's earnings growth over the past year (70%) exceeds its 5-year average (12.9% per year).

Earnings vs Industry: VACN earnings growth over the past year (70%) exceeded the Machinery industry 53.4%.

Return on Equity

High ROE: VACN's Return on Equity (34.3%) is considered high.

Discover strong past performing companies

Financial Health

How is VAT Group's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: VACN's short term assets (CHF413.7M) exceed its short term liabilities (CHF159.4M).

Long Term Liabilities: VACN's short term assets (CHF413.7M) exceed its long term liabilities (CHF271.1M).

Debt to Equity History and Analysis

Debt Level: VACN's net debt to equity ratio (11.4%) is considered satisfactory.

Reducing Debt: VACN's debt to equity ratio has reduced from 38.6% to 31.5% over the past 5 years.

Debt Coverage: VACN's debt is well covered by operating cash flow (120.1%).

Interest Coverage: VACN's interest payments on its debt are well covered by EBIT (76.1x coverage).

Balance Sheet

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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.24%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: VACN's dividend (2.24%) is higher than the bottom 25% of dividend payers in the Swiss market (1.99%).

High Dividend: VACN's dividend (2.24%) is low compared to the top 25% of dividend payers in the Swiss market (4.14%).

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, VACN has been paying a dividend for less than 10 years.

Growing Dividend: VACN's dividend payments have increased, but the company has only paid a dividend for 5 years.

Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (75.9%), VACN's payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (83.8%), VACN's dividend payments are covered by cash flows.

Discover strong dividend paying companies

Management

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

2.5yrs

Average management tenure

CEO

Mike Allison (59 yo)

4.25yrs

Tenure

CHF1,483,794

Compensation

Mr. Michael Allison, also known as Mike, was Interim Chief Operating Officer at VAT Group AG from July 31, 2019 to October 01, 2020. Mr. Allison has been Chief Executive Officer of VAT Group AG since March...

CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD1.55M) is below average for companies of similar size in the Swiss market ($USD2.28M).

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

Leadership Team

Experienced Management: VACN's management team is considered experienced (2.5 years average tenure).

Board Members

Experienced Board: VACN's board of directors are considered experienced (5.1 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/27 00:00
End of Day Share Price	2022/06/27 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31