SWX:VACN

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Executive Summary

VAT Group AG, together with its subsidiaries, develops, manufactures, and supplies vacuum valves in Switzerland, rest of Europe, the United States, Japan, Korea, Singapore, rest of Asia, and internationally.


Snowflake Analysis

High growth potential with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.2%

VACN

3.4%

CH Machinery

2.3%

CH Market


1 Year Return

51.0%

VACN

2.5%

CH Machinery

3.2%

CH Market

Return vs Industry: VACN exceeded the Swiss Machinery industry which returned 1.8% over the past year.

Return vs Market: VACN exceeded the Swiss Market which returned 3.6% over the past year.


Shareholder returns

VACNIndustryMarket
7 Day-0.2%3.4%2.3%
30 Day10.2%12.7%4.9%
90 Day31.2%11.6%2.7%
1 Year54.9%51.0%6.1%2.5%6.6%3.2%
3 Year49.6%37.1%7.5%-1.2%21.1%8.7%
5 Yearn/a41.6%20.0%32.6%10.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

69.25x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: VACN (CHF172.8) is trading above our estimate of fair value (CHF83.72)

Significantly Below Fair Value: VACN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: VACN is poor value based on its PE Ratio (69.2x) compared to the Machinery industry average (19.4x).

PE vs Market: VACN is poor value based on its PE Ratio (69.2x) compared to the Swiss market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: VACN is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: VACN is overvalued based on its PB Ratio (9.9x) compared to the CH Machinery industry average (2.1x).


Next Steps

Future Growth

How is VAT Group forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

23.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VACN's forecast earnings growth (23.1% per year) is above the savings rate (-0.2%).

Earnings vs Market: VACN's earnings (23.1% per year) are forecast to grow faster than the Swiss market (8.5% per year).

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

Revenue vs Market: VACN's revenue (8.5% per year) is forecast to grow faster than the Swiss market (2.3% per year).

High Growth Revenue: VACN's revenue (8.5% 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 (28.4%)


Next Steps

Past Performance

How has VAT Group performed over the past 5 years?

23.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VACN has high quality earnings.

Growing Profit Margin: VACN's current net profit margins (13.1%) are lower than last year (19.4%).


Past Earnings Growth Analysis

Earnings Trend: VACN's earnings have grown significantly by 23.3% per year over the past 5 years.

Accelerating Growth: VACN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: VACN had negative earnings growth (-44.9%) over the past year, making it difficult to compare to the Machinery industry average (0.5%).


Return on Equity

High ROE: VACN's Return on Equity (14.3%) is considered low.


Next Steps

Financial Health

How is VAT Group's financial position?


Financial Position Analysis

Short Term Liabilities: VACN's short term assets (CHF299.8M) exceed its short term liabilities (CHF156.8M).

Long Term Liabilities: VACN's short term assets (CHF299.8M) exceed its long term liabilities (CHF292.4M).


Debt to Equity History and Analysis

Debt Level: VACN's debt to equity ratio (47.2%) is considered high.

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

Debt Coverage: VACN's debt is well covered by operating cash flow (63.9%).

Interest Coverage: VACN's interest payments on its debt are well covered by EBIT (23x coverage).


Balance Sheet


Next Steps

Dividend

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

2.31%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VACN's dividend (2.31%) is higher than the bottom 25% of dividend payers in the Swiss market (1.94%).

High Dividend: VACN's dividend (2.31%) is low compared to the top 25% of dividend payers in the Swiss market (3.83%).


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 has only been paying a dividend for 3 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (160.3%), VACN's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: VACN's dividends in 3 years are forecast to be covered by earnings (87.8% payout ratio).


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Mike Allison (57yo)

2.25yrs

Tenure

CHF1,082,358

Compensation

Mr. Michael Allison, also known as Mike, serves as Interim Chief Operating Officer at VAT Group AG since July 31, 2019. Mr. Allison has been Chief Executive Officer of VAT Group AG since March 13, 2018. Mr ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD1.12M) is below average for companies of similar size in the Swiss market ($USD2.23M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Michael Allison
CEO & Interim COO2.25yrsCHF1.08m0.0017% CHF87.6k
Stephan Bergamin
Chief Financial Officer1.42yrsno datano data
V. Valentin
Head of Human Resources & Member of Group Management Boardno datano datano data
U. Gantner
Member of Group Management Board & Head of Semiconductorsno datano datano data
J. Zoller
Member of Group Management Board and Head of GVAno datano datano data
G. Lutz
Member of Group Management Board & Head of Central Engineeringno datano datano data
M. Zickar
Member of Group Management Board & Head of Core Technologyno datano datano data
J. Haggerty
Member of Group Management Board & Head of Global Sales & Serviceno datano datano data
O. Müller
Member of Group Management Board & Head of Strategy and Business Development1.33yrsno datano data
K. Dahlstroem
Member of Group Management Board and Head of GVA & Bellowsno datano datano data

1.4yrs

Average Tenure

Experienced Management: VACN's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Heinz Kundert
Vice Chairman2.08yrsCHF91.24k0.11% CHF5.9m
Hermann Gerlinger
Director3.08yrsCHF112.60k0.0031% CHF158.0k
Urs Leinhäuser
Director4.25yrsCHF125.71k0.014% CHF733.7k
Martin Komischke
Chairman3.08yrsCHF270.76k0.0037% CHF191.7k
Karl Schlegel
Director4.25yrsCHF117.94k0.12% CHF6.4m
Libo Zhang
Director2.25yrsCHF93.34k0.00070% CHF36.3k

3.1yrs

Average Tenure

64yo

Average Age

Experienced Board: VACN's board of directors are considered experienced (3.1 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.


Top Shareholders

Company Information

VAT Group AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: VAT Group AG
  • Ticker: VACN
  • Exchange: SWX
  • Founded: 1965
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: CHF5.182b
  • Shares outstanding: 29.99m
  • Website: https://www.vatvalve.com

Number of Employees


Location

  • VAT Group AG
  • Seelistrasse 1
  • Haag
  • Sennwald
  • St. Gallen
  • 9469
  • Switzerland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VACNSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFApr 2016
19VDB (Deutsche Boerse AG)YesOrdinary SharesDEEURApr 2016
0RFLLSE (London Stock Exchange)YesOrdinary SharesGBCHFApr 2016
VTTG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDApr 2016
VACN NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNApr 2016
VACN.YOTCPK (Pink Sheets LLC)UNSPONSORED ADSUSUSDFeb 2018

Biography

VAT Group AG, together with its subsidiaries, develops, manufactures, and supplies vacuum valves in Switzerland, rest of Europe, the United States, Japan, Korea, Singapore, rest of Asia, and internationally. The company operates through three segments: Valves, Global Service, and Industry. The Valves segment offers vacuum valves for the semiconductor, displays, photovoltaics, and vacuum coating industries, as well as for the industrial and research sectors. The Global Service segment provides spare parts, repairs, and upgrades, as well as support services. The Industry segment produces edge-welded bellows that are used as sealing elements in vacuum valve, semiconductor manufacturing, fuel injection system, and medical implant applications; and offers manufacturing parts and mechanical components for machining ancillary industry. VAT Group AG was founded in 1965 is headquartered in Sennwald, Switzerland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 00:22
End of Day Share Price2020/06/05 00:00
Earnings2019/12/31
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.