MUN:VPN

Stock Analysis Report

AS VEF Radiotehnika RRR

Executive Summary

AS VEF Radiotehnika RRR produces and sells acoustic systems and their enclosures.

Rewards

PE ratio (20.6x) is below the German market (20.6x)

Became profitable this year

Risk Analysis

Makes less than USD$1m in revenue (€83K)

Does not have a meaningful market cap (€489K)

Shareholders have been diluted in the past year



Snowflake Analysis

Excellent balance sheet with acceptable track record.

Share Price & News

How has AS VEF Radiotehnika RRR's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: VPN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

VPN

-2.9%

DE Consumer Durables

0.07%

DE Market


1 Year Return

-39.2%

VPN

-4.7%

DE Consumer Durables

14.8%

DE Market

Return vs Industry: VPN underperformed the German Consumer Durables industry which returned -0% over the past year.

Return vs Market: VPN underperformed the German Market which returned 17.1% over the past year.


Shareholder returns

VPNIndustryMarket
7 Day0%-2.9%0.07%
30 Day-5.0%-2.6%1.9%
90 Day-5.0%7.5%7.1%
1 Year-39.2%-39.2%-2.3%-4.7%18.4%14.8%
3 Year-27.8%-27.8%-1.0%-9.3%17.4%7.0%
5 Year15.0%15.0%28.3%10.8%27.9%10.4%

Price Volatility Vs. Market

How volatile is AS VEF Radiotehnika RRR's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is AS VEF Radiotehnika RRR undervalued compared to its fair value and its price relative to the market?

20.57x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate VPN's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate VPN's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: VPN is poor value based on its PE Ratio (20.6x) compared to the Consumer Durables industry average (17.2x).

PE vs Market: VPN is good value based on its PE Ratio (20.6x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: VPN is good value based on its PB Ratio (0.9x) compared to the DE Consumer Durables industry average (1.7x).


Next Steps

Future Growth

How is AS VEF Radiotehnika RRR forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

13.8%

Forecasted Consumer Durables industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as AS VEF Radiotehnika RRR has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has AS VEF Radiotehnika RRR performed over the past 5 years?

39.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VPN has high quality earnings.

Growing Profit Margin: VPN became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: VPN has become profitable over the past 5 years, growing earnings by 39.7% per year.

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

Earnings vs Industry: VPN has become profitable in the last year, making it difficult to compare its past year earnings growth to the Consumer Durables industry (-15.9%).


Return on Equity

High ROE: VPN's Return on Equity (4.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is AS VEF Radiotehnika RRR's financial position?


Financial Position Analysis

Short Term Liabilities: VPN's short term assets (€242.8K) exceed its short term liabilities (€153.4K).

Long Term Liabilities: VPN's short term assets (€242.8K) exceed its long term liabilities (€85.0K).


Debt to Equity History and Analysis

Debt Level: VPN's debt to equity ratio (15.5%) is considered satisfactory.

Reducing Debt: VPN's debt to equity ratio has reduced from 51.6% to 15.5% over the past 5 years.

Debt Coverage: VPN's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: VPN's interest payments on its debt are well covered by EBIT (3.5x coverage).


Balance Sheet

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

Debt Coverage by Assets: VPN's debt is covered by short term assets (assets are 2.9x debt).


Next Steps

Dividend

What is AS VEF Radiotehnika RRR's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.5%industryaverage3.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

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


Next Steps

Management

What is the CEO of AS VEF Radiotehnika RRR's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average board tenure


CEO

Eriks Ertmanis 0

1.8yrs

Tenure

0

Eriks Ertmanis has been a Director of AS VEF Radiotehnika RRR since August 14, 2012 and also serves as its Chairman of the Board since April 27, 2018. Eriks Ertmanis has been a Deputy Director of Imanta Re ...


Board Age and Tenure

1.8yrs

Average Tenure

Experienced Board: VPN's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Insider Trading

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 been diluted in the past year, with total shares outstanding growing by 8.1%.


Management Team

  • Olga Romanko

    Board Member & Chief Accountant

    • Tenure: 1.5yrs
  • Eriks Ertmanis

    Chairman of the Board

    • Tenure: 1.8yrs
  • Vigo Krastinš

    Adminstrator of Legal Protection


    Board Members

    • Eduards Malejevs

      Chairman of the Council

      • Tenure: 1.5yrs
    • Vjaceslavs Mihailovins

      Council Member

      • Tenure: 4.3yrs
    • Inars Klavinš

      Vice Chairman of the Council

      • Tenure: 1.8yrs
    • Genadijs Hotejevs

      Council Member

      • Tenure: 4.3yrs
    • Martinš Perts

      Council Member

      • Tenure: 1.5yrs

    Company Information

    AS VEF Radiotehnika RRR's company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: AS VEF Radiotehnika RRR
    • Ticker: VPN
    • Exchange: MUN
    • Founded: 1927
    • Industry: Consumer Electronics
    • Sector: Consumer Durables
    • Market Cap: €489.424k
    • Shares outstanding: 2.55m
    • Website: https://www.rrr.lv

    Number of Employees


    Location

    • AS VEF Radiotehnika RRR
    • Kurzemes prospekts 3D
    • Riga
    • 1067
    • Latvia

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    RRR1RRISE (OMX Nordic Exchange Riga)YesOrdinary SharesLVEURJan 2004
    0O60LSE (London Stock Exchange)YesOrdinary SharesGBEURJan 2004
    VPNMUN (Boerse Muenchen)YesOrdinary SharesDEEURJan 2004

    Biography

    AS VEF Radiotehnika RRR produces and sells acoustic systems and their enclosures. The company manufactures speaker cabinets and printed circuit boards; mounts printed circuit boards, including SMD assemblies; and assembles electronic parts and cable harnesses. Its products include active subwoofers, bookshelves, center channels, floor standings, and home theaters. The company also provides real estate renting services. It operates in Latvia, Italy, Lithuania, Russia, and internationally. The company was founded in 1927 and is based in Riga, Latvia. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/18 21:23
    End of Day Share Price2020/01/17 00:00
    Earnings2019/09/30
    Annual Earnings2019/09/30


    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.