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VEL

Velocity Composites AIM:VEL Stock Report

Last Price

UK£0.19

Market Cap

UK£6.9m

7D

0%

1Y

-19.1%

Updated

15 Aug, 2022

Data

Company Financials +
VEL fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance0/6
Financial Health4/6
Dividends0/6

VEL Stock Overview

Velocity Composites plc, together with its subsidiaries, provides engineered composite material kits to the aerospace industry in the United Kingdom, Europe, and internationally.

Velocity Composites Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Velocity Composites
Historical stock prices
Current Share PriceUK£0.19
52 Week HighUK£0.32
52 Week LowUK£0.14
Beta1.25
1 Month Change0%
3 Month Change0%
1 Year Change-19.15%
3 Year Change18.75%
5 Year Change-77.65%
Change since IPO-78.89%

Recent News & Updates

Shareholder Returns

VELGB Aerospace & DefenseGB Market
7D0%-1.1%0.03%
1Y-19.1%18.3%-8.3%

Return vs Industry: VEL underperformed the UK Aerospace & Defense industry which returned 17.8% over the past year.

Return vs Market: VEL underperformed the UK Market which returned -9% over the past year.

Price Volatility

Is VEL's price volatile compared to industry and market?
VEL volatility
VEL Average Weekly Movement5.3%
Aerospace & Defense Industry Average Movement4.1%
Market Average Movement5.4%
10% most volatile stocks in GB Market10.8%
10% least volatile stocks in GB Market2.7%

Stable Share Price: VEL is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: VEL's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
200775Jon Bridgeshttps://www.velocity-composites.com

Velocity Composites plc, together with its subsidiaries, provides engineered composite material kits to the aerospace industry in the United Kingdom, Europe, and internationally. It offers structural material kits, such as ply generation, shape management and configuration control, life management, and cutting and supply service, as well as materials comprising woven fabrics, unidirectional fabrics, impregnated metallic meshes, and film adhesives. The company also provides engineered vacuum bag material kits; and honeycomb, core potting compounds, and co-bonded materials, including hole potting compound kits, cut shape metallic foils and meshes for lightning strike protection/EMI shielding, honeycomb and foam core products, and kitted co-bonded films.

Velocity Composites Fundamentals Summary

How do Velocity Composites's earnings and revenue compare to its market cap?
VEL fundamental statistics
Market CapUK£6.92m
Earnings (TTM)-UK£857.00k
Revenue (TTM)UK£11.19m

0.6x

P/S Ratio

-8.1x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
VEL income statement (TTM)
RevenueUK£11.19m
Cost of RevenueUK£8.39m
Gross ProfitUK£2.80m
Other ExpensesUK£3.66m
Earnings-UK£857.00k

Last Reported Earnings

Apr 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.024
Gross Margin25.02%
Net Profit Margin-7.66%
Debt/Equity Ratio57.3%

How did VEL perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

VEL 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/Revenue0.8x
Enterprise Value/EBITDA-10.8x
PEG Ration/a

Price to Sales Ratio vs Peers

How does VEL's PS Ratio compare to its peers?

VEL PS Ratio vs Peers
The above table shows the PS ratio for VEL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average14.3x
PEN Pennant International Group
0.7x1.7%UK£11.8m
MSI MS INTERNATIONAL
0.7xn/aUK£50.4m
NNN Nanosynth Group
54xn/aUK£11.2m
CHRT Cohort
1.6x8.8%UK£219.2m
VEL Velocity Composites
0.6x19.4%UK£6.9m

Price-To-Sales vs Peers: VEL is good value based on its Price-To-Sales Ratio (0.6x) compared to the peer average (14.3x).


Price to Earnings Ratio vs Industry

How does VEL's PE Ratio compare vs other companies in the European Aerospace & Defense Industry?

Price-To-Sales vs Industry: VEL is good value based on its Price-To-Sales Ratio (0.6x) compared to the UK Aerospace & Defense industry average (1.4x)


Price to Sales Ratio vs Fair Ratio

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

VEL PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.6x
Fair PS Ratio0.7x

Price-To-Sales vs Fair Ratio: VEL is good value based on its Price-To-Sales Ratio (0.6x) compared to the estimated Fair Price-To-Sales Ratio (0.7x).


Share Price vs Fair Value

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

Below Fair Value: Insufficient data to calculate VEL's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate VEL's fair value for valuation analysis.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

How is Velocity Composites forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


6.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VEL is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: VEL is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: VEL is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: VEL's revenue (19.4% per year) is forecast to grow faster than the UK market (4.4% per year).

High Growth Revenue: VEL's revenue (19.4% 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 VEL's Return on Equity is forecast to be high in 3 years time


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Past Performance

How has Velocity Composites performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-22.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: VEL is currently unprofitable.

Growing Profit Margin: VEL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: VEL is unprofitable, and losses have increased over the past 5 years at a rate of 22.4% per year.

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

Earnings vs Industry: VEL is unprofitable, making it difficult to compare its past year earnings growth to the Aerospace & Defense industry (-20.2%).


Return on Equity

High ROE: VEL has a negative Return on Equity (-21.74%), as it is currently unprofitable.


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Financial Health

How is Velocity Composites's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: VEL's short term assets (£6.3M) exceed its short term liabilities (£2.0M).

Long Term Liabilities: VEL's short term assets (£6.3M) exceed its long term liabilities (£2.9M).


Debt to Equity History and Analysis

Debt Level: VEL's net debt to equity ratio (5.6%) is considered satisfactory.

Reducing Debt: VEL's debt to equity ratio has increased from 1.7% to 57.3% 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: VEL has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: VEL has less than a year of cash runway if free cash flow continues to grow at historical rates of 30.7% each year.


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Dividend

What is Velocity Composites's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

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

High Dividend: Unable to evaluate VEL'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 VEL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if VEL's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: VEL is not paying a notable dividend for the UK market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as VEL has not reported any payouts.


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Management

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

5.6yrs

Average management tenure


CEO

Jon Bridges (47 yo)

14.83yrs

Tenure

UK£131,000

Compensation

Mr. Jonathan Karl Bridges, also known as Jon, is Chief Executive Officer at Velocity Composites plc since July 26, 2019 and served as its Chief Technology Officer until 200. He had been Interim Chief Execu...


CEO Compensation Analysis

Compensation vs Market: Jon's total compensation ($USD158.21K) is below average for companies of similar size in the UK market ($USD338.23K).

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


Leadership Team

Experienced Management: VEL's management team is seasoned and experienced (5.6 years average tenure).


Board Members

Experienced Board: VEL's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Velocity Composites plc's employee growth, exchange listings and data sources


Key Information

  • Name: Velocity Composites plc
  • Ticker: VEL
  • Exchange: AIM
  • Founded: 2007
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Implied Market Cap: UK£6.918m
  • Shares outstanding: 36.41m
  • Website: https://www.velocity-composites.com

Number of Employees


Location

  • Velocity Composites plc
  • AMS Technology Park
  • Billington Road
  • Burnley
  • Lancashire
  • BB11 5UB
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/15 00:00
End of Day Share Price2022/08/15 00:00
Earnings2022/04/30
Annual Earnings2021/10/31


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.