LSE:FAN

Stock Analysis Report

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Market Cap

UK£811.2m

Last Updated

2021/06/18 22:18 UTC

Data Sources

Company Financials +

Executive Summary

Volution Group plc, together with its subsidiaries, manufactures and supplies ventilation products to residential and commercial construction markets in the United Kingdom, Continental Europe, Australasia, and internationally. More Details


Snowflake Analysis

Moderate growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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

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


Market Performance


7 Day Return

4.2%

FAN

-1.5%

GB Building

0.1%

GB Market


1 Year Return

113.8%

FAN

53.3%

GB Building

18.7%

GB Market

Return vs Industry: FAN exceeded the UK Building industry which returned 53.3% over the past year.

Return vs Market: FAN exceeded the UK Market which returned 18.7% over the past year.


Shareholder returns

FANIndustryMarket
7 Day4.2%-1.5%0.1%
30 Day-2.0%2.7%1.4%
90 Day10.9%12.1%7.2%
1 Year114.9%113.8%55.7%53.3%24.6%18.7%
3 Year127.3%116.6%54.9%45.2%14.5%1.3%
5 Year205.7%178.3%71.5%51.5%47.6%19.9%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

77.01x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FAN (£4.11) is trading above our estimate of fair value (£3.44)

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


Price To Earnings Ratio

PE vs Industry: FAN is poor value based on its PE Ratio (77x) compared to the UK Building industry average (24.4x).

PE vs Market: FAN is poor value based on its PE Ratio (77x) compared to the UK market (25.6x).


Price to Earnings Growth Ratio

PEG Ratio: FAN is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: FAN is overvalued based on its PB Ratio (4.5x) compared to the GB Building industry average (2.4x).


Future Growth

How is Volution Group forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

28.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FAN's forecast earnings growth (28.8% per year) is above the savings rate (0.9%).

Earnings vs Market: FAN's earnings (28.8% per year) are forecast to grow faster than the UK market (17.4% per year).

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

Revenue vs Market: FAN's revenue (5% per year) is forecast to grow slower than the UK market (5.3% per year).

High Growth Revenue: FAN's revenue (5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FAN's Return on Equity is forecast to be low in 3 years time (17.6%).


Past Performance

How has Volution Group performed over the past 5 years?

-2.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FAN has high quality earnings.

Growing Profit Margin: FAN's current net profit margins (4.6%) are lower than last year (8.1%).


Past Earnings Growth Analysis

Earnings Trend: FAN's earnings have declined by 2.1% per year over the past 5 years.

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

Earnings vs Industry: FAN had negative earnings growth (-45.8%) over the past year, making it difficult to compare to the Building industry average (-9.3%).


Return on Equity

High ROE: FAN's Return on Equity (5.9%) is considered low.


Financial Health

How is Volution Group's financial position?


Financial Position Analysis

Short Term Liabilities: FAN's short term assets (£96.1M) exceed its short term liabilities (£62.5M).

Long Term Liabilities: FAN's short term assets (£96.1M) do not cover its long term liabilities (£133.9M).


Debt to Equity History and Analysis

Debt Level: FAN's debt to equity ratio (50.6%) is considered high.

Reducing Debt: FAN's debt to equity ratio has increased from 37.2% to 50.6% over the past 5 years.

Debt Coverage: FAN's debt is well covered by operating cash flow (52.2%).

Interest Coverage: FAN's interest payments on its debt are well covered by EBIT (7.1x coverage).


Balance Sheet


Dividend

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

0.92%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FAN's dividend (0.93%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.28%).

High Dividend: FAN's dividend (0.93%) is low compared to the top 25% of dividend payers in the UK market (4.02%).


Stability and Growth of Payments

Stable Dividend: FAN has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: FAN's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35.6%), FAN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FAN's dividends in 3 years are forecast to be well covered by earnings (30.1% payout ratio).


Next Steps

Management

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

6.8yrs

Average management tenure


CEO

Ronnie George

7.08yrs

Tenure

UK£606,000

Compensation

Mr. Ronnie George has been the Chief Executive Officer of Volution Group plc since May 15, 2014 and serves as its Director. Mr. George served as the Chief Executive Officer of the then holding company, Vol...


CEO Compensation Analysis

Compensation vs Market: Ronnie's total compensation ($USD844.42K) is about average for companies of similar size in the UK market ($USD970.53K).

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


Leadership Team

Experienced Management: FAN's management team is seasoned and experienced (6.8 years average tenure).


Board Members

Experienced Board: FAN's board of directors are considered experienced (3.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: FAN 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

Volution Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Volution Group plc
  • Ticker: FAN
  • Exchange: LSE
  • Founded: 2014
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: UK£811.165m
  • Shares outstanding: 197.60m
  • Website: https://www.volutiongroupplc.com

Number of Employees


Location

  • Volution Group plc
  • Fleming Way
  • Crawley
  • West Sussex
  • RH10 9YX
  • United Kingdom

Listings


Biography

Volution Group plc, together with its subsidiaries, manufactures and supplies ventilation products to residential and commercial construction markets in the United Kingdom, Continental Europe, Australasia,...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/18 22:18
End of Day Share Price2021/06/18 00:00
Earnings2021/01/31
Annual Earnings2020/07/31


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.