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FAN

Volution GroupLSE:FAN Stock Report

Market Cap

UK£1.0b

7D

0.8%

1Y

108.1%

Updated

03 Dec, 2021

Data

Company Financials +
FAN fundamental analysis
Snowflake Score
Valuation0/6
Future Growth4/6
Past Performance4/6
Financial Health4/6
Dividends2/6

FAN Stock Overview

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.

Rewards

Earnings are forecast to grow 13.8% per year

Earnings have grown 0.06% per year over the past 5 years

Risk Analysis

No risks detected for FAN from our risk checks.

Volution Group Competitors

Genuit Group

LSE:GEN

UK£1.4b

Allkem

ASX:ORE

AU$6.0b

Systemair

OM:SYSR

kr17.3b

Neometals

ASX:NMT

AU$616.9m

Price History & Performance

Summary of all time highs, changes and price drops for Volution Group
Historical stock prices
Current Share PriceUK£5.12
52 Week HighUK£5.65
52 Week LowUK£2.41
Beta1.43
1 Month Change1.19%
3 Month Change-7.08%
1 Year Change108.13%
3 Year Change210.30%
5 Year Change228.20%
Change since IPO253.10%

Recent News & Updates

Nov 06
Should You Be Adding Volution Group (LON:FAN) To Your Watchlist Today?

Should You Be Adding Volution Group (LON:FAN) To Your Watchlist Today?

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Oct 10
Volution Group (LON:FAN) Could Easily Take On More Debt

Volution Group (LON:FAN) Could Easily Take On More Debt

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it seems the smart money knows that...

Shareholder Returns

FANGB BuildingGB Market
7D0.8%-1.6%-2.2%
1Y108.1%28.2%10.5%

Return vs Industry: FAN exceeded the UK Building industry which returned 31.2% over the past year.

Return vs Market: FAN exceeded the UK Market which returned 11.6% over the past year.

Price Volatility

Is FAN's price volatile compared to industry and market?
FAN volatility
FAN Average Weekly Movement4.5%
Building Industry Average Movement3.6%
Market Average Movement4.9%
10% most volatile stocks in GB Market9.8%
10% least volatile stocks in GB Market2.6%

Stable Share Price: FAN is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: FAN's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20141,555Ronnie Georgehttps://www.volutiongroupplc.com

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. The company offers unitary extractor fans for use in bathrooms and kitchens; MVHR and MEV systems; rigid, semi-rigid, and flexible ducting products and accessories; mechanical heat recovery units; air handling units, fan coils, and hybrid ventilation products; underfloor heating, heated towel rails, radiators, and storage and panel heaters; wall, box, and tower fans, as well as portable air conditioners; hand dryers and insect killers; and sensors, controllers, and ducting products. It also manufactures blowers and motors for the heating and ventilation industry, such as direct and belt-drive fans, fandecks, double inlet centrifugal blowers, motorized impellers, and combustion blowers.

Volution Group Fundamentals Summary

How do Volution Group's earnings and revenue compare to its market cap?
FAN fundamental statistics
Market CapUK£1.02b
Earnings (TTM)UK£20.84m
Revenue (TTM)UK£272.59m

48.7x

P/E Ratio

3.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FAN income statement (TTM)
RevenueUK£272.59m
Cost of RevenueUK£139.21m
Gross ProfitUK£133.38m
ExpensesUK£112.54m
EarningsUK£20.84m

Last Reported Earnings

Jul 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.11
Gross Margin48.93%
Net Profit Margin7.64%
Debt/Equity Ratio44.7%

How did FAN perform over the long term?

See historical performance and comparison

Dividends

1.2%

Current Dividend Yield

60%

Payout Ratio

Valuation

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

48.67x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FAN (£5.15) is trading above our estimate of fair value (£4.69)

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 (48.9x) compared to the UK Building industry average (13.8x).

PE vs Market: FAN is poor value based on its PE Ratio (48.9x) compared to the UK market (19.1x).


Price to Earnings Growth Ratio

PEG Ratio: FAN is poor value based on its PEG Ratio (3.5x)


Price to Book Ratio

PB vs Industry: FAN is overvalued based on its PB Ratio (5.5x) compared to the GB Building industry average (2.2x).


Future Growth

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

14.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FAN's forecast earnings growth (13.8% per year) is above the savings rate (0.9%).

Earnings vs Market: FAN's earnings (13.8% per year) are forecast to grow faster than the UK market (12.5% per year).

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

Revenue vs Market: FAN's revenue (5.5% per year) is forecast to grow faster than the UK market (4.9% per year).

High Growth Revenue: FAN's revenue (5.5% 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 high in 3 years time (22.2%)


Past Performance

How has Volution Group performed over the past 5 years?

0.06%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FAN has high quality earnings.

Growing Profit Margin: FAN's current net profit margins (7.6%) are higher than last year (4.5%).


Past Earnings Growth Analysis

Earnings Trend: FAN's earnings have grown by 0.06% per year over the past 5 years.

Accelerating Growth: FAN's earnings growth over the past year (115.6%) exceeds its 5-year average (0.06% per year).

Earnings vs Industry: FAN earnings growth over the past year (115.6%) underperformed the Building industry 130.2%.


Return on Equity

High ROE: FAN's Return on Equity (11.2%) is considered low.


Financial Health

How is Volution Group's financial position?


Financial Position Analysis

Short Term Liabilities: FAN's short term assets (£112.5M) exceed its short term liabilities (£72.6M).

Long Term Liabilities: FAN's short term assets (£112.5M) do not cover its long term liabilities (£126.1M).


Debt to Equity History and Analysis

Debt Level: FAN's net debt to equity ratio (34.2%) is considered satisfactory.

Reducing Debt: FAN's debt to equity ratio has increased from 33.4% to 44.7% over the past 5 years.

Debt Coverage: FAN's debt is well covered by operating cash flow (63.3%).

Interest Coverage: FAN's interest payments on its debt are well covered by EBIT (12.5x coverage).


Balance Sheet


Dividend

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

1.23%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FAN's dividend (1.22%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.36%).

High Dividend: FAN's dividend (1.22%) is low compared to the top 25% of dividend payers in the UK market (4.14%).


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 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (59.8%), FAN's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FAN's dividends in 3 years are forecast to be well covered by earnings (30.5% payout ratio).


Next Steps

Management

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

7.3yrs

Average management tenure


CEO

Ronnie George

7.58yrs

Tenure

UK£2,350,000

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 ($USD3.13M) is above average for companies of similar size in the UK market ($USD1.52M).

Compensation vs Earnings: Ronnie's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: FAN's management team is seasoned and experienced (7.3 years average tenure).


Board Members

Experienced Board: FAN's board of directors are considered experienced (3.8 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.


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 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£1.020b
  • Shares outstanding: 198.07m
  • Website: https://www.volutiongroupplc.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/03 18:51
End of Day Share Price2021/12/03 00:00
Earnings2021/07/31
Annual Earnings2021/07/31


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.