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Volution Group

LSE:FAN
Snowflake Description

Adequate balance sheet with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
FAN
LSE
£343M
Market Cap
  1. Home
  2. GB
  3. Capital Goods
Company description

Volution Group plc, together with its subsidiaries, manufactures and supplies ventilation products to residential and commercial construction markets in the United Kingdom and internationally. The last earnings update was 119 days ago. More info.


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FAN Share Price and Events
7 Day Returns
-2%
LSE:FAN
-0.6%
GB Building
-0.6%
GB Market
1 Year Returns
-14.4%
LSE:FAN
2%
GB Building
-2.2%
GB Market
FAN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Volution Group (FAN) -2% 0.7% -3.4% -14.4% 23.6% 23.7%
GB Building -0.6% 0.7% 0.1% 2% 23.6% 33.9%
GB Market -0.6% 1.4% 0.4% -2.2% 11.5% 6.7%
1 Year Return vs Industry and Market
  • FAN underperformed the Building industry which returned 2% over the past year.
  • FAN underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -2.2% over the past year.
Price Volatility
FAN
Industry
5yr Volatility vs Market

FAN Value

 Is Volution Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Volution Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Volution Group.

LSE:FAN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.5%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:FAN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Building Unlevered Beta Simply Wall St/ S&P Global 1.14
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.138 (1 + (1- 19%) (24.15%))
1.241
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.24
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (1.241 * 6.65%)
9.48%

Discounted Cash Flow Calculation for LSE:FAN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Volution Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:FAN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 9.48%)
2020 33.34 Analyst x2 30.45
2021 34.80 Analyst x2 29.04
2022 35.98 Est @ 3.39% 27.42
2023 36.97 Est @ 2.74% 25.73
2024 37.81 Est @ 2.29% 24.04
2025 38.56 Est @ 1.97% 22.39
2026 39.23 Est @ 1.75% 20.81
2027 39.86 Est @ 1.59% 19.31
2028 40.45 Est @ 1.48% 17.90
2029 41.01 Est @ 1.4% 16.58
Present value of next 10 years cash flows £233.66
LSE:FAN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= £41.01 × (1 + 1.23%) ÷ (9.48% – 1.23%)
£502.95
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £502.95 ÷ (1 + 9.48%)10
£203.28
LSE:FAN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £233.66 + £203.28
£436.94
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £436.94 / 198.24
£2.2
LSE:FAN Discount to Share Price
Calculation Result
Value per share (GBP) From above. £2.20
Current discount Discount to share price of £1.73
= -1 x (£1.73 - £2.20) / £2.20
21.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Volution Group is available for.
Intrinsic value
22%
Share price is £1.73 vs Future cash flow value of £2.2
Current Discount Checks
For Volution Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Volution Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Volution Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Volution Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Volution Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:FAN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-01-31) in GBP £0.07
LSE:FAN Share Price ** LSE (2019-07-15) in GBP £1.73
United Kingdom of Great Britain and Northern Ireland Building Industry PE Ratio Median Figure of 10 Publicly-Listed Building Companies 13.15x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 790 Publicly-Listed Companies 16.48x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Volution Group.

LSE:FAN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:FAN Share Price ÷ EPS (both in GBP)

= 1.73 ÷ 0.07

26.2x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Volution Group is overvalued based on earnings compared to the GB Building industry average.
  • Volution Group is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Volution Group's expected growth come at a high price?
Raw Data
LSE:FAN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 26.2x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
33.7%per year
United Kingdom of Great Britain and Northern Ireland Building Industry PEG Ratio Median Figure of 8 Publicly-Listed Building Companies 0.9x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 572 Publicly-Listed Companies 1.45x

*Line of best fit is calculated by linear regression .

LSE:FAN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 26.2x ÷ 33.7%

0.78x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Volution Group is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Volution Group's assets?
Raw Data
LSE:FAN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-01-31) in GBP £0.84
LSE:FAN Share Price * LSE (2019-07-15) in GBP £1.73
United Kingdom of Great Britain and Northern Ireland Building Industry PB Ratio Median Figure of 12 Publicly-Listed Building Companies 1.77x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,377 Publicly-Listed Companies 1.5x
LSE:FAN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:FAN Share Price ÷ Book Value per Share (both in GBP)

= 1.73 ÷ 0.84

2.06x

* Primary Listing of Volution Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Volution Group is overvalued based on assets compared to the GB Building industry average.
X
Value checks
We assess Volution Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Building industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Building industry average (and greater than 0)? (1 check)
  5. Volution Group has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

FAN Future Performance

 How is Volution Group expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
33.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Volution Group expected to grow at an attractive rate?
  • Volution Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Volution Group's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • Volution Group's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:FAN Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:FAN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 33.7%
LSE:FAN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 4.1%
United Kingdom of Great Britain and Northern Ireland Building Industry Earnings Growth Rate Market Cap Weighted Average 10.5%
United Kingdom of Great Britain and Northern Ireland Building Industry Revenue Growth Rate Market Cap Weighted Average 4.1%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.9%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:FAN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:FAN Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-07-31 253 40 35 3
2020-07-31 248 39 33 5
2019-07-31 237 34 5
LSE:FAN Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2019-01-31 222 29 13
2018-10-31 214 27 13
2018-07-31 206 26 13
2018-04-30 200 27 14
2018-01-31 195 28 15
2017-10-31 190 30 14
2017-07-31 185 33 14
2017-04-30 179 33 15
2017-01-31 173 33 16
2016-10-31 164 31 16
2016-07-31 154 29 16
2016-04-30 145 28 14

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Volution Group's earnings are expected to grow significantly at over 20% yearly.
  • Volution Group's revenue is expected to grow by 4.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:FAN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Volution Group Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:FAN Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-07-31 0.17 0.17 0.17 1.00
2020-07-31 0.17 0.17 0.17 1.00
2019-07-31 0.15 0.15 0.15 1.00
LSE:FAN Past Financials Data
Date (Data in GBP Millions) EPS *
2019-01-31 0.07
2018-10-31 0.07
2018-07-31 0.07
2018-04-30 0.07
2018-01-31 0.08
2017-10-31 0.07
2017-07-31 0.07
2017-04-30 0.07
2017-01-31 0.08
2016-10-31 0.08
2016-07-31 0.08
2016-04-30 0.07

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Volution Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Volution Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Volution Group has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

FAN Past Performance

  How has Volution Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Volution Group's growth in the last year to its industry (Building).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Volution Group has delivered over 20% year on year earnings growth in the past 5 years.
  • Volution Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Volution Group's 1-year earnings growth is negative, it can't be compared to the GB Building industry average.
Earnings and Revenue History
Volution Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Volution Group Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:FAN Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-01-31 221.79 13.13 57.26 3.40
2018-10-31 213.73 13.22 55.26 3.40
2018-07-31 205.68 13.32 53.27 3.40
2018-04-30 200.50 14.14 52.84 3.21
2018-01-31 195.32 14.96 52.42 3.03
2017-10-31 190.19 14.42 51.09 3.03
2017-07-31 185.06 13.88 49.76 3.03
2017-04-30 178.93 14.70 44.96 2.27
2017-01-31 172.80 15.52 40.16 1.51
2016-10-31 163.63 15.56 39.78 1.51
2016-07-31 154.46 15.61 39.41 1.51
2016-04-30 145.22 14.42 43.58 0.75
2016-01-31 135.97 13.23 47.76
2015-10-31 133.07 12.53 46.49
2015-07-31 130.18 11.84 45.23
2015-04-30 128.53 5.45 45.01
2015-01-31 126.89 -0.93 44.79
2014-10-31 123.80 -7.59 43.18
2014-07-31 120.71 -14.26 41.57
2013-07-31 102.26 -2.06 33.97
2012-07-31 89.33 -13.90 22.94

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Volution Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Volution Group used its assets less efficiently than the GB Building industry average last year based on Return on Assets.
  • Volution Group has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Volution Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Building industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Volution Group has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

FAN Health

 How is Volution Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Volution Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Volution Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Volution Group's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Volution Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Volution Group Company Filings, last reported 5 months ago.

LSE:FAN Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-01-31 167.25 82.84 9.30
2018-10-31 167.25 82.84 9.30
2018-07-31 165.21 94.61 18.22
2018-04-30 165.21 94.61 18.22
2018-01-31 162.81 45.05 11.01
2017-10-31 162.81 45.05 11.01
2017-07-31 160.13 51.09 14.50
2017-04-30 160.13 51.09 14.50
2017-01-31 156.04 53.78 13.67
2016-10-31 156.04 53.78 13.67
2016-07-31 153.55 51.24 15.74
2016-04-30 153.55 51.24 15.74
2016-01-31 145.29 54.19 15.95
2015-10-31 145.29 54.19 15.95
2015-07-31 142.45 31.94 11.57
2015-04-30 142.45 31.94 11.57
2015-01-31 138.74 52.53 20.89
2014-10-31 138.74 52.53 20.89
2014-07-31 133.25 54.03 10.99
2013-07-31 -13.55 185.52 15.94
2012-07-31 -12.07 180.17 14.96
  • Volution Group's level of debt (49.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (195.3% vs 49.5% today).
  • Debt is well covered by operating cash flow (34.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 12.7x coverage).
X
Financial health checks
We assess Volution Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Volution Group has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

FAN Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.57%
Current annual income from Volution Group dividends. Estimated to be 2.96% next year.
If you bought £2,000 of Volution Group shares you are expected to receive £51 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Volution Group's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.95%).
  • Volution Group's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.39%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:FAN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Building Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 3.3%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 706 Stocks 4.2%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:FAN Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2021-07-31 0.06 4.00
2020-07-31 0.05 5.00
2019-07-31 0.05 5.00
LSE:FAN Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2018-10-29 0.044 2.705
2018-10-11 0.044 2.486
2018-03-19 0.043 2.130
2017-10-10 0.042 1.992
2016-10-31 0.038 2.101
2016-10-11 0.038 2.280
2015-11-03 0.045 2.678
2015-10-16 0.045 2.735
2015-03-23 0.021 1.351

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Volution Group has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Volution Group only paid a dividend in the past 4 years.
Current Payout to shareholders
What portion of Volution Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.3x coverage).
X
Income/ dividend checks
We assess Volution Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Volution Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Volution Group has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

FAN Management

 What is the CEO of Volution Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ronnie George
COMPENSATION £946,000
TENURE AS CEO 5.2 years
CEO Bio

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, Volution Holdings Limited since February 2012. Mr. George joined Volution in 2008 as Managing Director at Vent-Axia Division (now the Ventilation Group) and a Director of the then holding company Volution Holdings Limited and was appointed Chief Executive Officer in February 2012. He has over 25 years’ experience in the industry and prior to joining Volution, served as the Managing Director of Draka UK. Latterly, he also served as the President of global Marine, Oil and Gas Division of Draka Holding NV.

CEO Compensation
  • Ronnie's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Ronnie's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure of the Volution Group management team in years:

5.2
Average Tenure
  • The average tenure for the Volution Group management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Ronnie George

TITLE
CEO & Executive Director
COMPENSATION
£946K
TENURE
5.2 yrs

Ian Dew

TITLE
CFO & Executive Director
COMPENSATION
£656K
TENURE
5.5 yrs

Paul Davies

TITLE
Group Operations Director

Lee Nurse

TITLE
Marketing Director of Ventilation Group

Michael Anscombe

TITLE
Company Secretary
AGE
53
TENURE
4.9 yrs
Board of Directors Tenure

Average tenure and age of the Volution Group board of directors in years:

5.1
Average Tenure
58
Average Age
  • The tenure for the Volution Group board of directors is about average.
Board of Directors

Peter Hill

TITLE
Non-Executive Chairman
COMPENSATION
£139K
TENURE
5.1 yrs

Ronnie George

TITLE
CEO & Executive Director
COMPENSATION
£946K
TENURE
5.2 yrs

Ian Dew

TITLE
CFO & Executive Director
COMPENSATION
£656K
TENURE
5.2 yrs

Tony Reading

TITLE
Senior Independent Non-Executive Director
COMPENSATION
£61K
AGE
74
TENURE
5.1 yrs

Paul Hollingworth

TITLE
Independent Non-Executive Director
COMPENSATION
£56K
AGE
58
TENURE
5.1 yrs

Claire Tiney

TITLE
Independent Non-Executive Director
COMPENSATION
£46K
AGE
58
TENURE
2.9 yrs

Amanda Mellor

TITLE
Independent Non-Executive Director
COMPENSATION
£15K
AGE
55
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Volution Group individual insiders in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
24. May 19 Buy Paul Hollingworth Individual 24. May 19 24. May 19 11,583 £1.72 £19,887
21. Jan 19 Buy Anthony Reading Individual 18. Jan 19 18. Jan 19 5,000 £1.45 £7,248
17. Jan 19 Buy Anthony Reading Individual 17. Jan 19 17. Jan 19 5,000 £1.47 £7,338
28. Nov 18 Buy Anthony Reading Individual 27. Nov 18 27. Nov 18 5,000 £1.65 £8,264
29. Oct 18 Buy Anthony Reading Individual 29. Oct 18 29. Oct 18 5,000 £1.72 £8,594
X
Management checks
We assess Volution Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Volution Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

FAN News

Simply Wall St News

With A 7.8% Return On Equity, Is Volution Group plc (LON:FAN) A Quality Stock?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Volution Group: 7.8% = UK£13m ÷ UK£167m (Based on the trailing twelve months to January 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Combining Volution Group's Debt And Its 7.8% Return On Equity While Volution Group does have some debt, with debt to equity of just 0.50, we wouldn't say debt is excessive. … A company that can achieve a high return on equity without debt could be considered a high quality business.

Simply Wall St -

Calculating The Fair Value Of Volution Group plc (LON:FAN)

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Volution Group plc (LON:FAN) as an investment opportunity by taking the expected future cash flows and discounting them to their present value. … Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF (£, Millions) £29.62 £33.34 £34.80 £35.98 £36.97 £37.81 £38.56 £39.23 £39.86 £40.45 Growth Rate Estimate Source Analyst x2 Analyst x2 Analyst x2 Est @ 3.39% Est @ 2.74% Est @ 2.29% Est @ 1.97% Est @ 1.75% Est @ 1.59% Est @ 1.48% Present Value (£, Millions) Discounted @ 9.34% £27.09 £27.88 £26.62 £25.17 £23.65 £22.13 £20.64 £19.20 £17.84 £16.56 Present Value of 10-year Cash Flow (PVCF)= £226.80m "Est" = FCF growth rate estimated by Simply Wall St We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = UK£40m × (1 + 1.2%) ÷ (9.3% – 1.2%) = UK£505m Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = £UK£505m ÷ ( 1 + 9.3%)10 = £206.58m The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is £433.38m.

Simply Wall St -

If You Had Bought Volution Group (LON:FAN) Stock A Year Ago, You'd Be Sitting On A 19% Loss, Today

Unfortunately the Volution Group plc (LON:FAN) share price slid 19% over twelve months. … It is important to consider the total shareholder return, as well as the share price return, for any given stock. … A Different Perspective Volution Group shareholders are down 17% for the year (even including dividends), falling short of the market return.

Simply Wall St -

Should You Worry About Volution Group plc's (LON:FAN) CEO Pay?

See our latest analysis for Volution Group How Does Ronnie George's Compensation Compare With Similar Sized Companies? … According to our data, Volution Group plc has a market capitalization of UK£345m, and pays its CEO total annual compensation worth UK£946k. … We examined the amount Volution Group plc pays its CEO, and compared it to the amount paid by similar sized companies.

Simply Wall St -

What Does Volution Group plc's (LON:FAN) P/E Ratio Tell You?

To keep it practical, we'll show how Volution Group plc's (LON:FAN) P/E ratio could help you assess the value on offer. … How Do I Calculate A Price To Earnings Ratio … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Is Volution Group plc (LON:FAN) Better Than Average At Deploying Capital?

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … What is Return On Capital Employed (ROCE)? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

Should You Be Concerned About Volution Group plc's (LON:FAN) ROE?

Over the last twelve months Volution Group has recorded a ROE of 7.8%. … Another way to think of that is that for every £1 worth of equity in the company, it was able to earn £0.078. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

2 Days Left Until Volution Group plc (LON:FAN) Trades Ex-Dividend

To qualify for the dividend check of UK£0.016 per share, investors must have owned the shares prior to 28 March 2019, which is the last day the company's management will finalize their list of shareholders to which they will send dividend payments. … Is this future income stream a compelling catalyst for dividend investors to think about the stock as an investment today? … When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:?

Simply Wall St -

You Might Like Volution Group plc (LON:FAN) But Do You Like Its Debt?

Volution Group plc (LON:FAN) is a small-cap stock with a market capitalization of UK£306m. … While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … Assessing first and foremost the financial health is.

Simply Wall St -

Some Volution Group Shareholders Are Down 28%

For example, the Volution Group plc (LON:FAN) share price is down 28% in the last year. … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … Unhappily, Volution Group had to report a 3.9% decline in EPS over the last year.

Simply Wall St -

FAN Company Info

Description

Volution Group plc, together with its subsidiaries, manufactures and supplies ventilation products to residential and commercial construction markets in the United Kingdom and internationally. The company operates through two segments, Ventilation Group and OEM (Torin-Sifan). The company’s products include 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 and fan coils; commercial 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. The company sells its products principally under the Vent-Axia, Manrose, Diffusion, National Ventilation, Airtech, Breathing Buildings, Fresh, PAX, VoltAir, Welair, Kair, Air Connection, inVENTer, Ventilair, and Simx brands. Volution Group plc was incorporated in 2014 and is headquartered in Crawley, the United Kingdom.

Details
Name: Volution Group plc
FAN
Exchange: LSE
Founded: 2014
£342,955,400
198,240,116
Website: http://www.volutiongroupplc.com
Address: Volution Group plc
Fleming Way,
Crawley,
West Sussex, RH10 9YX,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE FAN Ordinary Shares London Stock Exchange GB GBP 18. Jun 2014
OTCPK VLUT.F Ordinary Shares Pink Sheets LLC US USD 18. Jun 2014
DB VO1 Ordinary Shares Deutsche Boerse AG DE EUR 18. Jun 2014
BATS-CHIXE FANL Ordinary Shares BATS 'Chi-X Europe' GB GBP 18. Jun 2014
Number of employees
Current staff
Staff numbers
1,651
Volution Group employees.
Industry
Building Products
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/15 21:54
End of day share price update: 2019/07/15 00:00
Last estimates confirmation: 2019/07/01
Last earnings filing: 2019/03/18
Last earnings reported: 2019/01/31
Last annual earnings reported: 2018/07/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.