LSE:VP.

Stock Analysis Report

Executive Summary

Vp plc provides equipment rental and associated services in the United Kingdom and internationally.

Snowflake

Fundamentals

Established dividend payer with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0.3%

LSE:VP.

-1.3%

GB Trade Distributors

-1.1%

GB Market


1 Year Return

-37.7%

LSE:VP.

-5.8%

GB Trade Distributors

-5.7%

GB Market

VP. underperformed the Trade Distributors industry which returned -5.2% over the past year.

VP. underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -5.3% over the past year.


Share holder returns

VP.IndustryMarket
7 Day0.3%-1.3%-1.1%
30 Day-7.7%-1.6%-4.4%
90 Day8.7%1.7%-2.7%
1 Year-35.6%-37.7%-1.9%-5.8%-1.3%-5.7%
3 Year19.2%9.4%33.3%20.9%17.6%3.9%
5 Year35.2%17.9%71.2%48.1%26.8%0.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

11.75x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Vp's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Vp's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Vp is good value based on earnings compared to the GB Trade Distributors industry average.

Vp is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Vp, we can't assess if its growth is good value.


Price Based on Value of Assets

Vp is overvalued based on assets compared to the GB Trade Distributors industry average.


Next Steps

Future Growth

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

5.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Vp's revenue is expected to grow by 3% yearly, however this is not considered high growth (20% yearly).

Vp's earnings are expected to grow by 5.7% yearly, however this is not considered high growth (20% yearly).

Vp's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

Vp's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

Vp's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Vp will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Vp performed over the past 5 years?

9.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Vp's year on year earnings growth rate has been positive over the past 5 years.

Vp's 1-year earnings growth is less than its 5-year average (6% vs 9.1%)

Vp's earnings growth has exceeded the GB Trade Distributors industry average in the past year (6% vs 5.7%).


Return on Equity

Vp has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Vp used its assets less efficiently than the GB Trade Distributors industry average last year based on Return on Assets.


Return on Capital Employed

Vp's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Vp's financial position?


Financial Position Analysis

Vp is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Vp's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Vp's level of debt (116.2%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (57.5% vs 116.2% today).

Debt is well covered by operating cash flow (40.7%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 10x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.6x debt.


Next Steps

Dividend

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

4.37%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Vp's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.08%).

Vp's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.7%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.1x coverage).


Next Steps

  • Explore strong dividend paying companies in the Capital Goods industry.

Management

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

15.5yrs

Average board tenure


CEO

Neil Stothard (61yo)

0.0yrs

Tenure

UK£1,270,000

Compensation

Mr. Neil A. Stothard, MA, FCA, has been the Group Managing Director of VP PLC of Pivotal Services Group Ltd., since July 5, 2004 and also serves as its Chief Executive. Mr. Stothard served as a Secretary o ...


CEO Compensation Analysis

Neil's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

Neil's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Board Age and Tenure

15.5yrs

Average Tenure

67yo

Average Age

The average tenure for the Vp board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Neil Stothard (61yo)

    Chief Executive

    • Tenure: 0.0yrs
    • Compensation: UK£1.27m
  • Jeremy F. Pilkington (68yo)

    Executive Chairman

    • Tenure: 38.6yrs
    • Compensation: UK£1.77m
  • Allison Bainbridge (58yo)

    Group Finance Director

    • Tenure: 8.5yrs
    • Compensation: UK£934.00k

Board Members

  • Phil White (70yo)

    Non-Executive Director

    • Tenure: 6.3yrs
    • Compensation: UK£40.00k
  • Neil Stothard (61yo)

    Chief Executive

    • Tenure: 0.0yrs
    • Compensation: UK£1.27m
  • Jeremy F. Pilkington (68yo)

    Executive Chairman

    • Tenure: 38.6yrs
    • Compensation: UK£1.77m
  • Steve Rogers (67yo)

    Senior Independent Director

    • Tenure: 0.0yrs
    • Compensation: UK£40.00k
  • Allison Bainbridge (58yo)

    Group Finance Director

    • Tenure: 8.5yrs
    • Compensation: UK£934.00k

Company Information

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


Key Information

  • Name: Vp plc
  • Ticker: VP.
  • Exchange: LSE
  • Founded: 1954
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: UK£312.286m
  • Shares outstanding: 39.63m
  • Website: https://www.vpplc.com

Number of Employees


Location

  • Vp plc
  • Central House
  • Beckwith Knowle
  • Harrogate
  • North Yorkshire
  • HG3 1UD
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VP.LSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992

Biography

Vp plc provides equipment rental and associated services in the United Kingdom and internationally. It operates through Hire Station, Torrent Trackside, Groundforce, TPA, UK Forks, Airpac Bukom, and TR Gro ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/20 20:40
End of Day Share Price2019/08/20 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


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.