LSE:VSVS

Stock Analysis Report

Executive Summary

Vesuvius plc provides engineering services and solutions principally to steel and foundry industries worldwide.


Snowflake Analysis

Solid track record and good value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: VSVS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-6.5%

VSVS

-3.4%

GB Machinery

-5.4%

GB Market


1 Year Return

-30.9%

VSVS

5.9%

GB Machinery

2.0%

GB Market

Return vs Industry: VSVS underperformed the UK Machinery industry which returned 8.4% over the past year.

Return vs Market: VSVS underperformed the UK Market which returned 6% over the past year.


Shareholder returns

VSVSIndustryMarket
7 Day-6.5%-3.4%-5.4%
30 Day-7.6%-2.7%-4.2%
90 Day-10.2%-4.1%-2.6%
1 Year-28.4%-30.9%9.0%5.9%7.6%2.0%
3 Year-2.7%-11.8%18.5%9.2%11.4%-2.7%
5 Year-0.2%-16.9%41.5%21.6%29.0%-0.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

16.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VSVS (£4.42) is trading below our estimate of fair value (£4.99)

Significantly Below Fair Value: VSVS is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: VSVS is good value based on its PE Ratio (9.5x) compared to the Machinery industry average (17.6x).

PE vs Market: VSVS is good value based on its PE Ratio (9.5x) compared to the UK market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: VSVS is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: VSVS is good value based on its PB Ratio (1x) compared to the GB Machinery industry average (1.6x).


Next Steps

Future Growth

How is Vesuvius forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

9.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VSVS's forecast earnings growth (9.3% per year) is above the savings rate (0.5%).

Earnings vs Market: VSVS's earnings (9.3% per year) are forecast to grow slower than the UK market (13.1% per year).

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

Revenue vs Market: VSVS's revenue (0.9% per year) is forecast to grow slower than the UK market (3.8% per year).

High Growth Revenue: VSVS's revenue (0.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VSVS's Return on Equity is forecast to be low in 3 years time (10.5%).


Next Steps

Past Performance

How has Vesuvius performed over the past 5 years?

5.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VSVS has high quality earnings.

Growing Profit Margin: VSVS's current net profit margins (7%) are higher than last year (3.5%).


Past Earnings Growth Analysis

Earnings Trend: VSVS's earnings have grown by 5.4% per year over the past 5 years.

Accelerating Growth: VSVS's earnings growth over the past year (104.6%) exceeds its 5-year average (5.4% per year).

Earnings vs Industry: VSVS earnings growth over the past year (104.6%) exceeded the Machinery industry 2.6%.


Return on Equity

High ROE: VSVS's Return on Equity (10.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Vesuvius's financial position?


Financial Position Analysis

Short Term Liabilities: VSVS's short term assets (£947.3M) exceed its short term liabilities (£423.4M).

Long Term Liabilities: VSVS's short term assets (£947.3M) exceed its long term liabilities (£674.2M).


Debt to Equity History and Analysis

Debt Level: VSVS's debt to equity ratio (42.1%) is considered high.

Reducing Debt: VSVS's debt to equity ratio has increased from 38.9% to 42.1% over the past 5 years.

Debt Coverage: VSVS's debt is well covered by operating cash flow (31.7%).

Interest Coverage: VSVS's interest payments on its debt are well covered by EBIT (15.9x coverage).


Balance Sheet

Inventory Level: VSVS has a high level of physical assets or inventory.

Debt Coverage by Assets: VSVS's debt is covered by short term assets (assets are 1.9x debt).


Next Steps

Dividend

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

4.81%

Current Dividend Yield


Dividend Yield vs Market

company4.8%marketbottom25%1.9%markettop25%5.4%industryaverage2.7%forecastin3Years5.4%

Current dividend yield vs market & industry

Notable Dividend: VSVS's dividend (4.48%) is higher than the bottom 25% of dividend payers in the UK market (1.8%).

High Dividend: VSVS's dividend (4.48%) is low compared to the top 25% of dividend payers in the UK market (5.03%).


Stability and Growth of Payments

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

Growing Dividend: VSVS's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (43.1%), VSVS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: VSVS's dividends in 3 years are forecast to be well covered by earnings (48.7% payout ratio).


Next Steps

Management

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

4.8yrs

Average management tenure


CEO

Patrick Georges André (55yo)

2.4yrs

Tenure

UK£1,951,000

Compensation

Mr. Patrick Georges Felix André has been the Chief Executive of Vesuvius Group SA since September 1, 2017. Mr. André has been the Chief Executive Officer and Director of Vesuvius plc (Vesuvius Group) since ...


CEO Compensation Analysis

Compensation vs Market: Patrick Georges's total compensation ($USD2.52M) is above average for companies of similar size in the UK market ($USD1.84M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Patrick Georges André
CEO & Director2.4yrsUK£1.95m0.021% £226.2k
Guy Young
CFO & Executive Director4.3yrsUK£1.58m0.031% £346.0k
Patrick Bikard
President of Operations6.1yrsno datano data
Euan Drysdale
Group Head of Corporate Finance0yrsno datano data
Alan Charnock
CTO & VP4.8yrsno datano data
Virginia Skroski
Investor Relations Manager0yrsno datano data
Henry Knowles
General Counsel & Company Secretary6.4yrsno datano data
Agnieszka Tomczak
Chief HR Officer1.3yrsno datano data
Tanmay Ganguly
President of Advanced Refractories5.3yrsno datano data
Ian Lawson
Group Financial Controller0yrsno datano data

4.8yrs

Average Tenure

55yo

Average Age

Experienced Management: VSVS's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Patrick Georges André
CEO & Director2.4yrsUK£1.95m0.021% £226.2k
Guy Young
CFO & Executive Director4.3yrsUK£1.58m0.031% £346.0k
Holly Koeppel
Independent Non-Executive Director2.8yrsUK£51.00k0.010% £113.1k
John McDonough
Chairman7.3yrsUK£192.00k0.037% £411.2k
Hock Goh
Independent Non-Executive Director4.8yrsUK£50.00k0.0019% £20.5k
Douglas Hurt
Senior Independent Director4.8yrsUK£66.00k0.0067% £74.0k
Friederike Helfer
Non-Executive Director0.2yrsno datano data
Jane Hinkley
Independent Non-Executive Director7.2yrsUK£63.00k0.0045% £49.3k

4.5yrs

Average Tenure

60yo

Average Age

Experienced Board: VSVS's board of directors are considered experienced (4.5 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.


Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Vesuvius plc
  • Ticker: VSVS
  • Exchange: LSE
  • Founded: 1916
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: UK£1.103b
  • Shares outstanding: 268.34m
  • Website: https://www.vesuvius.com

Number of Employees


Location

  • Vesuvius plc
  • 165 Fleet Street
  • London
  • Greater London
  • EC4A 2AE
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VSVSLSE (London Stock Exchange)YesNew Ordinary SharesGBGBPDec 2012
V4SDB (Deutsche Boerse AG)YesNew Ordinary SharesDEEURDec 2012
VSVSLBATS-CHIXE (BATS 'Chi-X Europe')YesNew Ordinary SharesGBGBPDec 2012
CKSN.FOTCPK (Pink Sheets LLC)YesNew Ordinary SharesUSUSDDec 2012

Biography

Vesuvius plc provides engineering services and solutions principally to steel and foundry industries worldwide. It operates in two segments, Steel and Foundry. The company offers foundry consumables and equipment, including binders, melt shop refractories, coatings, filtration and gating systems, metallurgical and pouring control systems, feeding systems, die dressings and coatings, melt treatment products, crucibles, and ceramics for the iron, steel, and nonferrous foundries. It also provides nonferrous metals, such as anode bake furnaces, transfer ladles, casthouse furnaces, and launders; cement and lime solutions, iron ore pelletizing and calcination products, and grains and powders; and process heaters, FCC units, hydrogen reformers, boilers, coke calciners, and thermal oxidizers, as well as sulphur, ethylene, and ammonia plants. In addition, the company offers solutions for power generation and incineration; glass products comprising artistic, display, float, hollow, and optical glass; glass tempering, and reheat and forming products; and solutions for solar multi-crystal silicon ingots, thin film and cell processing, and feedstock. Further, it provides solutions for blast furnace stack repair; taphole clay, iron and slang runner, sampler and temperature, tilting runner, and torpedo ladle solutions; iron ladle solutions; lining, taphole system, bath agitation and tuyere system, electric arc furnace and BOF maintenance, and metallurgical sensor solutions; and ladle, ladle to tundish, and tundish solutions, as well as tundish to mold solutions for conventional slab, thin and slim slab, beam blank, flow control valve bloom or billet, and calibrated nozzle billet casters. Additionally, the company offers ingot casting solutions; and reheat furnace, steel hot forming, galvanized steel, and electrical and stainless steel solutions. Vesuvius plc was founded in 1916 and is headquartered in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 22:41
End of Day Share Price2020/02/26 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.