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Market Cap

UK£1.6b

Last Updated

2021/05/14 01:30 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Flawless balance sheet and fair 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 is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

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


Market Performance


7 Day Return

-2.5%

VSVS

-2.0%

GB Machinery

-1.8%

GB Market


1 Year Return

60.0%

VSVS

55.6%

GB Machinery

26.9%

GB Market

Return vs Industry: VSVS exceeded the UK Machinery industry which returned 54.1% over the past year.

Return vs Market: VSVS exceeded the UK Market which returned 28% over the past year.


Shareholder returns

VSVSIndustryMarket
7 Day-2.5%-2.0%-1.8%
30 Day5.0%2.1%0.9%
90 Day14.4%4.3%5.9%
1 Year65.5%60.0%58.7%55.6%32.3%26.9%
3 Year-3.0%-10.4%24.3%16.9%10.1%-2.5%
5 Year92.6%66.4%117.7%93.9%47.8%20.0%

Long-Term 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?

35.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VSVS (£5.75) is trading below our estimate of fair value (£9.03)

Significantly Below Fair Value: VSVS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: VSVS is poor value based on its PE Ratio (37.6x) compared to the UK Machinery industry average (33.8x).

PE vs Market: VSVS is poor value based on its PE Ratio (37.6x) compared to the UK market (25.9x).


Price to Earnings Growth Ratio

PEG Ratio: VSVS is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: VSVS is good value based on its PB Ratio (1.4x) compared to the GB Machinery industry average (2.3x).


Future Growth

How is Vesuvius forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

21.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VSVS's forecast earnings growth (22% per year) is above the savings rate (0.9%).

Earnings vs Market: VSVS's earnings (22% per year) are forecast to grow faster than the UK market (17.5% per year).

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

Revenue vs Market: VSVS's revenue (4.6% per year) is forecast to grow slower than the UK market (5.2% per year).

High Growth Revenue: VSVS's revenue (4.6% 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%).


Past Performance

How has Vesuvius performed over the past 5 years?

9.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VSVS has a large one-off loss of £16.4M impacting its December 31 2020 financial results.

Growing Profit Margin: VSVS's current net profit margins (2.8%) are lower than last year (4.7%).


Past Earnings Growth Analysis

Earnings Trend: VSVS's earnings have grown by 9.7% per year over the past 5 years.

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

Earnings vs Industry: VSVS had negative earnings growth (-48.5%) over the past year, making it difficult to compare to the Machinery industry average (-12%).


Return on Equity

High ROE: VSVS's Return on Equity (4.1%) is considered low.


Financial Health

How is Vesuvius's financial position?


Financial Position Analysis

Short Term Liabilities: VSVS's short term assets (£771.7M) exceed its short term liabilities (£368.7M).

Long Term Liabilities: VSVS's short term assets (£771.7M) exceed its long term liabilities (£550.4M).


Debt to Equity History and Analysis

Debt Level: VSVS's debt to equity ratio (29.5%) is considered satisfactory.

Reducing Debt: VSVS's debt to equity ratio has reduced from 43.1% to 29.5% over the past 5 years.

Debt Coverage: VSVS's debt is well covered by operating cash flow (45.7%).

Interest Coverage: VSVS's interest payments on its debt are well covered by EBIT (8.6x coverage).


Balance Sheet


Dividend

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

3.03%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VSVS's dividend (3.03%) is higher than the bottom 25% of dividend payers in the UK market (1.37%).

High Dividend: VSVS's dividend (3.03%) is low compared to the top 25% of dividend payers in the UK market (4.07%).


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 has only been paying a dividend for 8 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (113.7%), VSVS's dividend payments are not 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 (46% payout ratio).


Next Steps

Management

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

4.6yrs

Average management tenure


CEO

Patrick Georges André (56 yo)

3.67yrs

Tenure

UK£1,263,000

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 ($USD1.77M) is above average for companies of similar size in the UK market ($USD1.36M).

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


Leadership Team

Experienced Management: VSVS's management team is considered experienced (4.6 years average tenure).


Board Members

Experienced Board: VSVS's board of directors are considered experienced (4.8 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.


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£1.553b
  • Shares outstanding: 270.12m
  • Website: https://www.vesuvius.com

Number of Employees


Location

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

Listings


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 eq...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/14 01:30
End of Day Share Price2021/05/13 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.