LSE:VSVS

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Undervalued with proven track record and pays a dividend.


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


Market Performance


7 Day Return

-11.8%

VSVS

-1.2%

GB Machinery

0.2%

GB Market


1 Year Return

-32.2%

VSVS

-0.2%

GB Machinery

1.7%

GB Market

Return vs Industry: VSVS underperformed the UK Machinery industry which returned -0.2% over the past year.

Return vs Market: VSVS underperformed the UK Market which returned 1.7% over the past year.


Shareholder returns

VSVSIndustryMarket
7 Day-11.8%-1.2%0.2%
30 Day-23.0%-6.0%-1.7%
90 Day-30.5%-9.9%-3.1%
1 Year-29.8%-32.2%2.6%-0.2%6.7%1.7%
3 Year13.5%2.9%19.5%10.6%17.7%3.1%
5 Year8.4%-9.8%25.6%8.6%36.1%5.5%

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?

30.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VSVS (£3.67) is trading below our estimate of fair value (£5.28)

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 (7.9x) compared to the Machinery industry average (16.4x).

PE vs Market: VSVS is good value based on its PE Ratio (7.9x) compared to the UK market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: VSVS is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: VSVS is good value based on its PB Ratio (0.9x) compared to the GB Machinery industry average (1.7x).


Next Steps

Future Growth

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

12.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VSVS's forecast earnings growth (12.8% per year) is above the savings rate (1.2%).

Earnings vs Market: VSVS's earnings (12.8% per year) are forecast to grow faster than the UK market (12.4% per year).

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

Revenue vs Market: VSVS's revenue (2.4% per year) is forecast to grow slower than the UK market (3.9% per year).

High Growth Revenue: VSVS's revenue (2.4% 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 (10.4%).


Next Steps

Past Performance

How has Vesuvius performed over the past 5 years?

5.4%

Historical annual earnings growth


Earnings and Revenue History


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 8.7%.


Return on Equity

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


Return on Assets

ROA vs Industry: VSVS's Return on Assets is below or equal to the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: VSVS has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Vesuvius's financial position?


Financial Position Analysis

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

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


Debt to Equity History and Analysis

Debt Level: VSVS's debt to equity ratio (41.9%) is considered high

Reducing Debt: VSVS's debt to equity ratio has increased from 38.9% to 41.9% over the past 5 years.

Debt Coverage: VSVS's debt is well covered by operating cash flow (31.8%).

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 1.890440x debt).


Next Steps

Dividend

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

5.39%

Current Dividend Yield


Dividend Yield vs Market

company5.4%marketbottom25%2.0%markettop25%5.4%industryaverage3.0%forecastin3Years6.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: VSVS's dividend (5.39%) is higher than the bottom 25% of dividend payers in the UK market (1.99%).

High Dividend: VSVS's dividend (5.39%) is in the top 25% of dividend payers in the UK market (5.37%)

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 (43.5% payout ratio).


Next Steps

Management

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

4.2yrs

Average management tenure


CEO

Patrick Georges André (55yo)

2.1yrs

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the UK market.

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


Management Age and Tenure

4.2yrs

Average Tenure

55yo

Average Age

Experienced Management: VSVS's management team is considered experienced (4.2 years average tenure).


Board Age and Tenure

4.5yrs

Average Tenure

60yo

Average Age

Experienced Board: VSVS's board of directors are considered experienced (4.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUK£48,75017 Dec 18
Holly Koeppel
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares10,000
Max PriceUK£4.88
BuyUK£48,16007 Dec 18
Holly Koeppel
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares10,000
Max PriceUK£4.82

Ownership Breakdown


Management Team

  • Guy Young (48yo)

    CFO & Executive Director

    • Tenure: 3.9yrs
    • Compensation: UK£1.58m
  • Patrick Bikard

    President of Operations

    • Tenure: 5.8yrs
  • Tanmay Ganguly (55yo)

    President of Advanced Refractories

    • Tenure: 4.9yrs
  • Henry Knowles

    General Counsel & Company Secretary

    • Tenure: 6.1yrs
  • Jan Van Der Sluis

    President of Flow Control

    • Tenure: 2yrs
  • Virginia Skroski

    Investor Relations Manager

    • Tenure: 0yrs
  • Alan Charnock

    CTO & VP

    • Tenure: 4.5yrs
  • Patrick Georges André (55yo)

    CEO & Director

    • Tenure: 2.1yrs
    • Compensation: UK£1.95m
  • Euan Drysdale

    Group Head of Corporate Finance

    • Tenure: 0yrs
  • Agnieszka Tomczak

    Chief HR Officer

    • Tenure: 1yrs

Board Members

  • Holly Koeppel (60yo)

    Independent Non-Executive Director

    • Tenure: 2.5yrs
    • Compensation: UK£51.00k
  • John McDonough (68yo)

    Chairman

    • Tenure: 7yrs
    • Compensation: UK£192.00k
  • Guy Young (48yo)

    CFO & Executive Director

    • Tenure: 3.9yrs
    • Compensation: UK£1.58m
  • Christer Gardell (59yo)

    Non-Executive Director

    • Tenure: 7yrs
    • Compensation: UK£53.00k
  • Hock Goh (64yo)

    Independent Non-Executive Director

    • Tenure: 4.5yrs
    • Compensation: UK£50.00k
  • Douglas Hurt (63yo)

    Senior Independent Director

    • Tenure: 4.4yrs
    • Compensation: UK£66.00k
  • Jane Hinkley

    Independent Non-Executive Director

    • Tenure: 6.8yrs
    • Compensation: UK£63.00k
  • Patrick Georges André (55yo)

    CEO & Director

    • Tenure: 2.1yrs
    • Compensation: UK£1.95m

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£984.807m
  • 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 eq ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 21:19
End of Day Share Price2019/10/21 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.