LSE:VSVS

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Adequate 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

6.3%

VSVS

0.3%

GB Machinery

-1.9%

GB Market


1 Year Return

13.8%

VSVS

21.3%

GB Machinery

-16.2%

GB Market

Return vs Industry: VSVS underperformed the UK Machinery industry which returned 22.9% over the past year.

Return vs Market: VSVS exceeded the UK Market which returned -14.8% over the past year.


Shareholder returns

VSVSIndustryMarket
7 Day6.3%0.3%-1.9%
30 Day5.7%11.2%0.7%
90 Day7.7%10.5%-4.8%
1 Year13.8%13.8%23.0%21.3%-13.0%-16.2%
3 Year-23.6%-28.5%16.3%8.5%-9.4%-20.6%
5 Year37.8%18.9%101.8%77.3%13.5%-12.0%

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?

22.41x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: VSVS (£4.2) is trading above our estimate of fair value (£2.85)

Significantly Below Fair Value: VSVS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: VSVS is good value based on its PE Ratio (22.4x) compared to the GB Machinery industry average (22.5x).

PE vs Market: VSVS is poor value based on its PE Ratio (22.4x) compared to the UK market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: VSVS is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: VSVS is good value based on its PB Ratio (1x) compared to the GB Machinery industry average (1.7x).


Next Steps

Future Growth

How is Vesuvius forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

31.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VSVS's forecast earnings growth (31.1% per year) is above the savings rate (1.2%).

Earnings vs Market: VSVS's earnings (31.1% per year) are forecast to grow faster than the UK market (24.2% per year).

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

Revenue vs Market: VSVS's revenue (5.7% per year) is forecast to grow slower than the UK market (6% per year).

High Growth Revenue: VSVS's revenue (5.7% 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 (9.6%).


Next Steps

Past Performance

How has Vesuvius performed over the past 5 years?

12.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VSVS has a large one-off loss of £39.5M impacting its June 30 2020 financial results.

Growing Profit Margin: VSVS's current net profit margins (3.3%) are lower than last year (7%).


Past Earnings Growth Analysis

Earnings Trend: VSVS's earnings have grown by 12% 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 (-59.5%) over the past year, making it difficult to compare to the Machinery industry average (-13%).


Return on Equity

High ROE: VSVS's Return on Equity (4.7%) is considered low.


Next Steps

Financial Health

How is Vesuvius's financial position?


Financial Position Analysis

Short Term Liabilities: VSVS's short term assets (£1.1B) exceed its short term liabilities (£673.8M).

Long Term Liabilities: VSVS's short term assets (£1.1B) exceed its long term liabilities (£565.9M).


Debt to Equity History and Analysis

Debt Level: VSVS's debt to equity ratio (59.1%) is considered high.

Reducing Debt: VSVS's debt to equity ratio has increased from 41.9% to 59.1% over the past 5 years.

Debt Coverage: VSVS's debt is well covered by operating cash flow (25.6%).

Interest Coverage: VSVS's interest payments on its debt are well covered by EBIT (12.1x coverage).


Balance Sheet


Next Steps

Dividend

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

4.14%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VSVS's dividend (4.14%) is higher than the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: VSVS's dividend (4.14%) is low compared to the top 25% of dividend payers in the UK market (5.32%).


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 (92.8%), 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 (43.3% payout ratio).


Next Steps

Management

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

4.0yrs

Average management tenure


CEO

Patrick Georges André (56 yo)

3.08yrs

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 ($USD1.66M) is about average for companies of similar size in the UK market ($USD1.76M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Patrick Georges André
CEO & Executive Director3.08yrsUK£1.26m0.042%
£ 478.1k
Guy Young
CFO & Executive Director4.92yrsUK£808.00k0.045%
£ 509.5k
Patrick Bikard
President of Operations & Technology6.75yrsno datano data
Euan Drysdale
Group Head of Corporate Financeno datano datano data
Virginia Skroski
Investor Relations Managerno datano datano data
Henry Knowles
General Counsel & Company Secretary7.08yrsno datano data
Agnieszka Tomczak
Chief HR Officer2yrsno datano data
Tanmay Ganguly
President of Business Development & Flow Control5.92yrsno datano data
Karena Cancilleri
President of Foundry1yrno datano data
Thiago Avelar
President of Advanced Refractories0.75yrno datano data
Ian Lawson
Group Financial Controllerno datano datano data
Andrew Matthews
Group Treasurerno datano datano data

4.0yrs

Average Tenure

53.5yo

Average Age

Experienced Management: VSVS's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Patrick Georges André
CEO & Executive Director3.08yrsUK£1.26m0.042%
£ 478.1k
Guy Young
CFO & Executive Director4.92yrsUK£808.00k0.045%
£ 509.5k
Holly Koeppel
Independent Non-Executive Director3.5yrsUK£58.00k0.010%
£ 115.5k
John McDonough
Independent Chairman of the Board8yrsUK£216.00k0.045%
£ 504.0k
Hock Goh
Independent Non-Executive Director5.5yrsUK£55.00k0.0019%
£ 21.1k
Ida Hinkley
Independent Non-Executive Director7.83yrsUK£68.00k0.0044%
£ 50.4k
Douglas Hurt
Senior Independent Director5.42yrsUK£71.00k0.0067%
£ 75.6k
Friederike Helfer
Non-Executive Director0.83yrUK£4.00kno data

5.2yrs

Average Tenure

62.5yo

Average Age

Experienced Board: VSVS's board of directors are considered experienced (5.2 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.


Recent Insider Transactions

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£1.132b
  • Shares outstanding: 269.50m
  • 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 Analysis2020/10/21 22:05
End of Day Share Price2020/10/21 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.