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.


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

2.5%

LSE:VSVS

2.9%

GB Machinery

0.4%

GB Market


1 Year Return

-25.4%

LSE:VSVS

-14.1%

GB Machinery

-6.2%

GB Market

VSVS underperformed the Machinery industry which returned -14.1% over the past year.

VSVS underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -6.2% over the past year.


Share holder returns

VSVSIndustryMarket
7 Day2.5%2.9%0.4%
30 Day-9.6%-8.0%-4.7%
90 Day-8.3%-6.4%-2.3%
1 Year-22.8%-25.4%-11.8%-14.1%-1.7%-6.2%
3 Year48.6%34.7%27.1%17.9%16.8%2.9%
5 Year21.1%0.8%12.3%-2.9%24.2%-2.3%

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

29%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Vesuvius's share price is below the future cash flow value, and at a moderate discount (> 20%).

Vesuvius's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Vesuvius is good value based on earnings compared to the GB Machinery industry average.

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


Price Based on Expected Growth

Vesuvius is good value based on expected growth next year.


Price Based on Value of Assets

Vesuvius is good value based on assets compared to the GB Machinery industry average.


Next Steps

Future Growth

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

11.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Vesuvius's revenue is expected to grow by 3.2% yearly, however this is not considered high growth (20% yearly).

Vesuvius's earnings are expected to grow by 11.8% yearly, however this is not considered high growth (20% yearly).

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

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

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


Earnings per Share Growth Estimates


Future Return on Equity

Vesuvius is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

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

Vesuvius's 1-year earnings growth exceeds its 5-year average (104.6% vs 5.4%)

Vesuvius's earnings growth has exceeded the GB Machinery industry average in the past year (104.6% vs 12.3%).


Return on Equity

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


Return on Assets

Vesuvius used its assets less efficiently than the GB Machinery industry average last year based on Return on Assets.


Return on Capital Employed

Vesuvius has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Vesuvius's financial position?


Financial Position Analysis

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

Vesuvius's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Vesuvius's level of debt (41.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (38.9% vs 41.9% today).

Debt is well covered by operating cash flow (31.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 15.9x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

4.78%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Vesuvius's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.05%).

Vesuvius's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.65%).

Vesuvius has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Dividend payments have increased, but Vesuvius only paid a dividend in the past 6 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.3x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.5x coverage).


Next Steps

Management

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

4.0yrs

Average management tenure


CEO

Patrick Georges André (55yo)

1.9yrs

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

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

Patrick Georges's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.0yrs

Average Tenure

55yo

Average Age

The tenure for the Vesuvius management team is about average.


Board Age and Tenure

4.3yrs

Average Tenure

60yo

Average Age

The tenure for the Vesuvius board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


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: 3.8yrs
    • Compensation: UK£1.58m
  • Patrick Bikard

    President of Operations

    • Tenure: 5.6yrs
  • Henry Knowles

    General Counsel & Company Secretary

    • Tenure: 5.9yrs
  • Glenn Cowie (58yo)

    President of Foundry

    • Tenure: 4.8yrs
  • Jan Van Der Sluis

    President of Flow Control

    • Tenure: 1.8yrs
  • Virginia Skroski

    Investor Relations Manager

    • Tenure: 0.0yrs
  • Alan Charnock

    CTO & VP

    • Tenure: 4.3yrs
  • Patrick Georges André (55yo)

    CEO & Director

    • Tenure: 1.9yrs
    • Compensation: UK£1.95m
  • Euan Drysdale

    Group Head of Corporate Finance

    • Tenure: 0.0yrs
  • Agnieszka Tomczak

    Chief HR Officer

    • Tenure: 0.8yrs

Board Members

  • Holly Koeppel (60yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: UK£51.00k
  • John McDonough (68yo)

    Chairman

    • Tenure: 6.8yrs
    • Compensation: UK£192.00k
  • Guy Young (48yo)

    CFO & Executive Director

    • Tenure: 3.8yrs
    • Compensation: UK£1.58m
  • Christer Gardell (59yo)

    Non-Executive Director

    • Tenure: 6.8yrs
    • Compensation: UK£53.00k
  • Hock Goh (64yo)

    Independent Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: UK£50.00k
  • Douglas Hurt (63yo)

    Senior Independent Director

    • Tenure: 4.3yrs
    • Compensation: UK£66.00k
  • Jane Hinkley

    Independent Non-Executive Director

    • Tenure: 6.7yrs
    • Compensation: UK£63.00k
  • Patrick Georges André (55yo)

    CEO & Director

    • Tenure: 1.9yrs
    • 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£1.258b
  • 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 Analysis2019/08/25 21:19
End of Day Share Price2019/08/23 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.