AIM:VCP

Stock Analysis Report

Executive Summary

Victoria PLC designs, manufactures, and distributes flooring products primarily in the United Kingdom and Australia.

Snowflake

Fundamentals

Reasonable growth potential and overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-1.0%

VCP

11.0%

GB Consumer Durables

1.7%

GB Market


1 Year Return

-26.3%

VCP

15.2%

GB Consumer Durables

2.9%

GB Market

Return vs Industry: VCP underperformed the UK Consumer Durables industry which returned 15.2% over the past year.

Return vs Market: VCP underperformed the UK Market which returned 2.9% over the past year.


Shareholder returns

VCPIndustryMarket
7 Day-1.0%11.0%1.7%
30 Day-0.9%6.7%-0.7%
90 Day-10.4%11.8%-1.8%
1 Year-26.3%-26.3%23.4%15.2%8.0%2.9%
3 Year61.2%61.2%63.8%35.8%18.2%3.8%
5 Year528.7%528.7%127.4%70.2%35.6%6.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

32.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: VCP (£4.72) is trading below our estimate of fair value (£6.98)

Significantly Undervalued: VCP is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: VCP is unprofitable, so we can't compare its PE Ratio to the Consumer Durables industry average.

PE vs Market: VCP is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate VCP's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: VCP is overvalued based on its PB Ratio (1.8x) compared to the GB Consumer Durables industry average (1.5x).


Next Steps

Future Growth

How is Victoria forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

40.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VCP is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.2%).

Earnings vs Market: VCP is forecast to become profitable over the next 3 year, which is considered above average market growth.

High Growth Earnings: VCP's loss is forecast to worsen by 0% next year.

Revenue vs Market: VCP's revenue (4.1% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: VCP's revenue (4.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: VCP's Return on Equity is forecast to be low in 3 years time (13.6%).


Next Steps

Past Performance

How has Victoria performed over the past 5 years?

19.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: VCP is unprofitable, but has reduced losses over the past 5 years at a rate of 19.3% per year.

Accelerating Growth: Unable to compare VCP's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: VCP is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Durables industry (5%).


Return on Equity

High ROE: VCP has a negative Return on Equity (-2.47%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: VCP is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: VCP is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Victoria's financial position?


Financial Position Analysis

Short Term Liabilities: VCP's short term assets (£322.9M) exceeds its short term liabilities (£179.0M)

Long Term Liabilities: VCP's short term assets (322.9M) do not cover its long term liabilities (485.7M)


Debt to Equity History and Analysis

Debt Level: VCP's debt to equity ratio (125.4%) is considered high

Reducing Debt: VCP's debt to equity ratio has increased from 47.7% to 125.4% over the past 5 years.

Debt Coverage: VCP's debt is not well covered by operating cash flow (13.1%).

Interest Coverage: VCP is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

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

Debt Coverage by Assets: VCP's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%2.0%markettop25%5.4%industryaverage6.2%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate VCP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate VCP's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if VCP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if VCP's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: VCP is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of VCP's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

3.2yrs

Average management tenure


CEO

Philippe Hamers (55yo)

2.6yrs

Tenure

UK£848,000

Compensation

Mr. Philippe Hamers has been Chief Executive Officer and Executive Director of Victoria plc since March 20, 2017. Mr. Hamers served as General Manager of Residential and Commercial Broadloom Division at Ba ...


CEO Compensation Analysis

Compensation vs. Market: Philippe's total compensation ($USD1.09M) is about average for companies of similar size in the UK market ($USD1.18M).

Compensation vs Earnings: Philippe's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

3.2yrs

Average Tenure

Experienced Management: VCP's management team is considered experienced (3.2 years average tenure).


Board Age and Tenure

4.4yrs

Average Tenure

48yo

Average Age

Experienced Board: VCP's board of directors are considered experienced (4.4 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£438,75027 Mar 19
Ian Anton
EntityIndividual
Shares97,500
Max PriceUK£4.50
BuyUK£10,25020 Mar 19
Ian Anton
EntityIndividual
Shares2,500
Max PriceUK£4.10
BuyUK£480,00014 Mar 19
Ian Anton
EntityIndividual
Shares150,000
Max PriceUK£3.20
BuyUK£642,00013 Mar 19
Ian Anton
EntityIndividual
Shares200,000
Max PriceUK£3.21
BuyUK£81,25004 Mar 19
Philippe Hamers
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares25,000
Max PriceUK£3.25

Ownership Breakdown


Management Team

  • Jan Debrouwere

    MD of Victoria Carpets - UK & Director of Hard Flooring

    • Tenure: 0.8yrs
  • Chris Dragan

    President of Colin Campbell & Sons Limited

    • Tenure: 9.8yrs
  • Geoff Wilding

    Executive Chairman

    • Tenure: 7yrs
    • Compensation: UK£523.00k
  • Philippe Hamers (55yo)

    CEO & Executive Director

    • Tenure: 2.6yrs
    • Compensation: UK£848.00k
  • Michael Scott (38yo)

    Group Finance Director & Executive Director

    • Tenure: 3.8yrs
    • Compensation: UK£494.00k
  • John Shirt

    Managing Director of Westex Carpets

    • Tenure: 0.8yrs
  • Jim Taylor

    Managing Director of Abingdon Flooring

    • Tenure: 0yrs
  • Steven Byrne

    Managing Director of Abingdon Flooring

    • Tenure: 0yrs
  • John Cooper

    Managing Director of Interfloor

    • Tenure: 0yrs
  • Phil Smith

    Managing Director of Victoria Carpets - Australia

    • Tenure: 6.5yrs

Board Members

  • Michael Oakley (79yo)

    Non-Executive Chairman of The Victoria Carpet Company Pty Limited

    • Tenure: 13.2yrs
    • Compensation: UK£76.00k
  • Geoff Wilding

    Executive Chairman

    • Tenure: 7yrs
    • Compensation: UK£523.00k
  • Zachary Sternberg (34yo)

    Non-Executive Director

    • Tenure: 0.4yrs
  • Andrew Harrison

    Senior Independent Non-Executive Director

    • Tenure: 0yrs
    • Compensation: UK£35.00k
  • Gavin Petken (48yo)

    Non-Executive Director

    • Tenure: 5.1yrs
    • Compensation: UK£35.00k
  • Philippe Hamers (55yo)

    CEO & Executive Director

    • Tenure: 2.6yrs
    • Compensation: UK£848.00k
  • Michael Scott (38yo)

    Group Finance Director & Executive Director

    • Tenure: 3.8yrs
    • Compensation: UK£494.00k

Company Information

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


Key Information

  • Name: Victoria plc
  • Ticker: VCP
  • Exchange: AIM
  • Founded: 1895
  • Industry: Home Furnishings
  • Sector: Consumer Durables
  • Market Cap: UK£594.387m
  • Shares outstanding: 125.40m
  • Website: https://www.victoriaplc.com

Number of Employees


Location

  • Victoria plc
  • Worcester Road
  • Kidderminster
  • Worcestershire
  • DY10 1JR
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VCPAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJan 1992

Biography

Victoria PLC designs, manufactures, and distributes flooring products primarily in the United Kingdom and Australia. It also provides wool and synthetic broadloom carpets, flooring underlays, luxury vinyl  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 20:40
End of Day Share Price2019/10/17 00:00
Earnings2019/03/30
Annual Earnings2019/03/30


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.