LSE:VTC

Stock Analysis Report

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Executive Summary

The Vitec Group plc designs, manufactures, and distributes products and services that enable end users to capture and share exceptional images for the broadcast, cinematic, video, photographic, and smartphone applications worldwide.


Snowflake Analysis

Excellent balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: VTC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-6.0%

VTC

-2.1%

GB Consumer Durables

0.1%

GB Market


1 Year Return

-40.2%

VTC

-8.6%

GB Consumer Durables

-15.3%

GB Market

Return vs Industry: VTC underperformed the UK Consumer Durables industry which returned -8.6% over the past year.

Return vs Market: VTC underperformed the UK Market which returned -15.3% over the past year.


Shareholder returns

VTCIndustryMarket
7 Day-6.0%-2.1%0.1%
30 Day-3.2%-9.1%-2.7%
90 Day2.2%30.0%16.9%
1 Year-39.6%-40.2%-6.2%-8.6%-11.4%-15.3%
3 Year-31.3%-35.9%-1.6%-15.4%-3.4%-15.2%
5 Year17.4%1.2%17.8%-9.0%15.4%-10.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Vitec Group 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

Below Fair Value: VTC (£6.58) is trading below our estimate of fair value (£9.74)

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


Price To Earnings Ratio

PE vs Industry: VTC is poor value based on its PE Ratio (14.7x) compared to the Consumer Durables industry average (8.5x).

PE vs Market: VTC is good value based on its PE Ratio (14.7x) compared to the UK market (14.9x).


Price to Earnings Growth Ratio

PEG Ratio: VTC is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: VTC is overvalued based on its PB Ratio (1.9x) compared to the GB Consumer Durables industry average (1x).


Next Steps

Future Growth

How is Vitec Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

13.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VTC's forecast earnings growth (13.6% per year) is above the savings rate (1.2%).

Earnings vs Market: VTC's earnings (13.6% per year) are forecast to grow slower than the UK market (21.7% per year).

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

Revenue vs Market: VTC's revenue is expected to decline over the next 3 years (-0.6% per year).

High Growth Revenue: VTC's revenue is forecast to decline over the next 3 years (-0.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VTC's Return on Equity is forecast to be low in 3 years time (17.4%).


Next Steps

Past Performance

How has Vitec Group performed over the past 5 years?

17.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VTC has high quality earnings.

Growing Profit Margin: VTC's current net profit margins (5.4%) are lower than last year (8.9%).


Past Earnings Growth Analysis

Earnings Trend: VTC's earnings have grown by 17.1% per year over the past 5 years.

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

Earnings vs Industry: VTC had negative earnings growth (-41.1%) over the past year, making it difficult to compare to the Consumer Durables industry average (-4.2%).


Return on Equity

High ROE: VTC's Return on Equity (12.9%) is considered low.


Next Steps

Financial Health

How is Vitec Group's financial position?


Financial Position Analysis

Short Term Liabilities: VTC's short term assets (£163.5M) exceed its short term liabilities (£77.8M).

Long Term Liabilities: VTC's short term assets (£163.5M) exceed its long term liabilities (£126.1M).


Debt to Equity History and Analysis

Debt Level: VTC's debt to equity ratio (61.7%) is considered high.

Reducing Debt: VTC's debt to equity ratio has reduced from 67.6% to 61.7% over the past 5 years.

Debt Coverage: VTC's debt is well covered by operating cash flow (50.3%).

Interest Coverage: VTC's interest payments on its debt are well covered by EBIT (9.5x coverage).


Balance Sheet


Next Steps

Dividend

What is Vitec Group current dividend yield, its reliability and sustainability?

2.37%

Forecast Dividend Yield


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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


Next Steps

Management

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

8.4yrs

Average management tenure


CEO

Steve Bird (59yo)

11.33yrs

Tenure

UK£1,427,853

Compensation

Mr. Stephen Clive Bird, also known as Steve, BSc, MBA, MA, has been Group Chief Executive at The Vitec Group plc since April 14, 2009. Mr. Bird served as Divisional Managing Director of Clear Liquid Divisi ...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD1.78M) is above average for companies of similar size in the UK market ($USD921.33K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Stephen Bird
Group CEO & Director11.33yrsUK£1.43m0.60% £1.8m
Martin Green
Group Finance Director & Executive Director3.5yrsUK£874.58k0.20% £604.6k
Jennifer Shaw
Group Communications Director4yrsno datano data
Marco Pezzana
Divisional Chief Executive Officer of Vitec Imaging Solutions Divisionno datano data0.20% £598.6k
Alan Hollis
Divisional Chief Executive Officer of Production Solutions Divisionno datano data0.16% £485.6k
Nicol Verheem
Divisional Chief Executive Officer of Creative Solutions Divisionno datano data0.27% £796.3k
Martin Vann
Senior Vice President of Vitec Creative Solutions5.5yrsno data0.0043% £13.0k
Halid Hatic
Senior Vice President of Vitec Production Solutionsno datano data0.023% £68.7k
Stephen Shiprock
President & MD of Vitec Group RF Systems11.83yrsno datano data
Jon Bolton
Group Company Secretary11.75yrsno data0.094% £280.5k

8.4yrs

Average Tenure

53yo

Average Age

Experienced Management: VTC's management team is seasoned and experienced (8.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stephen Bird
Group CEO & Director11.33yrsUK£1.43m0.60% £1.8m
Martin Green
Group Finance Director & Executive Director3.5yrsUK£874.58k0.20% £604.6k
Duncan Penny
Independent Non-Executive Director1.83yrsUK£50.00k0.0066% £19.7k
Ian McHoul
Independent Chairman1.17yrsUK£116.41k0.022% £65.8k
Caroline Thomson
Independent Non-Executive Director4.67yrsUK£65.00k0.018% £55.3k
Christopher Humphrey
Senior Independent Director2.25yrsUK£68.00k0.022% £65.8k
Richard Tyson
Independent Non-Executive Director2.25yrsUK£50.00k0.0058% £17.4k

2.3yrs

Average Tenure

59yo

Average Age

Experienced Board: VTC's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


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

The Vitec Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Vitec Group plc
  • Ticker: VTC
  • Exchange: LSE
  • Founded: 1910
  • Industry: Consumer Electronics
  • Sector: Consumer Durables
  • Market Cap: UK£299.820m
  • Shares outstanding: 45.57m
  • Website: https://www.vitecgroup.com

Number of Employees


Location

  • The Vitec Group plc
  • Bridge House
  • Heron Square
  • Richmond
  • Greater London
  • TW9 1EN
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VTCLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
VTEP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
VTClBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992

Biography

The Vitec Group plc designs, manufactures, and distributes products and services that enable end users to capture and share exceptional images for the broadcast, cinematic, video, photographic, and smartphone applications worldwide. It operates through three divisions: Imaging Solutions, Production Solutions, and Creative Solutions. The Imaging Solutions division offers equipment for photographic and video cameras, and smartphones; and solutions to image makers, independent content creators, and vloggers, including camera supports and heads, camera bags, smartphone accessories, lighting supports, light-emitting diode lights, lighting controls, motion controls, lens filters, and audio capture and noise reduction equipment. The Production Solutions division provides video heads, tripods, lights, batteries, and specialty camera systems for broadcasters, film studios, production companies, and independent content creators. The Creative Solutions division offers wireless video transmission and lens control systems, monitors, camera accessories, and software applications to independent content creators and cinematographers. The company also provides mirrorless and action, drones, and smartphones. The Vitec Group plc was founded in 1910 and is headquartered in Richmond, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/04 21:04
End of Day Share Price2020/07/03 00:00
Earnings2019/12/31
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.