LSE:VCT

Stock Analysis Report

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Executive Summary

Victrex plc, through its subsidiaries, manufactures and sells polymers worldwide. More Details

Rewards

Trading at 1.4% below our estimate of its fair value

Earnings are forecast to grow 11.18% per year

Risk Analysis

No risks detected for VCT from our risk checks.


Snowflake Analysis

Flawless balance sheet and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.6%

VCT

-1.2%

GB Chemicals

-2.0%

GB Market


1 Year Return

-11.3%

VCT

-1.9%

GB Chemicals

-17.2%

GB Market

Return vs Industry: VCT underperformed the UK Chemicals industry which returned -2.2% over the past year.

Return vs Market: VCT exceeded the UK Market which returned -16.4% over the past year.


Shareholder returns

VCTIndustryMarket
7 Day-0.6%-1.2%-2.0%
30 Day6.2%4.4%-0.5%
90 Day2.5%7.2%-4.4%
1 Year-9.5%-11.3%-0.3%-1.9%-14.1%-17.2%
3 Year-7.9%-19.2%-8.6%-16.1%-10.3%-21.4%
5 Year23.6%2.4%14.7%-1.9%13.4%-12.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

1.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VCT (£19.38) is trading below our estimate of fair value (£19.65)

Significantly Below Fair Value: VCT is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: VCT is good value based on its PE Ratio (18.7x) compared to the GB Chemicals industry average (35.5x).

PE vs Market: VCT is poor value based on its PE Ratio (18.7x) compared to the UK market (18x).


Price to Earnings Growth Ratio

PEG Ratio: VCT is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: VCT is overvalued based on its PB Ratio (3.6x) compared to the GB Chemicals industry average (2x).


Next Steps

Future Growth

How is Victrex forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

11.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VCT's forecast earnings growth (11.2% per year) is above the savings rate (1.2%).

Earnings vs Market: VCT's earnings (11.2% per year) are forecast to grow slower than the UK market (24.1% per year).

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

Revenue vs Market: VCT's revenue (6.1% per year) is forecast to grow faster than the UK market (6% per year).

High Growth Revenue: VCT's revenue (6.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Victrex performed over the past 5 years?

4.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VCT has high quality earnings.

Growing Profit Margin: VCT's current net profit margins (29.8%) are lower than last year (32.5%).


Past Earnings Growth Analysis

Earnings Trend: VCT's earnings have grown by 4.5% per year over the past 5 years.

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

Earnings vs Industry: VCT had negative earnings growth (-10%) over the past year, making it difficult to compare to the Chemicals industry average (-18.3%).


Return on Equity

High ROE: VCT's Return on Equity (19%) is considered low.


Next Steps

Financial Health

How is Victrex's financial position?


Financial Position Analysis

Short Term Liabilities: VCT's short term assets (£209.4M) exceed its short term liabilities (£47.6M).

Long Term Liabilities: VCT's short term assets (£209.4M) exceed its long term liabilities (£30.5M).


Debt to Equity History and Analysis

Debt Level: VCT is debt free.

Reducing Debt: VCT has not had any debt for past 5 years.

Debt Coverage: VCT has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: VCT has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Victrex current dividend yield, its reliability and sustainability?

3.51%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate VCT'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 VCT's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of VCT'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?

5.2yrs

Average management tenure


CEO

Jakob Sigurdsson (56 yo)

3yrs

Tenure

UK£763,672

Compensation

Mr. Jakob O. Sigurdsson, BA, MBA, has been Non-Executive Director at Victrex plc since October 1, 2020. Mr. Sigurdsson has been the Chief Executive Officer since October 1, 2017. He has been Independent No ...


CEO Compensation Analysis

Compensation vs Market: Jakob's total compensation ($USD998.36K) is below average for companies of similar size in the UK market ($USD1.73M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jakob Sigurdsson
CEO & Non-Executive Director3yrsUK£763.67k0.015%
£ 255.9k
Richard Armitage
CFO, Group Finance Director & Director2.42yrsUK£445.07k0.0046%
£ 77.1k
Martin Court
Chief Commercial Officer of Industrial & Medical Divisions and Executive Director5.5yrsUK£710.63k0.0098%
£ 164.5k
Andrew Hanson
Director of Investor Relations & Corporate Communications7.33yrsno datano data
Louise Waldek
General Counsel & Company Secretaryno datano datano data

5.2yrs

Average Tenure

56yo

Average Age

Experienced Management: VCT's management team is seasoned and experienced (5.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jakob Sigurdsson
CEO & Non-Executive Director3yrsUK£763.67k0.015%
£ 255.9k
Richard Armitage
CFO, Group Finance Director & Director2.42yrsUK£445.07k0.0046%
£ 77.1k
Martin Court
Chief Commercial Officer of Industrial & Medical Divisions and Executive Director5.5yrsUK£710.63k0.0098%
£ 164.5k
Lawrence Pentz
Independent Non-Executive Chairman6yrsUK£201.60k0.0046%
£ 77.6k
Brendan W. Connolly
Independent Non-Executive Director2.67yrsUK£48.00k0.00040%
£ 6.7k
David Thomas
Independent Non-Executive Director2.42yrsUK£58.00kno data
Janet Ashdown
Independent Non-Executive Director2.67yrsUK£58.00kno data
Rosalind Rivaz
Senior Independent Director0.42yrno datano data
Jane Toogood
Independent Non-Executive Director5.08yrsUK£48.00k0.00058%
£ 9.7k

2.7yrs

Average Tenure

62yo

Average Age

Experienced Board: VCT's board of directors are not considered experienced ( 2.7 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

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


Key Information

  • Name: Victrex plc
  • Ticker: VCT
  • Exchange: LSE
  • Founded: 1993
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: UK£1.676b
  • Shares outstanding: 86.46m
  • Website: https://www.victrexplc.com

Number of Employees


Location

  • Victrex plc
  • Victrex Technology Centre
  • Hillhouse International
  • Thornton Cleveleys
  • Lancashire
  • FY5 4QD
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VTXP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1996
VCTLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1996
VCTLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1996
1OYBST (Boerse-Stuttgart)YesOrdinary SharesDEEURJan 1996

Biography

Victrex plc, through its subsidiaries, manufactures and sells polymers worldwide. It offers PEEK and PAEK polymer materials; and specialist solutions for medical device manufacturers. It serves automotive, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/27 22:02
End of Day Share Price2020/10/27 00:00
Earnings2020/03/31
Annual Earnings2019/09/30


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.