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Victrex

LSE:VCT
Snowflake Description

Flawless balance sheet 6 star dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
VCT
LSE
£2B
Market Cap
  1. Home
  2. GB
  3. Materials
Company description

Victrex plc, through its subsidiaries, manufactures and sells polymers worldwide. The last earnings update was 76 days ago. More info.


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VCT Share Price and Events
7 Day Returns
-0.2%
LSE:VCT
2.7%
GB Chemicals
32.1%
GB Market
1 Year Returns
-9.4%
LSE:VCT
-7.7%
GB Chemicals
30.9%
GB Market
VCT Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Victrex (VCT) -0.2% -5.2% 1.5% -9.4% 39.7% 14.7%
GB Chemicals 2.7% -1.9% 6% -7.7% 17.7% 11.5%
GB Market 32.1% 31.6% 40.2% 30.9% 48.1% 12.2%
1 Year Return vs Industry and Market
  • VCT underperformed the Chemicals industry which returned -7.7% over the past year.
  • VCT underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 30.9% over the past year.
Price Volatility
VCT
Industry
5yr Volatility vs Market

Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Victrex to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Victrex.

LSE:VCT Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 14 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.8%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:VCT
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Chemicals Unlevered Beta Simply Wall St/ S&P Global 0.97
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.974 (1 + (1- 19%) (0%))
0.983
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.98
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.983 * 6.65%)
7.76%

Discounted Cash Flow Calculation for LSE:VCT using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Victrex is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:VCT DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 7.76%)
2019 101.63 Analyst x7 94.31
2020 111.36 Analyst x7 95.89
2021 117.14 Analyst x5 93.61
2022 120.05 Est @ 2.49% 89.03
2023 122.58 Est @ 2.11% 84.36
2024 124.85 Est @ 1.84% 79.72
2025 126.92 Est @ 1.66% 75.21
2026 128.86 Est @ 1.53% 70.86
2027 130.71 Est @ 1.44% 66.70
2028 132.51 Est @ 1.38% 62.75
Present value of next 10 years cash flows £812.44
LSE:VCT DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= £132.51 × (1 + 1.23%) ÷ (7.76% – 1.23%)
£2,052.71
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £2,052.71 ÷ (1 + 7.76%)10
£972.05
LSE:VCT Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £812.44 + £972.05
£1,784.49
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £1,784.49 / 86.04
£20.74
LSE:VCT Discount to Share Price
Calculation Result
Value per share (GBP) From above. £20.74
Current discount Discount to share price of £22.88
= -1 x (£22.88 - £20.74) / £20.74
-10.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Victrex is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Victrex's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Victrex's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:VCT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in GBP £1.29
LSE:VCT Share Price ** LSE (2019-03-20) in GBP £22.88
United Kingdom of Great Britain and Northern Ireland Chemicals Industry PE Ratio Median Figure of 12 Publicly-Listed Chemicals Companies 24.88x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 806 Publicly-Listed Companies 16.06x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Victrex.

LSE:VCT PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:VCT Share Price ÷ EPS (both in GBP)

= 22.88 ÷ 1.29

17.76x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Victrex is good value based on earnings compared to the GB Chemicals industry average.
  • Victrex is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Victrex's expected growth come at a high price?
Raw Data
LSE:VCT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 17.76x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts
3.2%per year
United Kingdom of Great Britain and Northern Ireland Chemicals Industry PEG Ratio Median Figure of 11 Publicly-Listed Chemicals Companies 1.92x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 573 Publicly-Listed Companies 1.37x

*Line of best fit is calculated by linear regression .

LSE:VCT PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 17.76x ÷ 3.2%

5.57x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Victrex is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Victrex's assets?
Raw Data
LSE:VCT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in GBP £5.70
LSE:VCT Share Price * LSE (2019-03-20) in GBP £22.88
United Kingdom of Great Britain and Northern Ireland Chemicals Industry PB Ratio Median Figure of 25 Publicly-Listed Chemicals Companies 2.43x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,359 Publicly-Listed Companies 1.53x
LSE:VCT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:VCT Share Price ÷ Book Value per Share (both in GBP)

= 22.88 ÷ 5.70

4.02x

* Primary Listing of Victrex.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Victrex is overvalued based on assets compared to the GB Chemicals industry average.
X
Value checks
We assess Victrex's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Chemicals industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Chemicals industry average (and greater than 0)? (1 check)
  5. Victrex has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Victrex expected to perform in the next 1 to 3 years based on estimates from 14 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
3.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Victrex expected to grow at an attractive rate?
  • Victrex's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Victrex's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • Victrex's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:VCT Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:VCT Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts 3.2%
LSE:VCT Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 14 Analysts 3.1%
United Kingdom of Great Britain and Northern Ireland Chemicals Industry Earnings Growth Rate Market Cap Weighted Average 7.7%
United Kingdom of Great Britain and Northern Ireland Chemicals Industry Revenue Growth Rate Market Cap Weighted Average 2.8%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 13.7%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 6.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:VCT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:VCT Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-09-30 371 1
2022-09-30 355 1
2021-09-30 358 146 121 9
2020-09-30 339 137 115 13
2019-09-30 319 127 109 14
LSE:VCT Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-09-30 326 129 111
2018-06-30 326 127 113
2018-03-31 326 125 115
2017-12-31 308 121 107
2017-09-30 290 118 100
2017-06-30 278 114 92
2017-03-31 266 111 84
2016-12-31 259 97 83
2016-09-30 252 83 83
2016-06-30 251 78 81
2016-03-31 250 72 80
2015-12-31 257 80 82

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Victrex's earnings are expected to grow by 3.2% yearly, however this is not considered high growth (20% yearly).
  • Victrex's revenue is expected to grow by 3.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:VCT Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below

All data from Victrex Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:VCT Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-09-30
2022-09-30
2021-09-30 1.39 1.50 1.33 10.00
2020-09-30 1.33 1.42 1.26 14.00
2019-09-30 1.25 1.30 1.22 15.00
LSE:VCT Past Financials Data
Date (Data in GBP Millions) EPS *
2018-09-30 1.29
2018-06-30 1.32
2018-03-31 1.35
2017-12-31 1.25
2017-09-30 1.16
2017-06-30 1.07
2017-03-31 0.98
2016-12-31 0.97
2016-09-30 0.97
2016-06-30 0.95
2016-03-31 0.94
2015-12-31 0.96

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Victrex is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Victrex's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Victrex has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Victrex performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Victrex's growth in the last year to its industry (Chemicals).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Victrex's year on year earnings growth rate has been positive over the past 5 years.
  • Victrex's 1-year earnings growth exceeds its 5-year average (11.2% vs 8.3%)
  • Victrex's earnings growth has exceeded the GB Chemicals industry average in the past year (11.2% vs 1.7%).
Earnings and Revenue History
Victrex's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Victrex Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:VCT Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-30 326.00 110.60 63.70 17.40
2018-06-30 325.95 112.95 66.45 15.95
2018-03-31 325.90 115.30 69.00 14.50
2017-12-31 308.05 107.40 62.50 14.50
2017-09-30 290.20 99.50 56.20 14.50
2017-06-30 278.20 91.50 52.10 14.30
2017-03-31 266.20 83.50 48.00 14.10
2016-12-31 259.25 83.00 45.90 14.10
2016-09-30 252.30 82.50 43.80 14.10
2016-06-30 251.25 81.15 43.65 13.90
2016-03-31 250.20 79.80 43.50 13.70
2015-12-31 256.85 81.65 45.85 13.70
2015-09-30 263.50 83.50 48.20 13.70
2015-06-30 263.20 83.95 48.05 14.70
2015-03-31 262.90 84.40 47.90 15.70
2014-12-31 257.75 82.30 46.60 15.70
2014-09-30 252.60 80.20 45.30 15.70
2014-06-30 244.05 78.10 43.30 15.15
2014-03-31 235.50 76.00 41.30 14.60
2013-12-31 228.70 74.45 40.25 14.60
2013-09-30 221.90 72.90 39.20 14.60
2013-06-30 221.25 72.50 39.60 13.85
2013-03-31 220.60 72.10 40.00 13.10
2012-12-31 220.20 72.00 39.30 13.10
2012-09-30 219.80 71.90 38.60 13.10
2012-06-30 216.65 71.35 44.90 6.55
2012-03-31 213.50 70.80 51.20

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Victrex has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Victrex used its assets more efficiently than the GB Chemicals industry average last year based on Return on Assets.
  • Victrex's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Victrex's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Chemicals industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Victrex has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Victrex's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Victrex's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Victrex is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Victrex's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Victrex's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Victrex has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Victrex Company Filings, last reported 5 months ago.

LSE:VCT Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-30 489.90 0.00 144.40
2018-06-30 489.90 0.00 144.40
2018-03-31 444.20 0.00 91.80
2017-12-31 444.20 0.00 91.80
2017-09-30 478.40 0.00 120.10
2017-06-30 478.40 0.00 120.10
2017-03-31 419.00 0.00 86.00
2016-12-31 419.00 0.00 86.00
2016-09-30 389.10 0.00 64.00
2016-06-30 389.10 0.00 64.00
2016-03-31 365.90 0.00 45.30
2015-12-31 365.90 0.00 45.30
2015-09-30 358.60 0.00 53.80
2015-06-30 358.60 0.00 53.80
2015-03-31 325.90 0.00 42.20
2014-12-31 325.90 0.00 42.20
2014-09-30 353.40 0.00 89.60
2014-06-30 353.40 0.00 89.60
2014-03-31 326.00 0.00 79.40
2013-12-31 326.00 0.00 79.40
2013-09-30 313.70 0.00 91.60
2013-06-30 313.70 0.00 91.60
2013-03-31 274.00 0.00 74.30
2012-12-31 274.00 0.00 74.30
2012-09-30 271.10 0.00 83.90
2012-06-30 271.10 0.00 83.90
2012-03-31 239.10 0.00 58.00
  • Victrex has no debt.
  • Victrex has not taken on any debt in the past 5 years.
  • Victrex has no debt, it does not need to be covered by operating cash flow.
  • Victrex has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Victrex's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Victrex has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
6.22%
Current annual income from Victrex dividends. Estimated to be 4.57% next year.
If you bought £2,000 of Victrex shares you are expected to receive £124 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Victrex's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.01%).
  • Victrex's dividend is above the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.17%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:VCT Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Chemicals Industry Average Dividend Yield Market Cap Weighted Average of 9 Stocks 2.8%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 704 Stocks 4%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:VCT Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2023-09-30
2022-09-30
2021-09-30 0.87 10.00
2020-09-30 0.98 14.00
2019-09-30 1.29 11.00
LSE:VCT Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-01-03 1.422 6.066
2018-12-04 1.422 6.291
2018-01-04 0.538 1.937
2017-12-05 0.538 2.076
2017-05-15 0.473 2.213
2017-01-05 0.468 2.421
2016-12-06 0.468 2.484
2016-01-05 0.468 3.019
2015-12-08 0.468 2.595
2014-12-09 0.452 2.341
2014-12-08 0.452 2.340
2014-01-03 0.430 2.436
2013-12-10 0.430 2.478
2013-05-28 0.388 2.427
2012-12-11 0.374 2.324
2011-12-06 0.325 2.453
2011-12-05 0.325 2.779
2010-12-07 0.250 1.873
2010-12-06 0.250 1.880
2009-12-08 0.192 1.875
2009-11-30 0.192 2.354
2009-03-23 0.183 2.913

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Victrex's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.6x coverage).
X
Income/ dividend checks
We assess Victrex's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Victrex afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Victrex has a total score of 6/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jakob Sigurdsson
COMPENSATION £1,071,351
AGE 54
TENURE AS CEO 1.4 years
CEO Bio

Mr. Jakob O. Sigurdsson, BA, MBA, has been the Chief Executive Officer and Executive Director of Victrex plc since October 1, 2017. Mr. Sigurdsson serves as Chief Executive of VIS, the largest Icelandic insurance and re-insurance company from August 2016 to June 2017. Mr. Sigurdsson served as Chief Executive Officer of Promens AS since October 2011 and its Director since 2007. Mr. Sigurdsson served as Chief Executive Officer and President of Promens hf from August 2011 to 2015. Mr. Sigurdsson served as Senior Vice President of Corporate Development of deCODE genetics Inc. (formerly DGI Resolution, Inc.) from October 25, 2006 to January, 2010. Mr. Sigurðsson served as Chief Executive Officer, President and Member of the Management Board at Labeyrie Fine Foods PLC (formerly known as Alfesca hf.). He served senior positions in the United States and Europe for Rohm and Haas Company, a NYSE-listed specialty materials company. He has been a Director of Promens Canada Inc. since March 2007. Mr. Sigurðsson served as a Director of Promens hf. since March 2007. He has a BA degree in Chemistry from the University of Iceland and an MBA from the Kellogg School of Management at Northwestern University.

CEO Compensation
  • Jakob's compensation has increased by more than 20% in the past year.
  • Jakob's remuneration is lower than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Victrex management team in years:

5.8
Average Tenure
54
Average Age
  • The average tenure for the Victrex management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Jakob Sigurdsson

TITLE
CEO & Executive Director
COMPENSATION
£1M
AGE
54
TENURE
1.4 yrs

Richard Armitage

TITLE
Group Finance Director & Executive Director
COMPENSATION
£330K
AGE
52
TENURE
0.8 yrs

Tim Cooper

TITLE
Executive Director of Industrial & Executive Director
COMPENSATION
£927K
TENURE
9.2 yrs

Martin Court

TITLE
Executive Director of Medical & Executive Director
COMPENSATION
£918K
AGE
56
TENURE
6.1 yrs

Andrew Hanson

TITLE
Director of Investor Relations & Corporate Communications
TENURE
5.8 yrs

Louise Waldek

TITLE
General Counsel & Company Secretary
Board of Directors Tenure

Average tenure and age of the Victrex board of directors in years:

2.5
Average Tenure
59.5
Average Age
  • The average tenure for the Victrex board of directors is less than 3 years, this suggests a new board.
Board of Directors

Larry Pentz

TITLE
Non-Executive Chairman
COMPENSATION
£194K
AGE
63
TENURE
4.4 yrs

Jakob Sigurdsson

TITLE
CEO & Executive Director
COMPENSATION
£1M
AGE
54
TENURE
1.4 yrs

Richard Armitage

TITLE
Group Finance Director & Executive Director
COMPENSATION
£330K
AGE
52
TENURE
0.8 yrs

Tim Cooper

TITLE
Executive Director of Industrial & Executive Director
COMPENSATION
£927K
TENURE
6.4 yrs

Martin Court

TITLE
Executive Director of Medical & Executive Director
COMPENSATION
£918K
AGE
56
TENURE
3.9 yrs

Janet Ashdown

TITLE
Non-Executive Director
COMPENSATION
£37K
AGE
59
TENURE
1.1 yrs

David Thomas

TITLE
Non-Executive Director
COMPENSATION
£22K
AGE
63
TENURE
0.8 yrs

Pam Kirby

TITLE
Senior Independent Director
COMPENSATION
£56K
AGE
65
TENURE
4.3 yrs

Jane Toogood

TITLE
Non-Executive Director
COMPENSATION
£48K
TENURE
3.5 yrs

Brendan W. Connolly

TITLE
Non-Executive Director
COMPENSATION
£31K
AGE
60
TENURE
1.1 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Victrex insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
18. Feb 19 Buy Jakob Sigurdsson Individual 18. Feb 19 18. Feb 19 3,000 £24.15 £72,446
05. Dec 18 Buy Jakob Sigurdsson Individual 04. Dec 18 04. Dec 18 1,950 £25.15 £49,048
17. Aug 18 Buy Martin Court Individual 16. Aug 18 16. Aug 18 4 £31.59 £126
17. Aug 18 Buy Timothy Cooper Individual 16. Aug 18 16. Aug 18 4 £31.59 £126
X
Management checks
We assess Victrex's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Victrex has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Has Victrex plc (LON:VCT) Got Enough Cash?

Small and large cap stocks are widely popular for a variety of reasons, however, mid-cap companies such as Victrex plc (LON:VCT), with a market cap of UK£2.0b, often get neglected by retail investors. … VCT’s financial liquidity and debt position will be analysed in this article, to get an idea of whether the company can fund opportunities for strategic growth and maintain strength through economic downturns. … Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourself.

Simply Wall St -

Have Insiders Been Buying Victrex plc (LON:VCT) Shares?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. … So shareholders might well want to know whether insiders have been buying or selling shares in Victrex plc (LON:VCT). … In the last twelve months there was more buying than selling by Victrex insiders

Simply Wall St -

Why Victrex plc’s (LON:VCT) Cash Is A Factor You Need To Consider

What is left after investment, determines the value of the stock since this cash flow technically belongs to investors of the company. … Victrex generates cash through its day-to-day business, which needs to be reinvested into the company in order for it to continue operating. … There are two methods I will use to evaluate the quality of Victrex’s FCF: firstly, I will measure its FCF yield relative to the market index yield; secondly, I will examine whether its operating cash flow will continue to grow into the future, which will give us a sense of sustainability

Simply Wall St -

Boasting A 23% Return On Equity, Is Victrex plc (LON:VCT) A Top Quality Stock?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Our data shows Victrex has a return on equity of 23% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Here's How P/E Ratios Can Help Us Understand Victrex plc (LON:VCT)

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … We'll look at Victrex plc's (LON:VCT) P/E ratio and reflect on what it tells us about the company's share price. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Why Victrex plc (LON:VCT) Should Be In Your Portfolio

Over the past 10 years Victrex plc (LON:VCT) has been paying dividends to shareholders. … Let's dig deeper into whether Victrex should have a place in your portfolio. … View our latest analysis for Victrex?

Simply Wall St -

Dividend Hunters Should Consider Victrex plc (LON:VCT), With A 5.9% Yield

Victrex plc (LON:VCT) is a true Dividend Rock Star. … In the past ten years, Victrex has also grown its dividend from £0.18 to £1.42. … Below, I have outlined more attractive dividend aspects for Victrex for income investors who may be interested in new dividend stocks for their portfolio.

Simply Wall St -

What Do Analysts Think About The Future Of Victrex plc's (LON:VCT)?

After Victrex plc's (LON:VCT) earnings announcement on 30 September 2018, … analyst consensus outlook appear cautiously subdued, … the higher past 5-year average growth rate of 8.3%.

Simply Wall St -

How Does Victrex plc's (LON:VCT) Earnings Growth Stack Up Against Industry Performance?

Below, I will run you through a simple sense check to build perspective on how Victrex is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its chemicals industry peers. … Were VCT's earnings stronger than its past performances and the industry. … VCT's trailing twelve-month earnings (from 30 September 2018) of UK£111m has.

Simply Wall St -

Is Victrex plc (LON:VCT) Potentially Underrated?

Victrex plc (LON:VCT) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … In the case of VCT, it

Simply Wall St -

Company Info

Description

Victrex plc, through its subsidiaries, manufactures and sells polymers worldwide. The company offers VICTREX PEEK polymer materials; and biomaterial solutions for use in spine, ortho, dental, trauma, knee, cardiovascular, and orthopedic applications. It also offers specialist solutions for medical device manufacturers. It serves automotive, aerospace, energy, manufacturing and engineering, electronics, and medical markets. The company was incorporated in 1993 and is headquartered in Thornton Cleveleys, the United Kingdom.

Details
Name: Victrex plc
VCT
Exchange: LSE
Founded: 1993
£1,968,490,867
86,035,440
Website: http://www.victrexplc.com
Address: Victrex plc
Victrex Technology Centre,
Hillhouse International,
Thornton Cleveleys,
Lancashire, FY5 4QD,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE VCT Ordinary Shares London Stock Exchange GB GBP 08. Jan 1996
OTCPK VTXP.F Ordinary Shares Pink Sheets LLC US USD 08. Jan 1996
BST 1OY Ordinary Shares Boerse-Stuttgart DE EUR 08. Jan 1996
BATS-CHIXE VCTL Ordinary Shares BATS 'Chi-X Europe' GB GBP 08. Jan 1996
Number of employees
Current staff
Staff numbers
921
Victrex employees.
Industry
Specialty Chemicals
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/20 20:40
End of day share price update: 2019/03/20 00:00
Last estimates confirmation: 2019/03/13
Last earnings filing: 2019/01/03
Last earnings reported: 2018/09/30
Last annual earnings reported: 2018/09/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.