LSE:VCT

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Flawless balance sheet average dividend payer.


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

-1.4%

VCT

0.5%

GB Chemicals

0.05%

GB Market


1 Year Return

-4.3%

VCT

-13.5%

GB Chemicals

7.1%

GB Market

Return vs Industry: VCT exceeded the UK Chemicals industry which returned -14.6% over the past year.

Return vs Market: VCT underperformed the UK Market which returned 6.6% over the past year.


Shareholder returns

VCTIndustryMarket
7 Day-1.4%0.5%0.05%
30 Day-6.9%-2.6%-1.7%
90 Day-4.8%0.3%4.1%
1 Year-1.7%-4.3%-10.3%-13.5%12.6%7.1%
3 Year41.2%23.2%5.6%-3.8%18.4%3.6%
5 Year46.8%20.9%12.1%-5.9%35.2%4.2%

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?

6.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VCT (£22.96) is trading below our estimate of fair value (£24.59)

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 poor value based on its PE Ratio (21.4x) compared to the Chemicals industry average (21.2x).

PE vs Market: VCT is poor value based on its PE Ratio (21.4x) compared to the UK market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: VCT is poor value based on its PEG Ratio (5x)


Price to Book Ratio

PB vs Industry: VCT is overvalued based on its PB Ratio (4.3x) compared to the GB Chemicals industry average (2.2x).


Next Steps

Future Growth

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

4.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VCT's forecast earnings growth (4.3% per year) is above the savings rate (0.5%).

Earnings vs Market: VCT's earnings (4.3% per year) are forecast to grow slower than the UK market (13.1% per year).

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

Revenue vs Market: VCT's revenue (4% per year) is forecast to grow faster than the UK market (3.5% per year).

High Growth Revenue: VCT's revenue (4% 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 (19.1%).


Next Steps

Past Performance

How has Victrex performed over the past 5 years?

6.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VCT has high quality earnings.

Growing Profit Margin: VCT's current net profit margins (31.4%) are lower than last year (33.9%).


Past Earnings Growth Analysis

Earnings Trend: VCT's earnings have grown by 6.2% 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 (-16.5%) over the past year, making it difficult to compare to the Chemicals industry average (-3.6%).


Return on Equity

High ROE: VCT's Return on Equity (20%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Victrex's financial position?


Financial Position Analysis

Short Term Liabilities: VCT's short term assets (£212.2M) exceed its short term liabilities (£53.0M).

Long Term Liabilities: VCT's short term assets (£212.2M) exceed its long term liabilities (£21.6M).


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

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

Debt Coverage by Assets: Insufficient data to determine if VCT's debt is covered by short term assets.


Next Steps

Dividend

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

2.59%

Current Dividend Yield


Dividend Yield vs Market

company2.6%marketbottom25%1.8%markettop25%5.1%industryaverage2.7%forecastin3Years3.7%

Current dividend yield vs market & industry

Notable Dividend: VCT's dividend (2.59%) is higher than the bottom 25% of dividend payers in the UK market (1.81%).

High Dividend: VCT's dividend (2.59%) is low compared to the top 25% of dividend payers in the UK market (5.12%).


Stability and Growth of Payments

Stable Dividend: VCT's dividend payments have been volatile in the past 10 years.

Growing Dividend: VCT's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (55.5%), VCT's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: VCT's dividends in 3 years are forecast to be covered by earnings (80.8% payout ratio).


Next Steps

Management

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

4.5yrs

Average management tenure


CEO

Jakob Sigurdsson (55yo)

2.3yrs

Tenure

UK£763,672

Compensation

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 in ...


CEO Compensation Analysis

Compensation vs Market: Jakob's total compensation ($USD983.23K) is below average for companies of similar size in the UK market ($USD2.33M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jakob Sigurdsson
CEO & Executive Director2.3yrsUK£763.67k0.015% £303.1k
Richard Armitage
Group Finance Director & Executive Director1.8yrsUK£445.07k0.0023% £46.0k
Martin Court
Chief Commercial Officer of Industrial & Medical Divisions and Executive Director4.8yrsUK£710.63k0.0098% £193.8k
Andrew Hanson
Director of Investor Relations & Corporate Communications6.7yrsno datano data
Louise Waldek
General Counsel & Company Secretary0yrsno datano data

4.5yrs

Average Tenure

55yo

Average Age

Experienced Management: VCT's management team is considered experienced (4.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jakob Sigurdsson
CEO & Executive Director2.3yrsUK£763.67k0.015% £303.1k
Richard Armitage
Group Finance Director & Executive Director1.8yrsUK£445.07k0.0023% £46.0k
Martin Court
Chief Commercial Officer of Industrial & Medical Divisions and Executive Director4.8yrsUK£710.63k0.0098% £193.8k
Lawrence Pentz
Independent Non-Executive Chairman5.3yrsUK£201.60k0.0046% £91.8k
Brendan W. Connolly
Independent Non-Executive Director2yrsUK£48.00k0.00041% £8.1k
David Thomas
Independent Non-Executive Director1.8yrsUK£58.00kno data
Janet Ashdown
Independent Non-Executive Director2yrsUK£58.00kno data
Jane Toogood
Independent Non-Executive Director4.4yrsUK£48.00k0.00058% £11.5k

2.2yrs

Average Tenure

60yo

Average Age

Experienced Board: VCT's board of directors are not considered experienced ( 2.2 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: VCT 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£1.983b
  • Shares outstanding: 86.39m
  • 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, aerospace, energy, manufacturing and engineering, electronics, and medical markets. The company was incorporated in 1993 and is headquartered in Thornton Cleveleys, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 20:47
End of Day Share Price2020/02/20 00:00
Earnings2019/09/30
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.