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VCT

VictrexLSE:VCT Stock Report

Market Cap

UK£2.0b

7D

2.4%

1Y

14.5%

Updated

01 Dec, 2021

Data

Company Financials +
VCT fundamental analysis
Snowflake Score
Valuation1/6
Future Growth2/6
Past Performance1/6
Financial Health5/6
Dividends2/6

VCT Stock Overview

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

Victrex Competitors

Croda International

LSE:CRDA

UK£14.0b

Johnson Matthey

LSE:JMAT

UK£4.0b

Synthomer

LSE:SYNT

UK£2.2b

Elementis

LSE:ELM

UK£784.6m

Price History & Performance

Summary of all time highs, changes and price drops for Victrex
Historical stock prices
Current Share PriceUK£23.58
52 Week HighUK£27.20
52 Week LowUK£20.12
Beta0.86
1 Month Change2.70%
3 Month Change-11.22%
1 Year Change14.47%
3 Year Change2.34%
5 Year Change30.28%
Change since IPO824.71%

Recent News & Updates

Sep 29
At UK£24.02, Is Victrex plc (LON:VCT) Worth Looking At Closely?

At UK£24.02, Is Victrex plc (LON:VCT) Worth Looking At Closely?

Victrex plc ( LON:VCT ), might not be a large cap stock, but it received a lot of attention from a substantial price...

Sep 10
Victrex (LON:VCT) May Have Issues Allocating Its Capital

Victrex (LON:VCT) May Have Issues Allocating Its Capital

What trends should we look for it we want to identify stocks that can multiply in value over the long term? Ideally, a...

Aug 12
A Look At The Intrinsic Value Of Victrex plc (LON:VCT)

A Look At The Intrinsic Value Of Victrex plc (LON:VCT)

In this article we are going to estimate the intrinsic value of Victrex plc ( LON:VCT ) by projecting its future cash...

Jun 21
We Think Victrex (LON:VCT) Can Stay On Top Of Its Debt

We Think Victrex (LON:VCT) Can Stay On Top Of Its Debt

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

May 27
Victrex (LON:VCT) May Have Issues Allocating Its Capital

Victrex (LON:VCT) May Have Issues Allocating Its Capital

To find a multi-bagger stock, what are the underlying trends we should look for in a business? Firstly, we'd want to...

Shareholder Returns

VCTGB ChemicalsGB Market
7D2.4%0.4%-2.6%
1Y14.5%31.8%10.9%

Return vs Industry: VCT underperformed the UK Chemicals industry which returned 34.3% over the past year.

Return vs Market: VCT underperformed the UK Market which returned 13.8% over the past year.

Price Volatility

Is VCT's price volatile compared to industry and market?
VCT volatility
VCT Average Weekly Movement2.2%
Chemicals Industry Average Movement6.4%
Market Average Movement4.9%
10% most volatile stocks in GB Market9.8%
10% least volatile stocks in GB Market2.5%

Stable Share Price: VCT is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: VCT's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1993874Jakob Sigurdssonhttps://www.victrexplc.com

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.

Victrex Fundamentals Summary

How do Victrex's earnings and revenue compare to its market cap?
VCT fundamental statistics
Market CapUK£2.00b
Earnings (TTM)UK£53.80m
Revenue (TTM)UK£265.40m

38.1x

P/E Ratio

7.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
VCT income statement (TTM)
RevenueUK£265.40m
Cost of RevenueUK£128.60m
Gross ProfitUK£136.80m
ExpensesUK£83.00m
EarningsUK£53.80m

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

Dec 06, 2021

Earnings per share (EPS)0.62
Gross Margin51.54%
Net Profit Margin20.27%
Debt/Equity Ratio1.1%

How did VCT perform over the long term?

See historical performance and comparison

Dividends

1.1%

Current Dividend Yield

96%

Payout Ratio

Valuation

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

13.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VCT (£23) is trading below our estimate of fair value (£27.16)

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 (37.1x) compared to the UK Chemicals industry average (25.9x).

PE vs Market: VCT is poor value based on its PE Ratio (37.1x) compared to the UK market (19x).


Price to Earnings Growth Ratio

PEG Ratio: VCT is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: VCT is overvalued based on its PB Ratio (4.1x) compared to the GB Chemicals industry average (2.6x).


Future Growth

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

12.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VCT's forecast earnings growth (12.3% per year) is above the savings rate (0.9%).

Earnings vs Market: VCT's earnings (12.3% per year) are forecast to grow slower than the UK market (12.6% per year).

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

Revenue vs Market: VCT's revenue (5.8% per year) is forecast to grow faster than the UK market (4.9% per year).

High Growth Revenue: VCT's revenue (5.8% 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 (18.1%).


Past Performance

How has Victrex performed over the past 5 years?

-5.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VCT has high quality earnings.

Growing Profit Margin: VCT's current net profit margins (20.3%) are lower than last year (29.8%).


Past Earnings Growth Analysis

Earnings Trend: VCT's earnings have declined by 5.2% 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 (-39.8%) over the past year, making it difficult to compare to the Chemicals industry average (37.1%).


Return on Equity

High ROE: VCT's Return on Equity (11.1%) is considered low.


Financial Health

How is Victrex's financial position?


Financial Position Analysis

Short Term Liabilities: VCT's short term assets (£215.6M) exceed its short term liabilities (£39.5M).

Long Term Liabilities: VCT's short term assets (£215.6M) exceed its long term liabilities (£34.9M).


Debt to Equity History and Analysis

Debt Level: VCT has more cash than its total debt.

Reducing Debt: Insufficient data to determine if VCT's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: VCT's debt is well covered by operating cash flow (1627.3%).

Interest Coverage: VCT's interest payments on its debt are well covered by EBIT (706x coverage).


Balance Sheet


Dividend

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

1.14%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VCT's dividend (1.17%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.37%).

High Dividend: VCT's dividend (1.17%) is low compared to the top 25% of dividend payers in the UK market (4.17%).


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 high payout ratio (95.9%), VCT's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: VCT's dividends in 3 years are forecast to be covered by earnings (62.1% payout ratio).


Next Steps

Management

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

6.3yrs

Average management tenure


CEO

Jakob Sigurdsson (57 yo)

4.08yrs

Tenure

UK£880,189

Compensation

Mr. Jakob O. Sigurdsson, BA, MBA, has been the Chief Executive Officer at Victrex plc since October 1, 2017. He has been Independent Non-Executive Director at Coats Group plc since October 1, 2020. Mr. Sig...


CEO Compensation Analysis

Compensation vs Market: Jakob's total compensation ($USD1.17M) is below average for companies of similar size in the UK market ($USD1.75M).

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


Leadership Team

Experienced Management: VCT's management team is seasoned and experienced (6.3 years average tenure).


Board Members

Experienced Board: VCT's board of directors are considered experienced (3.7 years average tenure).


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 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£1.997b
  • Shares outstanding: 86.84m
  • Website: https://www.victrexplc.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/01 19:11
End of Day Share Price2021/12/01 00:00
Earnings2021/03/31
Annual Earnings2020/09/30


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.