company background image
VCT

Victrex LSE:VCT Stock Report

Last Price

UK£16.81

Market Cap

UK£1.5b

7D

1.0%

1Y

-30.2%

Updated

28 Sep, 2022

Data

Company Financials +
VCT fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance4/6
Financial Health5/6
Dividends3/6

VCT Stock Overview

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

Victrex Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Victrex
Historical stock prices
Current Share PriceUK£16.81
52 Week HighUK£25.40
52 Week LowUK£15.85
Beta0.83
1 Month Change-4.65%
3 Month Change-5.51%
1 Year Change-30.19%
3 Year Change-18.00%
5 Year Change-30.80%
Change since IPO559.22%

Recent News & Updates

Aug 18
Should You Investigate Victrex plc (LON:VCT) At UK£18.12?

Should You Investigate Victrex plc (LON:VCT) At UK£18.12?

Victrex plc ( LON:VCT ), is not the largest company out there, but it saw a decent share price growth in the teens...

Jul 30
Investors Could Be Concerned With Victrex's (LON:VCT) Returns On Capital

Investors Could Be Concerned With Victrex's (LON:VCT) Returns On Capital

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? One common approach...

Jul 10
Are Investors Undervaluing Victrex plc (LON:VCT) By 38%?

Are Investors Undervaluing Victrex plc (LON:VCT) By 38%?

How far off is Victrex plc ( LON:VCT ) from its intrinsic value? Using the most recent financial data, we'll take a...

Shareholder Returns

VCTGB ChemicalsGB Market
7D1.0%-2.9%-3.5%
1Y-30.2%-31.0%-14.9%

Return vs Industry: VCT exceeded the UK Chemicals industry which returned -31.9% over the past year.

Return vs Market: VCT underperformed the UK Market which returned -14.5% over the past year.

Price Volatility

Is VCT's price volatile compared to industry and market?
VCT volatility
VCT Average Weekly Movement3.9%
Chemicals Industry Average Movement7.7%
Market Average Movement5.3%
10% most volatile stocks in GB Market10.7%
10% least volatile stocks in GB Market2.7%

Stable Share Price: VCT is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: VCT's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1993866Jakob Sigurdssonhttps://www.victrexplc.com

Victrex plc, through its subsidiaries, manufactures and sells polymers worldwide. The company operates through two segments, Industrial and Medical. It develops PEEK and PAEK polymer solutions, and semi-finished and finished parts.

Victrex Fundamentals Summary

How do Victrex's earnings and revenue compare to its market cap?
VCT fundamental statistics
Market CapUK£1.46b
Earnings (TTM)UK£70.30m
Revenue (TTM)UK£315.50m

20.8x

P/E Ratio

4.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
VCT income statement (TTM)
RevenueUK£315.50m
Cost of RevenueUK£152.70m
Gross ProfitUK£162.80m
Other ExpensesUK£92.50m
EarningsUK£70.30m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Dec 06, 2022

Earnings per share (EPS)0.81
Gross Margin51.60%
Net Profit Margin22.28%
Debt/Equity Ratio3.3%

How did VCT perform over the long term?

See historical performance and comparison

Dividends

3.5%

Current Dividend Yield

74%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is VCT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for VCT?

Other financial metrics that can be useful for relative valuation.

VCT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue4.6x
Enterprise Value/EBITDA13.6x
PEG Ratio2.2x

Price to Earnings Ratio vs Peers

How does VCT's PE Ratio compare to its peers?

VCT PE Ratio vs Peers
The above table shows the PE ratio for VCT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average17.9x
JMAT Johnson Matthey
29.3x19.2%UK£3.4b
SYNT Synthomer
6.9x9.5%UK£644.9m
TET Treatt
22.7x7.3%UK£354.7m
CRDA Croda International
12.8x-8.6%UK£9.1b
VCT Victrex
20.8x9.6%UK£1.5b

Price-To-Earnings vs Peers: VCT is expensive based on its Price-To-Earnings Ratio (20.8x) compared to the peer average (17.9x).


Price to Earnings Ratio vs Industry

How does VCT's PE Ratio compare vs other companies in the European Chemicals Industry?

Price-To-Earnings vs Industry: VCT is expensive based on its Price-To-Earnings Ratio (20.8x) compared to the European Chemicals industry average (11.4x)


Price to Earnings Ratio vs Fair Ratio

What is VCT's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

VCT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.8x
Fair PE Ratio14.2x

Price-To-Earnings vs Fair Ratio: VCT is expensive based on its Price-To-Earnings Ratio (20.8x) compared to the estimated Fair Price-To-Earnings Ratio (14.2x).


Share Price vs Fair Value

What is the Fair Price of VCT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: VCT (£16.81) is trading below our estimate of fair value (£30.43)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


Discover undervalued companies

Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


9.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VCT's forecast earnings growth (9.6% per year) is above the savings rate (0.9%).

Earnings vs Market: VCT's earnings (9.6% per year) are forecast to grow faster than the UK market (9% per year).

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

Revenue vs Market: VCT's revenue (4.6% per year) is forecast to grow faster than the UK market (4.5% per year).

High Growth Revenue: VCT's revenue (4.6% 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 (18.5%).


Discover growth companies

Past Performance

How has Victrex performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-11.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: VCT has high quality earnings.

Growing Profit Margin: VCT's current net profit margins (22.3%) are higher than last year (20.3%).


Past Earnings Growth Analysis

Earnings Trend: VCT's earnings have declined by 11.1% per year over the past 5 years.

Accelerating Growth: VCT's earnings growth over the past year (30.7%) exceeds its 5-year average (-11.1% per year).

Earnings vs Industry: VCT earnings growth over the past year (30.7%) exceeded the Chemicals industry 14.4%.


Return on Equity

High ROE: VCT's Return on Equity (14.8%) is considered low.


Discover strong past performing companies

Financial Health

How is Victrex's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: VCT's short term assets (£197.2M) exceed its short term liabilities (£57.6M).

Long Term Liabilities: VCT's short term assets (£197.2M) exceed its long term liabilities (£59.9M).


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 (644.9%).

Interest Coverage: VCT earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Discover healthy companies

Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


3.54%

Current Dividend Yield

Dividend Yield vs Market

Victrex Dividend Yield vs Market
How does Victrex dividend yield compare to the market?
SegmentDividend Yield
Company (Victrex)3.5%
Market Bottom 25% (GB)2.1%
Market Top 25% (GB)6.1%
Industry Average (Chemicals)3.1%
Analyst forecast in 3 Years (Victrex)3.7%

Notable Dividend: VCT's dividend (3.54%) is higher than the bottom 25% of dividend payers in the UK market (2.1%).

High Dividend: VCT's dividend (3.54%) is low compared to the top 25% of dividend payers in the UK market (6.06%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (73.6%), VCT's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (106.7%), VCT's dividend payments are not well covered by cash flows.


Discover strong dividend paying companies

Management

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

7.1yrs

Average management tenure


CEO

Jakob Sigurdsson (58 yo)

4.92yrs

Tenure

UK£1,526,756

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

Jakob Sigurdsson's Compensation vs Victrex Earnings
How has Jakob Sigurdsson's remuneration changed compared to Victrex's earnings?
DateTotal Comp.SalaryCompany Earnings
Mar 31 2022n/an/a

UK£70m

Dec 31 2021n/an/a

UK£72m

Sep 30 2021UK£2mUK£558k

UK£73m

Jun 30 2021n/an/a

UK£64m

Mar 31 2021n/an/a

UK£54m

Dec 31 2020n/an/a

UK£54m

Sep 30 2020UK£889kUK£558k

UK£54m

Jun 30 2020n/an/a

UK£72m

Mar 31 2020n/an/a

UK£89m

Dec 31 2019n/an/a

UK£91m

Sep 30 2019UK£764kUK£545k

UK£92m

Jun 30 2019n/an/a

UK£96m

Mar 31 2019n/an/a

UK£99m

Dec 31 2018n/an/a

UK£105m

Sep 30 2018UK£1mUK£500k

UK£111m

Jun 30 2018n/an/a

UK£113m

Mar 31 2018n/an/a

UK£115m

Dec 31 2017n/an/a

UK£107m

Sep 30 2017UK£510kUK£42k

UK£100m

Compensation vs Market: Jakob's total compensation ($USD1.64M) is about average for companies of similar size in the UK market ($USD2.27M).

Compensation vs Earnings: Jakob's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: VCT's management team is seasoned and experienced (7.1 years average tenure).


Board Members

Experienced Board: VCT's board of directors are considered experienced (4.6 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

LSE:VCT Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
12 May 22BuyUK£49,356Jakob SigurdssonIndividual3,000UK£16.45
21 Feb 22BuyUK£53,013Jakob SigurdssonIndividual2,800UK£18.93

Ownership Breakdown

What is the ownership structure of VCT?
Owner TypeNumber of SharesOwnership Percentage
Public Companies18,6980.02%
Private Companies29,1830.03%
Individual Insiders45,9310.05%
State or Government107,4840.1%
Employee Share Scheme187,4960.2%
General Public2,779,8673.2%
Institutions83,715,46496.4%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 75.93% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
12.02%
Sprucegrove Investment Management Ltd
10,443,471£175.6m-0.53%3.13%
6.18%
BlackRock, Inc.
5,373,165£90.3m23.49%no data
4.7%
Baillie Gifford & Co.
4,087,717£68.7m1.06%0.04%
4.48%
The Vanguard Group, Inc.
3,896,203£65.5m1.09%no data
3.76%
Columbia Management Investment Advisers, LLC
3,267,463£54.9m4.41%0.02%
3.48%
Royal London Asset Management Limited
3,021,601£50.8m0.41%0.1%
3.45%
M&G Investment Management Limited
2,993,278£50.3m-30.27%0.12%
3.39%
Schroder Investment Management Limited
2,942,995£49.5m8.69%0.04%
3.3%
Fidelity International Ltd
2,869,867£48.2m200.05%0.03%
3.04%
Brown Capital Management, LLC
2,643,500£44.4m1.79%0.52%
2.5%
Janus Henderson Group plc
2,168,659£36.5m6.66%0.02%
2.48%
Invesco Ltd.
2,154,712£36.2m-5.75%0.01%
2.22%
Troy Asset Management Limited
1,931,291£32.5m-6.18%0.39%
2.22%
Walter Scott & Partners Limited
1,929,702£32.4m5.75%0.09%
2.18%
Legal & General Investment Management Limited
1,895,137£31.9m-2.7%0.01%
2.17%
T. Rowe Price Group, Inc.
1,888,467£31.7m7.81%no data
2.05%
Norges Bank Investment Management
1,779,285£29.9m-1.88%no data
2.02%
Mondrian Investment Partners Limited
1,756,097£29.5m-42.66%0.24%
1.9%
Evenlode Investment Management Limited
1,651,252£27.8m1.66%0.6%
1.67%
Castlefield Investment Partners LLP
1,446,642£24.3m-7.56%2.27%
1.65%
AXA Investment Managers S.A.
1,436,577£24.1m9.34%0.06%
1.38%
Dimensional Fund Advisors LP
1,201,979£20.2m-6.41%0.01%
1.3%
Aegon Asset Management UK Plc
1,126,489£18.9m-0.36%0.1%
1.21%
HSBC Global Asset Management (UK) Limited
1,051,033£17.7m-10.46%0.02%
1.16%
Rathbone Investment Management Limited
1,011,526£17.0m-13.1%0.07%

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
  • Implied Market Cap: UK£1.461b
  • Shares outstanding: 86.88m
  • 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
1OYDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1996

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/28 00:00
End of Day Share Price2022/09/28 00:00
Earnings2022/03/31
Annual Earnings2021/09/30


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.