LSE:VEC

Stock Analysis Report

Executive Summary

Vectura Group plc engages in the design, development, and supply of pharmaceutical products for the treatment of airways-related diseases worldwide.

Snowflake

Fundamentals

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-3.2%

VEC

0.7%

GB Pharmaceuticals

-0.5%

GB Market


1 Year Return

1.1%

VEC

12.8%

GB Pharmaceuticals

3.7%

GB Market

Return vs Industry: VEC underperformed the UK Pharmaceuticals industry which returned 12.8% over the past year.

Return vs Market: VEC underperformed the UK Market which returned 3.7% over the past year.


Shareholder returns

VECIndustryMarket
7 Day-3.2%0.7%-0.5%
30 Day-3.0%4.4%2.0%
90 Day1.6%3.4%5.6%
1 Year8.8%1.1%17.3%12.8%9.2%3.7%
3 Year-36.8%-41.3%52.7%34.7%23.4%7.7%
5 Year-29.0%-34.0%69.8%35.2%34.2%3.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

44.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VEC (£0.85) is trading below our estimate of fair value (£1.55)

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


Price To Earnings Ratio

PE vs Industry: VEC is unprofitable, so we can't compare its PE Ratio to the Pharmaceuticals industry average.

PE vs Market: VEC is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate VEC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: VEC is good value based on its PB Ratio (1.1x) compared to the GB Pharmaceuticals industry average (2.4x).


Next Steps

Future Growth

How is Vectura Group forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

60.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VEC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.2%).

Earnings vs Market: VEC is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: VEC's is expected to become profitable in the next 3 years.

Revenue vs Market: VEC's revenue (6% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: VEC's revenue (6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VEC's Return on Equity is forecast to be low in 3 years time (7.6%).


Next Steps

Past Performance

How has Vectura Group performed over the past 5 years?

-59.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VEC has large one-off items impacting its financial results.

Growing Profit Margin: VEC's current net profit margins (-45.3%) are higher than last year (-47.6%).


Past Earnings Growth Analysis

Earnings Trend: VEC is unprofitable, and losses have increased over the past 5 years at a rate of -59.6% per year.

Accelerating Growth: Unable to compare VEC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: VEC is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (6.9%).


Return on Equity

High ROE: VEC has a negative Return on Equity (-16.26%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Vectura Group's financial position?


Financial Position Analysis

Short Term Liabilities: VEC's short term assets (£169.8M) exceeds its short term liabilities (£59.8M)

Long Term Liabilities: VEC's short term assets (169.8M) exceeds its long term liabilities (55.1M)


Debt to Equity History and Analysis

Debt Level: VEC's debt to equity ratio (0.9%) is considered satisfactory

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


Balance Sheet

Inventory Level: VEC has a low level of unsold assets or inventory.

Debt Coverage by Assets: VEC's debt is covered by short term assets (assets are 41.4x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable VEC has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: VEC is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -31.2% per year.


Next Steps

Dividend

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

0.54%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.3%industryaverage3.6%forecastin3Years0.5%

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate VEC's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if VEC's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of VEC's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

3.4yrs

Average management tenure


CEO

Will Downie (52yo)

0yrs

Tenure

0

Mr. William Downie, also known as Will, is Chief Executive Officer and Executive Director at Vectura Group plc since November 7, 2019. Mr. Downie was Senior Vice President of Global Sales and Marketing at  ...


Management Age and Tenure

3.4yrs

Average Tenure

49yo

Average Age

Experienced Management: VEC's management team is considered experienced (3.4 years average tenure).


Board Age and Tenure

1.7yrs

Average Tenure

59.5yo

Average Age

Experienced Board: VEC's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

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


Management Team

  • John Murphy (66yo)

    General Counsel & Company Secretary

    • Tenure: 3.4yrs
  • Roger Heerman (46yo)

    Executive Vice President of Commercial & Business Development

    • Tenure: 6.8yrs
  • Will Downie (52yo)

    CEO & Executive Director

    • Tenure: 0yrs
  • Geraldine Venthoye

    Executive Vice President of Pharmaceutical Development

    • Tenure: 3.4yrs
  • Jo Hombal (45yo)

    Executive Vice President of Human Resources

    • Tenure: 0yrs
  • David Lescuyer

    Executive Vice President of Oral Business

    • Tenure: 3.4yrs
  • Paul Fry

    CFO & Executive Director

    • Tenure: 1.1yrs
    • Compensation: UK£727.32k
  • Elizabeth Knowles

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Tony Fitzpatrick

    Executive Vice President of Operations

    • Tenure: 0yrs
  • David Ginivan

    Vice President of Corporate Communications

    • Tenure: 0yrs

Board Members

  • Bruno Francois Angelici (72yo)

    Non-Executive Chairman

    • Tenure: 5.8yrs
    • Compensation: UK£150.00k
  • Neil Warner (66yo)

    Independent Non-Executive Director

    • Tenure: 8.8yrs
    • Compensation: UK£58.00k
  • Kevin Roger Matthews (56yo)

    Independent Non-Executive Director

    • Tenure: 0.7yrs
  • Juliet Thompson (53yo)

    Independent Non-Executive Director

    • Tenure: 1.9yrs
    • Compensation: UK£50.00k
  • Per-Olof Andersson (66yo)

    Independent Non-Executive Director

    • Tenure: 4.6yrs
    • Compensation: UK£54.00k
  • Thomas Werner (63yo)

    Senior Independent Non-Executive Director

    • Tenure: 0.2yrs
    • Compensation: UK£50.00k
  • Will Downie (52yo)

    CEO & Executive Director

    • Tenure: 0yrs
  • Anne Whitaker (52yo)

    Independent Non-Executive Director

    • Tenure: 1.4yrs
    • Compensation: UK£35.00k
  • Paul Fry

    CFO & Executive Director

    • Tenure: 1.1yrs
    • Compensation: UK£727.32k

Company Information

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


Key Information

  • Name: Vectura Group plc
  • Ticker: VEC
  • Exchange: LSE
  • Founded: 1997
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: UK£523.021m
  • Shares outstanding: 612.44m
  • Website: https://www.vectura.com

Number of Employees


Location

  • Vectura Group plc
  • One Prospect West
  • Chippenham
  • Wiltshire
  • SN14 6FH
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
V4TADB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2004
VECLSE (London Stock Exchange)YesOrdinary SharesGBGBPJul 2004
VEGP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2004

Biography

Vectura Group plc engages in the design, development, and supply of pharmaceutical products for the treatment of airways-related diseases worldwide. The company’s in-market products include Seebri Breezhal ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/13 20:48
End of Day Share Price2019/11/13 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.