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 Analysis

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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

20.5%

VEC

-0.7%

GB Pharmaceuticals

6.2%

GB Market


1 Year Return

13.8%

VEC

-0.4%

GB Pharmaceuticals

-22.7%

GB Market

Return vs Industry: VEC exceeded the UK Pharmaceuticals industry which returned -0.4% over the past year.

Return vs Market: VEC exceeded the UK Market which returned -22.7% over the past year.


Shareholder returns

VECIndustryMarket
7 Day20.5%-0.7%6.2%
30 Day0.3%-3.5%-17.8%
90 Day-5.0%-15.1%-27.7%
1 Year22.5%13.8%3.5%-0.4%-18.6%-22.7%
3 Year-42.7%-46.8%21.1%6.8%-13.4%-24.6%
5 Year-39.7%-44.0%43.5%14.3%1.3%-22.0%

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?

1.25x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: VEC (£0.88) is trading above our estimate of fair value (£0.45)

Significantly Below Fair Value: VEC is trading above our estimate of fair value.


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 (1.2x) compared to the GB Pharmaceuticals industry average (2.8x).


Next Steps

Future Growth

How is Vectura Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

63.1%

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 (0.5%).

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 (6.1% per year) is forecast to grow faster than the UK market (2.6% per year).

High Growth Revenue: VEC's revenue (6.1% 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 (5.7%).


Next Steps

Past Performance

How has Vectura Group performed over the past 5 years?

-45.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VEC is currently unprofitable.

Growing Profit Margin: VEC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: VEC is unprofitable, and losses have increased over the past 5 years at a rate of -45.8% 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 (9%).


Return on Equity

High ROE: VEC has a negative Return on Equity (-5.27%), as it is currently unprofitable.


Next Steps

Financial Health

How is Vectura Group's financial position?


Financial Position Analysis

Short Term Liabilities: VEC's short term assets (£146.1M) exceed its short term liabilities (£64.1M).

Long Term Liabilities: VEC's short term assets (£146.1M) exceed its long term liabilities (£47.2M).


Debt to Equity History and Analysis

Debt Level: VEC's debt to equity ratio (1%) 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 36.5x 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, due to free cash flow being positive and growing by 15.3% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

2.6yrs

Average management tenure


CEO

Will Downie (52yo)

0.33

Tenure

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  ...


Leadership Team

NamePositionTenureCompensationOwnership
Paul Fry
CFO & Executive Director1.42yrsUK£727.32kno data
William Downie
CEO & Executive Director0.33yrno datano data
Anthony Fitzpatrick
Executive Vice President of Operationsno datano datano data
Elizabeth Knowles
Vice President of Investor Relationsno datano datano data
John Murphy
General Counsel & Company Secretary3.75yrsno datano data
David Ginivan
Vice President of Corporate Communicationsno datano datano data
Christina Olsen
Executive Vice President of Corporate Strategy & Communications1.17yrsno datano data
Joanne Hombal
Executive Vice President of Human Resourcesno datano datano data
Roger Heerman
Executive Vice President of Commercial & Business Development7.17yrsno datano data
Geraldine Venthoye
Executive Vice President of Pharmaceutical Development3.75yrsno datano data

2.6yrs

Average Tenure

52yo

Average Age

Experienced Management: VEC's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Paul Fry
CFO & Executive Director1.42yrsUK£727.32kno data
William Downie
CEO & Executive Director0.33yrno datano data
Bruno Francois Angelici
Non-Executive Chairman 6yrsUK£150.00k0.036% £193.3k
Neil Warner
Independent Non-Executive Director9yrsUK£58.00k0.0047% £24.8k
Kevin Roger Matthews
Independent Non-Executive Director1yrno datano data
Juliet Thompson
Independent Non-Executive Director2.25yrsUK£50.00k0.0075% £39.8k
Per-Olof Andersson
Independent Non-Executive Director4.92yrsUK£54.00k0.0077% £40.6k
Thomas Werner
Senior Independent Non-Executive Director0.50yrUK£50.00k0.019% £101.0k
Anne Whitaker
Independent Non-Executive Director1.75yrsUK£35.00kno data

1.8yrs

Average Tenure

56yo

Average Age

Experienced Board: VEC's board of directors are not considered experienced ( 1.8 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: 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.


Top Shareholders

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£530.087m
  • Shares outstanding: 602.37m
  • 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 Breezhaler and Neohaler, a DPI device and bronchodilator; AirFluSal Forspiro for the treatment of asthma and chronic obstructive pulmonary disease (COPD); Breelib for the treatment of pulmonary arterial hypertension; Relvar Ellipta/Breo Ellipta that is used in treating asthma and COPD; and Incruse Ellipta, Anoro Ellipta, and Trelegy Ellipta for the treatment of COPD. It is also developing VR315 (US) for the treatment of asthma and COPD in adolescents and adults; VR647 (US) that is Phase II clinical trials for the treatment of pediatric asthma; and VR475 (EU), which is in Phase III clinical trials for asthma in adult and adolescent patients. In addition, the company offers dry powder inhalers, pressurized metered dose inhalers, and nebulized devices. Vectura Group plc was founded in 1997 and is headquartered in Chippenham, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 21:43
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.