LSE:VVO

Stock Analysis Report

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Executive Summary

Vivo Energy plc operates as a retailer and distributor of fuels and lubricants in Africa. More Details


Snowflake Analysis

Undervalued with moderate growth potential.


Similar Companies

Share Price & News

How has Vivo Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: VVO is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: VVO's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-2.8%

VVO

0.9%

GB Specialty Retail

-0.5%

GB Market


1 Year Return

-32.3%

VVO

0.7%

GB Specialty Retail

-8.2%

GB Market

Return vs Industry: VVO underperformed the UK Specialty Retail industry which returned 0.7% over the past year.

Return vs Market: VVO underperformed the UK Market which returned -8.2% over the past year.


Shareholder returns

VVOIndustryMarket
7 Day-2.8%0.9%-0.5%
30 Day-7.4%0.04%3.0%
90 Day2.9%3.4%14.1%
1 Year-30.9%-32.3%0.9%0.7%-4.5%-8.2%
3 Yearn/a12.9%5.1%3.7%-9.0%
5 Yearn/a10.9%-3.9%42.1%14.4%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VVO (£0.79) is trading below our estimate of fair value (£2.21)

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


Price To Earnings Ratio

PE vs Industry: VVO is good value based on its PE Ratio (16.8x) compared to the GB Specialty Retail industry average (19.4x).

PE vs Market: VVO is good value based on its PE Ratio (16.8x) compared to the UK market (22.9x).


Price to Earnings Growth Ratio

PEG Ratio: VVO is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: VVO is overvalued based on its PB Ratio (1.9x) compared to the GB Specialty Retail industry average (1.7x).


Next Steps

Future Growth

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

21.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VVO's forecast earnings growth (21% per year) is above the savings rate (1%).

Earnings vs Market: VVO's earnings (21% per year) are forecast to grow slower than the UK market (25.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: VVO's revenue (7.4% per year) is forecast to grow faster than the UK market (6.6% per year).

High Growth Revenue: VVO's revenue (7.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VVO's Return on Equity is forecast to be low in 3 years time (16%).


Next Steps

Past Performance

How has Vivo Energy performed over the past 5 years?

8.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VVO has high quality earnings.

Growing Profit Margin: VVO's current net profit margins (1%) are lower than last year (1.7%).


Past Earnings Growth Analysis

Earnings Trend: VVO's earnings have grown by 8.8% per year over the past 5 years.

Accelerating Growth: VVO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: VVO had negative earnings growth (-39.1%) over the past year, making it difficult to compare to the Specialty Retail industry average (-13.3%).


Return on Equity

High ROE: VVO's Return on Equity (12%) is considered low.


Next Steps

Financial Health

How is Vivo Energy's financial position?


Financial Position Analysis

Short Term Liabilities: VVO's short term assets ($1.4B) do not cover its short term liabilities ($1.5B).

Long Term Liabilities: VVO's short term assets ($1.4B) exceed its long term liabilities ($784.0M).


Debt to Equity History and Analysis

Debt Level: VVO's debt to equity ratio (101.5%) is considered high.

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

Debt Coverage: VVO's debt is well covered by operating cash flow (40.5%).

Interest Coverage: VVO's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet


Next Steps

Dividend

What is Vivo Energy current dividend yield, its reliability and sustainability?

3.57%

Forecast Dividend Yield


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: VVO is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of VVO'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?

1.9yrs

Average management tenure


CEO

Christian Chammas (65 yo)

2.75yrs

Tenure

US$2,798,490

Compensation

Mr. Christian G. Chammas serves as Chief Executive Officer at Vivo Energy plc since April 20, 2018 and its Director at Vivo Energy plc since January 02, 2012. Mr. Chammas joined Vivo Group as Chief Executi...


CEO Compensation Analysis

Compensation vs Market: Christian's total compensation ($USD2.80M) is above average for companies of similar size in the UK market ($USD1.74M).

Compensation vs Earnings: Christian's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Christian Chammas
CEO & Director2.75yrsUS$2.80m0.57%
$ 5.6m
Johan S. Depraetere
CFO & Director8.75yrsUS$1.75m0.44%
$ 4.4m
Giles Blackham
Head of Investor Relationsno datano datano data
Adrian de Souza
General Counsel0.50yrno datano data
Rob Foyle
Head of Communicationsno datano datano data
Omar Benson
Acting Executive Vice President of Sales & Marketing0.83yrno datano data
Herman Nieuwoudt
Chief of Staff2.33yrsno datano data
Eric Gosse
Executive Vice President of Business Development2yrsno datano data
Franck Yahaut
Executive Vice President of West Africa1.92yrsno datano data
Hans Paulsen
Executive Vice President of East & Southern Africa1.5yrsno datano data
Minna Gonzalez-Gomez
Group Company Secretary0.33yrno datano data

1.9yrs

Average Tenure

55yo

Average Age

Experienced Management: VVO's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Christian Chammas
CEO & Director2.75yrsUS$2.80m0.57%
$ 5.6m
Johan S. Depraetere
CFO & Director8.75yrsUS$1.75m0.44%
$ 4.4m
Temitopé Lawani
Non-Executive Director2.83yrsno datano data
Thembalihle Nyasulu
Senior Independent Director2.75yrsUS$102.64k0.0017%
$ 17.3k
Christopher Charles Rogers
Independent Non-Executive Director2.75yrsUS$102.64k0.0052%
$ 51.7k
John Daly
Independent Chairman of the Board2.75yrsUS$364.21k0.021%
$ 209.3k
Javed Ahmed
Non-Executive Director2.83yrsno datano data
Carol Arrowsmith
Independent Non-Executive Director2.75yrsUS$102.64k0.0030%
$ 29.7k
Gawad Abaza
Independent Non-Executive Director2.08yrsUS$82.78k0.0016%
$ 15.7k

2.8yrs

Average Tenure

61.5yo

Average Age

Experienced Board: VVO's board of directors are not considered experienced ( 2.8 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Vivo Energy plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Vivo Energy plc
  • Ticker: VVO
  • Exchange: LSE
  • Founded: 2011
  • Industry: Automotive Retail
  • Sector: Retail
  • Market Cap: UK£993.912m
  • Shares outstanding: 1.27b
  • Website: https://www.vivoenergy.com

Number of Employees


Location

  • Vivo Energy plc
  • The Peak
  • 5th Floor
  • London
  • Greater London
  • SW1V IAN
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VVOLSE (London Stock Exchange)YesOrdinary SharesGBGBPMay 2018
VVOJSE (The Johannesburg Securities Exchange)YesOrdinary SharesZAZARMay 2018
7VEDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2018
VVOLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPMay 2018

Biography

Vivo Energy plc operates as a retailer and distributor of fuels and lubricants in Africa. It operates through three segments: Retail, Commercial, and Lubricants. The Retail segment sells petrol and diesel ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/23 03:17
End of Day Share Price2021/01/22 00:00
Earnings2020/06/30
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.