Vivo Energy (LSE:VVO) - Share price, News & Analysis

VVO fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	3/6
Past Performance	5/6
Financial Health	4/6
Dividends	3/6

VVO Stock Overview

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

Rewards

Earnings are forecast to grow 11.22% per year

Earnings grew by 75% over the past year

Risk Analysis

Unstable dividend track record

Vivo Energy Competitors

Exxon Mobil

NYSE:XOM

US$374.3b

Chevron

NYSE:CVX

US$329.8b

Shell

LSE:SHEL

UK£175.4b

TotalEnergies

ENXTPA:TTE

€133.9b

Price History & Performance

Summary of all time highs, changes and price drops for Vivo Energy
Historical stock prices
Current Share Price	UK£1.46
52 Week High	UK£1.54
52 Week Low	UK£0.93
Beta	0.88
1 Month Change	5.33%
3 Month Change	9.93%
1 Year Change	36.38%
3 Year Change	24.74%
5 Year Change	n/a
Change since IPO	-15.25%

Shareholder Returns

	VVO	GB Specialty Retail	GB Market
7D	-0.5%	6.7%	3.1%
1Y	36.4%	-18.7%	-3.2%

Return vs Industry: VVO exceeded the UK Specialty Retail industry which returned -18.8% over the past year.

Return vs Market: VVO exceeded the UK Market which returned -3.8% over the past year.

Price Volatility

Is VVO's price volatile compared to industry and market?
VVO volatility
VVO Average Weekly Movement	1.7%
Specialty Retail Industry Average Movement	6.3%
Market Average Movement	6.2%
10% most volatile stocks in GB Market	11.8%
10% least volatile stocks in GB Market	3.2%

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

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

About the Company

Founded	Employees	CEO	Website
2011	2,764	Stan Mittelman	https://www.vivoenergy.com

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 fuels at Shell and Engen-branded service stations; operates convenience retail shops, and quick service and fast-casual restaurants; and provides other services, including lubricant bays, car washes, and ATMs.

Vivo Energy Fundamentals Summary

How do Vivo Energy's earnings and revenue compare to its market cap?
VVO fundamental statistics
Market Cap	US$2.26b
Earnings (TTM)	US$140.00m
Revenue (TTM)	US$8.46b

16.2x

P/E Ratio

0.3x

P/S Ratio

Is VVO overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
VVO income statement (TTM)
Revenue	US$8.46b
Cost of Revenue	US$7.77b
Gross Profit	US$693.00m
Other Expenses	US$553.00m
Earnings	US$140.00m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.11
Gross Margin	8.19%
Net Profit Margin	1.65%
Debt/Equity Ratio	71.2%

How did VVO perform over the long term?

See historical performance and comparison

Dividends

3.2%

Current Dividend Yield

51%

Payout Ratio

Does VVO pay a reliable dividends?

See VVO dividend history and benchmarks

When do you need to buy VVO by to receive an upcoming dividend?
Vivo Energy dividend dates
Ex Dividend Date	May 26 2022
Dividend Pay Date	Jun 24 2022
Days until Ex dividend	9 days
Days until Dividend pay date	38 days

Does VVO pay a reliable dividends?

See VVO dividend history and benchmarks

Valuation

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

Valuation Score

0/6

Valuation Score 0/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

16.16x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: VVO (£1.46) is trading above our estimate of fair value (£1.21)

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

Price To Earnings Ratio

PE vs Industry: VVO is poor value based on its PE Ratio (16.2x) compared to the UK Specialty Retail industry average (9.2x).

PE vs Market: VVO is poor value based on its PE Ratio (16.2x) compared to the UK market (15.3x).

Price to Earnings Growth Ratio

PEG Ratio: VVO is poor value based on its PEG Ratio (1.4x)

Price to Book Ratio

PB vs Industry: VVO is overvalued based on its PB Ratio (2.7x) compared to the GB Specialty Retail industry average (1.5x).

Future Growth

How is Vivo Energy forecast to perform in the next 1 to 3 years based on estimates from 4 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

11.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: VVO's forecast earnings growth (11.2% per year) is above the savings rate (0.9%).

Earnings vs Market: VVO's earnings (11.2% per year) are forecast to grow faster than the UK market (11.2% per year).

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

Revenue vs Market: VVO's revenue (4.2% per year) is forecast to grow faster than the UK market (4.1% per year).

High Growth Revenue: VVO's revenue (4.2% 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 (19.5%).

Past Performance

How has Vivo Energy performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

1.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: VVO has high quality earnings.

Growing Profit Margin: VVO's current net profit margins (1.7%) are higher than last year (1.2%).

Past Earnings Growth Analysis

Earnings Trend: VVO's earnings have grown by 1.5% per year over the past 5 years.

Accelerating Growth: VVO's earnings growth over the past year (75%) exceeds its 5-year average (1.5% per year).

Earnings vs Industry: VVO earnings growth over the past year (75%) exceeded the Specialty Retail industry 58.8%.

Return on Equity

High ROE: VVO's Return on Equity (17.2%) is considered low.

Financial Health

How is Vivo Energy's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: VVO's short term assets ($1.9B) do not cover its short term liabilities ($2.0B).

Long Term Liabilities: VVO's short term assets ($1.9B) exceed its long term liabilities ($832.0M).

Debt to Equity History and Analysis

Debt Level: VVO's net debt to equity ratio (4.8%) is considered satisfactory.

Reducing Debt: VVO's debt to equity ratio has increased from 40.6% to 71.2% over the past 5 years.

Debt Coverage: VVO's debt is well covered by operating cash flow (74.9%).

Interest Coverage: VVO's interest payments on its debt are well covered by EBIT (5.7x coverage).

Balance Sheet

Dividend

What is Vivo Energy 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
Future Dividend Coverage

3.18%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: VVO's dividend (3.18%) is higher than the bottom 25% of dividend payers in the UK market (1.78%).

High Dividend: VVO's dividend (3.18%) is low compared to the top 25% of dividend payers in the UK market (4.85%).

Stability and Growth of Payments

Stable Dividend: VVO has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: VVO's dividend payments have increased, but the company has only paid a dividend for 4 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (51.5%), VVO's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (22.9%), VVO's dividend payments are well covered by cash flows.

Next Steps

Explore strong dividend paying companies in the Retail industry.

Management

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

2.8yrs

Average management tenure

CEO

Stan Mittelman (54 yo)

0.17

Tenure

Mr. Stanislas Mittelman is a Director of Total Maroc S.A. He serves as a Director of Total Cote dIvoire S.A. He serves as the Chief Executive Officer and Director of Vivo Energy plc since March 03, 2022.M...

Leadership Team

Experienced Management: VVO's management team is considered experienced (2.8 years average tenure).

Board Members

Experienced Board: VVO's board of directors are considered experienced (4.1 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/16 00:00
End of Day Share Price	2022/05/16 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31