NZSE:VTL

Stock Analysis Report

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Executive Summary

Vital Limited provides mobile radio networks and high speed broadband services in New Zealand. More Details


Snowflake Analysis

Fair value with mediocre balance sheet.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-4.9%

VTL

-1.6%

NZ Wireless Telecom

-1.0%

NZ Market


1 Year Return

-8.2%

VTL

0.5%

NZ Wireless Telecom

6.7%

NZ Market

Return vs Industry: VTL underperformed the NZ Wireless Telecom industry which returned 0.5% over the past year.

Return vs Market: VTL underperformed the NZ Market which returned 6.7% over the past year.


Shareholder returns

VTLIndustryMarket
7 Day-4.9%-1.6%-1.0%
30 Day-4.9%3.5%4.2%
90 Day1.3%-2.1%6.0%
1 Year-4.9%-8.2%4.4%0.5%11.0%6.7%
3 Year11.0%-2.5%3.2%-7.2%46.4%27.1%
5 Year35.4%11.4%18.8%-1.7%96.2%48.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Vital 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: VTL (NZ$0.78) is trading below our estimate of fair value (NZ$26.82)

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


Price To Earnings Ratio

PE vs Industry: VTL is poor value based on its PE Ratio (44x) compared to the XX Wireless Telecom industry average (14.5x).

PE vs Market: VTL is poor value based on its PE Ratio (44x) compared to the NZ market (23.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: VTL is good value based on its PB Ratio (0.8x) compared to the XX Wireless Telecom industry average (1.7x).


Next Steps

Future Growth

How is Vital forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

14.6%

Forecasted Telecom industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Vital has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Vital performed over the past 5 years?

2.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VTL has high quality earnings.

Growing Profit Margin: VTL's current net profit margins (2.2%) are lower than last year (11.6%).


Past Earnings Growth Analysis

Earnings Trend: VTL's earnings have grown by 2.6% per year over the past 5 years.

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

Earnings vs Industry: VTL had negative earnings growth (-81.9%) over the past year, making it difficult to compare to the Wireless Telecom industry average (1.4%).


Return on Equity

High ROE: VTL's Return on Equity (1.8%) is considered low.


Next Steps

Financial Health

How is Vital's financial position?


Financial Position Analysis

Short Term Liabilities: VTL's short term assets (NZ$9.2M) do not cover its short term liabilities (NZ$16.3M).

Long Term Liabilities: VTL's short term assets (NZ$9.2M) do not cover its long term liabilities (NZ$37.0M).


Debt to Equity History and Analysis

Debt Level: VTL's debt to equity ratio (34.7%) is considered satisfactory.

Reducing Debt: VTL's debt to equity ratio has reduced from 151.2% to 34.7% over the past 5 years.

Debt Coverage: VTL's debt is well covered by operating cash flow (94.6%).

Interest Coverage: VTL's interest payments on its debt are not well covered by EBIT (1.5x coverage).


Balance Sheet


Next Steps

Dividend

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

3.21%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VTL's dividend (3.21%) is higher than the bottom 25% of dividend payers in the NZ market (2.75%).

High Dividend: VTL's dividend (3.21%) is low compared to the top 25% of dividend payers in the NZ market (4.44%).


Stability and Growth of Payments

Stable Dividend: VTL's dividend payments have been volatile in the past 10 years.

Growing Dividend: VTL's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (140.9%), VTL's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

3.9yrs

Average management tenure


CEO

Andrew Miller

4.08yrs

Tenure

Mr. Andrew M. Miller has been the Chief Executive Officer at Vital Limited (formerly known as TeamTalk Limited). since September 2016. Mr. serves as Director at Vital Data Limited since December 2016. He a ...


Leadership Team

NamePositionTenureCompensationOwnership
Andrew Miller
Chief Executive Officer4.08yrsno datano data
Jason Bull
Chief Financial Officer4yrsno datano data
Andrew Hooker
Chief Technology Officer2.42yrsno datano data
Phil Henderson
Head of Sales & Marketing2.33yrsno datano data
Mark Finnigan
Head of Human Resources & Safety3.92yrsno datano data

3.9yrs

Average Tenure

Experienced Management: VTL's management team is considered experienced (3.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Nathan York
Independent Director4.75yrsNZ$35.00k0.063%
NZ$ 20.5k
James Sclater
Independent Director3yrsNZ$23.00k0.27%
NZ$ 89.0k
Roger Sowry
Independent Chairman6.17yrsNZ$60.00k0.24%
NZ$ 79.0k
Reg Barrett
Independent Director5.58yrsNZ$35.00k0.017%
NZ$ 5.5k
Susan Freeman-Greene
Independent Director3yrsNZ$23.00kno data

4.8yrs

Average Tenure

Experienced Board: VTL's board of directors are considered experienced (4.8 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.


Top Shareholders

Company Information

Vital Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Vital Limited
  • Ticker: VTL
  • Exchange: NZSE
  • Founded: 1994
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Market Cap: NZ$32.691m
  • Shares outstanding: 41.38m
  • Website: https://www.vital.co.nz

Location

  • Vital Limited
  • 25-27 Cambridge Terrace
  • Level 6
  • Wellington
  • New Zealand

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VTLNZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDMay 2004

Biography

Vital Limited provides mobile radio networks and high speed broadband services in New Zealand. The company operates through two segments, Wireless Networks and Wired Networks. Its mobile radio networks inc ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/29 10:41
End of Day Share Price2020/10/29 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.