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VTL

VitalNZSE:VTL Stock Report

Market Cap

NZ$24.0m

7D

-12.1%

1Y

-27.5%

Updated

24 Oct, 2021

Data

Company Financials
VTL fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance4/6
Financial Health3/6
Dividends1/6

VTL Overview

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

Price History & Performance

Summary of all time highs, changes and price drops for Vital
Historical stock prices
Current Share PriceNZ$0.58
52 Week HighNZ$0.55
52 Week LowNZ$0.86
Beta0.34
1 Month Change-17.14%
3 Month Change-27.50%
1 Year Change-27.50%
3 Year Change-27.50%
5 Year Change26.09%
Change since IPO-74.11%

Recent News & Updates

Sep 15
Vital (NZSE:VTL) Will Pay A Smaller Dividend Than Last Year

Vital (NZSE:VTL) Will Pay A Smaller Dividend Than Last Year

Vital Limited's ( NZSE:VTL ) dividend is being reduced to NZ$0.024 on the 15th of October. However, the dividend yield...

Aug 31
Vital (NZSE:VTL) Will Pay A Smaller Dividend Than Last Year

Vital (NZSE:VTL) Will Pay A Smaller Dividend Than Last Year

Vital Limited ( NZSE:VTL ) has announced it will be reducing its dividend payable on the 15th of October to NZ$0.024...

May 11
These 4 Measures Indicate That Vital (NZSE:VTL) Is Using Debt In A Risky Way

These 4 Measures Indicate That Vital (NZSE:VTL) Is Using Debt In A Risky Way

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' When we think about how risky a company...

Mar 15
Trade Alert: The Chief Executive Officer Of Vital Limited (NZSE:VTL), Andrew Miller, Has Just Spent NZ$639k Buying 480% More Shares

Trade Alert: The Chief Executive Officer Of Vital Limited (NZSE:VTL), Andrew Miller, Has Just Spent NZ$639k Buying 480% More Shares

Investors who take an interest in Vital Limited ( NZSE:VTL ) should definitely note that the Chief Executive Officer...

Shareholder Returns

VTLNZ Wireless TelecomNZ Market
7D-12.1%-0.2%0.4%
1Y-27.5%10.9%2.1%

Return vs Industry: VTL underperformed the NZ Wireless Telecom industry which returned 10.9% over the past year.

Return vs Market: VTL underperformed the NZ Market which returned 2.1% over the past year.

Price Volatility

Is VTL's price volatile compared to industry and market?
VTL volatility
VTL Beta0.34
Industry Beta0.60
Market Beta1

Stable Share Price: VTL is more volatile than 75% of NZ stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: VTL's weekly volatility (7%) has been stable over the past year, but is still higher than 75% of NZ stocks.

About the Company

FoundedEmployeesCEOWebsite
1994n/aAndrew Millerhttps://vital.co.nz

Vital Limited provides mobile radio networks and high speed broadband services in New Zealand. The company operates in two segments, Wireless Networks and Wired Networks. It offers fibre and Ethernet solutions; and broadband connectivity and ancillary related services to a range of wholesale customers and end users.

Vital Fundamentals Summary

How do Vital's earnings and revenue compare to its market cap?
VTL fundamental statistics
Market CapNZ$24.00m
Earnings (TTM)NZ$841.00k
Revenue (TTM)NZ$34.56m

28.5x

P/E Ratio

0.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
VTL income statement (TTM)
RevenueNZ$34.56m
Cost of RevenueNZ$20.87m
Gross ProfitNZ$13.69m
ExpensesNZ$12.85m
EarningsNZ$841.00k

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.02
Gross Margin39.62%
Net Profit Margin2.43%
Debt/Equity Ratio36.3%

How did VTL perform over the long term?

See historical performance and comparison

Dividends

3.4%

Current Dividend Yield

98%

Payout Ratio

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$0.58) is trading below our estimate of fair value (NZ$2.18)

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 (28.5x) compared to the Global Wireless Telecom industry average (18.9x).

PE vs Market: VTL is poor value based on its PE Ratio (28.5x) compared to the NZ market (22.2x).


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 (0.6x) compared to the XX Wireless Telecom industry average (2x).


Future Growth

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

13.1%

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.


Past Performance

How has Vital performed over the past 5 years?

-27.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VTL has high quality earnings.

Growing Profit Margin: VTL's current net profit margins (2.4%) are higher than last year (2.2%).


Past Earnings Growth Analysis

Earnings Trend: VTL's earnings have declined by 27.7% per year over the past 5 years.

Accelerating Growth: VTL's earnings growth over the past year (14.6%) exceeds its 5-year average (-27.7% per year).

Earnings vs Industry: VTL earnings growth over the past year (14.6%) exceeded the Wireless Telecom industry 4.4%.


Return on Equity

High ROE: VTL's Return on Equity (2%) is considered low.


Financial Health

How is Vital's financial position?


Financial Position Analysis

Short Term Liabilities: VTL's short term assets (NZ$7.3M) do not cover its short term liabilities (NZ$13.4M).

Long Term Liabilities: VTL's short term assets (NZ$7.3M) do not cover its long term liabilities (NZ$33.0M).


Debt to Equity History and Analysis

Debt Level: VTL's debt to equity ratio (36.3%) is considered satisfactory.

Reducing Debt: VTL's debt to equity ratio has reduced from 154.6% to 36.3% over the past 5 years.

Debt Coverage: VTL's debt is well covered by operating cash flow (88%).

Interest Coverage: VTL's interest payments on its debt are not well covered by EBIT (1.4x coverage).


Balance Sheet


Dividend

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

3.45%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VTL's dividend (3.45%) is higher than the bottom 25% of dividend payers in the NZ market (2.38%).

High Dividend: VTL's dividend (3.45%) is low compared to the top 25% of dividend payers in the NZ market (4.9%).


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 (98.4%), 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?

2.2yrs

Average management tenure


CEO

Andrew Miller

5.08yrs

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

Experienced Management: VTL's management team is considered experienced (2.2 years average tenure).


Board Members

Experienced Board: VTL's board of directors are considered experienced (4.9 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 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$24.001m
  • Shares outstanding: 41.38m
  • Website: https://vital.co.nz

Location

  • Vital Limited
  • Tower B
  • Level 4&5
  • Wellington
  • 6011
  • New Zealand

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/24 06:02
End of Day Share Price2021/10/22 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.