Vector
Market Cap
NZ$4.1b
Last Updated
2021/04/12 07:01 UTC
Data Sources
Company Financials +
Executive Summary
Vector Limited, together with its subsidiaries, engages in electricity and gas distribution, natural gas and LPG sale, gas processing, metering, and telecommunication and new energy businesses in New Zealand. More Details
Rewards
Risk Analysis
Dividend of 4.02% is not well covered by earnings or forecast to be in the next 3 years
Snowflake Analysis
Solid track record second-rate dividend payer.
Similar Companies
Share Price & News
How has Vector's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: VCT is not significantly more volatile than the rest of NZ stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: VCT's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
0.5%
VCT
0.9%
NZ Integrated Utilities
0.04%
NZ Market
1 Year Return
21.7%
VCT
7.4%
NZ Integrated Utilities
26.2%
NZ Market
Return vs Industry: VCT exceeded the NZ Integrated Utilities industry which returned 7.4% over the past year.
Return vs Market: VCT underperformed the NZ Market which returned 26.2% over the past year.
Shareholder returns
| VCT | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.5% | 0.9% | 0.04% |
| 30 Day | -1.4% | 4.1% | 0.5% |
| 90 Day | -4.2% | 4.6% | -6.5% |
| 1 Year | 26.7%21.7% | 11.5%7.4% | 29.9%26.2% |
| 3 Year | 47.1%26.9% | 29.2%14.2% | 46.6%29.0% |
| 5 Year | 54.2%18.5% | 40.0%13.2% | 81.7%39.0% |
Long-Term Price Volatility Vs. Market
How volatile is Vector's share price compared to the market and industry in the last 5 years?
Simply Wall St News
6 days ago | Simply Wall St
These 4 Measures Indicate That Vector (NZSE:VCT) Is Using Debt Extensively3 weeks ago | Simply Wall St
Does Vector Limited (NZSE:VCT) Have A Place In Your Dividend Stock Portfolio?1 month ago | Simply Wall St
Should You Be Worried About Vector Limited's (NZSE:VCT) 5.2% Return On Equity?Valuation
Is Vector undervalued compared to its fair value and its price relative to the market?
35.1x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: VCT (NZ$4.1) is trading above our estimate of fair value (NZ$2.19)
Significantly Below Fair Value: VCT is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: VCT is poor value based on its PE Ratio (35.1x) compared to the XX Integrated Utilities industry average (22.6x).
PE vs Market: VCT is poor value based on its PE Ratio (35.1x) compared to the NZ market (22.4x).
Price to Earnings Growth Ratio
PEG Ratio: VCT is poor value based on its PEG Ratio (33x)
Price to Book Ratio
PB vs Industry: VCT's PB Ratio (1.8x) is in line with the XX Integrated Utilities industry average.
Future Growth
How is Vector forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
1.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: VCT's forecast earnings growth (1.1% per year) is below the savings rate (2.3%).
Earnings vs Market: VCT's earnings (1.1% per year) are forecast to grow slower than the NZ market (10.4% per year).
High Growth Earnings: VCT's earnings are forecast to grow, but not significantly.
Revenue vs Market: VCT's revenue (2.6% per year) is forecast to grow slower than the NZ market (7.2% per year).
High Growth Revenue: VCT's revenue (2.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: VCT's Return on Equity is forecast to be low in 3 years time (6.4%).
Past Performance
How has Vector performed over the past 5 years?
0.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: VCT has high quality earnings.
Growing Profit Margin: VCT's current net profit margins (9.4%) are higher than last year (6%).
Past Earnings Growth Analysis
Earnings Trend: VCT's earnings have grown by 0.9% per year over the past 5 years.
Accelerating Growth: VCT's earnings growth over the past year (45.8%) exceeds its 5-year average (0.9% per year).
Earnings vs Industry: VCT earnings growth over the past year (45.8%) exceeded the Integrated Utilities industry 0.5%.
Return on Equity
High ROE: VCT's Return on Equity (5.2%) is considered low.
Financial Health
How is Vector's financial position?
Financial Position Analysis
Short Term Liabilities: VCT's short term assets (NZ$287.4M) do not cover its short term liabilities (NZ$747.8M).
Long Term Liabilities: VCT's short term assets (NZ$287.4M) do not cover its long term liabilities (NZ$3.3B).
Debt to Equity History and Analysis
Debt Level: VCT's debt to equity ratio (131.1%) is considered high.
Reducing Debt: VCT's debt to equity ratio has increased from 120% to 131.1% over the past 5 years.
Debt Coverage: VCT's debt is not well covered by operating cash flow (13.8%).
Interest Coverage: VCT's interest payments on its debt are not well covered by EBIT (2.7x coverage).
Balance Sheet
Dividend
What is Vector current dividend yield, its reliability and sustainability?
4.02%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: VCT's dividend (4.02%) is higher than the bottom 25% of dividend payers in the NZ market (2.43%).
High Dividend: VCT's dividend (4.02%) is low compared to the top 25% of dividend payers in the NZ market (4.62%).
Stability and Growth of Payments
Stable Dividend: VCT's dividends per share have been stable in the past 10 years.
Growing Dividend: VCT's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (141.3%), VCT's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: VCT's dividends in 3 years are not forecast to be well covered by earnings (122% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.3yrs
Average management tenure
CEO
Simon MacKenzie
13.17yrs
Tenure
Mr. Simon MacKenzie, Grad Dip BS (Dist), Dip Fin, NZCE, has been Group Chief Executive Officer of Vector Limited since February 2008 and served as Group General Manager of Strategy Regulation & Performance...
Leadership Team
Experienced Management: VCT's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.
Board Members
Experienced Board: VCT's board of directors are not considered experienced ( 2 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
Vector Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Vector Limited
- Ticker: VCT
- Exchange: NZSE
- Founded: 1990
- Industry: Multi-Utilities
- Sector: Utilities
- Market Cap: NZ$4.100b
- Shares outstanding: 999.92m
- Website: https://www.vector.co.nz
Number of Employees
Location
- Vector Limited
- 101 Carlton Gore Road
- Newmarket
- Auckland
- 1023
- New Zealand
Listings
Biography
Vector Limited, together with its subsidiaries, engages in electricity and gas distribution, natural gas and LPG sale, gas processing, metering, and telecommunication and new energy businesses in New Zeala...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/12 07:01 |
| End of Day Share Price | 2021/04/12 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/06/30 |
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.