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VCT

Vector NZSE:VCT Stock Report

Last Price

NZ$4.30

Market Cap

NZ$4.3b

7D

1.9%

1Y

6.2%

Updated

05 Jul, 2022

Data

Company Financials +
VCT fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance5/6
Financial Health1/6
Dividends4/6

VCT Stock Overview

Vector Limited, together with its subsidiaries, engages in electricity and gas distribution, natural gas and LPG sale, gas processing, metering, and telecommunication and energy businesses in New Zealand.

Vector Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Vector
Historical stock prices
Current Share PriceNZ$4.30
52 Week HighNZ$4.44
52 Week LowNZ$3.67
Beta0.37
1 Month Change2.38%
3 Month Change4.12%
1 Year Change6.17%
3 Year Change11.98%
5 Year Change29.52%
Change since IPO42.38%

Recent News & Updates

Apr 14
Slowing Rates Of Return At Vector (NZSE:VCT) Leave Little Room For Excitement

Slowing Rates Of Return At Vector (NZSE:VCT) Leave Little Room For Excitement

If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. In a perfect...

Feb 28
Vector (NZSE:VCT) Is Due To Pay A Dividend Of NZ$0.087

Vector (NZSE:VCT) Is Due To Pay A Dividend Of NZ$0.087

The board of Vector Limited ( NZSE:VCT ) has announced that it will pay a dividend of NZ$0.087 per share on the 8th of...

Shareholder Returns

VCTNZ Integrated UtilitiesNZ Market
7D1.9%1.6%-1.1%
1Y6.2%7.0%-18.0%

Return vs Industry: VCT matched the NZ Integrated Utilities industry which returned 7% over the past year.

Return vs Market: VCT exceeded the NZ Market which returned -18% over the past year.

Price Volatility

Is VCT's price volatile compared to industry and market?
VCT volatility
VCT Average Weekly Movement3.3%
Integrated Utilities Industry Average Movement3.6%
Market Average Movement4.5%
10% most volatile stocks in NZ Market8.0%
10% least volatile stocks in NZ Market3.0%

Stable Share Price: VCT is less volatile than 75% 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.

About the Company

FoundedEmployeesCEOWebsite
n/a600Simon MacKenziehttps://www.vector.co.nz

Vector Limited, together with its subsidiaries, engages in electricity and gas distribution, natural gas and LPG sale, gas processing, metering, and telecommunication and energy businesses in New Zealand. It operates through three segments: Regulated Networks, Gas Trading, and Metering. The company distributes electricity to residential and commercial customers in Auckland, from Wellsford to Papakura through its network consisting of approximately 18,000 kilometers of overhead lines and underground cables; natural gas to customers; bulk LPG to commercial customers; and bottled LPG to commercial and residential customers.

Vector Fundamentals Summary

How do Vector's earnings and revenue compare to its market cap?
VCT fundamental statistics
Market CapNZ$4.30b
Earnings (TTM)NZ$206.60m
Revenue (TTM)NZ$1.32b

20.8x

P/E Ratio

3.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
VCT income statement (TTM)
RevenueNZ$1.32b
Cost of RevenueNZ$669.40m
Gross ProfitNZ$646.80m
Other ExpensesNZ$440.20m
EarningsNZ$206.60m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.21
Gross Margin49.14%
Net Profit Margin15.70%
Debt/Equity Ratio129.2%

How did VCT perform over the long term?

See historical performance and comparison

Dividends

3.9%

Current Dividend Yield

81%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is VCT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for VCT?

Other financial metrics that can be useful for relative valuation.

VCT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue5.7x
Enterprise Value/EBITDA12.5x
PEG Ratio-7.4x

Price to Earnings Ratio vs Peers

How does VCT's PE Ratio compare to its peers?

VCT PE Ratio vs Peers
The above table shows the PE ratio for VCT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average53.3x
CEN Contact Energy
23.4x1.8%NZ$5.7b
GNE Genesis Energy
42.7x2.5%NZ$2.8b
IFT Infratil
128.8x63.2%NZ$5.6b
MCY Mercury NZ
18.1x-8.2%NZ$7.9b
VCT Vector
20.8x-2.8%NZ$4.3b

Price-To-Earnings vs Peers: VCT is good value based on its Price-To-Earnings Ratio (20.8x) compared to the peer average (53.3x).


Price to Earnings Ratio vs Industry

How does VCT's PE Ratio compare vs other companies in the Global Integrated Utilities Industry?

Price-To-Earnings vs Industry: VCT is expensive based on its Price-To-Earnings Ratio (20.8x) compared to the Global Integrated Utilities industry average (19.5x)


Price to Earnings Ratio vs Fair Ratio

What is VCT's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

VCT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.8x
Fair PE Ratio31x

Price-To-Earnings vs Fair Ratio: VCT is good value based on its Price-To-Earnings Ratio (20.8x) compared to the estimated Fair Price-To-Earnings Ratio (31x).


Share Price vs Fair Value

What is the Fair Price of VCT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: VCT (NZ$4.3) is trading above our estimate of fair value (NZ$2.35)

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


Price to Earnings Growth Ratio

PEG Ratio: VCT's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


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Future Growth

How is Vector forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-2.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VCT's earnings are forecast to decline over the next 3 years (-2.8% per year).

Earnings vs Market: VCT's earnings are forecast to decline over the next 3 years (-2.8% per year).

High Growth Earnings: VCT's earnings are forecast to decline over the next 3 years.

Revenue vs Market: VCT's revenue (2.3% per year) is forecast to grow slower than the NZ market (6.6% per year).

High Growth Revenue: VCT's revenue (2.3% 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 (7.7%).


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Past Performance

How has Vector 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


4.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: VCT has high quality earnings.

Growing Profit Margin: VCT's current net profit margins (15.7%) are higher than last year (9.4%).


Past Earnings Growth Analysis

Earnings Trend: VCT's earnings have grown by 4.1% per year over the past 5 years.

Accelerating Growth: VCT's earnings growth over the past year (76.9%) exceeds its 5-year average (4.1% per year).

Earnings vs Industry: VCT earnings growth over the past year (76.9%) exceeded the Integrated Utilities industry 10%.


Return on Equity

High ROE: VCT's Return on Equity (8.6%) is considered low.


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Financial Health

How is Vector's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: VCT's short term assets (NZ$268.9M) do not cover its short term liabilities (NZ$681.8M).

Long Term Liabilities: VCT's short term assets (NZ$268.9M) do not cover its long term liabilities (NZ$3.5B).


Debt to Equity History and Analysis

Debt Level: VCT's net debt to equity ratio (128.2%) is considered high.

Reducing Debt: VCT's debt to equity ratio has increased from 86.7% to 129.2% over the past 5 years.

Debt Coverage: VCT's debt is not well covered by operating cash flow (16.4%).

Interest Coverage: VCT's interest payments on its debt are well covered by EBIT (3.3x coverage).


Balance Sheet


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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


3.90%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: VCT's dividend (3.9%) is higher than the bottom 25% of dividend payers in the NZ market (3.11%).

High Dividend: VCT's dividend (3.9%) is low compared to the top 25% of dividend payers in the NZ market (6.15%).


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.


Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (81.1%), VCT's payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (5982%), VCT's dividend payments are not well covered by cash flows.


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Management

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

2.5yrs

Average management tenure


CEO

Simon MacKenzie

14.42yrs

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 considered experienced (2.5 years average tenure).


Board Members

Experienced Board: VCT's board of directors are considered experienced (3.2 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Vector Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Vector Limited
  • Ticker: VCT
  • Exchange: NZSE
  • Founded: NaN
  • Industry: Multi-Utilities
  • Sector: Utilities
  • Implied Market Cap: NZ$4.300b
  • Shares outstanding: 999.97m
  • Website: https://www.vector.co.nz

Number of Employees


Location

  • Vector Limited
  • 101 Carlton Gore Road
  • Newmarket
  • Auckland
  • 1023
  • New Zealand

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/05 00:00
End of Day Share Price2022/07/05 00:00
Earnings2021/12/31
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.