NZSE:VCT

Stock Analysis Report

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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


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 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.


Market Performance


7 Day Return

-2.6%

VCT

-0.7%

NZ Integrated Utilities

-1.6%

NZ Market


1 Year Return

25.2%

VCT

-14.2%

NZ Integrated Utilities

5.0%

NZ Market

Return vs Industry: VCT exceeded the NZ Integrated Utilities industry which returned -14.2% over the past year.

Return vs Market: VCT exceeded the NZ Market which returned 5% over the past year.


Shareholder returns

VCTIndustryMarket
7 Day-2.6%-0.7%-1.6%
30 Day-5.3%-2.0%-7.3%
90 Day-5.6%-5.3%-1.0%
1 Year30.9%25.2%-11.0%-14.2%8.8%5.0%
3 Year44.1%23.3%21.5%7.5%47.1%28.0%
5 Year62.6%24.1%37.7%11.3%94.8%48.3%

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

Valuation

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

34.92x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: VCT (NZ$4.07) is trading above our estimate of fair value (NZ$2.08)

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 (34.9x) compared to the XX Integrated Utilities industry average (19.7x).

PE vs Market: VCT is poor value based on its PE Ratio (34.9x) compared to the NZ market (24.7x).


Price to Earnings Growth Ratio

PEG Ratio: VCT is poor value based on its PEG Ratio (14.2x)


Price to Book Ratio

PB vs Industry: VCT's PB Ratio (1.8x) is in line with the XX Integrated Utilities industry average.


Next Steps

Future Growth

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

2.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VCT's forecast earnings growth (2.5% per year) is above the savings rate (2.3%).

Earnings vs Market: VCT's earnings (2.5% per year) are forecast to grow slower than the NZ market (12.2% 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 (6.3% 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%).


Next Steps

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 3.5%.


Return on Equity

High ROE: VCT's Return on Equity (5.2%) is considered low.


Next Steps

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


Next Steps

Dividend

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

4.05%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VCT's dividend (4.05%) is higher than the bottom 25% of dividend payers in the NZ market (2.54%).

High Dividend: VCT's dividend (4.05%) is low compared to the top 25% of dividend payers in the NZ market (4.08%).


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 (141.6%), 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 (121.7% payout ratio).


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Simon MacKenzie

13yrs

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

NamePositionTenureCompensationOwnership
Simon MacKenzie
Group Chief Executive Officer13yrsno datano data
Jason Hollingworth
Chief Financial Officer1.75yrsno datano data
John Rodger
Chief Legal & Assurance Officer and Company Secretaryno datano datano data
Sarah Williams
Chief Marketing & Communications Officer1.08yrsno datano data
Fiona Michel
Chief People & Culture Officer2.08yrsno datano data
Richard Sharp
Head of Regulatoryno datano datano data
Nikhil Ravishankar
Chief Digital Officer4yrsno datano data
Brenda Talacek
Chief Operating Officer of Metering & OnGas1.08yrsno datano data
Mark Toner
Chief Public Policy & Regulatory Officer1.08yrsno datano data
Andrea Robertson
Acting Chief Operating Officer of Electricity1.08yrsno datano data

1.4yrs

Average Tenure

Experienced Management: VCT's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Jonathan Mason
Independent Non-Executive Chair1.08yrsNZ$100.65k0.0034%
NZ$ 136.3k
Antony Carter
Independent Non-Executive Director1.75yrsNZ$100.65k0.0020%
NZ$ 81.4k
Paula Rebstock
Independent Non-Executive Director1.83yrsNZ$100.65kno data
Michael Buczkowski
Non-Independent Non-Executive Director2.25yrsNZ$100.65k0.00013%
NZ$ 5.3k
Bruce Turner
Independent Non-Executive Director1.83yrsNZ$100.65kno data
Alastair Bell
Non-Independent Non-Executive Director1.42yrsNZ$77.69kno data

1.8yrs

Average Tenure

Experienced Board: VCT's board of directors are not considered experienced ( 1.8 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$4.070b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VCTNZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDAug 2005
VETT.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDAug 2005

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/24 06:01
End of Day Share Price2021/02/24 00:00
Earnings2020/12/31
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.