NasdaqGS:VG

Stock Analysis Report

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Executive Summary

Vonage Holdings Corp. provides cloud communications services for businesses and consumers. More Details


Snowflake Analysis

Slightly overvalued with weak fundamentals.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: VG is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: VG's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

0.6%

VG

-0.7%

US Telecom

1.4%

US Market


1 Year Return

54.8%

VG

-13.1%

US Telecom

22.6%

US Market

Return vs Industry: VG exceeded the US Telecom industry which returned -13.4% over the past year.

Return vs Market: VG exceeded the US Market which returned 22.8% over the past year.


Shareholder returns

VGIndustryMarket
7 Day0.6%-0.7%1.4%
30 Day-1.4%0.1%4.9%
90 Day26.0%3.3%14.6%
1 Year54.8%54.8%-8.3%-13.1%25.4%22.6%
3 Year20.5%20.5%4.1%-10.7%46.8%37.0%
5 Year162.6%162.6%22.2%-5.5%132.0%106.1%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Vonage Holdings 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: VG ($13.13) is trading below our estimate of fair value ($27.51)

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


Price To Earnings Ratio

PE vs Industry: VG is unprofitable, so we can't compare its PE Ratio to the US Telecom industry average.

PE vs Market: VG is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: VG is overvalued based on its PB Ratio (5.6x) compared to the US Telecom industry average (1.8x).


Next Steps

Future Growth

How is Vonage Holdings forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

91.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VG is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: VG is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: VG is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: VG's revenue (6.4% per year) is forecast to grow slower than the US market (10.5% per year).

High Growth Revenue: VG's revenue (6.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VG's Return on Equity is forecast to be low in 3 years time (11.3%).


Next Steps

Past Performance

How has Vonage Holdings performed over the past 5 years?

-51.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VG is currently unprofitable.

Growing Profit Margin: VG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: VG is unprofitable, and losses have increased over the past 5 years at a rate of 51% per year.

Accelerating Growth: Unable to compare VG's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: VG is unprofitable, making it difficult to compare its past year earnings growth to the Telecom industry (27.1%).


Return on Equity

High ROE: VG has a negative Return on Equity (-4.27%), as it is currently unprofitable.


Next Steps

Financial Health

How is Vonage Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: VG's short term assets ($228.1M) do not cover its short term liabilities ($258.2M).

Long Term Liabilities: VG's short term assets ($228.1M) do not cover its long term liabilities ($552.5M).


Debt to Equity History and Analysis

Debt Level: VG's debt to equity ratio (91.4%) is considered high.

Reducing Debt: VG's debt to equity ratio has increased from 64.3% to 91.4% over the past 5 years.

Debt Coverage: VG's debt is not well covered by operating cash flow (16%).

Interest Coverage: Insufficient data to determine if VG's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Vonage Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate VG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate VG's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if VG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if VG's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of VG's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

3.9yrs

Average management tenure


CEO

Rory Read (58 yo)

0.50

Tenure

Mr. Rory P. Read serves as Chief Executive Officer at Vonage Holdings Corp. since July 1, 2020. Mr. Read served as President and Chief Executive Officer at Virtustream, Inc. He is Chief Operating Executive...


Leadership Team

NamePositionTenureCompensationOwnership
Jeffrey Citron
Founder & Independent Chairman of the Board20yrsUS$297.45k3.8%
$ 127.3m
Sagi Dudai
Chief Technology Officer2.83yrsUS$1.90m0.15%
$ 4.9m
Susan Quackenbush
Chief Human Resources Officer5.17yrsUS$1.51m0.094%
$ 3.1m
Omar Javaid
President of API Platform Group5.42yrsUS$4.49m0.19%
$ 6.5m
Rory Read
CEO & Director0.50yrno data0.63%
$ 20.9m
Timothy Shaughnessy
Interim Chief Financial Officer0.42yrno datano data
Jay Bellissimo
Chief Operating Officerno datano datano data
David Levi
Senior VP3.75yrsno data0.028%
$ 929.3k
Hunter Blankenbaker
Vice President of Investor Relationsno datano datano data
Randy Rutherford
Chief Legal Officer & Corporate Secretary4.08yrsno data0.083%
$ 2.8m
Joy Corso
Chief Marketing Officer0.42yrno data0.018%
$ 612.8k
Vinod Lala
Chief Strategy Officer4.5yrsno data0.063%
$ 2.1m

3.9yrs

Average Tenure

51yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Jeffrey Citron
Founder & Independent Chairman of the Board20yrsUS$297.45k3.8%
$ 127.3m
Rory Read
CEO & Director0.50yrno data0.63%
$ 20.9m
Michael McConnell
Independent Director1.83yrsUS$154.16k0.015%
$ 486.7k
Gary Steele
Independent Director4.5yrsUS$194.98k0.023%
$ 782.7k
John Roberts
Lead Independent Director5.92yrsUS$244.98k0.069%
$ 2.3m
Carolyn Katz
Independent Director7yrsUS$214.98k0.046%
$ 1.5m
Tien Tzuo
Independent Director0.50yrno data0.00090%
$ 30.1k
Priscilla Hung
Independent Director1.42yrsUS$27.82k0.0065%
$ 216.4k
Stephen Fisher
Independent Director8yrsUS$194.98k0.020%
$ 685.4k
Jan Hauser
Independent Director1.33yrsUS$21.52k0.0065%
$ 216.4k
Hamid Akhavan
Independent Director4.08yrsUS$194.98k0.017%
$ 561.3k

4.1yrs

Average Tenure

58yo

Average Age

Experienced Board: VG's board of directors are considered experienced (4.1 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 been diluted in the past year, with total shares outstanding growing by 2.4%.


Top Shareholders

Company Information

Vonage Holdings Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Vonage Holdings Corp.
  • Ticker: VG
  • Exchange: NasdaqGS
  • Founded: 2000
  • Industry: Alternative Carriers
  • Sector: Telecom
  • Market Cap: US$3.345b
  • Shares outstanding: 248.33m
  • Website: https://www.vonage.com

Number of Employees


Location

  • Vonage Holdings Corp.
  • 23 Main Street
  • Holmdel
  • New Jersey
  • 7733
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VGNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMay 2006
V1YDB (Deutsche Boerse AG)YesCommon StockDEEURMay 2006

Biography

Vonage Holdings Corp. provides cloud communications services for businesses and consumers. It operates through two segments, Business and Consumer. The Business segment offers cloud-based applications comp...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/22 23:39
End of Day Share Price2021/01/22 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.