OTCPK:VCMM.F

Stock Analysis Report

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Executive Summary

Vocus Group Limited provides fiber and network solutions to enterprise, government, wholesale, small business, and residential customers in Australia and New Zealand. More Details

Rewards

Trading at 37.1% below our estimate of its fair value

Earnings are forecast to grow 59.08% per year

Risk Analysis

No risks detected for VCMM.F from our risk checks.


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has Vocus Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: VCMM.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

VCMM.F

-1.8%

US Telecom

-1.9%

US Market


1 Year Return

n/a

VCMM.F

-12.0%

US Telecom

13.1%

US Market

Return vs Industry: Insufficient data to determine how VCMM.F performed against the US Telecom industry.

Return vs Market: Insufficient data to determine how VCMM.F performed against the US Market.


Shareholder returns

VCMM.FIndustryMarket
7 Day0%-1.8%-1.9%
30 Day0%-2.5%-2.9%
90 Day-1.5%3.2%8.2%
1 Yearn/a-7.5%-12.0%15.7%13.1%
3 Year8.1%8.1%6.0%-9.2%38.4%29.1%
5 Yearn/a31.8%2.2%89.3%68.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

37.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VCMM.F ($2.01) is trading below our estimate of fair value ($3.19)

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


Price To Earnings Ratio

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

PE vs Market: VCMM.F 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 VCMM.F's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: VCMM.F is good value based on its PB Ratio (1x) compared to the US Telecom industry average (1.2x).


Next Steps

Future Growth

How is Vocus Group forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

59.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VCMM.F is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: VCMM.F is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: VCMM.F's is expected to become profitable in the next 3 years.

Revenue vs Market: VCMM.F's revenue (3% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: VCMM.F's revenue (3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VCMM.F's Return on Equity is forecast to be low in 3 years time (5.7%).


Next Steps

Past Performance

How has Vocus Group performed over the past 5 years?

4.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VCMM.F is currently unprofitable.

Growing Profit Margin: VCMM.F is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: VCMM.F is unprofitable, but has reduced losses over the past 5 years at a rate of 4.4% per year.

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

Earnings vs Industry: VCMM.F is unprofitable, making it difficult to compare its past year earnings growth to the Telecom industry (-12.9%).


Return on Equity

High ROE: VCMM.F has a negative Return on Equity (-8.24%), as it is currently unprofitable.


Next Steps

Financial Health

How is Vocus Group's financial position?


Financial Position Analysis

Short Term Liabilities: VCMM.F's short term assets (A$282.3M) do not cover its short term liabilities (A$435.5M).

Long Term Liabilities: VCMM.F's short term assets (A$282.3M) do not cover its long term liabilities (A$1.5B).


Debt to Equity History and Analysis

Debt Level: VCMM.F's debt to equity ratio (47.5%) is considered high.

Reducing Debt: VCMM.F's debt to equity ratio has reduced from 51.2% to 47.5% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable VCMM.F has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: VCMM.F is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 22.3% per year.


Next Steps

Dividend

What is Vocus Group current dividend yield, its reliability and sustainability?

1.47%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate VCMM.F'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 VCMM.F's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: VCMM.F is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of VCMM.F'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?

1.5yrs

Average management tenure


CEO

Kevin Russell (53 yo)

2.33yrs

Tenure

AU$3,198,442

Compensation

Mr. Kevin Steven Russell, B Acc/CompSc, MICAS, CA, has been Group Managing Director, Chief Executive Officer and Executive Director of Vocus Group Limited since May 28, 2018. Mr. Russell served as Group Ex ...


CEO Compensation Analysis

Compensation vs Market: Kevin's total compensation ($USD2.27M) is below average for companies of similar size in the US market ($USD4.59M).

Compensation vs Earnings: Kevin's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Kevin Russell
Group MD2.33yrsAU$3.20m0.032%
A$ 512.0k
Nitesh Naidoo
Group Chief Financial Officer0.67yrAU$1.17mno data
Ellie Sweeney
Chief Operating Officer1.5yrsAU$1.25mno data
Mark Callander
CEO of New Zealand2.33yrsAU$1.92m0.012%
A$ 190.4k
Antony De Jong
Chief Executive of Retailno dataAU$1.13m0.011%
A$ 179.2k
Andrew Wildblood
Chief Executive of Enterprise & Government1.67yrsAU$1.36m0.0039%
A$ 62.2k
Bill Frith
Investor Relations Executiveno datano datano data
Simon Lewin
General Counsel & Company Secretary1yrno datano data
Luke Coleman
Corporate Communications Officerno datano datano data
Amber Kristof
Head of People & Cultureno datano datano data

1.5yrs

Average Tenure

Experienced Management: VCMM.F's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Kevin Russell
Group MD2.33yrsAU$3.20m0.032%
A$ 512.0k
Mark Callander
CEO of New Zealand2.33yrsAU$1.92m0.012%
A$ 190.4k
Bruce Akhurst
Non-Executive Director2yrsAU$155.00k0.0081%
A$ 128.0k
Robert Mansfield
Independent Non-Executive Chairman2.5yrsAU$375.07k0.020%
A$ 321.2k
Matthew Hanning
Non-Executive Director2yrsAU$162.50k0.081%
A$ 1.3m
Chi On Ho
Non-Executive Director2.67yrsno datano data
Julie Fahey
Non Executive Director2.58yrsAU$192.50k0.0012%
A$ 19.2k
David Wiadrowski
Non-Executive Director3.17yrsAU$203.65k0.0037%
A$ 58.9k
Zheng Chua
Alternate Director2.08yrsno datano data

2.3yrs

Average Tenure

60yo

Average Age

Experienced Board: VCMM.F's board of directors are not considered experienced ( 2.3 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

Vocus Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Vocus Group Limited
  • Ticker: VCMM.F
  • Exchange: OTCPK
  • Founded: 2007
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: AU$2.235b
  • Listing Market Cap: AU$1.588b
  • Shares outstanding: 620.88m
  • Website: https://www.vocusgroup.com.au

Number of Employees


Location

  • Vocus Group Limited
  • 452 Flinders Street
  • Level 10
  • Melbourne
  • Victoria
  • 3000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VOCASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJul 2010
VOCCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJul 2010
VOQDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2010
VCMM.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2010

Biography

Vocus Group Limited provides fiber and network solutions to enterprise, government, wholesale, small business, and residential customers in Australia and New Zealand. The company operates through Vocus Net ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/24 06:21
End of Day Share Price2020/07/10 00:00
Earnings2020/06/30
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.