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.
Second-rate dividend payer and overvalued.
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: VETT.F has not had significant price volatility in the past 3 months.
7 Day Return
US Integrated Utilities
1 Year Return
US Integrated Utilities
Return vs Industry: VETT.F exceeded the US Integrated Utilities industry which returned -6.1% over the past year.
Return vs Market: VETT.F exceeded the US Market which returned -10.4% over the past year.
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
No news available
Is Vector undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: VETT.F ($2.55) is trading above our estimate of fair value ($2.2)
Significantly Below Fair Value: VETT.F is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: VETT.F is poor value based on its PE Ratio (41x) compared to the Integrated Utilities industry average (19.7x).
PE vs Market: VETT.F is poor value based on its PE Ratio (41x) compared to the US market (13.1x).
Price to Earnings Growth Ratio
PEG Ratio: VETT.F is poor value based on its PEG Ratio (5.1x)
Price to Book Ratio
PB vs Industry: VETT.F is good value based on its PB Ratio (1.4x) compared to the US Integrated Utilities industry average (1.8x).
How is Vector forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: VETT.F's forecast earnings growth (8% per year) is above the savings rate (1.7%).
Earnings vs Market: VETT.F's earnings (8% per year) are forecast to grow slower than the US market (12.2% per year).
High Growth Earnings: VETT.F's earnings are forecast to grow, but not significantly.
Revenue vs Market: VETT.F's revenue (1.8% per year) is forecast to grow slower than the US market (7.2% per year).
High Growth Revenue: VETT.F's revenue (1.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: VETT.F's Return on Equity is forecast to be low in 3 years time (4.8%).
How has Vector performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: VETT.F has a large one-off loss of NZ$46.6M impacting its December 31 2019 financial results.
Growing Profit Margin: VETT.F's current net profit margins (6%) are lower than last year (11.4%).
Past Earnings Growth Analysis
Earnings Trend: VETT.F's earnings have grown by 4.6% per year over the past 5 years.
Accelerating Growth: VETT.F's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: VETT.F had negative earnings growth (-47.5%) over the past year, making it difficult to compare to the Integrated Utilities industry average (5.7%).
Return on Equity
High ROE: VETT.F's Return on Equity (3.4%) is considered low.
How is Vector's financial position?
Financial Position Analysis
Short Term Liabilities: VETT.F's short term assets (NZ$359.8M) do not cover its short term liabilities (NZ$951.2M).
Long Term Liabilities: VETT.F's short term assets (NZ$359.8M) do not cover its long term liabilities (NZ$2.9B).
Debt to Equity History and Analysis
Debt Level: VETT.F's debt to equity ratio (120.7%) is considered high.
Reducing Debt: VETT.F's debt to equity ratio has increased from 112.8% to 120.7% over the past 5 years.
Debt Coverage: VETT.F's debt is not well covered by operating cash flow (13.5%).
Interest Coverage: VETT.F's interest payments on its debt are not well covered by EBIT (2.5x coverage).
Inventory Level: VETT.F has a high level of physical assets or inventory.
Debt Coverage by Assets: VETT.F's debt is not covered by short term assets (assets are 0.1x debt).
What is Vector's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: VETT.F's dividend (5.03%) is higher than the bottom 25% of dividend payers in the US market (1.95%).
High Dividend: VETT.F's dividend (5.03%) is low compared to the top 25% of dividend payers in the US market (5.4%).
Stability and Growth of Payments
Stable Dividend: VETT.F's dividends per share have been stable in the past 10 years.
Growing Dividend: VETT.F's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (206.2%), VETT.F's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: VETT.F's dividends in 3 years are not forecast to be well covered by earnings (131.6% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management 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 ...
|Group Chief Executive Officer||12.08yrs||no data||0.0060% NZ$113.0k|
|Chief Financial Officer||0.83yr||no data||no data|
|General Counsel & Company Secretary||no data||no data||no data|
|Head of Corporate Communications||no data||no data||no data|
|Chief People Officer||1.17yrs||no data||no data|
|Head of Regulatory||no data||no data||no data|
|Chief Digital Officer||3.08yrs||no data||no data|
|Chief Operating Officer of Metering & OnGas||0.17yr||no data||no data|
|Chief Public Policy & Regulatory Officer||0.17yr||no data||no data|
|Chief Executive Officer of Vector Powersmart||no data||no data||no data|
Experienced Management: VETT.F's management team is not considered experienced ( 1 years average tenure), which suggests a new team.
|Independent Non-Executive Deputy Chair||no data||no data||0.0019% NZ$34.9k|
|Independent Non-Executive Chair||1.33yrs||no data||0.0021% NZ$39.0k|
|Independent Non-Executive Director||0.83yr||no data||0.0010% NZ$18.8k|
|Independent Non-Executive Director||0.92yr||no data||no data|
|Non-Independent Non-Executive Director||1.33yrs||no data||0.00013% NZ$2.4k|
|Independent Non-Executive Director||0.92yr||no data||no data|
|Non-Independent Non-Executive Director||0.50yr||no data||no data|
Experienced Board: VETT.F's board of directors are not considered experienced ( 0.8 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: VETT.F insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Vector Limited's company bio, employee growth, exchange listings and data sources
- Name: Vector Limited
- Ticker: VETT.F
- Exchange: OTCPK
- Founded: 1990
- Industry: Multi-Utilities
- Sector: Utilities
- Market Cap: NZ$3.170b
- Listing Market Cap: NZ$1.884b
- Shares outstanding: 999.88m
- Website: https://www.vector.co.nz
Number of Employees
- Vector Limited
- 101 Carlton Gore Road
- New Zealand
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|VCT||NZSE (New Zealand Stock Exchange)||Yes||Ordinary Shares||NZ||NZD||Aug 2005|
|VETT.F||OTCPK (Pink Sheets LLC)||Yes||Ordinary Shares||US||USD||Aug 2005|
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. It operates through three segments: Regulated Networks, Gas Trading, and Technology. 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; and gas to residential, commercial, and industrial customers, as well as provides bottled LPG to customers. It also provides Vector solar systems; electricity and gas metering services to approximately 1,000,000 homes and businesses; and designs, builds, and supports fiber network solutions that connect buildings in Auckland. In addition, the company offers electric vehicle app that offers update on the status of rapid chargers, and filters searches for charging stations by port type, type of charger, and availability. The company was incorporated in 1990 and is headquartered in Auckland, New Zealand. Vector Limited is a subsidiary of Entrust.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/04/01 00:18|
|End of Day Share Price||2020/01/13 00:00|
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.