Latest news with #Vp
Yahoo
3 days ago
- Business
- Yahoo
Should We Be Cautious About Vp plc's (LON:VP.) ROE Of 9.6%?
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. We'll use ROE to examine Vp plc (LON:VP.), by way of a worked example. Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. Simply put, it is used to assess the profitability of a company in relation to its equity capital. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. Return on equity can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Vp is: 9.6% = UK£14m ÷ UK£150m (Based on the trailing twelve months to March 2025). The 'return' refers to a company's earnings over the last year. Another way to think of that is that for every £1 worth of equity, the company was able to earn £0.10 in profit. See our latest analysis for Vp One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. As shown in the graphic below, Vp has a lower ROE than the average (12%) in the Trade Distributors industry classification. That certainly isn't ideal. Although, we think that a lower ROE could still mean that a company has the opportunity to better its returns with the use of leverage, provided its existing debt levels are low. A high debt company having a low ROE is a different story altogether and a risky investment in our books. You can see the 3 risks we have identified for Vp by visiting our risks dashboard for free on our platform here. Virtually all companies need money to invest in the business, to grow profits. That cash can come from retained earnings, issuing new shares (equity), or debt. In the first two cases, the ROE will capture this use of capital to grow. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking. Vp clearly uses a high amount of debt to boost returns, as it has a debt to equity ratio of 1.12. With a fairly low ROE, and significant use of debt, it's hard to get excited about this business at the moment. Investors should think carefully about how a company might perform if it was unable to borrow so easily, because credit markets do change over time. Return on equity is one way we can compare its business quality of different companies. In our books, the highest quality companies have high return on equity, despite low debt. If two companies have around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE. Having said that, while ROE is a useful indicator of business quality, you'll have to look at a whole range of factors to determine the right price to buy a stock. Profit growth rates, versus the expectations reflected in the price of the stock, are a particularly important to consider. So you might want to check this FREE visualization of analyst forecasts for the company. Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
19-05-2025
- Business
- Yahoo
Investors in Vp (LON:VP.) have unfortunately lost 26% over the last three years
Vp plc (LON:VP.) shareholders should be happy to see the share price up 13% in the last month. But that doesn't change the fact that the returns over the last three years have been less than pleasing. After all, the share price is down 38% in the last three years, significantly under-performing the market. Now let's have a look at the company's fundamentals, and see if the long term shareholder return has matched the performance of the underlying business. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). Vp saw its share price decline over the three years in which its EPS also dropped, falling to a loss. Extraordinary items contributed to this situation. Since the company has fallen to a loss making position, it's hard to compare the change in EPS with the share price change. However, we can say we'd expect to see a falling share price in this scenario. The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image). We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. This free interactive report on Vp's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further. As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. As it happens, Vp's TSR for the last 3 years was -26%, which exceeds the share price return mentioned earlier. And there's no prize for guessing that the dividend payments largely explain the divergence! Vp shareholders are down 7.1% for the year (even including dividends), but the market itself is up 4.8%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Longer term investors wouldn't be so upset, since they would have made 1.4%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Case in point: We've spotted 2 warning signs for Vp you should be aware of, and 1 of them doesn't sit too well with us. There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on British exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
29-04-2025
- Business
- Yahoo
European Undervalued Small Caps With Insider Action In April 2025
In April 2025, European markets saw a positive shift as the pan-European STOXX Europe 600 Index rose by 2.77%, buoyed by signals from U.S. President Trump to reduce trade tensions with China. Despite some economic uncertainties, such as Germany revising its GDP forecast due to tariff impacts, the resilience of small-cap stocks in this environment can often be attributed to their agility and potential for growth within niche markets. Identifying promising small-cap stocks involves looking at companies that demonstrate strong fundamentals and strategic positioning amid these broader market dynamics. Name PE PS Discount to Fair Value Value Rating Morgan Advanced Materials 10.9x 0.5x 41.83% ★★★★★★ Tristel 27.6x 3.9x 26.76% ★★★★★☆ TT Electronics NA 0.3x 46.99% ★★★★★☆ Savills 23.9x 0.5x 43.19% ★★★★☆☆ Speedy Hire NA 0.2x 3.06% ★★★★☆☆ Seeing Machines NA 1.8x 49.22% ★★★★☆☆ Norcros 24.6x 0.6x 27.21% ★★★☆☆☆ FRP Advisory Group 12.7x 2.3x 7.31% ★★★☆☆☆ Elmera Group 11.0x 0.3x -140.30% ★★★☆☆☆ Arendals Fossekompani NA 1.6x 43.70% ★★★☆☆☆ Click here to see the full list of 68 stocks from our Undervalued European Small Caps With Insider Buying screener. Let's review some notable picks from our screened stocks. Simply Wall St Value Rating: ★★★☆☆☆ Overview: Vp is a company engaged in equipment rental services across various sectors, with operations primarily in the UK and internationally, and it has a market capitalization of approximately £0.32 billion. Operations: The company generates revenue primarily from its UK operations (£339.21 million) and international activities (£43.35 million). Over recent periods, the gross profit margin has shown a notable increase, reaching 33.08% by September 2024, reflecting a significant improvement in cost management relative to revenue generation. Operating expenses are consistently present but vary slightly across periods, impacting overall profitability alongside non-operating expenses. PE: -43.0x Vp, a smaller European stock, is attracting attention for its potential value. Despite having high debt levels with all liabilities sourced from external borrowing, the company shows promise with an expected earnings growth of 55% annually. Insider confidence is evident as Jeremy F. Pilkington recently purchased 113,532 shares worth £638,583 in January 2025. The appointment of Richard Smith as a non-executive director signals strategic leadership changes that could drive future growth and stability. Click here to discover the nuances of Vp with our detailed analytical valuation report. Examine Vp's past performance report to understand how it has performed in the past. Simply Wall St Value Rating: ★★★☆☆☆ Overview: Biotage is a company specializing in healthcare software, with a market capitalization of approximately SEK 19.61 billion. Operations: Biotage generates revenue primarily from its healthcare software segment, with recent figures indicating SEK 1.96 billion. The company's cost structure includes significant expenses in sales and marketing, research and development, and general administrative functions. Over the periods observed, Biotage's gross profit margin has shown a trend of reaching up to 62.73%. PE: 44.2x Biotage, a smaller European company, has recently caught attention due to its SEK 1.65 per share dividend approved on April 24, 2025. The firm reported first-quarter sales of SEK 385 million, down from SEK 480 million the previous year. Despite this dip, there's insider confidence with significant buying activity observed in recent months. A proposed acquisition by Kohlberg Kravis Roberts & Co., valuing shares at SEK 145 each, suggests potential growth and industry interest despite current challenges. Get an in-depth perspective on Biotage's performance by reading our valuation report here. Gain insights into Biotage's past trends and performance with our Past report. Simply Wall St Value Rating: ★★★☆☆☆ Overview: NCAB Group specializes in providing printed circuit board (PCB) solutions and has a market cap of approximately SEK 8.53 billion. Operations: The company's revenue is primarily driven by its operations in Europe, with significant contributions from the Nordic and North American regions. Over recent periods, the gross profit margin has shown an upward trend, reaching 37.41% as of 2024-06-30. Operating expenses are a substantial part of the cost structure, with general and administrative expenses being a major component. PE: 35.1x NCAB Group, a player in the printed circuit board market, is navigating financial challenges with declining profit margins—6% this year from 9.5% last year—and high debt levels. Despite these hurdles, they project a 28.34% annual earnings growth and are actively seeking mergers and acquisitions to expand their asset-light model globally. Recent insider confidence is evident through share purchases within the past six months, signaling belief in future prospects despite current financial strains. Navigate through the intricacies of NCAB Group with our comprehensive valuation report here. Explore historical data to track NCAB Group's performance over time in our Past section. Take a closer look at our Undervalued European Small Caps With Insider Buying list of 68 companies by clicking here. Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks. Streamline your investment strategy with Simply Wall St's app for free and benefit from extensive research on stocks across all corners of the world. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include LSE:VP. OM:BIOT and OM:NCAB. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
Yahoo
19-02-2025
- Business
- Yahoo
Exploring 3 Promising Undervalued Small Caps With Insider Activity In UK
The United Kingdom's market has been experiencing turbulence, with the FTSE 100 and FTSE 250 indices recently closing lower due to weak trade data from China, highlighting ongoing global economic challenges. Amidst this backdrop, identifying promising small-cap stocks can be crucial for investors seeking opportunities in sectors less impacted by international headwinds. Name PE PS Discount to Fair Value Value Rating Bytes Technology Group 20.7x 5.3x 17.69% ★★★★★☆ 4imprint Group 17.8x 1.5x 28.99% ★★★★★☆ Stelrad Group 11.7x 0.6x 18.27% ★★★★★☆ Speedy Hire NA 0.2x 24.81% ★★★★★☆ NCC Group NA 1.3x 21.02% ★★★★★☆ Telecom Plus 17.9x 0.7x 26.15% ★★★★☆☆ Gamma Communications 22.9x 2.4x 33.35% ★★★★☆☆ CVS Group 29.8x 1.2x 36.03% ★★★★☆☆ Franchise Brands 40.6x 2.1x 22.04% ★★★★☆☆ Optima Health NA 1.5x 47.04% ★★★★☆☆ Click here to see the full list of 35 stocks from our Undervalued UK Small Caps With Insider Buying screener. We'll examine a selection from our screener results. Simply Wall St Value Rating: ★★★☆☆☆ Overview: SThree is a global staffing company specializing in the recruitment of professionals in science, technology, engineering, and mathematics sectors, with a market cap of £1.15 billion. Operations: SThree's revenue streams are primarily derived from its operations in DACH, the Netherlands (including Spain), and the USA. The company's net profit margin has shown fluctuations, peaking at 3.73% in May 2024 before declining to 3.33% by February 2025. Operating expenses have consistently been a significant component of their cost structure, with general and administrative expenses being a major part of these costs. PE: 6.8x SThree, a staffing firm in the UK, reported a decline in sales to £1.49 billion for FY24, down from £1.66 billion the previous year, with net income also slipping to £49.69 million. Despite this challenging environment and an anticipated earnings contraction of 18% annually over the next three years, insider confidence is evident through strategic share repurchase plans worth £20 million initiated in December 2024. The company's stable dividend strategy remains attractive despite a proposed decrease for FY25. Get an in-depth perspective on SThree's performance by reading our valuation report here. Gain insights into SThree's historical performance by reviewing our past performance report. Simply Wall St Value Rating: ★★★★☆☆ Overview: Vp is a specialist rental business providing equipment and services to a diverse range of sectors, with a market cap of approximately £0.25 billion. Operations: Vp generates revenue primarily from the UK at £339.21 million, with an additional contribution of £43.35 million internationally. The company's cost of goods sold (COGS) was £247.77 million in the latest reported period, impacting its gross profit of £122.46 million and resulting in a gross profit margin of 33.08%. Operating expenses were noted at £54.17 million, alongside significant non-operating expenses amounting to £73.69 million, affecting net income figures which showed a loss in recent periods. PE: -42.7x Vp's recent activities highlight its potential as an undervalued investment. The company reported half-year sales of £192.46 million, slightly up from the previous year, while net income saw a slight dip to £14.27 million. Insider confidence is evident with Jeremy F. Pilkington acquiring 113,532 shares for approximately £638,583 between late 2024 and early 2025, signaling belief in future prospects despite high debt levels. Vp Rail's launch aims to streamline operations and enhance customer experience in the rail sector, aligning with its growth-focused strategy amidst a challenging financial landscape. Unlock comprehensive insights into our analysis of Vp stock in this valuation report. Explore historical data to track Vp's performance over time in our Past section. Simply Wall St Value Rating: ★★★★★★ Overview: Zigup operates in the rental and claims services sectors, with a focus on the UK, Ireland, and Spain, and has a market capitalization of £2.75 billion. Operations: Zigup generates revenue primarily from UK&I Rental (£575.33 million), Spain Rental (£360.69 million), and Claims & Services (£953.98 million). The company has experienced fluctuations in its gross profit margin, with a recent figure of 21.99% as of October 2024, down from a peak of 29.54% in October 2022. Operating expenses have shown an upward trend, reaching £244.24 million by October 2024, impacting overall profitability despite increasing revenues over time. PE: 7.6x Zigup, a UK-based company, is navigating financial challenges with profit margins dipping from 7.7% to 5.1% and earnings projected to grow at 5.38% annually. The company's reliance on external borrowing poses higher risk, yet recent executive changes bring optimism; Rachel Coulson joins as CFO by August 2025, promising digital transformation expertise from her tenure at Pearson and Vodafone. Despite revenue slipping slightly year-on-year to £903 million, Zigup declared an increased interim dividend of £0.088 per share for January 2025 payout, reflecting potential shareholder value appreciation amidst evolving leadership dynamics. Take a closer look at Zigup's potential here in our valuation report. Gain insights into Zigup's past trends and performance with our Past report. Embark on your investment journey to our 35 Undervalued UK Small Caps With Insider Buying selection here. Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive. Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include LSE:STEM LSE:VP. and LSE:ZIG. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
