Vector Limited
Vector Limited Fundamental Analysis
Vector Limited (VETTF) shows weak financial fundamentals with a PE ratio of 24.77, profit margin of 13.29%, and ROE of 4.20%. The company generates $1.1B in annual revenue with weak year-over-year growth of -8.99%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 21.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze VETTF's fundamental strength across five key dimensions:
Efficiency Score
WeakVETTF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentVETTF trades at attractive valuation levels.
Growth Score
ModerateVETTF shows steady but slowing expansion.
Financial Health Score
ModerateVETTF shows balanced financial health with some risks.
Profitability Score
WeakVETTF struggles to sustain strong margins.
Key Financial Metrics
Is VETTF Expensive or Cheap?
P/E Ratio
VETTF trades at 24.77 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, VETTF's PEG of -2.36 indicates potential undervaluation.
Price to Book
The market values Vector Limited at 1.04 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.61 times EBITDA. This is generally considered low.
How Well Does VETTF Make Money?
Net Profit Margin
For every $100 in sales, Vector Limited keeps $13.29 as profit after all expenses.
Operating Margin
Core operations generate 35.04 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.20 in profit for every $100 of shareholder equity.
ROA
Vector Limited generates $2.18 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Vector Limited generates strong operating cash flow of $563.28M, reflecting robust business health.
Free Cash Flow
Vector Limited generates strong free cash flow of $128.96M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.13 in free cash annually.
FCF Yield
VETTF converts 3.44% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
24.77
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.36
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.04
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.29
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.61
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.48
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How VETTF Stacks Against Its Sector Peers
| Metric | VETTF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 24.77 | 19.20 | Worse (Expensive) |
| ROE | 4.20% | 1033.00% | Weak |
| Net Margin | 13.29% | 9192.00% | Weak |
| Debt/Equity | 0.61 | 6.63 | Strong (Low Leverage) |
| Current Ratio | 0.48 | 1.68 | Weak Liquidity |
| ROA | 2.18% | -246.00% (disorted) | Weak |
VETTF outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Vector Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-14.77%
Industry Style: Defensive, Dividend, Income
DecliningEPS CAGR
74.51%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
29.66%
Industry Style: Defensive, Dividend, Income
High Growth