Vp (VP) AI Stock Analysis

• Market Cap: £210.72M
• Dividend Yield: 7.52%
• Average Volume (3M): 22.50K
• Price to Earnings (P/E): 26.0
• Beta (1Y): 0.57
• Revenue Growth: 1.52%
• EPS Growth: N/A
• Country: UK
• Employees: 2,522
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): 0.33
• Shares Outstanding: 40,154,250
• 10 Day Avg. Volume: 7,413
• 30 Day Avg. Volume: 22,495
• PEG Ratio: -0.04
• Price to Book (P/B): 1.40
• Price to Sales (P/S): 0.56
• P/FCF Ratio: 29.89
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: 623.00p ▲(18.67% Upside)

The overall stock score of 70 reflects a balance of solid financial performance and attractive valuation, offset by bearish technical indicators. The company's strong dividend yield and reasonable P/E ratio are significant positives, while the technical analysis suggests caution due to recent bearish trends. Financial stability is a strength, but declining free cash flow and moderate leverage present areas for improvement.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business model, supporting long-term financial stability and expansion opportunities.

Operational Efficiency

Strong operational efficiency suggests effective cost management and resource utilization, enhancing profitability and competitive advantage over time.

Cash Generation

Robust cash generation supports financial flexibility, enabling strategic investments and debt management, crucial for sustainable growth.

Negative Factors

Declining Free Cash Flow

Declining free cash flow can limit the company's ability to invest in growth opportunities and manage debt, posing a risk to long-term financial health.

Low Net Profit Margin

A low net profit margin indicates potential inefficiencies in cost management, which could affect profitability and competitiveness if not addressed.

Moderate Leverage

Moderate leverage may increase financial risk, particularly if liabilities grow, potentially impacting the company's ability to invest in future growth.

Vp Business Overview & Revenue Model

Company Description

Vp plc provides equipment rental and associated services in the United Kingdom and internationally. It operates through UK Forks, Brandon Hire Station, ESS, Groundforce, TPA, MEP Hire, Torrent Trackside, Airpac Rentals, and TR Group businesses. The UK Forks business engages in the rental of telescopic handlers and tracked access platforms use for construction and housebuilding sites. The Brandon Hire Station business is involved in the rental of tools and specialist products to the industry and construction markets, as well as homeowners. The ESS business engages in the rental of safety, survey, communication, and test and measurement equipment. The Groundforce business rents excavation support systems and specialist products to the water, civil engineering, and construction industries. The TPA business provides portable roadways and temporary access solutions to customers in the transmission, construction, rail, and outdoor events markets. The MEP Hire business offers mechanical and electrical press fittings, and low level access platforms to the construction, fit out, mechanical, and electrical markets. The Torrent Trackside business supplies rail infrastructure portable plants and related trackside services to Network Rail and London Underground, as well as their appointed track renewal, maintenance, and project contractors. The Airpac Rentals business offers well test, pipeline testing, rig maintenance, and LNG and geothermal drilling services. The TR Group business rents test and measurement, communications, calibration, and audio visual solutions. The company was formerly known as Vibroplant plc and changed its name to Vp plc in 2000. Vp plc was incorporated in 1950 and is headquartered in Harrogate, the United Kingdom. Vp plc is a subsidiary of Ackers P Investment Company Limited.

How the Company Makes Money

Vp generates revenue primarily through the rental of its equipment and services across various sectors. The company's revenue model is built on a combination of rental fees, maintenance services, and ancillary product sales. Key revenue streams include the leasing of portable accommodation units, temporary power solutions, and access equipment. Vp also benefits from long-term contracts with major clients in the construction and infrastructure sectors, which provide a stable income base. Additionally, partnerships with suppliers and manufacturers enhance Vp's offerings and allow for competitive pricing, further contributing to its profitability.

Vp Financial Statement Overview

Summary

Vp demonstrates solid revenue growth and operational efficiency, with strong EBIT and EBITDA margins. The balance sheet reflects moderate leverage and reasonable equity levels, though there is some risk if liabilities increase. Cash flow generation is strong, but declining free cash flow is a concern. Overall, the company is financially stable with opportunities for improvement in profitability and cash flow management.

Income Statement

The company has shown a consistent increase in total revenue over the years, with a notable revenue growth rate of 3.05% in the latest year. The gross profit margin stands at 24.24%, indicating efficient cost management. However, the net profit margin is relatively low at 3.80%, suggesting room for improvement in controlling expenses. The EBIT margin of 8.43% and EBITDA margin of 26.60% reflect solid operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is 1.44, indicating a moderate level of leverage. The return on equity (ROE) is 9.61%, which is a positive sign of profitability relative to shareholder investment. The equity ratio is 33.04%, suggesting a balanced capital structure but with potential risk if liabilities increase.

Cash Flow

The free cash flow has decreased significantly, impacting the free cash flow growth rate negatively. However, the operating cash flow to net income ratio is strong at 5.59, indicating robust cash generation relative to net income. The free cash flow to net income ratio is 0.49, showing that a portion of net income is effectively converted into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	375.86M	379.96M	368.69M	371.52M	350.92M	308.00M
Gross Profit	88.53M	92.12M	92.99M	87.34M	86.97M	48.11M
EBITDA	94.54M	101.04M	105.22M	106.95M	108.39M	74.53M
Net Income	7.98M	14.45M	-5.29M	23.01M	25.54M	-4.60M
Balance Sheet
Total Assets	483.02M	455.22M	439.96M	469.37M	464.47M	444.39M
Cash, Cash Equivalents and Short-Term Investments	24.88M	12.67M	6.06M	11.14M	13.62M	15.92M
Total Debt	246.50M	216.59M	193.24M	204.03M	201.86M	194.71M
Total Liabilities	334.73M	304.82M	286.94M	294.44M	297.88M	291.27M
Stockholders Equity	148.30M	150.40M	153.02M	174.93M	166.59M	153.09M
Cash Flow
Free Cash Flow	8.34M	7.07M	17.31M	3.00M	8.03M	58.33M
Operating Cash Flow	81.31M	80.74M	89.64M	66.31M	76.71M	104.92M
Investing Cash Flow	-60.85M	-59.87M	-47.06M	-38.46M	-53.55M	-29.05M
Financing Cash Flow	-18.95M	-13.88M	-47.63M	-30.49M	-25.49M	-73.86M

Vp Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 525.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:VP, the sentiment is Neutral. The current price of 525 is below the 20-day moving average (MA) of 530.11, below the 50-day MA of 546.76, and below the 200-day MA of 554.08, indicating a neutral trend. The MACD of -4.35 indicates Negative momentum. The RSI at 48.69 is Neutral, neither overbought nor oversold. The STOCH value of 47.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:VP.

Vp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VP	70 Outperform	£210.72M	25.99	5.25%	7.52%	1.52%	―
ASY	69 Neutral	£209.29M	12.20	38.39%	5.18%	-3.57%	-0.80%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SDY	56 Neutral	£116.21M	-9.80	-7.62%	8.32%	0.38%	-273.53%