Vesuvius (VSVS) AI Stock Analysis

• Market Cap: £867.33M
• Dividend Yield: 4.82%
• Average Volume (3M): 300.26K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 1.46
• Revenue Growth: -4.27%
• EPS Growth: -28.32%
• Country: UK
• Employees: 11,071
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Steel
• EPS (TTM): 0.17
• Shares Outstanding: 248,171,720
• 10 Day Avg. Volume: 243,835
• 30 Day Avg. Volume: 300,257
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: £421.29
• Price Target Upside: 15.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 65 Neutral
• Price Target: 394.00p ▲(8.48% Upside)

Vesuvius maintains a balanced financial profile with strong operational margins and undervaluation, supported by positive corporate events. However, technical indicators suggest bearish market sentiment, and declining revenue growth remains a concern.

Positive Factors

Earnings

EPS was 5% ahead of previous estimates, which is helpful.

Restructuring and Cost Savings

Management continues to execute well on its restructuring plan, with cost savings target increased to £55 million.

Valuation and Recovery Potential

The group has an attractive equity story that is fundamentally undervalued.

Negative Factors

Guidance and Consensus Downgrades

The likely downgrades to FY25F consensus EBITA on the back of management's new guidance are expected to be larger than the market was fearing.

Macroeconomic Challenges

Near-term trading is evidently challenging, and price rises need to stick to offset cost inflation.

Tariffs and External Impacts

There are likely impacts from US tariffs affecting the company.

Vesuvius Business Overview & Revenue Model

Company Description

Vesuvius plc provides engineering services and solutions principally to steel and foundry industries worldwide. It operates in two divisions, Steel and Foundry. The company offers foundry consumables and equipment, including binders, coatings, feeding systems, filtration and gating systems, melt shop refractories, metallurgical and pouring control systems, die dressings and coatings, melt treatment products, crucibles, and ceramics for the iron, steel, and nonferrous foundries. It also provides nonferrous metals, such as primary and secondary aluminum, copper, and other metals and alloys; cement and lime solutions, iron ore pelletizing and calcination products, and grains and powders; and process heaters, FCC units, hydrogen reformers, boilers, coke calciners, and thermal oxidizers, as well as sulphur, ethylene, and ammonia plants. In addition, the company offers solutions for power generation and incineration; glass products comprising artistic, display, float, hollow, and optical glass; glass tempering, and reheat and forming products; and solutions for solar multicrystal silicon ingots, thin film and cell processing, and feedstock. Further, it provides solutions for blast furnace stack repair; taphole clay, iron and slang runner, sampler and temperature, tilting runner, and torpedo ladle solutions; iron ladle solutions; lining, taphole system, bath agitation and tuyere system, electric arc furnace and BOF maintenance, and metallurgical sensor solutions; and ladle, ladle to tundish, and tundish solutions, as well as tundish to mold solutions for conventional slab, thin and slim slab, beam blank, flow control valve bloom or billet, and calibrated nozzle billet casters. Additionally, the company offers ingot casting solutions; and reheat furnace, steel hot forming, galvanized steel, and electrical and stainless-steel solutions. Vesuvius plc was founded in 1916 and is headquartered in London, the United Kingdom.

How the Company Makes Money

Vesuvius generates revenue primarily through the sale of its specialized products and services to the steel and foundry sectors. Key revenue streams include the provision of refractories and flow control systems, which are critical in managing the thermal and chemical environments in metal production. Additionally, the company benefits from long-term relationships with major industrial clients, allowing for repeat business and ongoing service contracts. Significant partnerships with steel manufacturers and foundries further enhance its market position and contribute to stable earnings, as these clients rely on Vesuvius' expertise for their operational needs.

Vesuvius Financial Statement Overview

Summary

Vesuvius demonstrates strong operational efficiency with EBIT and EBITDA margins above industry averages, despite declining revenue and net income. A stable balance sheet indicates a conservative leverage approach. However, declining free cash flow and return on equity are areas of concern.

Income Statement

Vesuvius has shown fluctuating revenue over the past years with a decline observed in the latest period. The gross profit margin remains steady while the net profit margin has decreased, reflecting increased cost pressures. EBIT and EBITDA margins are above industry averages, indicating strong operational efficiency despite recent revenue declines.

Balance Sheet

The company maintains a stable debt-to-equity ratio, showing a conservative approach to leveraging. The equity ratio indicates a solid base of equity financing relative to total assets. Return on equity has been declining, suggesting potential challenges in generating returns for shareholders.

Cash Flow

Free cash flow has seen a significant decrease in the latest period, impacting the company's ability to finance operations and growth without external funding. The operating cash flow to net income ratio is strong, indicating efficient cash conversion from earnings.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.82B	1.93B	2.05B	1.64B	1.46B
Gross Profit	503.70M	537.90M	561.10M	410.40M	363.70M
EBITDA	233.00M	270.10M	289.60M	198.80M	141.80M
Net Income	87.20M	118.50M	181.10M	102.10M	41.30M
Balance Sheet
Total Assets	2.29B	2.28B	2.33B	2.13B	2.05B
Cash, Cash Equivalents and Short-Term Investments	186.40M	164.20M	184.20M	169.10M	209.70M
Total Debt	520.20M	402.20M	441.90M	443.70M	378.10M
Total Liabilities	1.05B	962.00M	1.01B	1.03B	919.10M
Stockholders Equity	1.17B	1.25B	1.26B	1.04B	1.08B
Cash Flow
Free Cash Flow	70.60M	123.90M	123.20M	700.00K	114.30M
Operating Cash Flow	158.70M	216.50M	212.40M	46.20M	154.80M
Investing Cash Flow	-95.40M	-86.20M	-89.60M	-88.00M	-40.80M
Financing Cash Flow	-40.50M	-128.30M	-105.20M	-800.00K	-127.10M

Vesuvius Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 363.20
• 50DMA: Negative
• 100DMA: Positive
• 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:VSVS, the sentiment is Neutral. The current price of 363.2 is above the 20-day moving average (MA) of 355.51, below the 50-day MA of 366.80, and below the 200-day MA of 365.92, indicating a bearish trend. The MACD of -4.66 indicates Negative momentum. The RSI at 46.44 is Neutral, neither overbought nor oversold. The STOCH value of 35.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:VSVS.

Vesuvius Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATYM	71 Outperform	£734.76M	11.69	13.54%	1.04%	21.25%	108.30%
VSVS	65 Neutral	£867.33M	12.71	6.19%	4.82%	-4.27%	-28.32%
Sector *	61 Neutral	$10.09B	5.97	1.14%	3.00%	3.04%	-41.02%
EVR	―	£1.18B	―		―	―	―
VCT	66 Neutral	£603.62M	20.32	6.65%	8.64%	4.75%	-3.29%
IBST	59 Neutral	£584.89M	48.12	3.10%	2.02%	5.58%	66.49%
FXPO	45 Neutral	£348.32M	―	-33.39%	―	-5.85%	-413.36%

Vesuvius Corporate Events

Vesuvius Reports Resilient H1 2025 Results Amid Market Challenges

Vesuvius plc reported its half-year results for 2025, showing performance broadly in line with expectations despite challenging market conditions. The company achieved market share gains and implemented strong cost reduction measures, but faced difficulties due to weak markets and a challenging pricing environment, particularly in Europe and China. The steel division saw market share gains, especially in India, while the foundry division maintained stability. Vesuvius also made progress in integrating PiroMet and improving R&D efficiency, with a focus on new product sales. The company anticipates similar performance in the second half of the year but remains confident in long-term growth potential and profitability improvements.

The most recent analyst rating on (GB:VSVS) stock is a Buy with a £655.00 price target. To see the full list of analyst forecasts on Vesuvius stock, see the GB:VSVS Stock Forecast page.

Vesuvius Faces Persistent Market Challenges, Maintains Profit Expectations

Vesuvius plc reported that challenging market conditions have persisted, leading to an anticipated trading profit of approximately £77 million for the first half of 2025, in line with expectations. Despite these conditions, the company has made strong progress in its structural cost reduction program and plans to exceed its recurring cash cost savings target of £45 million by 2028. However, the difficult pricing environment, particularly in Europe and China, is limiting the company’s ability to fully recover labor cost inflation. Vesuvius expects its performance in the second half of the year to mirror the first half, with further progress delayed until 2026.

The most recent analyst rating on (GB:VSVS) stock is a Buy with a £685.00 price target. To see the full list of analyst forecasts on Vesuvius stock, see the GB:VSVS Stock Forecast page.

Vesuvius CFO Engages in Dividend Reinvestment Plan

Vesuvius plc announced a transaction involving its Chief Financial Officer, Mark Collis, who participated in a dividend reinvestment plan. The transaction involved the reinvestment of dividend income into Vesuvius ordinary shares, with a total aggregated volume of 3,371 shares at a price of £3.69 per share, amounting to £12,439. This transaction reflects the company’s ongoing commitment to shareholder value and may influence investor perceptions positively.

The most recent analyst rating on (GB:VSVS) stock is a Buy with a £685.00 price target. To see the full list of analyst forecasts on Vesuvius stock, see the GB:VSVS Stock Forecast page.

Vesuvius plc Successfully Passes All Resolutions at 2025 AGM

At the recent Annual General Meeting (AGM) of Vesuvius plc, all proposed resolutions were approved by shareholders. Key resolutions included the receipt of the Annual Report, declaration of the final dividend, and various re-elections of directors. The approval of these resolutions reflects strong shareholder support for the company’s strategic direction and governance, potentially reinforcing its market position and commitment to delivering value to stakeholders.

The most recent analyst rating on (GB:VSVS) stock is a Buy with a £685.00 price target. To see the full list of analyst forecasts on Vesuvius stock, see the GB:VSVS Stock Forecast page.

Vesuvius Reports Stable Revenue Amid Market Challenges

Vesuvius plc reported that its revenue and trading profit for the period from January to April 2025 were in line with expectations, despite challenging market conditions, particularly in the global steel and foundry sectors. The company achieved market share gains due to technological differentiation and ongoing R&D investments, although trading profit was impacted by increased raw material and labor costs. Vesuvius completed the acquisition of PiroMet and is progressing with its integration. The company anticipates full-year results to be slightly lower than previous guidance due to global industrial activity slowdown and cost inflation challenges.

The most recent analyst rating on (GB:VSVS) stock is a Buy with a £685.00 price target. To see the full list of analyst forecasts on Vesuvius stock, see the GB:VSVS Stock Forecast page.