Vesuvius (VSVS) AI Stock Analysis

• Market Cap: £1.12B
• Dividend Yield: 5.97%
• Average Volume (3M): 286.17K
• Price to Earnings (P/E): 16.6
• Beta (1Y): 1.66
• Revenue Growth: -4.27%
• EPS Growth: -28.32%
• Country: UK
• Employees: 11,071
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 0.17
• Shares Outstanding: 248,171,720
• 10 Day Avg. Volume: 241,049
• 30 Day Avg. Volume: 286,174
• PEG Ratio: -0.55
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 0.60
• P/FCF Ratio: 15.58
• 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: £476.67
• Price Target Upside: 3.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: 517.00p ▲(12.49% Upside)

The score is primarily driven by a solid but mixed financial profile: strong operating efficiency and a stable balance sheet are tempered by declining revenue, margin pressure, weakening ROE, and a sharp free-cash-flow drop. Technicals show strong momentum but are overbought, adding near-term risk, while valuation is supported by a moderate P/E and a high dividend yield.

Positive Factors

Operational efficiency

Sustained above-industry EBIT/EBITDA margins indicate structural operational advantages in production and pricing power. Over months this supports cash generation, resilience to cyclical demand swings, and capacity to reinvest in product development and service capabilities.

Conservative balance sheet

A conservative leverage profile provides durable financial flexibility, lowering refinancing risk and enabling strategic capital allocation. This supports funding of maintenance capex, selective M&A or dividends without overreliance on volatile external markets over the medium term.

Strong cash conversion

Efficient conversion of earnings into operating cash flow improves liquidity and funds working capital needs in heavy-industrial end markets. This durable cash conversion underpins the ability to service operations, sustain distribution to shareholders, and invest in productivity enhancements.

Negative Factors

Revenue decline

A persistent revenue decline erodes scale advantages and can reduce bargaining leverage with suppliers and customers. Over several months this weakens top-line-driven investment capacity, pressures unit economics, and raises the bar to restore prior growth and margin trajectories.

Net margin pressure

Falling net margins from cost headwinds signal reduced ability to translate operations into shareholder returns. If structural (raw materials, energy, labor) these pressures can persist for months, undermining ROE and limiting room for reinvestment or sustained dividend increases.

Falling free cash flow and ROE

A sharp FCF decline together with weakening ROE constrains self-funded growth, forces dependence on external financing, and reduces capital available for dividends or buybacks. Over the medium term this can limit strategic options and signal worsening capital efficiency.

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 through the sale of its core products, including refractories and flow control systems, which are essential for high-temperature applications in steelmaking and foundries. The company operates on a revenue model that combines direct sales to industrial clients with long-term supply contracts, ensuring a steady stream of income. Key revenue streams include the sale of consumable products, which are used up in the production process, and the provision of technical services that help optimize clients' operations. Additionally, Vesuvius has formed strategic partnerships with major players in the steel and foundry sectors, enabling them to secure large contracts and expand their market presence. The company also focuses on innovation and product development, which helps to enhance its value proposition and drives additional revenue through differentiated offerings.

Vesuvius Financial Statement Overview

Summary

Operations remain relatively strong with steady gross margin and above-industry EBIT/EBITDA margins, supported by a stable and conservatively leveraged balance sheet. Offsetting this, revenue has declined in the latest period, net margin has fallen due to cost pressures, ROE is trending down, and free cash flow dropped significantly.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.79B	1.82B	1.93B	2.05B	1.64B	1.46B
Gross Profit	471.40M	503.70M	537.90M	561.10M	410.40M	363.70M
EBITDA	230.40M	233.00M	270.10M	289.60M	198.80M	141.80M
Net Income	70.30M	87.20M	118.50M	181.10M	102.10M	41.30M
Balance Sheet
Total Assets	2.32B	2.29B	2.28B	2.33B	2.13B	2.05B
Cash, Cash Equivalents and Short-Term Investments	164.40M	186.40M	164.20M	184.20M	169.10M	209.70M
Total Debt	615.40M	520.20M	402.20M	441.90M	443.70M	378.10M
Total Liabilities	1.16B	1.05B	962.00M	1.01B	1.03B	919.10M
Stockholders Equity	1.08B	1.17B	1.25B	1.26B	1.04B	1.08B
Cash Flow
Free Cash Flow	42.70M	70.60M	123.90M	123.20M	700.00K	114.30M
Operating Cash Flow	114.90M	158.70M	216.50M	212.40M	46.20M	154.80M
Investing Cash Flow	-101.20M	-95.40M	-86.20M	-88.30M	-87.00M	-38.50M
Financing Cash Flow	-22.60M	-40.50M	-128.30M	-105.20M	-800.00K	-127.10M

Vesuvius Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 459.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 459.6 is above the 20-day moving average (MA) of 437.43, above the 50-day MA of 406.77, and above the 200-day MA of 375.42, indicating a bullish trend. The MACD of 18.55 indicates Negative momentum. The RSI at 65.66 is Neutral, neither overbought nor oversold. The STOCH value of 65.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:VSVS.

Vesuvius Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VCT	70 Outperform	£570.88M	20.49	6.22%	9.48%	0.58%	61.58%
VSVS	66 Neutral	£1.12B	16.61	6.19%	5.97%	-4.27%	-28.32%
ELM	64 Neutral	£918.27M	-16.32	3.37%	1.34%	-11.78%	-92.61%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
BA05	47 Neutral	£632.65M	―	―	608.88%	―	―