Vesuvius (VSVS) AI Stock Analysis

• Market Cap: £909.36M
• Dividend Yield: 6.18%
• Average Volume (3M): 286.17K
• Price to Earnings (P/E): 13.3
• 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: £466.67
• Price Target Upside: 20.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: 431.00p ▲(11.54% Upside)

Vesuvius's strong valuation metrics and positive technical indicators are the primary drivers of its overall score. Despite concerns over declining revenue and free cash flow, the company's operational efficiency and attractive dividend yield provide a solid investment case. The absence of earnings call data limits a comprehensive assessment of future guidance and sentiment.

Positive Factors

Operational Efficiency

Vesuvius's strong operational efficiency, as indicated by its superior EBIT and EBITDA margins, suggests effective cost management and competitive strength in its core markets.

Stable Balance Sheet

A stable debt-to-equity ratio reflects Vesuvius's conservative financial management, providing resilience and flexibility to navigate market fluctuations and invest in growth opportunities.

Long-term Client Relationships

Vesuvius's long-term client relationships ensure steady revenue streams and reinforce its market position, enabling sustained business growth and stability in the steel and foundry sectors.

Negative Factors

Declining Revenue Growth

A decline in revenue growth indicates potential challenges in market demand or competitive pressures, which could impact Vesuvius's ability to expand its market share and profitability.

Decreasing Free Cash Flow

The decrease in free cash flow limits Vesuvius's capacity to fund operations and growth internally, potentially increasing reliance on external financing and affecting financial stability.

Declining Net Profit Margin

A declining net profit margin suggests rising costs or pricing pressures, which could erode profitability and necessitate strategic adjustments to maintain financial health.

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

Vesuvius demonstrates strong operational efficiency with EBIT and EBITDA margins above industry averages. However, declining revenue and net income growth, along with a significant decrease in free cash flow, pose challenges. The stable balance sheet provides some resilience, but focus is needed on enhancing revenue streams and managing costs.

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: 386.40
• 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 386.4 is above the 20-day moving average (MA) of 380.13, above the 50-day MA of 375.73, and above the 200-day MA of 364.66, indicating a bullish trend. The MACD of 2.89 indicates Negative momentum. The RSI at 57.59 is Neutral, neither overbought nor oversold. The STOCH value of 78.62 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
ATYM	78 Outperform	£950.12M	15.11	15.06%	0.82%	23.97%	216.41%
VSVS	73 Outperform	£909.36M	13.32	6.19%	6.18%	-4.27%	-28.32%
VCT	69 Neutral	£555.78M	18.71	6.22%	9.22%	0.58%	61.53%
IBST	67 Neutral	£528.08M	43.44	3.10%	2.49%	5.58%	66.49%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
FXPO	57 Neutral	£321.84M	-1.38	-33.39%	―	-5.85%	-413.36%

Vesuvius Corporate Events

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. This transaction involved reinvesting dividend income to purchase ordinary shares of Vesuvius, totaling 304 shares at a price of £3.73 each, amounting to an aggregated total of £1,134. The transaction was conducted on the London Stock Exchange. This move reflects the company’s ongoing commitment to aligning managerial interests with shareholder value, potentially strengthening investor confidence.

Vesuvius CFO Participates in Dividend Reinvestment Plan

Vesuvius plc announced a transaction involving its Chief Financial Officer, Mark Collis, who participated in a dividend reinvestment plan. This transaction, conducted on the London Stock Exchange, involved the reinvestment of dividend income into the purchase of Vesuvius ordinary shares, totaling £5,643. Such transactions reflect the company’s commitment to aligning managerial interests with shareholder value, potentially strengthening investor confidence.