Ventia Services Group Ltd VNT

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A$3.73 +0.02 (0.40%)

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As of Apr 24, 2024 4:45am Delayed Price Open

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Company Report

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Ventia Delivering Strong Earnings Growth, With More to Come

Mark Taylor Feb 21, 2024

Ventia is a leading infrastructure maintenance services provider in Australia and New Zealand. Through developing strategic relationships and a focus on safety, Ventia has built trust to deliver highly sensitive and complex projects across its sectors. Revenue has a visible stability with 70%-80% of Ventia’s next 12 months of revenue historically supported by work in hand. Work in hand as at July 2021 stood at AUD 15.5 billion.

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Price vs Fair Value

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VNT is trading at a 13% discount.

Price

A$3.71

Apr 23, 2024

Fair Value

A$4.68

Feb 21, 2024

Uncertainty

Medium

1-Star Price: A$6.32
5-Star Price: A$9.52
Economic Moat: Dkwvg
Capital Allocation: Yrvbnkw

Bulls Say, Bears Say

Bulls

The maintenance services market is expected to grow strongly, supported by the fair winds of population growth, rising outsourcing rates, and increasingly stringent environmental regulation.

Bears

Ventia’s markets are fragmented, with a diverse range of service providers, making it difficult to drive home competitive advantage comprehensively.

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Trading Information

Previous Close Price: A$3.71
Day Range: A$3.71–3.76
52-Week Range: A$2.43–3.99
Bid/Ask: A$3.72 / A$3.73
Market Cap: A$3.19 Bil
Volume/Avg: 684,850 / 3.4 Mil

Key Statistics

Price/Earnings (Normalized): 16.46
Price/Sales: 0.56
Dividend Yield (Trailing): 4.78%
Dividend Yield (Forward): 4.78%
Total Yield: 4.78%

Company Profile

While Ventia is not the largest player with an estimated 7.5% share of addressable markets, it is a leading infrastructure maintenance services provider in Australia and New Zealand. Its capabilities span the full asset lifecycle including operations and maintenance, facilities management, minor capital works, environmental services, and other solutions. And its business model is favorably capital-light via flexing of a large contractor base complementing a deep pool of talented employees. Ventia has long-term relationships with a diverse range of public and private sector clients with many client relationships maintained for decades. Contracts are favorably long with an average five-year duration at inception and most containing some form of embedded price escalation.

Sector: Industrials
Industry: Infrastructure Operations
Stock Style Box: Mid Core
Total Number of Employees: —
Website: https://www.ventia.com

Competitors

Sodexo

SW

Valuation

Metric	VNT	SW
Price/Earnings (Normalized)	16.46	16.31
Price/Book Value	5.57	2.61
Price/Sales	0.56	0.51
Price/Cash Flow	10.46	11.83

Price/Earnings

VNT

Financial Strength

Metric	VNT	SW
Quick Ratio	0.96	1.11
Current Ratio	1.05	1.22
Interest Coverage	5.75	5.65

Quick Ratio

VNT

Profitability

Metric	VNT	SW
Return on Assets (Normalized)	6.59%	5.08%
Return on Equity (Normalized)	35.45%	22.19%
Return on Invested Capital (Normalized)	16.01%	9.76%

Return on Assets

VNT

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