VMT 1.12% 45.0¢ vmoto limited

Getting Noticed - Top Down Analysis

  1. afd
    1,429 Posts.
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    Hi All

    Read a couple of articles in Rupert's rag on the weekend and was taken with an article about ROE and how it is not 'seen that much'. You may or may not be a fan of that metric but it got me thinking about VMT and 'getting noticed' and with the recent appointment of the IR consultant, it appears that will be dealt with more energetically now that the business / strategic ducks are starting to line up.

    (BTW, if you accept the thesis of the article, an ROE of @10% is good. It will vary from industry to industry of course. I think VMT's '2021' ROE is @17% and getting upto @30% if you, say, back out the cash, but more on that later if this turns into a conversation.)

    Stock pickers are coming into vogue at the moment and so (one assumes) 'outlier companies' will be sought more so than in recent times.But back to VMT ‘getting noticed’

    Lots of different sorts of posters here with lots of research techniques.

    But as a first stab, maybe start with a ‘Top Down’ Analysis - and please DYOR as the data quoted below is not 'official' and based on stuff circa End of June.

    So...............

    If you back out the ETFs and LICs/LITs you have 1992 stocks on the ASX. VMT is ranked 750 (by Market Cap and up from 751 in May - despite its market cap falling @21%).

    Research coverage falls away significantly outside the Top 200 and is almost non-existent for companies below 500.

    Vmt can be categorised as being the $50m-$300m market cap category which accounts for @27% of asx stocks and has listed for 20 years. The average age of companies in its market cap category is 14 years. So at that age and Market Cap it is, broadly speaking, a 'turnaround’.

    Approx 400 (413?) stocks (currently) pay dividends or have an 'active' dividend program. That's 21% of all the listed companies. 121 of the 539 (22%) companies in the $50-$300m market cap category pay dividends.

    VMT has no 'peers'. It is the sole company in the 'Motorcycle Manufacturers' sub-industry. And within the Automobiles and Components (Vmoto’s designated) Industry Group there are only 11.

    VMT is in the Consumer Discretionary Sector which has a total of 142 companies and of those 59 are in the Top 500 (by Market Cap) and therefore notionally in one or more of the Market Cap related indexes. To get into the Top 500, VMT's market Cap would need to increase to @$215m. 58 of the 142 companies in the in the Consumer Discretionary Sector pay dividends.

    It is more broadly in the e-mobility industry and its B2B JVs are largely logistics / ride share providers and the EV movement is demanding attention atm.

    Lot’s of holes in the above analysis but that is sorta a first pass at Top Down Analysis. Even so, put on your IR consultants hat and ask.....“What can we 'play to'? What can we change or ought to change?” based on that. And maybe try to resist going down a level in your thinking / analysis.

    Anyone want to 'play'?

    Cheers

 
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