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Victoria PLC (GB:VCP)
LSE:VCP

Victoria (VCP) AI Stock Analysis

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GB

Victoria

(LSE:VCP)

40Underperform
Victoria PLC is currently facing significant financial challenges, with declining revenues, high debt levels, and cash flow constraints. The technical analysis suggests a bearish trend, though potential oversold conditions might offer some room for recovery. Valuation metrics indicate a lack of profitability and no dividend yield, reducing immediate investor appeal. Recent management changes could provide strategic benefits, but financial and operational improvements are crucial for a turnaround.

Victoria (VCP) vs. S&P 500 (SPY)

Victoria Business Overview & Revenue Model

Company DescriptionVictoria (VCP) is a leading global manufacturer and distributor of premium flooring products. The company operates across various sectors, including residential and commercial flooring, providing a wide range of products such as carpets, tiles, and luxury vinyl flooring. With a commitment to sustainability and innovation, Victoria delivers high-quality solutions tailored to meet diverse customer needs.
How the Company Makes MoneyVictoria (VCP) generates revenue primarily through the sale of its flooring products. The company's key revenue streams include direct sales to retailers, wholesalers, and end consumers, as well as partnerships with commercial builders and developers. Victoria's strategic focus on innovation and sustainability enhances its product offerings, allowing the company to maintain competitive pricing and customer loyalty. Additionally, Victoria leverages its global distribution network to expand market reach, further contributing to its earnings.

Victoria Financial Statement Overview

Summary
Victoria faces significant financial challenges, evidenced by declining revenues, negative profitability, and high leverage. The balance sheet reflects financial instability with negative equity, while cash flow issues highlight potential liquidity constraints. These factors collectively suggest a need for strategic improvements to stabilize the financial position.
Income Statement
45
Neutral
The company's revenue has declined in the recent year, with a negative net income indicating a lack of profitability. The gross profit margin is moderate, but the negative EBIT margin and net profit margin suggest operational inefficiencies. The revenue growth rate has been inconsistent, with recent declines posing a risk to financial stability.
Balance Sheet
30
Negative
The balance sheet shows a high debt-to-equity ratio, indicating significant leverage and potential financial risk. Stockholders' equity is negative, reflecting financial instability and potential liquidity issues. The equity ratio is also unfavorable, highlighting concerns about the company's ability to cover its obligations with its assets.
Cash Flow
40
Negative
Cash flow analysis reveals a negative free cash flow, which poses a challenge for sustaining operations without external financing. The operating cash flow to net income ratio is not applicable due to negative net income, further emphasizing cash flow constraints.
Breakdown
Mar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
1.27B1.48B1.02B662.30M621.50M
Gross Profit
390.80M402.30M324.60M208.10M201.40M
EBIT
-51.80M72.80M67.90M40.80M40.00M
EBITDA
66.90M91.90M142.60M124.60M37.50M
Net Income Common Stockholders
-108.00M-91.80M-12.40M2.80M-71.80M
Balance SheetCash, Cash Equivalents and Short-Term Investments
94.80M93.30M273.60M348.80M176.80M
Total Assets
1.63B1.87B1.64B1.35B1.20B
Total Debt
934.80M1.20B984.70M834.80M625.30M
Net Debt
840.00M1.11B711.10M486.00M448.50M
Total Liabilities
1.65B1.75B1.44B1.15B959.30M
Stockholders Equity
-22.20M119.00M202.60M208.20M240.60M
Cash FlowFree Cash Flow
-7.30M-10.50M14.80M29.00M31.50M
Operating Cash Flow
55.20M89.10M68.10M57.50M65.30M
Investing Cash Flow
-38.10M-218.60M-188.60M-45.70M-53.20M
Financing Cash Flow
-17.90M-41.10M30.40M163.00M100.00M

Victoria Technical Analysis

Technical Analysis Sentiment
Negative
Last Price88.40
Price Trends
50DMA
108.25
Negative
100DMA
89.31
Negative
200DMA
116.55
Negative
Market Momentum
MACD
-4.32
Negative
RSI
41.21
Neutral
STOCH
31.71
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:VCP, the sentiment is Negative. The current price of 88.4 is below the 20-day moving average (MA) of 92.53, below the 50-day MA of 108.25, and below the 200-day MA of 116.55, indicating a bearish trend. The MACD of -4.32 indicates Negative momentum. The RSI at 41.21 is Neutral, neither overbought nor oversold. The STOCH value of 31.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:VCP.

Victoria Peers Comparison

Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
59
Neutral
$12.24B11.04-1.00%3.78%1.30%-19.54%
GBTPT
47
Neutral
£64.90M-90.54%7.27%-4.17%-506.75%
41
Neutral
£71.42M-12.15%11.23%-9.66%-425.03%
GBVCP
40
Underperform
£106.52M486.49%-11.73%-62.35%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:VCP
Victoria
88.40
-166.60
-65.33%
GB:HEAD
Headlam
86.00
-82.65
-49.01%
GB:TPT
Topps Tiles
33.00
-8.51
-20.50%

Victoria Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Victoria PLC Announces CFO Transition with Appointment of Alec Pratt
Positive
Mar 17, 2025

Victoria PLC has announced the appointment of Alec Pratt as the new Chief Financial Officer (CFO) Designate, succeeding Brian Morgan in June. Alec Pratt, who brings extensive experience from his previous roles at Deutsche Bank and J.P. Morgan, is expected to enhance Victoria’s management team and contribute significantly to the company’s continued growth and operational efficiency. This transition is part of Victoria’s broader strategy to strengthen its leadership and maintain its position as a leading player in the international flooring industry.

Executive/Board ChangesBusiness Operations and Strategy
Victoria PLC Announces New CFO Appointment
Positive
Mar 17, 2025

Victoria PLC has announced the appointment of Alec Pratt as the new Chief Financial Officer, succeeding Brian Morgan in June. Alec Pratt brings extensive experience from Deutsche Bank and other financial institutions, which is expected to bolster Victoria’s growth and operational efficiency. The transition is part of Victoria’s strategic plan to enhance its management team and continue its trajectory of growth in the international flooring market.

Business Operations and StrategyRegulatory Filings and Compliance
Victoria PLC Announces Change in Major Shareholdings
Neutral
Feb 5, 2025

Victoria PLC, a UK-based company, has announced a change in major shareholdings. The notification, submitted on February 4, 2025, reveals that Saqib Karim has increased his voting rights in the company to 7.00726911%, up from a previous position of 6.12770335%. This adjustment in shareholding reflects a strategic investment decision by Karim, potentially impacting the company’s governance and signaling confidence in its future prospects.

Business Operations and StrategyRegulatory Filings and Compliance
Morgan Stanley Reduces Stake in Victoria PLC
Neutral
Feb 4, 2025

Victoria PLC has disclosed a change in voting rights, with Morgan Stanley Investment Management Inc. decreasing its stake from 14.178500% to 13.915626% as of January 30, 2025. This adjustment in holdings might influence the company’s shareholder dynamics and potentially its decision-making processes, reflecting Morgan Stanley’s strategic portfolio management.

Morgan Stanley Increases Stake in Victoria PLC
Jan 10, 2025

Victoria PLC, a UK-based company, has recently experienced a change in its shareholder structure. Morgan Stanley Investment Management Inc. has increased its voting rights in Victoria PLC, crossing the threshold on January 8, 2025. This acquisition raises Morgan Stanley’s voting rights in the company from 13.018374% to 14.178500%, potentially influencing the company’s decision-making and strategy.

Victoria PLC Announces Change in Major Shareholdings
Jan 8, 2025

Victoria PLC, a UK-based company, has announced a change in its major holdings. The notification reveals that Saqib Karim has crossed the threshold of ownership, now holding 6.12770335% of the voting rights, up from a previous position of 5.26298178%. This alteration in holdings could indicate a shift in shareholder influence and potential strategic changes in company governance.

Victoria PLC Reports Positive Trading Outlook and Board Change
Jan 8, 2025

Victoria PLC has announced a positive trading update for the year ending March 2025, expecting second-half trading to be strengthened by management actions and a slight improvement in demand. The company has successfully reduced its fixed cost base by £12 million and plans further savings of £20 million annually, with anticipated earnings improvements of £32 million in FY2026 and cumulative cost savings of over £80 million by FY2027. These measures, along with increased operational leverage and a correlation with rising housing transactions, are expected to enhance financial performance in the next two years. Additionally, Victoria PLC appointed Joe Scribbins as a Non-Executive Director following the departure of Blake Ressel. Scribbins, who brings significant operational expertise from Koch Equity Development, expresses confidence in optimizing Victoria’s earnings despite current soft demand, reinforcing the company’s strong market position and future growth potential.

Victoria PLC Projects Stronger Trading and Announces Board Changes
Jan 8, 2025

Victoria PLC announced its trading and outlook update for the year ending March 30, 2025, indicating that while consumer demand remains subdued, the company expects stronger trading in the second half of the year. The company attributes this to management actions and a slight improvement in demand, projecting full-year earnings to align with market expectations. Significant cost-saving measures are underway, expected to yield substantial financial benefits in future years. Additionally, Joe Scribbins was appointed as a Non-Executive Director following the resignation of Blake Ressel, with the new director expected to contribute operational expertise to Victoria’s ongoing projects aimed at maximizing earnings.

Morgan Stanley Increases Stake in Victoria PLC
Jan 7, 2025

Victoria PLC announced a change in their major holdings, with Morgan Stanley Investment Management Inc. increasing its voting rights stake from 12.5154% to 13.0184% as of January 3, 2025. This adjustment in holdings reflects a potential strategic move for Morgan Stanley, indicating its increased influence and confidence in Victoria PLC’s future performance, which could impact the company’s shareholder dynamics and market perception.

Victoria PLC Director Increases Stake with Significant Share Purchase
Jan 2, 2025

Victoria PLC announced that Gavin Petken, a Non-Executive Director, has purchased 255,099 ordinary shares, bringing his total holding to 263,115 shares, representing 0.23% of the company’s issued share capital. This transaction reflects a strategic investment by a key company executive, potentially indicating confidence in the company’s continued growth and stability within the flooring industry.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.