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Vesuvius
(LSE:VSVS)
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Rating:58Neutral
Price Target:
486.00 p
▲(25.06% Upside)
Action:Reiterated
Date:09/30/26
The score is held back mainly by weakening financial performance trends (margin compression, softer cash conversion, and rising leverage) despite continued profitability. Technicals are supportive due to a strong uptrend, but the stock appears overbought, adding near-term risk. Valuation looks demanding on earnings (high P/E), though the dividend yield helps. The latest earnings call was a positive offset, with slightly better FY2026 profit guidance and notably stronger H1 cash conversion and deleveraging, tempered by operational and pricing headwinds.
Positive Factors
Foundry growth and acquisition integration
Foundry is showing strong organic and integration-led momentum, with revenue and profit growth materially ahead of the group. Successful MMS integration and expected synergies can strengthen the division’s earnings contribution and support more diversified, durable growth.
Negative Factors
Long-term margin and earnings deterioration
The multiyear decline in profitability is more concerning than a single weak period because it suggests pressure from pricing, mix, costs, or end markets. Persistently lower margins reduce earnings capacity and make it harder to achieve management’s longer-term margin ambitions.
Read all positive and negative factors
Positive Factors
Negative Factors
Foundry growth and acquisition integration
Foundry is showing strong organic and integration-led momentum, with revenue and profit growth materially ahead of the group. Successful MMS integration and expected synergies can strengthen the division’s earnings contribution and support more diversified, durable growth.
Read all positive factors
Vesuvius (VSVS) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£1.13B
Dividend Yield5.16%
Average Volume (3M)697.85K
Price to Earnings (P/E)29.6
Beta (1Y)1.31
Revenue Growth1.89%
EPS Growth-44.49%
CountryUK
Employees11,116
SectorBasic Materials
Sector Strength58
IndustryManufacturing - Miscellaneous
Share Statistics
EPS (TTM)0.15
Shares Outstanding248,171,720
10 Day Avg. Volume1,345,234
30 Day Avg. Volume697,852
Financial Highlights & Ratios
PEG Ratio-0.49
Price to Book (P/B)0.87
Price to Sales (P/S)0.54
P/FCF Ratio24.89
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£476.43Price Target Upside22.60% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)0.32
Revenue Forecast (FY)£1.47B
Vesuvius Business Overview & Revenue Model
Company Description
Vesuvius plc, established in 1916 and headquartered in London, United Kingdom, is a global engineering firm delivering specialized services and solutions primarily to the steel and foundry industries. The company operates through its dedicated Ste...
How the Company Makes Money
Vesuvius makes money primarily by selling products and solutions used in customers’ molten-metal production and casting processes, with a large share of revenue coming from recurring, high-throughput consumables that must be replaced regularly due...
Vesuvius Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Mar 04, 2027
Earnings Call Sentiment Positive
The call presented a predominantly positive strategic and financial picture: strong cash generation, improved leverage, clear recovery in the Foundry division (MMS integration success), ongoing structural cost savings ahead of plan, and favorable structural steel market dynamics outside China. These positives were partially offset by identifiable short-term operational disruptions (US supplier/maintenance issues and India ramp-up) and pricing pressure in European Advanced Refractories, which depressed near-term performance by an estimated single-digit millions and created temporary market-share and revenue timing effects. Management communicated concrete remediation actions with timelines (resolution expected by year-end and structural benefits into 2027), supporting confidence in longer-term targets (including 12.5% margin ambition). On balance, the highlights (cash, deleveraging, Foundry strength, cost savings, innovation and favorable market trends) outweigh the transitory lowlights tied to operational issues and regional pricing pressure.Positive Updates
Revenue Resilience
Group revenue increased by 1.5% on a constant currency basis for H1 2026 despite operational disruptions, supported by positive pricing (~GBP 21m) that more than offset a GBP 16m volume decline.
Negative Updates
Operational Disruptions in Steel Division
Three identified U.S. operational issues (supplier graphite quality defect affecting Charleston/isostatic supply, deficient maintenance in two U.S. plants, loss of process expertise) plus ramp-up difficulties in the new Vizag plant in India. Management estimates these impacted results by ~GBP 6m (U.S.) + GBP 2m (Vizag) and ~GBP 8m overall to the Steel Division in H1.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Resilience
Group revenue increased by 1.5% on a constant currency basis for H1 2026 despite operational disruptions, supported by positive pricing (~GBP 21m) that more than offset a GBP 16m volume decline.
Read all positive updates
Company Guidance
Vesuvius guided that full‑year 2026 trading profit should be slightly ahead of 2025 on a constant‑currency basis, supported by resolution of H1 operational issues (Steel Division H1 impact ~£8m — c.£6m US + c.£2m India — expected to abate through H2 and disappear by 2027) and a structurally improving steel market (steel production ex China/Russia/Iran/Ukraine +3.8% H1); H1 metrics include revenue +1.5% cc, trading profit £74m (broadly flat y/y cc), return on sales down ~10bp, headline EPS 16.3p (‑0.7% cc) and an interim dividend of 7.1p; financial guidance/targets include an underlying tax rate of ~27% for ’26 and beyond, FY26 capex increased to £75–80m, year‑end leverage to remain around 2x (net debt/EBITDA ~1.9 pro forma), H1 free cash flow +£41.4m to £27.5m with cash conversion 81% (vs 33% prior), working‑capital intensity down from 23.6% to 23.1% (long‑term target 21%), and structural cost savings of £7.4m in H1 with a minimum £55m target by 2028 (FY26 cash cost to achieve £10–12m; H1 non‑cash impairments £10.4m).Vesuvius Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
64
Positive
Cash Flow
46
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.82B | 1.81B | 1.82B | 1.93B | 2.05B | 1.64B |
| Gross Profit | 453.00M | 450.10M | 503.70M | 537.90M | 561.10M | 410.40M |
| EBITDA | 213.40M | 198.70M | 233.00M | 270.10M | 289.60M | 198.80M |
| Net Income | 38.20M | 52.20M | 87.20M | 118.50M | 181.10M | 102.10M |
Balance Sheet | ||||||
| Total Assets | 2.49B | 2.41B | 2.29B | 2.28B | 2.33B | 2.13B |
| Cash, Cash Equivalents and Short-Term Investments | 226.50M | 190.60M | 186.40M | 164.20M | 184.20M | 169.10M |
| Total Debt | 655.60M | 641.90M | 520.20M | 402.20M | 441.90M | 443.70M |
| Total Liabilities | 1.22B | 1.17B | 1.05B | 962.00M | 1.01B | 1.03B |
| Stockholders Equity | 1.15B | 1.12B | 1.17B | 1.25B | 1.26B | 1.04B |
Cash Flow | ||||||
| Free Cash Flow | 83.90M | 39.40M | 70.60M | 123.90M | 123.20M | 700.00K |
| Operating Cash Flow | 163.90M | 117.50M | 158.70M | 216.50M | 212.40M | 46.20M |
| Investing Cash Flow | -106.60M | -118.70M | -95.40M | -86.20M | -88.30M | -87.00M |
| Financing Cash Flow | 11.00M | 20.20M | -40.50M | -128.30M | -105.20M | -800.00K |
Vesuvius Technical Analysis
Positive
388.60
Price Trends
394.99
Positive
415.43
Positive
416.68
Positive
Market Momentum
21.77
Negative
66.26
Neutral
58.76
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 388.6 is below the 20-day moving average (MA) of 417.42, below the 50-day MA of 394.99, and below the 200-day MA of 416.68, indicating a bullish trend. The MACD of 21.77 indicates Negative momentum. The RSI at 66.26 is Neutral, neither overbought nor oversold. The STOCH value of 58.76 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | £806.61M | -40.96 | -4.95% | 2.85% | -1.24% | -166.15% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | £1.03B | 18.53 | 11.29% | 1.84% | -11.73% | ― | |
58 Neutral | £1.13B | 29.62 | 3.36% | 5.16% | 1.89% | -44.49% | |
52 Neutral | £793.31M | 9.06 | 6.30% | 827.07% | ― | ― |
* Basic Materials Sector Average
GB:VSVS
Vesuvius
457.00
112.27
32.57%
GB:ELM
Elementis
181.00
20.81
12.99%
GB:VCT
Victrex
942.00
351.81
59.61%
GB:BA05
Morgan Advanced Materials
66.50
-12.25
-15.56%
Vesuvius Corporate Events
Business Operations and StrategyM&A Transactions
Vesuvius Confirms Ongoing RHI Magnesita Pursuit as Board Weighs Latest 551p Approach
Neutral
Sep 29, 2026
Vesuvius plc has confirmed that it has received a series of unsolicited, non-binding proposals from RHI Magnesita N.V. since September 2025 regarding a possible takeover of the entire share capital. The latest approach, received on 27 August 2026,...
Executive/Board ChangesRegulatory Filings and Compliance
Vesuvius Executives Exercise Share Awards and Disclose Equity Transactions
Neutral
Jul 31, 2026
Vesuvius plc has reported share transactions by its top executives, detailing the exercise of awards under the Vesuvius Share Plan granted in 2023 and associated dividend equivalent shares. The notifications concern Chief Executive Officer Patrick...
Business Operations and StrategyDividendsFinancial Disclosures
Vesuvius H1 2026 Profit Hit by Steel Division Issues as Foundry and Cash Flow Strengthen
Neutral
Jul 30, 2026
Vesuvius reported a marginal rise in first‑half 2026 revenue, with adjusted sales edging up at constant currency and free cash flow swinging sharply positive, helping to reduce leverage. Statutory operating profit and earnings fell, however,...
Business Operations and StrategyFinancial Disclosures
Vesuvius flags H1 operational issues but sees 2026 profit edging past 2025
Neutral
Jul 27, 2026
Vesuvius plc reported that trading profit for the first half of 2026 is expected to be around £74m, reflecting ongoing operational issues in its Steel division and a challenging market for Advanced Refractories, particularly in Europe. The co...
DividendsRegulatory Filings and Compliance
Vesuvius CFO Increases Stake Through Dividend Reinvestment Plan
Positive
Jul 8, 2026
Vesuvius plc has disclosed that its Chief Financial Officer, Mark Collis, has participated in the company’s dividend reinvestment plan, with dividend income automatically used to purchase additional ordinary shares in Vesuvius. The evergreen...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.