# Vertu Motors plc (VTU.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Consumer Cyclical / Automobiles. Price 89p, market value 270 millionp.

## Valuation
- **P/E (trailing): 22.2×** (5-yr avg 918.5×, 3-yr avg 1116.7×). Vertu Motors plc trades at 22.2× trailing earnings, well below its own five-year average of 918.5×: cheap by its own standards. The Consumer Cyclical median in the September 2026 study was 19.5×. Forward P/E is 13.8×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 0.0×**. Each dollar of revenue is priced at 0.0×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 0.8×**. The shares trade below book value, which can signal a bargain or a balance sheet the market doubts.
- **EV / EBITDA: 2.5×**. Enterprise value is 2.5× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 29.8%** (5-yr avg 0.2%). Free cash flow equals 29.8% of the market value, above its five-year average of 0.2%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 4.5%**. The inverse of the P/E: 4.5% of the price is earned each year.

## Profitability
- **Gross margin: 10.5%**. Vertu Motors plc keeps 10.5% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 0.8%**. 0.8% of revenue is left after running the business, which leaves little cushion in a downturn.
- **Net margin: 0.3%**. 0.3% of each dollar of sales reaches the bottom line.
- **Return on equity: 4.1%**. 4.1% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 11.4%**. Return on all capital, debt included, is 11.4%.
- **Return on assets: 2.1%**. Each dollar of assets produces 2.1% of profit.

## Growth
- **Revenue growth (1 yr): 1.5%** (3-yr 6.4%/yr, 5-yr 13.7%/yr). Revenue grew 1.5% over the last year, against 13.7% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -15.9%** (3-yr -15.1%/yr, 5-yr -0.3%/yr). Earnings per share fell 15.9%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): -11.8%/yr**. Free cash flow has compounded at -11.8% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.65**. Debt is 0.65 times equity, moderate leverage.
- **Net debt / EBITDA: 0.9×**. It would take 0.9 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 2.5×**. Operating profit covers interest 2.5×, thin but manageable.
- **Current ratio: 1.02** (quick 0.16). Current assets cover the next year's liabilities 1.02 times.
- **Altman Z-score: 3.63**. A Z-score of 3.63 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 2.37%** (0p per share, trailing). Vertu Motors plc yields 2.37%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 44%** (18% of free cash flow). 44% of earnings goes out as dividends, leaving room to keep raising it.
- **Shareholder yield: 9.5%**. Dividends plus net buybacks return 9.5% of the market value a year.

## Analyst view
- **Analyst consensus: strong_buy** (1 analyst). 1 analysts cover Vertu Motors plc; the consensus is strong_buy, with an average price target of 95p (+7% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 46.4%** (YTD 40.7%, 3-mo 21.3%). The shares are up 46.4% over twelve months including dividends.
- **From 52-week high: -4.6%** (61.2% above the low). Trading within 5% of its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 58**. An RSI of 58 is neutral.
- **Beta (1 yr): 0.00** (volatility 31%). Beta of 0.00 against the FTSE All-Share: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=VTU.L · Page: https://foliofundamentals.com/stocks/vtu.l

Not investment advice.