V2X INC (VVX) Stock Fundamental Analysis
NYSE:VVX - New York Stock Exchange, Inc. - US92242T1016 - Common Stock - Currency: USD
VVX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 65 industry peers in the Aerospace & Defense industry. VVX has a bad profitability rating. Also its financial health evaluation is rather negative. VVX has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
VVX had positive earnings in the past year.
In the past year VVX had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: VVX reported negative net income in multiple years.
In the past 5 years VVX always reported a positive cash flow from operatings.
1.2 Ratios
VVX has a Return On Assets (1.34%) which is in line with its industry peers.
VVX has a Return On Equity (4.02%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 6.52%, VVX is in line with its industry, outperforming 60.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for VVX is below the industry average of 8.39%.
The last Return On Invested Capital (6.52%) for VVX is above the 3 year average (4.94%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.34% | ||
| ROE | 4.02% | ||
| ROIC | 6.52% |
ROA(3y)-0.03%
ROA(5y)1.88%
ROE(3y)-0.11%
ROE(5y)4.97%
ROIC(3y)4.94%
ROIC(5y)6.45%
1.3 Margins
VVX's Profit Margin of 0.96% is on the low side compared to the rest of the industry. VVX is outperformed by 60.00% of its industry peers.
In the last couple of years the Profit Margin of VVX has declined.
The Operating Margin of VVX (3.77%) is worse than 60.00% of its industry peers.
In the last couple of years the Operating Margin of VVX has remained more or less at the same level.
VVX has a worse Gross Margin (8.11%) than 83.08% of its industry peers.
VVX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.77% | ||
| PM (TTM) | 0.96% | ||
| GM | 8.11% |
OM growth 3Y1.95%
OM growth 5Y0.53%
PM growth 3Y-32.09%
PM growth 5Y-19.69%
GM growth 3Y-4.08%
GM growth 5Y-3.04%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VVX is destroying value.
VVX has more shares outstanding than it did 1 year ago.
VVX has more shares outstanding than it did 5 years ago.
The debt/assets ratio for VVX has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.16 indicates that VVX is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.16, VVX is doing worse than 67.69% of the companies in the same industry.
The Debt to FCF ratio of VVX is 5.30, which is a neutral value as it means it would take VVX, 5.30 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of VVX (5.30) is better than 70.77% of its industry peers.
VVX has a Debt/Equity ratio of 1.05. This is a high value indicating a heavy dependency on external financing.
VVX's Debt to Equity ratio of 1.05 is on the low side compared to the rest of the industry. VVX is outperformed by 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 5.3 | ||
| Altman-Z | 2.16 |
ROIC/WACC0.55
WACC11.91%
2.3 Liquidity
A Current Ratio of 1.16 indicates that VVX should not have too much problems paying its short term obligations.
VVX has a worse Current ratio (1.16) than 80.00% of its industry peers.
A Quick Ratio of 1.10 indicates that VVX should not have too much problems paying its short term obligations.
The Quick ratio of VVX (1.10) is worse than 64.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
VVX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 1175.00%, which is quite impressive.
Measured over the past years, VVX shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -18.59% on average per year.
Looking at the last year, VVX shows a small growth in Revenue. The Revenue has grown by 7.38% in the last year.
Measured over the past years, VVX shows a very strong growth in Revenue. The Revenue has been growing by 25.61% on average per year.
EPS 1Y (TTM)1175%
EPS 3Y-34.65%
EPS 5Y-18.59%
EPS Q2Q%525%
Revenue 1Y (TTM)7.38%
Revenue growth 3Y34.32%
Revenue growth 5Y25.61%
Sales Q2Q%0.53%
3.2 Future
VVX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 51.73% yearly.
Based on estimates for the next years, VVX will show a small growth in Revenue. The Revenue will grow by 4.81% on average per year.
EPS Next Y146.27%
EPS Next 2Y84.08%
EPS Next 3Y83.62%
EPS Next 5Y51.73%
Revenue Next Year4.49%
Revenue Next 2Y4.64%
Revenue Next 3Y4.41%
Revenue Next 5Y4.81%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 34.83, VVX can be considered very expensive at the moment.
67.69% of the companies in the same industry are more expensive than VVX, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.55, VVX is valued a bit more expensive.
With a Price/Forward Earnings ratio of 12.28, VVX is valued correctly.
VVX's Price/Forward Earnings ratio is rather cheap when compared to the industry. VVX is cheaper than 96.92% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.30, VVX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.83 | ||
| Fwd PE | 12.28 |
4.2 Price Multiples
100.00% of the companies in the same industry are more expensive than VVX, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, VVX is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.8 | ||
| EV/EBITDA | 8.55 |
4.3 Compensation for Growth
VVX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
VVX's earnings are expected to grow with 83.62% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.24
PEG (5Y)N/A
EPS Next 2Y84.08%
EPS Next 3Y83.62%
5. Dividend
5.1 Amount
VVX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
44.93
-0.1 (-0.22%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners56.74%
Inst Owner ChangeN/A
Ins Owners1.16%
Ins Owner Change4.31%
Market Cap1.42B
Analysts76
Price Target63.98 (42.4%)
Short Float %5.78%
Short Ratio4.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-8.4%
Min EPS beat(2)-38.43%
Max EPS beat(2)21.62%
EPS beat(4)2
Avg EPS beat(4)-39.06%
Min EPS beat(4)-211.78%
Max EPS beat(4)72.35%
EPS beat(8)4
Avg EPS beat(8)217.68%
EPS beat(12)4
Avg EPS beat(12)95.72%
EPS beat(16)6
Avg EPS beat(16)68.82%
Revenue beat(2)1
Avg Revenue beat(2)1.09%
Min Revenue beat(2)-2.41%
Max Revenue beat(2)4.58%
Revenue beat(4)3
Avg Revenue beat(4)1.67%
Min Revenue beat(4)-2.41%
Max Revenue beat(4)4.58%
Revenue beat(8)7
Avg Revenue beat(8)2.65%
Revenue beat(12)10
Avg Revenue beat(12)4.06%
Revenue beat(16)14
Avg Revenue beat(16)4.59%
PT rev (1m)-0.43%
PT rev (3m)-5.53%
EPS NQ rev (1m)-31.72%
EPS NQ rev (3m)-39.4%
EPS NY rev (1m)0.45%
EPS NY rev (3m)26.1%
Revenue NQ rev (1m)-2.67%
Revenue NQ rev (3m)-4.59%
Revenue NY rev (1m)-0.33%
Revenue NY rev (3m)-0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.83 | ||
| Fwd PE | 12.28 | ||
| P/S | 0.33 | ||
| P/FCF | 6.8 | ||
| P/OCF | 6.59 | ||
| P/B | 1.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.55 |
EPS(TTM)1.29
EY2.87%
EPS(NY)3.66
Fwd EY8.15%
FCF(TTM)6.61
FCFY14.7%
OCF(TTM)6.82
OCFY15.18%
SpS136.6
BVpS32.7
TBVpS-29.09
PEG (NY)0.24
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.34% | ||
| ROE | 4.02% | ||
| ROCE | 7.3% | ||
| ROIC | 6.52% | ||
| ROICexc | 7.04% | ||
| ROICexgc | 129.09% | ||
| OM | 3.77% | ||
| PM (TTM) | 0.96% | ||
| GM | 8.11% | ||
| FCFM | 4.84% |
ROA(3y)-0.03%
ROA(5y)1.88%
ROE(3y)-0.11%
ROE(5y)4.97%
ROIC(3y)4.94%
ROIC(5y)6.45%
ROICexc(3y)5.33%
ROICexc(5y)7.04%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)5.53%
ROCE(5y)7.22%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-13.68%
ROICexc growth 5Y-10.3%
OM growth 3Y1.95%
OM growth 5Y0.53%
PM growth 3Y-32.09%
PM growth 5Y-19.69%
GM growth 3Y-4.08%
GM growth 5Y-3.04%
F-Score8
Asset Turnover1.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 5.3 | ||
| Debt/EBITDA | 3.93 | ||
| Cap/Depr | 5.88% | ||
| Cap/Sales | 0.16% | ||
| Interest Coverage | 1.75 | ||
| Cash Conversion | 77.89% | ||
| Profit Quality | 502.53% | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 2.16 |
F-Score8
WACC11.91%
ROIC/WACC0.55
Cap/Depr(3y)17.47%
Cap/Depr(5y)33.47%
Cap/Sales(3y)0.44%
Cap/Sales(5y)0.44%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1175%
EPS 3Y-34.65%
EPS 5Y-18.59%
EPS Q2Q%525%
EPS Next Y146.27%
EPS Next 2Y84.08%
EPS Next 3Y83.62%
EPS Next 5Y51.73%
Revenue 1Y (TTM)7.38%
Revenue growth 3Y34.32%
Revenue growth 5Y25.61%
Sales Q2Q%0.53%
Revenue Next Year4.49%
Revenue Next 2Y4.64%
Revenue Next 3Y4.41%
Revenue Next 5Y4.81%
EBIT growth 1Y31.42%
EBIT growth 3Y36.94%
EBIT growth 5Y26.27%
EBIT Next Year98.56%
EBIT Next 3Y31.34%
EBIT Next 5Y22.67%
FCF growth 1Y237.02%
FCF growth 3Y67.6%
FCF growth 5Y84.31%
OCF growth 1Y165.36%
OCF growth 3Y60.67%
OCF growth 5Y55.91%