V2X INC (VVX) Stock Fundamental Analysis
NYSE:VVX - New York Stock Exchange, Inc. - US92242T1016 - Common Stock - Currency: USD
Overall VVX gets a fundamental rating of 4 out of 10. We evaluated VVX against 65 industry peers in the Aerospace & Defense industry. Both the profitability and financial health of VVX have multiple concerns. VVX has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year VVX was profitable.
VVX had a positive operating cash flow in the past year.
In multiple years VVX reported negative net income over the last 5 years.
In the past 5 years VVX always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 1.34%, VVX perfoms like the industry average, outperforming 41.54% of the companies in the same industry.
VVX has a Return On Equity (4.02%) which is comparable to the rest of the industry.
VVX's Return On Invested Capital of 6.52% is in line compared to the rest of the industry. VVX outperforms 60.00% of its industry peers.
VVX had an Average Return On Invested Capital over the past 3 years of 4.94%. This 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 has a worse Profit Margin (0.96%) than 60.00% of its industry peers.
VVX's Profit Margin has declined in the last couple of years.
VVX has a Operating Margin of 3.77%. This is in the lower half of the industry: VVX underperforms 60.00% of its industry peers.
VVX's Operating Margin has been stable in the last couple of years.
VVX has a worse Gross Margin (8.11%) than 83.08% of its industry peers.
In the last couple of years the Gross Margin of VVX has declined.
| 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
VVX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
VVX has more shares outstanding than it did 1 year ago.
The number of shares outstanding for VVX has been increased compared to 5 years ago.
Compared to 1 year ago, VVX has an improved debt to assets ratio.
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.
VVX has a Altman-Z score of 2.16. This is in the lower half of the industry: VVX underperforms 67.69% of its industry peers.
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.
A Debt/Equity ratio of 1.05 is on the high side and indicates that VVX has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.05, VVX is doing worse than 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 5.3 | ||
| Altman-Z | 2.16 |
ROIC/WACC0.55
WACC11.85%
2.3 Liquidity
VVX has a Current Ratio of 1.16. This is a normal value and indicates that VVX is financially healthy and should not expect problems in meeting its short term obligations.
VVX has a Current ratio of 1.16. This is amonst the worse of the industry: VVX underperforms 80.00% of its industry peers.
VVX has a Quick Ratio of 1.10. This is a normal value and indicates that VVX is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.10, VVX is not doing good in the industry: 64.62% of the companies in the same industry are doing better.
| 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.
VVX shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -18.59% yearly.
VVX shows a small growth in Revenue. In the last year, the Revenue has grown by 7.38%.
The Revenue has been growing by 25.61% on average over the past years. This is a very strong growth!
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
The Earnings Per Share is expected to grow by 51.73% on average over the next years. This is a very strong growth
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
VVX is valuated quite expensively with a Price/Earnings ratio of 35.08.
Based on the Price/Earnings ratio, VVX is valued a bit cheaper than the industry average as 67.69% of the companies are valued more expensively.
VVX's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.60.
The Price/Forward Earnings ratio is 12.36, which indicates a correct valuation of VVX.
Based on the Price/Forward Earnings ratio, VVX is valued cheaply inside the industry as 96.92% of the companies are valued more expensively.
VVX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.08 | ||
| Fwd PE | 12.36 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VVX is valued cheaper than 100.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VVX indicates a rather cheap valuation: VVX is cheaper than 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.85 | ||
| EV/EBITDA | 8.53 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as VVX's earnings are expected to grow with 83.62% in the coming years.
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 |
45.25
+0.4 (+0.89%)
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 Cap1.43B
Analysts76
Price Target63.98 (41.39%)
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 | 35.08 | ||
| Fwd PE | 12.36 | ||
| P/S | 0.33 | ||
| P/FCF | 6.85 | ||
| P/OCF | 6.64 | ||
| P/B | 1.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.53 |
EPS(TTM)1.29
EY2.85%
EPS(NY)3.66
Fwd EY8.09%
FCF(TTM)6.61
FCFY14.6%
OCF(TTM)6.82
OCFY15.07%
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
WACC11.85%
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%