V2X INC (VVX) Stock Fundamental Analysis
NYSE:VVX - New York Stock Exchange, Inc. - US92242T1016 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to VVX. VVX was compared to 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year VVX was profitable.
In the past year VVX had a positive cash flow from operations.
In multiple years VVX reported negative net income over the last 5 years.
Each year in the past 5 years VVX had a positive operating cash flow.
1.2 Ratios
VVX's Return On Assets of 1.34% is in line compared to the rest of the industry. VVX outperforms 41.54% of its industry peers.
Looking at the Return On Equity, with a value of 4.02%, VVX is in line with its industry, outperforming 50.77% of the companies in the same industry.
VVX has a Return On Invested Capital of 6.52%. This is comparable 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 3 year average ROIC (4.94%) for VVX is below the current ROIC(6.52%), indicating increased profibility in the last year.
| 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
With a Profit Margin value of 0.96%, VVX is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
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 Gross Margin of 8.11%. This is amonst the worse of the industry: VVX underperforms 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.
The number of shares outstanding for VVX has been increased compared to 1 year ago.
VVX has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, VVX has an improved debt to assets ratio.
2.2 Solvency
VVX has an Altman-Z score of 2.16. This is not the best score and indicates that VVX is in the grey zone with still 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.
VVX has a debt to FCF ratio of 5.30. This is a neutral value as VVX would need 5.30 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.30, VVX is in the better half of the industry, outperforming 70.77% of the companies in the same industry.
VVX has a Debt/Equity ratio of 1.05. This is a high value indicating a heavy dependency on external 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.
The Current ratio of VVX (1.16) is worse 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
The Earnings Per Share has grown by an impressive 1175.00% over the past year.
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.
VVX shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 25.61% yearly.
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
Based on estimates for the next years, VVX will show a very strong growth in Earnings Per Share. The EPS will grow by 51.73% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 35.08 indicates a quite expensive valuation of VVX.
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.
The average S&P500 Price/Earnings ratio is at 26.60. VVX is valued slightly more expensive when compared to this.
A Price/Forward Earnings ratio of 12.36 indicates a correct valuation of VVX.
Based on the Price/Forward Earnings ratio, VVX is valued cheaper than 96.92% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.39. VVX is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.08 | ||
| Fwd PE | 12.36 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VVX indicates a rather cheap valuation: VVX is cheaper than 100.00% of the companies listed in the same industry.
100.00% of the companies in the same industry are more expensive than VVX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.85 | ||
| EV/EBITDA | 8.57 |
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 |
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 | 8.57 |
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%