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Vicor Corporation (NASDAQ:VICR) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of VICR, it is a financially-robust company with a great history and an optimistic future outlook. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Vicor here.
Solid track record with excellent balance sheet
VICR delivered a triple-digit bottom-line expansion over the past couple of years, with its most recent earnings level surpassing its average level over the last five years. In addition to beating its historical values, VICR also outperformed its industry, which delivered a growth of 34%. This is what investors like to see!
VICR’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that VICR has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. VICR appears to have made good use of debt, producing operating cash levels of 7.88x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
For Vicor, I’ve compiled three essential aspects you should further examine:
- Valuation: What is VICR worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether VICR is currently mispriced by the market.
- Dividend Income vs Capital Gains: Does VICR return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from VICR as an investment.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of VICR? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.