NYSE:VEC

Stock Analysis Report

Executive Summary

Vectrus, Inc. provides facility and logistics, and information technology and network communication services to the U.S.


Snowflake Analysis

Flawless balance sheet and undervalued.


Similar Companies

Share Price & News

How has Vectrus's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: VEC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.4%

VEC

0.3%

US Aerospace & Defense

-1.3%

US Market


1 Year Return

132.2%

VEC

35.0%

US Aerospace & Defense

22.0%

US Market

Return vs Industry: VEC exceeded the US Aerospace & Defense industry which returned 37.9% over the past year.

Return vs Market: VEC exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

VECIndustryMarket
7 Day-0.4%0.3%-1.3%
30 Day11.9%6.1%1.8%
90 Day23.1%9.9%9.3%
1 Year132.2%132.2%37.5%35.0%24.6%22.0%
3 Year147.5%147.5%60.2%51.6%49.2%39.6%
5 Year104.1%104.1%107.0%87.3%77.9%58.3%

Price Volatility Vs. Market

How volatile is Vectrus's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Vectrus undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VEC ($57.51) is trading below our estimate of fair value ($248.81)

Significantly Below Fair Value: VEC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: VEC is good value based on its PE Ratio (19.1x) compared to the Aerospace & Defense industry average (20.7x).

PE vs Market: VEC is poor value based on its PE Ratio (18.8x) compared to the US market (18.8x).


Price to Earnings Growth Ratio

PEG Ratio: VEC is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: VEC is good value based on its PB Ratio (2.7x) compared to the US Aerospace & Defense industry average (2.7x).


Next Steps

Future Growth

How is Vectrus forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

23.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VEC's forecast earnings growth (23.5% per year) is above the savings rate (1.7%).

Earnings vs Market: VEC's earnings (23.5% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: VEC's revenue (12.7% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: VEC's revenue (12.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if VEC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Vectrus performed over the past 5 years?

14.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VEC has high quality earnings.

Growing Profit Margin: VEC's current net profit margins (2.5%) are lower than last year (5.4%).


Past Earnings Growth Analysis

Earnings Trend: VEC's earnings have grown by 14.3% per year over the past 5 years.

Accelerating Growth: VEC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: VEC had negative earnings growth (-48.7%) over the past year, making it difficult to compare to the Aerospace & Defense industry average (13.9%).


Return on Equity

High ROE: VEC's Return on Equity (13.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Vectrus's financial position?


Financial Position Analysis

Short Term Liabilities: VEC's short term assets ($318.4M) exceed its short term liabilities ($250.7M).

Long Term Liabilities: VEC's short term assets ($318.4M) exceed its long term liabilities ($136.4M).


Debt to Equity History and Analysis

Debt Level: VEC's debt to equity ratio (29.5%) is considered satisfactory.

Reducing Debt: VEC's debt to equity ratio has reduced from 206.6% to 29.5% over the past 5 years.

Debt Coverage: VEC's debt is well covered by operating cash flow (81.7%).

Interest Coverage: VEC's interest payments on its debt are well covered by EBIT (8.3x coverage).


Balance Sheet

Inventory Level: VEC has a low level of unsold assets or inventory.

Debt Coverage by Assets: VEC's debt is covered by short term assets (assets are 4.3x debt).


Next Steps

Dividend

What is Vectrus's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate VEC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate VEC's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if VEC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if VEC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of VEC's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Vectrus's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Chuck Prow (60yo)

3.1yrs

Tenure

US$3,157,296

Compensation

Mr. Charles L. Prow, also known as Chuck, serves as a Principal of Sterling Capital Group Partners. Mr. Prow serves as the President of CPS-Professional Services. He has been the Chief Executive Officer an ...


CEO Compensation Analysis

Compensation vs Market: Chuck's total compensation ($USD3.16M) is about average for companies of similar size in the US market ($USD2.53M).

Compensation vs Earnings: Chuck's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

2.8yrs

Average Tenure

53yo

Average Age

Experienced Management: VEC's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

6.0yrs

Average Tenure

65yo

Average Age

Experienced Board: VEC's board of directors are considered experienced (6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$41,43110 Sep 19
William Murdy
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$41.43

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Kevin Boyle (50yo)

    Senior VP

    • Tenure: 1.3yrs
  • Susan Lynch (57yo)

    Senior VP & CFO

    • Tenure: 0.4yrs
  • Mike Smith

    Vice President of Corporate Development & Investor Relations

    • Tenure: 5yrs
  • Bill Noon (54yo)

    Corporate VP & Chief Accounting Officer

    • Tenure: 3.4yrs
  • Chuck Prow (60yo)

    President

    • Tenure: 3.1yrs
    • Compensation: US$3.16m
  • Francis Peloso (49yo)

    Senior VP & Chief Human Resources Officer

    • Tenure: 5.3yrs
  • Kevin Leonard (61yo)

    Senior VP of Army & Expeditionary Programs

    • Tenure: 2.8yrs
    • Compensation: US$677.77k
  • Sue Deagle (50yo)

    Senior VP & Chief Growth Officer

    • Tenure: 2.7yrs
    • Compensation: US$788.27k
  • David Hathaway (52yo)

    Senior Vice President of Programs

    • Tenure: 2.3yrs
    • Compensation: US$887.32k
  • Mario Coracides

    Senior Vice President of Enterprise Vectrus Operations

    • Tenure: 0.5yrs

Board Members

  • Steve Waechter (68yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: US$214.99k
  • Mary Howell (66yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: US$209.99k
  • Bill Murdy (77yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: US$199.99k
  • Brad Boston (65yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: US$209.99k
  • Louis Giuliano (73yo)

    Non-Executive Chairman

    • Compensation: US$300.01k
  • Eric Pillmore (65yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: US$209.99k
  • Phil Widman (64yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: US$199.99k
  • Mel Parker (51yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: US$199.99k
  • Chuck Prow (60yo)

    President

    • Tenure: 3.1yrs
    • Compensation: US$3.16m

Company Information

Vectrus, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Vectrus, Inc.
  • Ticker: VEC
  • Exchange: NYSE
  • Founded: 2014
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: US$653.946m
  • Shares outstanding: 11.51m
  • Website: https://www.vectrus.com

Number of Employees


Location

  • Vectrus, Inc.
  • 2424 Garden of the Gods Road
  • Colorado Springs
  • Colorado
  • 80919
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VECNYSE (New York Stock Exchange)YesCommon StockUSUSDSep 2014
1V1DB (Deutsche Boerse AG)YesCommon StockDEEURSep 2014

Biography

Vectrus, Inc. provides facility and logistics, and information technology and network communication services to the U.S. government worldwide. The company offers facility and logistics services, such as airfield management, ammunition management, civil engineering, communications, emergency services, life support activities, public works, security, transportation operations, warehouse management and distribution, and equipment maintenance, repair, and services for U.S. Army, Air Force, Navy, and Marines. It also provides information technology and network communication services, including sustainment of communications systems, network security, systems installation, and full life cycle management of information technology systems, system-of-systems engineering and software development, and mission support for the Department of Defense. The company was incorporated in 2014 and is headquartered in Colorado Springs, Colorado. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/25 01:24
End of Day Share Price2020/01/24 00:00
Earnings2019/09/27
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.