Vectrus
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Vectrus, Inc. provides facility and logistics, and information technology and network communication services to the U.S. The last earnings update was 72 days ago. More info.
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- Vectrus has significant price volatility in the past 3 months.
VEC Share Price and Events
7 Day Returns
1 Year Returns
VEC Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Vectrus (VEC) | 0.3% | 9.7% | 7.8% | 34.2% | 35.6% | - |
| US Aerospace & Defense | 1.1% | 5% | 8.2% | 5.1% | 44.4% | 72.4% |
| US Market | 0.6% | 3.8% | 2.8% | 4.1% | 37.3% | 42.5% |
1 Year Return vs Industry and Market
- VEC outperformed the Aerospace & Defense industry which returned 5.1% over the past year.
- VEC outperformed the Market in United States of America which returned 4.1% over the past year.
VEC Value
Is Vectrus undervalued based on future cash flows and its price relative to the stock market?
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Vectrus
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Vectrus.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 3 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 8.8% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| Aerospace & Defense Unlevered Beta | Simply Wall St/ S&P Global | 0.88 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.88 (1 + (1- 21%) (19.44%)) |
1.01 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.01 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.01 * 5.96%) |
8.75% |
Discounted Cash Flow Calculation for NYSE:VEC using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Vectrus is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 8.75%) |
|
|---|---|---|---|
| 2020 | 37.39 | Est @ 0.71% | 34.38 |
| 2021 | 37.88 | Est @ 1.31% | 32.03 |
| 2022 | 38.54 | Est @ 1.74% | 29.96 |
| 2023 | 39.32 | Est @ 2.04% | 28.11 |
| 2024 | 40.20 | Est @ 2.24% | 26.43 |
| 2025 | 41.16 | Est @ 2.39% | 24.89 |
| 2026 | 42.19 | Est @ 2.49% | 23.45 |
| 2027 | 43.27 | Est @ 2.56% | 22.12 |
| 2028 | 44.40 | Est @ 2.61% | 20.87 |
| 2029 | 45.58 | Est @ 2.65% | 19.70 |
| Present value of next 10 years cash flows | $261.94 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2029
× (1 + g) ÷ (Discount Rate – g)
= $45.58 × (1 + 2.73%) ÷ (8.75% – 2.73%) |
$777.75 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $777.75 ÷ (1 + 8.75%)10 |
$336.15 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $261.94 + $336.15 |
$598.09 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $598.09 / 11.42 |
$52.36 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $52.36 |
| Current discount | Discount to share price of
$41.99
= -1 x ($41.99 - $52.36) / $52.36 |
19.8% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Current Discount
Current Discount Checks
- Vectrus's share price is below the future cash flow value, but not at a moderate discount (< 20%).
- Vectrus's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Vectrus's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Vectrus's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2019-03-29) in USD | $3.22 |
| NYSE:VEC Share Price ** | NYSE (2019-07-17) in USD | $41.99 |
| United States of America Aerospace & Defense Industry PE Ratio | Median Figure of 38 Publicly-Listed Aerospace & Defense Companies | 22.84x |
| United States of America Market PE Ratio | Median Figure of 3,082 Publicly-Listed Companies | 17.98x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Vectrus.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NYSE:VEC Share Price ÷ EPS (both in USD) = 41.99 ÷ 3.22 |
13.03x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Vectrus is good value based on earnings compared to the US Aerospace & Defense industry average.
- Vectrus is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does
Vectrus's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 13.03x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts |
15.1%per year |
| United States of America Aerospace & Defense Industry PEG Ratio | Median Figure of 33 Publicly-Listed Aerospace & Defense Companies | 2.07x |
| United States of America Market PEG Ratio | Median Figure of 2,122 Publicly-Listed Companies | 1.59x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 13.03x ÷ 15.1% |
0.86x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Vectrus is good value based on expected growth next year.
Price based on value of assets
What value do investors place on
Vectrus's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2019-03-29) in USD | $20.11 |
| NYSE:VEC Share Price * | NYSE (2019-07-17) in USD | $41.99 |
| United States of America Aerospace & Defense Industry PB Ratio | Median Figure of 55 Publicly-Listed Aerospace & Defense Companies | 2.71x |
| United States of America Market PB Ratio | Median Figure of 5,241 Publicly-Listed Companies | 1.81x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NYSE:VEC Share Price ÷ Book Value per Share (both in USD) = 41.99 ÷ 20.11 |
2.09x |
* Primary Listing of Vectrus.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Vectrus is good value based on assets compared to the US Aerospace & Defense industry average.
Value checks
We assess Vectrus's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Aerospace & Defense industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Aerospace & Defense industry average (and greater than 0)? (1 check) Vectrus has a total score of 4/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
VEC Future Performance
How is Vectrus expected to perform in the next 1 to 3 years based on estimates from 3 analysts?
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Vectrus's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
- Vectrus's earnings growth is expected to exceed the United States of America market average.
- Vectrus's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NYSE:VEC Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts | 15.1% |
| NYSE:VEC Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts | 10.2% |
| United States of America Aerospace & Defense Industry Earnings Growth Rate | Market Cap Weighted Average | 10.7% |
| United States of America Aerospace & Defense Industry Revenue Growth Rate | Market Cap Weighted Average | 5.6% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 14.1% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.4% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 3 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2020-12-31 | 1,503 | 46 | 2 | |
| 2019-12-31 | 1,322 | 38 | 3 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2019-03-29 | 1,285 | 45 | 36 |
| 2018-12-31 | 1,279 | 40 | 35 |
| 2018-09-28 | 1,246 | 22 | 67 |
| 2018-06-29 | 1,207 | 34 | 63 |
| 2018-03-30 | 1,145 | 14 | 59 |
| 2017-12-31 | 1,115 | 35 | 59 |
| 2017-09-29 | 1,107 | 26 | 22 |
| 2017-06-30 | 1,121 | 23 | 23 |
| 2017-03-31 | 1,170 | 45 | 24 |
| 2016-12-31 | 1,191 | 37 | 24 |
| 2016-09-30 | 1,214 | 42 | 25 |
| 2016-07-01 | 1,229 | 38 | 33 |
| 2016-04-01 | 1,230 | 48 | 33 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 3 Analyst Estimates (S&P Global) | See Below |
All data from Vectrus Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2020-12-31 | 3.98 | 4.05 | 3.90 | 3.00 |
| 2019-12-31 | 3.30 | 3.39 | 3.21 | 3.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2019-03-29 | 3.22 |
| 2018-12-31 | 3.14 |
| 2018-09-28 | 5.97 |
| 2018-06-29 | 5.62 |
| 2018-03-30 | 5.32 |
| 2017-12-31 | 5.40 |
| 2017-09-29 | 2.04 |
| 2017-06-30 | 2.13 |
| 2017-03-31 | 2.20 |
| 2016-12-31 | 2.21 |
| 2016-09-30 | 2.36 |
| 2016-07-01 | 3.07 |
| 2016-04-01 | 3.08 |
*GAAP earnings excluding extraordinary items.
Performance in 3 years
In the same way as past performance we look at the future estimated return
(profit) compared to the available
funds. We do this looking forward 3 years.
- Unable to establish if Vectrus will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
Future performance checks
We assess Vectrus's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Vectrus has a total score of 3/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
VEC Past Performance
How has Vectrus performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Vectrus's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
- Vectrus's 1-year earnings growth is negative, it can't be compared to the 5-year average.
- Vectrus's 1-year earnings growth is negative, it can't be compared to the US Aerospace & Defense industry average.
Earnings and Revenue History
All data from Vectrus Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2019-03-29 | 1,284.72 | 36.28 | 66.20 | |
| 2018-12-31 | 1,279.30 | 35.30 | 64.07 | |
| 2018-09-28 | 1,245.53 | 66.74 | 64.16 | |
| 2018-06-29 | 1,207.06 | 62.67 | 63.85 | |
| 2018-03-30 | 1,145.24 | 58.94 | 64.81 | |
| 2017-12-31 | 1,114.79 | 59.50 | 60.73 | |
| 2017-09-29 | 1,107.17 | 22.34 | 59.90 | |
| 2017-06-30 | 1,121.32 | 23.14 | 60.52 | |
| 2017-03-31 | 1,169.90 | 23.73 | 59.94 | |
| 2016-12-31 | 1,190.52 | 23.66 | 64.09 | |
| 2016-09-30 | 1,213.55 | 25.21 | 61.91 | |
| 2016-07-01 | 1,228.83 | 32.63 | 62.04 | |
| 2016-04-01 | 1,230.45 | 32.60 | 62.19 | |
| 2015-12-31 | 1,180.68 | 30.97 | 62.39 | |
| 2015-09-25 | 1,155.26 | 28.34 | 64.50 | |
| 2015-06-26 | 1,156.85 | 16.43 | 65.92 | |
| 2015-03-27 | 1,160.24 | 16.54 | 65.94 | |
| 2014-12-31 | 1,203.27 | 22.81 | 67.10 | |
| 2014-09-26 | 1,244.14 | 35.87 | 79.88 | |
| 2014-06-28 | 1,293.49 | 51.76 | 83.39 | |
| 2014-03-29 | 1,401.59 | 77.63 | 91.28 | |
| 2013-12-31 | 1,511.64 | 84.39 | 83.23 | |
| 2012-12-31 | 1,828.36 | 74.67 | 82.32 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Vectrus has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- Vectrus used its assets less efficiently than the US Aerospace & Defense industry average last year based on Return on Assets.
- Vectrus's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Vectrus's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Aerospace & Defense industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Vectrus has a total score of 1/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
VEC Health
How is Vectrus's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Vectrus's finances.
The net worth of a company is the difference between its assets and liabilities.
- Vectrus is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Vectrus's cash and other short term assets cover its long term commitments.
Balance sheet
Assets
Liabilities and shares
- Low level of unsold assets.
- Debt is covered by short term assets, assets are 4.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Vectrus Company Filings, last reported 3 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2019-03-29 | 228.24 | 72.95 | 48.25 |
| 2018-12-31 | 221.30 | 73.64 | 66.27 |
| 2018-09-28 | 211.49 | 74.53 | 39.74 |
| 2018-06-29 | 200.56 | 75.42 | 40.99 |
| 2018-03-30 | 191.69 | 76.32 | 28.75 |
| 2017-12-31 | 183.37 | 77.21 | 77.45 |
| 2017-09-29 | 141.63 | 73.65 | 63.58 |
| 2017-06-30 | 134.24 | 76.97 | 49.59 |
| 2017-03-31 | 124.73 | 80.29 | 53.73 |
| 2016-12-31 | 117.40 | 83.59 | 47.65 |
| 2016-09-30 | 111.98 | 91.96 | 53.35 |
| 2016-07-01 | 103.55 | 103.29 | 49.99 |
| 2016-04-01 | 97.00 | 108.60 | 38.62 |
| 2015-12-31 | 89.31 | 114.37 | 40.00 |
| 2015-09-25 | 83.08 | 124.55 | 41.16 |
| 2015-06-26 | 67.39 | 133.82 | 40.00 |
| 2015-03-27 | 59.05 | 152.23 | 28.75 |
| 2014-12-31 | 53.88 | 133.86 | 42.82 |
| 2014-09-26 | 68.00 | 140.00 | 42.00 |
| 2014-06-28 | 206.00 | 0.00 | 9.00 |
| 2014-03-29 | 256.00 | 0.00 | 7.00 |
| 2013-12-31 | 191.33 | 0.00 | 10.45 |
| 2012-12-31 | 201.00 | 0.00 | 14.00 |
- Vectrus's level of debt (32%) compared to net worth is satisfactory (less than 40%).
- The level of debt compared to net worth has increased over the past 5 years (0% vs 32% today).
- Debt is well covered by operating cash flow (62.1%, greater than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 9.6x coverage).
Financial health checks
We assess Vectrus's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Vectrus has a total score of 5/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
VEC Dividends
What is Vectrus's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Vectrus
shares you are expected to receive
$0
in your first year as a dividend.
Dividend Amount
- Unable to evaluate Vectrus's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
- Unable to evaluate Vectrus's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 3 Analyst Estimates (S&P Global) | See Below |
| United States of America Aerospace & Defense Industry Average Dividend Yield | Market Cap Weighted Average of 22 Stocks | 1.8% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2017 Stocks | 2.4% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.7% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2020-12-31 | ||
| 2019-12-31 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Unable to perform a dividend volatility check as Vectrus has not reported any payouts.
- Unable to verify if Vectrus's dividend has been increasing as the company has not reported any payouts.
Income/ dividend checks
We assess Vectrus's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Vectrus afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Vectrus has a total score of 0/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
VEC Management
CEO
| COMPENSATION | $3,157,296 |
| AGE | 60 |
| TENURE AS CEO | 2.6 years |
CEO Bio
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 and President of Vectrus, Inc. since December 6, 2016. Mr. Prow has over thirty years of information technology and federal services experience, including leadership positions at IBM Corporation, PricewaterhouseCoopers, and Coopers & Lybrand. Mr. Prow has an extensive background and leadership in global government services organizations and expertise involving information technology and the development of complex strategic solutions for a wide range of government customers. His strong business background provides him with a valuable perspective and deep understanding of the challenges facing government services organizations. He served as a Managing Partner of Government at IBM Global Business Services. During his career, he has run large global government services organizations, delivering solutions to a wide array of Department of Defense and other government customers. He was a Managing Partner of Government at International Business Machines Corporation. He has been a Director of Vectrus, Inc. since December 6, 2016. From August 2015 through August 2016, he served as President, CPS Professional Services, where he provided management consulting services to U.S. government clients. He served as General Manager of Global Government Industry from 2014 to 2015, where he had responsibility for global revenues exceeding $9 billion; General Manager of Global Business Services with strategic, profit and loss and operational responsibility for IBM’s over $4 billion North America consulting services unit from 2012 to 2013, General Manager of Global Business Services, with strategic, profit and loss and operational responsibility for IBM’s over $2.4 billion U.S. Public Sector business unit from 2007 to 2012 at IBM Corporation. Mr. Prow serves as a Director of Professional Services Council. Mr. Prow served on the boards of the Wolf Trap Foundation, World Affairs Council, International Research and Exchange Board and supported STEM-related activities. Mr. Prow has a Bachelor of Science degree in Management and Data Processing from Northwest Missouri State University, Maryville, Mo.
CEO Compensation
- Chuck's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
- Chuck's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Vectrus management team in years:
- The tenure for the Vectrus management team is about average.
Management Team
Chuck Prow
President
$3M
60
2.6 yrs
Sue Deagle
Senior VP & Chief Growth Officer
$788K
50
2.2 yrs
David Hathaway
Senior Vice President of Programs
$887K
52
1.8 yrs
Bill Noon
Acting CFO & Chief Accounting Officer
54
0.3 yrs
Mike Smith
Vice President of Corporate Development & Investor Relations
4.5 yrs
Kevin Boyle
Senior VP
50
0.8 yrs
Francis Peloso
Senior VP & Chief Human Resources Officer
49
4.8 yrs
Kevin Leonard
Senior VP of Army & Expeditionary Programs
$678K
61
2.3 yrs
Kathryn Lamping
Deputy General Counsel & Corporate Secretary
Board of Directors Tenure
Average tenure and age of the Vectrus board of directors in years:
- The tenure for the Vectrus board of directors is about average.
Board of Directors
Louis Giuliano
Non-Executive Chairman
$300K
73
Chuck Prow
President
$3M
60
2.6 yrs
Brad Boston
Independent Director
$210K
65
5.5 yrs
Mary Howell
Independent Director
$210K
66
5.5 yrs
Eric Pillmore
Director
$210K
65
5.5 yrs
Steve Waechter
Director
$215K
68
5.5 yrs
Phil Widman
Director
$200K
64
5.5 yrs
Bill Murdy
Independent Director
$200K
77
5.5 yrs
Mel Parker
Independent Director
$200K
51
5.5 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 14. Dec 18 | Buy | Susan Deagle | Individual | 14. Dec 18 | 14. Dec 18 | 225 | $22.29 | $5,015 | ||
| 14. Dec 18 | Buy | Francis Peloso | Individual | 13. Dec 18 | 13. Dec 18 | 515 | $22.81 | $11,748 | ||
| 12. Dec 18 | Buy | William Murdy | Individual | 12. Dec 18 | 12. Dec 18 | 1,000 | $22.23 | $22,230 | ||
| 10. Dec 18 | Buy | Louis Giuliano | Individual | 06. Dec 18 | 06. Dec 18 | 5,000 | $22.84 | $114,184 | ||
| 26. Nov 18 | Buy | Kevin Boyle | Individual | 20. Nov 18 | 20. Nov 18 | 500 | $23.74 | $11,869 | ||
| 16. Nov 18 | Buy | Mary Howell | Individual | 13. Nov 18 | 13. Nov 18 | 1,240 | $24.49 | $30,368 | ||
| 15. Nov 18 | Buy | Matthew Klein | Individual | 14. Nov 18 | 15. Nov 18 | 500 | $24.57 | $12,224 | ||
| 14. Nov 18 | Buy | Stephen Waechter | Individual | 09. Nov 18 | 09. Nov 18 | 2,000 | $25.50 | $51,000 | ||
| 14. Nov 18 | Buy | William Murdy | Individual | 09. Nov 18 | 09. Nov 18 | 500 | $25.70 | $12,835 | ||
| 28. Aug 18 | Buy | William Murdy | Individual | 28. Aug 18 | 28. Aug 18 | 300 | $32.34 | $9,702 | ||
| 14. Aug 18 | Sell | Melvin Parker | Individual | 10. Aug 18 | 10. Aug 18 | -1,377 | $36.04 | $-49,621 | ||
Management checks
We assess Vectrus's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Vectrus has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
VEC News
Simply Wall St News
Is Vectrus, Inc.'s (NYSE:VEC) P/E Ratio Really That Good?
We'll look at Vectrus, Inc.'s (NYSE:VEC) P/E ratio and reflect on what it tells us about the company's share price. … The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Vectrus: P/E of 12.99 = $41.86 ÷ $3.22 (Based on the trailing twelve months to March 2019.) Is A High Price-to-Earnings Ratio Good? … The Verdict On Vectrus's P/E Ratio Vectrus trades on a P/E ratio of 13, which is below the US market average of 17.9.
Simply Wall St - – Full articleIf You Had Bought Vectrus (NYSE:VEC) Stock Three Years Ago, You Could Pocket A 41% Gain Today
One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … Vectrus was able to grow its EPS at 1.5% per year over three years, sending the share price higher. … In comparison, the 12% per year gain in the share price outpaces the EPS growth.
Simply Wall St - – Full articleWhy I Like Vectrus, Inc. (NYSE:VEC)
By this I mean, I look at stocks holistically, from their financial health to their future outlook. … (NYSE:VEC), it is a company that has been able to sustain great financial health, trading at an attractive share price. … This indicates that VEC has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health.
Simply Wall St - – Full articleIs Now An Opportune Moment To Examine Vectrus, Inc. (NYSE:VEC)?
Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. … With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. … Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy VEC.
Simply Wall St - – Full articleIs Vectrus, Inc.'s (NYSE:VEC) CEO Paid Enough Relative To Peers?
Check out our latest analysis for Vectrus How Does Chuck Prow's Compensation Compare With Similar Sized Companies? … Thus we can conclude that Chuck Prow receives more in total compensation than the median of a group of companies in the same market, and of similar size to Vectrus, Inc.. … We compared the total CEO remuneration paid by Vectrus, Inc., and compared it to remuneration at a group of similar sized companies.
Simply Wall St - – Full articleAre Investors Undervaluing Vectrus, Inc. (NYSE:VEC) By 29%?
Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $37.39 $37.88 $38.54 $39.32 $40.20 $41.16 $42.19 $43.27 $44.40 $45.58 Growth Rate Estimate Source Est @ 0.71% Est @ 1.31% Est @ 1.74% Est @ 2.04% Est @ 2.24% Est @ 2.39% Est @ 2.49% Est @ 2.56% Est @ 2.61% Est @ 2.65% Present Value ($, Millions) Discounted @ 9.01% $34.30 $31.88 $29.75 $27.85 $26.12 $24.54 $23.07 $21.71 $20.43 $19.24 Present Value of 10-year Cash Flow (PVCF)= $258.88m "Est" = FCF growth rate estimated by Simply Wall St The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 10-year government bond rate of 2.7%. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$46m × (1 + 2.7%) ÷ (9% – 2.7%) = US$746m Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$746m ÷ ( 1 + 9%)10 = $314.87m The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $573.74m.
Simply Wall St - – Full articleHave Insiders Been Buying Vectrus, Inc. (NYSE:VEC) Shares?
We often see insiders buying up shares in companies that perform well over the long term. … So shareholders might well want to know whether insiders have been buying or selling shares in Vectrus, Inc. … Even though the purchase was made at a significantly lower price than the recent price (US$40.28), we still think insider buying is a positive
Simply Wall St - – Full articleWhat Can We Make Of Vectrus, Inc.’s (NYSE:VEC) High Return On Capital?
To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Understanding Return On Capital Employed (ROCE). … How Do You Calculate Return On Capital Employed
Simply Wall St - – Full articleIs Vectrus, Inc.'s (NYSE:VEC) 16% ROE Better Than Average?
This article is for those who would like to learn about Return On Equity (ROE). … That means that for every $1 worth of shareholders' equity, it generated $0.16 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleIntroducing Vectrus (NYSE:VEC), The Stock That Dropped 29% In The Last Year
(NYSE:VEC) shareholders will doubtless be very grateful to see the share price up 32% in the last quarter. … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … The share price fall of 29% isn't as bad as the reduction in earnings per share.
Simply Wall St - – Full articleVEC Company Info
Description
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.
Details
| Name: | Vectrus, Inc. |
| VEC | |
| Exchange: | NYSE |
| Founded: | 2014 |
| $479,660,797 | |
| 11,423,215 | |
| Website: | http://www.vectrus.com |
| Address: |
Vectrus, Inc. 2424 Garden of the Gods Road, Colorado Springs, Colorado, 80919, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NYSE | VEC | Common Stock | New York Stock Exchange | US | USD | 16. Sep 2014 | |
| DB | 1V1 | Common Stock | Deutsche Boerse AG | DE | EUR | 16. Sep 2014 |
Number of employees
Current staff
Industry
| Aerospace and Defense | |
| Capital Goods |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/07/18 00:45 |
| End of day share price update: | 2019/07/17 00:00 |
| Last estimates confirmation: | 2019/07/09 |
| Last earnings filing: | 2019/05/07 |
| Last earnings reported: | 2019/03/29 |
| Last annual earnings reported: | 2018/12/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
