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VEC

Vectrus NYSE:VEC Stock Report

Last Price

US$33.92

Market Cap

US$401.2m

7D

1.0%

1Y

-28.8%

Updated

04 Jul, 2022

Data

Company Financials +
VEC fundamental analysis
Snowflake Score
Valuation6/6
Future Growth3/6
Past Performance2/6
Financial Health6/6
Dividends0/6

VEC Stock Overview

Vectrus, Inc. provides facility and base operations, supply chain and logistics, information technology mission support, and engineering and digital integration services.

Rewards

Trading at 78.4% below our estimate of its fair value

Earnings are forecast to grow 63.43% per year

Risk Analysis

VEC passed our risk checks.

Vectrus Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Vectrus
Historical stock prices
Current Share PriceUS$33.92
52 Week HighUS$52.67
52 Week LowUS$30.69
Beta1.12
1 Month Change-1.99%
3 Month Change-8.62%
1 Year Change-28.83%
3 Year Change-22.77%
5 Year Change-0.088%
Change since IPO57.47%

Recent News & Updates

Shareholder Returns

VECUS Aerospace & DefenseUS Market
7D1.0%2.1%-2.2%
1Y-28.8%2.6%-19.1%

Return vs Industry: VEC underperformed the US Aerospace & Defense industry which returned 2.6% over the past year.

Return vs Market: VEC underperformed the US Market which returned -21.2% over the past year.

Price Volatility

Is VEC's price volatile compared to industry and market?
VEC volatility
VEC Average Weekly Movement5.7%
Aerospace & Defense Industry Average Movement7.5%
Market Average Movement8.1%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.3%

Stable Share Price: VEC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: VEC's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20148,100Chuck Prowhttps://www.vectrus.com

Vectrus, Inc. provides facility and base operations, supply chain and logistics, information technology mission support, and engineering and digital integration services. It offers facility and base operations services, such as facilities operations and maintenance, security, base life support, facilities engineering and management, airfield management, civil engineering, public works, transportation operations, and emergency services. The company also offers supply chain and logistics services, including warehouse management and distribution, asset management and logistics, integrated logistics, supply chain as a service, full spectrum aviation maintenance, repair and overhaul, and equipment maintenance, repair, and services.

Vectrus Fundamentals Summary

How do Vectrus's earnings and revenue compare to its market cap?
VEC fundamental statistics
Market CapUS$401.16m
Earnings (TTM)US$36.54m
Revenue (TTM)US$1.81b

11.0x

P/E Ratio

0.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
VEC income statement (TTM)
RevenueUS$1.81b
Cost of RevenueUS$1.65b
Gross ProfitUS$157.26m
Other ExpensesUS$120.73m
EarningsUS$36.54m

Last Reported Earnings

Apr 01, 2022

Next Earnings Date

n/a

Earnings per share (EPS)3.09
Gross Margin8.71%
Net Profit Margin2.02%
Debt/Equity Ratio33.6%

How did VEC perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is VEC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for VEC?

Other financial metrics that can be useful for relative valuation.

VEC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.3x
Enterprise Value/EBITDA8.1x
PEG Ratio0.2x

Price to Earnings Ratio vs Peers

How does VEC's PE Ratio compare to its peers?

VEC PE Ratio vs Peers
The above table shows the PE ratio for VEC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average22x
NPK National Presto Industries
23.8xn/aUS$466.4m
DCO Ducommun
15.4x18.7%US$527.8m
PKE Park Aerospace
31.6xn/aUS$267.6m
ASLE AerSale
17.3xn/aUS$749.0m
VEC Vectrus
11x63.4%US$401.2m

Price-To-Earnings vs Peers: VEC is good value based on its Price-To-Earnings Ratio (11x) compared to the peer average (22x).


Price to Earnings Ratio vs Industry

How does VEC's PE Ratio compare vs other companies in the US Aerospace & Defense Industry?

Price-To-Earnings vs Industry: VEC is good value based on its Price-To-Earnings Ratio (11x) compared to the US Aerospace & Defense industry average (18.6x)


Price to Earnings Ratio vs Fair Ratio

What is VEC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

VEC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11x
Fair PE Ratio43.8x

Price-To-Earnings vs Fair Ratio: VEC is good value based on its Price-To-Earnings Ratio (11x) compared to the estimated Fair Price-To-Earnings Ratio (43.8x).


Share Price vs Fair Value

What is the Fair Price of VEC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: VEC ($33.92) is trading below our estimate of fair value ($157.36)

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


Price to Earnings Growth Ratio

PEG Ratio: VEC is good value based on its PEG Ratio (0.2x)


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Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


63.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VEC's forecast earnings growth (63.4% per year) is above the savings rate (1.9%).

Earnings vs Market: VEC's earnings (63.4% per year) are forecast to grow faster than the US market (13.6% per year).

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

Revenue vs Market: VEC's revenue (5.9% per year) is forecast to grow slower than the US market (8.2% per year).

High Growth Revenue: VEC's revenue (5.9% 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


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Past Performance

How has Vectrus performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


1.9%

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%) are lower than last year (2.7%).


Past Earnings Growth Analysis

Earnings Trend: VEC's earnings have grown by 1.9% 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 (-9.3%) over the past year, making it difficult to compare to the Aerospace & Defense industry average (27.7%).


Return on Equity

High ROE: VEC's Return on Equity (10.3%) is considered low.


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Financial Health

How is Vectrus's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: VEC's short term assets ($437.6M) exceed its short term liabilities ($359.6M).

Long Term Liabilities: VEC's short term assets ($437.6M) exceed its long term liabilities ($185.8M).


Debt to Equity History and Analysis

Debt Level: VEC's net debt to equity ratio (27.1%) is considered satisfactory.

Reducing Debt: VEC's debt to equity ratio has reduced from 63.4% to 33.6% over the past 5 years.

Debt Coverage: VEC's debt is well covered by operating cash flow (47.6%).

Interest Coverage: VEC's interest payments on its debt are well covered by EBIT (6.6x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

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

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


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as VEC has not reported any payouts.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

3.4yrs

Average management tenure


CEO

Chuck Prow (63 yo)

5.58yrs

Tenure

US$4,083,541

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 ($USD4.08M) is above average for companies of similar size in the US market ($USD2.92M).

Compensation vs Earnings: Chuck's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: VEC's management team is considered experienced (3.4 years average tenure).


Board Members

Experienced Board: VEC's board of directors are considered experienced (8.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: VEC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Vectrus, Inc.'s 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
  • Implied Market Cap: US$401.160m
  • Shares outstanding: 11.83m
  • Website: https://www.vectrus.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/04 00:00
End of Day Share Price2022/07/01 00:00
Earnings2022/04/01
Annual Earnings2021/12/31


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.