NYSE:VEC

Stock Analysis Report

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Executive Summary

Vectrus, Inc. provides facility and logistics, and information technology and network communication services to the United States (U.S.) government worldwide. More Details

Rewards

PE ratio (17.5x) is below the US market (19.5x)

Earnings are forecast to grow 28.35% per year

Risk Analysis

No risks detected for VEC from our risk checks.


Snowflake Analysis

Flawless balance sheet and good value.


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: VEC's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

5.6%

VEC

0.6%

US Aerospace & Defense

-0.06%

US Market


1 Year Return

-4.7%

VEC

-24.4%

US Aerospace & Defense

19.0%

US Market

Return vs Industry: VEC exceeded the US Aerospace & Defense industry which returned -24.4% over the past year.

Return vs Market: VEC underperformed the US Market which returned 19% over the past year.


Shareholder returns

VECIndustryMarket
7 Day5.6%0.6%-0.06%
30 Day17.0%8.8%4.4%
90 Day14.7%5.4%6.3%
1 Year-4.7%-4.7%-8.4%-24.4%21.7%19.0%
3 Year52.5%52.5%12.2%-10.1%46.4%36.7%
5 Year102.3%102.3%64.8%24.1%91.0%69.9%

Long-Term 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?

17.48x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: VEC ($48.87) is trading above our estimate of fair value ($11.6)

Significantly Below Fair Value: VEC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: VEC is good value based on its PE Ratio (17.5x) compared to the US Aerospace & Defense industry average (22.2x).

PE vs Market: VEC is good value based on its PE Ratio (17.5x) compared to the US market (19.5x).


Price to Earnings Growth Ratio

PEG Ratio: VEC is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: VEC is good value based on its PB Ratio (2x) compared to the US Aerospace & Defense industry average (2.9x).


Next Steps

Future Growth

How is Vectrus forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

28.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VEC's forecast earnings growth (28.4% per year) is above the savings rate (2.2%).

Earnings vs Market: VEC's earnings (28.4% per year) are forecast to grow faster than the US market (21.9% per year).

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

Revenue vs Market: VEC's revenue (9.3% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: VEC's revenue (9.3% 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?

5.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VEC has high quality earnings.

Growing Profit Margin: VEC's current net profit margins (2.3%) are lower than last year (2.4%).


Past Earnings Growth Analysis

Earnings Trend: VEC's earnings have grown by 5% 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 (-1.3%) over the past year, making it difficult to compare to the Aerospace & Defense industry average (-1.9%).


Return on Equity

High ROE: VEC's Return on Equity (11.4%) is considered low.


Next Steps

Financial Health

How is Vectrus's financial position?


Financial Position Analysis

Short Term Liabilities: VEC's short term assets ($356.4M) exceed its short term liabilities ($247.2M).

Long Term Liabilities: VEC's short term assets ($356.4M) exceed its long term liabilities ($134.9M).


Debt to Equity History and Analysis

Debt Level: VEC's debt to equity ratio (23.7%) is considered satisfactory.

Reducing Debt: VEC's debt to equity ratio has reduced from 146.3% to 23.7% over the past 5 years.

Debt Coverage: VEC's debt is well covered by operating cash flow (54.6%).

Interest Coverage: VEC's interest payments on its debt are well covered by EBIT (8.6x coverage).


Balance Sheet


Next Steps

Dividend

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


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.


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

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

3.5yrs

Average management tenure


CEO

Chuck Prow (61 yo)

3.92yrs

Tenure

US$3,048,063

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 ($USD3.05M) is above average for companies of similar size in the US market ($USD1.81M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Charles Prow
President3.92yrsUS$3.05m0.32%
$ 1.8m
Susan Lynch
Senior VP & CFO1.25yrsUS$968.27k0.011%
$ 59.4k
William Noon
Corporate VP & Chief Accounting Officer4.25yrsUS$546.07k0.025%
$ 138.8k
Kevin Boyle
Senior VP2.08yrsUS$810.33k0.037%
$ 201.3k
Susan Deagle
Senior VP & Chief Growth Officer3.5yrsUS$820.99k0.043%
$ 235.0k
David Hathaway
Senior Vice President of Programs3.08yrsUS$808.79k0.048%
$ 266.5k
Michael Smith
Vice President of Corporate Development & Investor Relations5.83yrsno datano data
Francis Peloso
Senior VP & Chief Human Resources Officer6.17yrsno data0.097%
$ 533.2k
Kevin Leonard
Senior VP of Contingency Operations3.67yrsUS$677.77k0.043%
$ 233.9k
Mario Coracides
Senior VP of Enterprise Operations1.33yrsno datano data
Kathryn Lamping
Deputy General Counsel & Corporate Secretaryno datano datano data
Courtney Schoch
Deputy General Counsel & Corporate Secretary0.42yrno datano data

3.5yrs

Average Tenure

53yo

Average Age

Experienced Management: VEC's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Charles Prow
President3.92yrsUS$3.05m0.32%
$ 1.8m
Stephen Waechter
Independent Director6.83yrsUS$214.99k0.23%
$ 1.3m
Mary Howell
Independent Director6.83yrsUS$209.99k0.18%
$ 1.0m
William Murdy
Independent Director6.83yrsUS$199.99k0.16%
$ 883.4k
Bradford Boston
Independent Director6.83yrsUS$209.99k0.15%
$ 836.0k
Louis Giuliano
Independent Non-Executive Chairmanno dataUS$300.01k0.46%
$ 2.5m
Eric Pillmore
Independent Director6.83yrsUS$209.99k0.21%
$ 1.2m
Phillip Widman
Independent Director6.83yrsUS$199.99k0.24%
$ 1.3m
Melvin Parker
Independent Director6.83yrsUS$199.99k0.057%
$ 315.3k

6.8yrs

Average Tenure

66yo

Average Age

Experienced Board: VEC's board of directors are considered experienced (6.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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 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$550.191m
  • Shares outstanding: 11.62m
  • 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 United States (U.S.) government worldwide. The company offers facility and logistics serv...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/24 00:19
End of Day Share Price2020/11/23 00:00
Earnings2020/10/02
Annual Earnings2019/12/31


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.