Loading...

Vectrus

NYSE:VEC
Snowflake Description

Undervalued with excellent balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
VEC
NYSE
$437M
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

Vectrus, Inc. provides facility and logistics, and information technology and network communication services to the U.S. The last earnings update was 50 days ago. More info.


Add to Portfolio Compare Print
  • Vectrus has significant price volatility in the past 3 months.
VEC Share Price and Events
7 Day Returns
1.3%
NYSE:VEC
3.1%
US Aerospace & Defense
1.4%
US Market
1 Year Returns
26.2%
NYSE:VEC
6.9%
US Aerospace & Defense
4.9%
US Market
VEC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Vectrus (VEC) 1.3% 5.8% 45% 26.2% 35.3% -
US Aerospace & Defense 3.1% 4.2% 10.9% 6.9% 48.3% 66.7%
US Market 1.4% 3.8% 3.5% 4.9% 44.8% 40.1%
1 Year Return vs Industry and Market
  • VEC outperformed the Aerospace & Defense industry which returned 6.9% over the past year.
  • VEC outperformed the Market in United States of America which returned 4.9% over the past year.
Price Volatility
VEC
Industry
5yr Volatility vs Market

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.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Vectrus.

NYSE:VEC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 2 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.

Calculation of Discount Rate/ Cost of Equity for NYSE:VEC
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%) (21.32%))
1.019
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.02
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.019 * 5.96%)
8.8%

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.

NYSE:VEC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.8%)
2019 37.39 Est @ 0.71% 34.36
2020 37.88 Est @ 1.31% 32.00
2021 38.54 Est @ 1.74% 29.92
2022 39.32 Est @ 2.04% 28.06
2023 40.20 Est @ 2.24% 26.37
2024 41.16 Est @ 2.39% 24.81
2025 42.19 Est @ 2.49% 23.38
2026 43.27 Est @ 2.56% 22.04
2027 44.40 Est @ 2.61% 20.78
2028 45.58 Est @ 2.65% 19.61
Present value of next 10 years cash flows $261.32
NYSE:VEC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $45.58 × (1 + 2.73%) ÷ (8.8% – 2.73%)
$771.17
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $771.17 ÷ (1 + 8.8%)10
$331.73
NYSE:VEC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $261.32 + $331.73
$593.05
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $593.05 / 11.42
$51.92
NYSE:VEC Discount to Share Price
Calculation Result
Value per share (USD) From above. $51.92
Current discount Discount to share price of $38.29
= -1 x ($38.29 - $51.92) / $51.92
26.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Vectrus is available for.
Intrinsic value
26%
Share price is $38.29 vs Future cash flow value of $51.92
Current Discount Checks
For Vectrus to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Vectrus's share price is below the future cash flow value, and 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?
Raw Data
NYSE:VEC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-29) in USD $3.22
NYSE:VEC Share Price ** NYSE (2019-06-25) in USD $38.29
United States of America Aerospace & Defense Industry PE Ratio Median Figure of 38 Publicly-Listed Aerospace & Defense Companies 22.97x
United States of America Market PE Ratio Median Figure of 3,095 Publicly-Listed Companies 17.73x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Vectrus.

NYSE:VEC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:VEC Share Price ÷ EPS (both in USD)

= 38.29 ÷ 3.22

11.89x

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?
Raw Data
NYSE:VEC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 11.89x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
13.9%per year
United States of America Aerospace & Defense Industry PEG Ratio Median Figure of 33 Publicly-Listed Aerospace & Defense Companies 1.98x
United States of America Market PEG Ratio Median Figure of 2,133 Publicly-Listed Companies 1.53x

*Line of best fit is calculated by linear regression .

NYSE:VEC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 11.89x ÷ 13.9%

0.85x

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?
Raw Data
NYSE:VEC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-29) in USD $20.11
NYSE:VEC Share Price * NYSE (2019-06-25) in USD $38.29
United States of America Aerospace & Defense Industry PB Ratio Median Figure of 55 Publicly-Listed Aerospace & Defense Companies 2.66x
United States of America Market PB Ratio Median Figure of 5,255 Publicly-Listed Companies 1.79x
NYSE:VEC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:VEC Share Price ÷ Book Value per Share (both in USD)

= 38.29 ÷ 20.11

1.9x

* 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.
X
Value checks
We assess Vectrus's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the Aerospace & Defense industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Aerospace & Defense industry average (and greater than 0)? (1 check)
  5. Vectrus has a total score of 5/6, 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 2 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!
Annual Growth Rate
13.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Vectrus expected to grow at an attractive rate?
  • 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 positive but not above 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
Raw Data
NYSE:VEC Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:VEC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 13.9%
NYSE:VEC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 9.3%
United States of America Aerospace & Defense Industry Earnings Growth Rate Market Cap Weighted Average 10.6%
United States of America Aerospace & Defense Industry Revenue Growth Rate Market Cap Weighted Average 5.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
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
Raw Data
NYSE:VEC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:VEC Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 1,489 45 2
2019-12-31 1,322 38 2
NYSE:VEC Past Financials Data
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.

Super high growth metrics
High Growth Checks
  • Vectrus's earnings are expected to grow by 13.9% yearly, however this is not considered high growth (20% yearly).
  • Vectrus's revenue is expected to grow by 9.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:VEC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from Vectrus Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:VEC Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 3.94 3.98 3.90 2.00
2019-12-31 3.35 3.39 3.31 2.00
NYSE:VEC Past Financials Data
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.
X
Future performance checks
We assess Vectrus's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Vectrus has a total score of 2/6, 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
Below we compare Vectrus's growth in the last year to its industry (Aerospace & Defense).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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
Vectrus's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Vectrus Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:VEC Past Revenue, Cash Flow and Net Income Data
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).
X
Past performance checks
We assess Vectrus's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Aerospace & Defense industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
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.
Net Worth
  • 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
This treemap shows a more detailed breakdown of Vectrus's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • 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.
Raw Data

All data from Vectrus Company Filings, last reported 2 months ago.

NYSE:VEC Past Debt and Equity Data
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).
X
Financial health checks
We assess Vectrus's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Vectrus has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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
Dividend payments
0%
Current annual income from Vectrus dividends.
If you bought $2,000 of Vectrus shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • 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.
Raw Data
NYSE:VEC Annualized Past and Future Dividends
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 2 Analyst Estimates (S&P Global) See Below
United States of America Aerospace & Defense Industry Average Dividend Yield Market Cap Weighted Average of 22 Stocks 1.9%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2012 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.

NYSE:VEC Future Dividends Estimate Data
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.
Current Payout to shareholders
What portion of Vectrus's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Vectrus has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Vectrus's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. 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)
  7. 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

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Chuck Prow
COMPENSATION $3,157,296
AGE 59
TENURE AS CEO 2.5 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:

2.2
Average Tenure
51
Average Age
  • The tenure for the Vectrus management team is about average.
Management Team

Chuck Prow

TITLE
President
COMPENSATION
$3M
AGE
59
TENURE
2.5 yrs

Sue Deagle

TITLE
Senior VP & Chief Growth Officer
COMPENSATION
$788K
AGE
49
TENURE
2.1 yrs

David Hathaway

TITLE
Senior Vice President of Programs
COMPENSATION
$887K
AGE
51
TENURE
1.7 yrs

Bill Noon

TITLE
Acting CFO & Chief Accounting Officer
AGE
53
TENURE
0.2 yrs

Mike Smith

TITLE
Vice President of Corporate Development & Investor Relations
TENURE
4.4 yrs

Kevin Boyle

TITLE
Senior VP
AGE
49
TENURE
0.7 yrs

Francis Peloso

TITLE
Senior VP & Chief Human Resources Officer
AGE
48
TENURE
4.8 yrs

Kevin Leonard

TITLE
Senior VP of Army & Expeditionary Programs
COMPENSATION
$678K
AGE
60
TENURE
2.3 yrs

Kathryn Lamping

TITLE
Deputy General Counsel & Corporate Secretary
Board of Directors Tenure

Average tenure and age of the Vectrus board of directors in years:

5.4
Average Tenure
64
Average Age
  • The tenure for the Vectrus board of directors is about average.
Board of Directors

Louis Giuliano

TITLE
Non-Executive Chairman
COMPENSATION
$300K
AGE
72

Chuck Prow

TITLE
President
COMPENSATION
$3M
AGE
59
TENURE
2.5 yrs

Brad Boston

TITLE
Independent Director
COMPENSATION
$210K
AGE
64
TENURE
5.4 yrs

Mary Howell

TITLE
Independent Director
COMPENSATION
$210K
AGE
65
TENURE
5.4 yrs

Eric Pillmore

TITLE
Director
COMPENSATION
$210K
AGE
64
TENURE
5.4 yrs

Steve Waechter

TITLE
Director
COMPENSATION
$215K
AGE
67
TENURE
5.4 yrs

Phil Widman

TITLE
Director
COMPENSATION
$200K
AGE
63
TENURE
5.4 yrs

Bill Murdy

TITLE
Independent Director
COMPENSATION
$200K
AGE
76
TENURE
5.4 yrs

Mel Parker

TITLE
Independent Director
COMPENSATION
$200K
AGE
50
TENURE
5.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) 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
X
Management checks
We assess Vectrus's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. 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

Why 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 -

Is 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 -

Is 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 -

Are 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 -

Have 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 -

What 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 -

Is 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 -

Introducing 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 -

What does Vectrus, Inc.'s (NYSE:VEC) Balance Sheet Tell Us About Its Future?

(NYSE:VEC) with its market cap of US$313m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … So, understanding the company's financial health becomes. … Here are a few basic checks that are good enough to have a broad overview of the company’s financial strength.

Simply Wall St -

Is Now An Opportune Moment To Examine Vectrus, Inc. (NYSE:VEC)?

saw a significant share price rise of over 20% in the past couple of months on the NYSE. … Less-covered, small caps sees more of an opportunity for mispricing due to the lack of information available to the public, which can be a good thing? … So, could the stock still be trading at a low price relative to its actual value.

Simply Wall St -

VEC 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
$437,394,902
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
Staff numbers
6,700
Vectrus employees.
Industry
Aerospace and Defense
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/26 00:54
End of day share price update: 2019/06/25 00:00
Last estimates confirmation: 2019/06/13
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.