NYSE:VEC

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Very undervalued with excellent balance sheet.


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


Market Performance


7 Day Return

2.2%

NYSE:VEC

0.7%

US Aerospace & Defense

0.2%

US Market


1 Year Return

27.1%

NYSE:VEC

4.8%

US Aerospace & Defense

-0.7%

US Market

VEC outperformed the Aerospace & Defense industry which returned 4.8% over the past year.

VEC outperformed the Market in United States of America which returned -0.7% over the past year.


Share holder returns

VECIndustryMarket
7 Day2.2%0.7%0.2%
30 Day-0.2%3.0%-2.7%
90 Day14.6%6.1%1.6%
1 Year27.1%27.1%6.9%4.8%1.6%-0.7%
3 Year25.7%25.7%53.1%44.7%40.0%30.9%
5 Yearn/a91.5%73.3%53.8%36.8%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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, and at a substantial discount (> 40%).


Price Based on Earnings

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

Vectrus is good value based on expected growth next year.


Price Based on Value of Assets

Vectrus is good value based on assets compared to the US Aerospace & Defense industry average.


Next Steps

Future Growth

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

22.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Vectrus's revenue is expected to grow by 12.4% yearly, however this is not considered high growth (20% yearly).

Vectrus's earnings are expected to grow significantly at over 20% yearly.

Vectrus's revenue growth is expected to exceed the United States of America market average.

Vectrus's earnings growth is expected to exceed the United States of America market average.

Vectrus's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Vectrus will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Vectrus performed over the past 5 years?

11.4%

Historical annual earnings growth


Earnings and Revenue History


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.


Return on Equity

Vectrus has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Vectrus used its assets less efficiently than the US Aerospace & Defense industry average last year based on Return on Assets.


Return on Capital Employed

Vectrus's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Vectrus's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Vectrus's level of debt (30.4%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (0.8% vs 30.4% today).

Debt is well covered by operating cash flow (70.4%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 8.9x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 4.5x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

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.

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

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.


Next Steps

Management

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

2.4yrs

Average management tenure


CEO

Chuck Prow (60yo)

2.7yrs

Tenure

US$3,157,296

Compensation

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


CEO Compensation Analysis

Chuck's remuneration is higher than average for companies of similar size in United States of America.

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


Management Age and Tenure

2.4yrs

Average Tenure

53yo

Average Age

The tenure for the Vectrus management team is about average.


Board Age and Tenure

5.6yrs

Average Tenure

65yo

Average Age

The tenure for the Vectrus board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$11,74814 Dec 18
Francis Peloso
EntityIndividual
Role
Head of Human Resources
Senior VP & Chief Human Resources Officer
Shares515
Max PriceUS$22.81
BuyUS$5,01514 Dec 18
Susan Deagle
EntityIndividual
Role
Senior Key Executive
Senior VP & Chief Growth Officer
Shares225
Max PriceUS$22.29
BuyUS$22,23012 Dec 18
William Murdy
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$22.23
BuyUS$114,18410 Dec 18
Louis Giuliano
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares5,000
Max PriceUS$22.84
BuyUS$11,86926 Nov 18
Kevin Boyle
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares500
Max PriceUS$23.74
BuyUS$30,36816 Nov 18
Mary Howell
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,240
Max PriceUS$24.49
BuyUS$12,22415 Nov 18
Matthew Klein
EntityIndividual
Shares500
Max PriceUS$24.57
BuyUS$51,00014 Nov 18
Stephen Waechter
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,000
Max PriceUS$25.50
BuyUS$12,83514 Nov 18
William Murdy
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares500
Max PriceUS$25.70
BuyUS$9,70228 Aug 18
William Murdy
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares300
Max PriceUS$32.34

Ownership Breakdown


Management Team

  • Kevin Boyle (50yo)

    Senior VP

    • Tenure: 0.8yrs
  • Susan Lynch (57yo)

    Senior VP & CFO

    • Tenure: 0.0yrs
  • Mike Smith

    Vice President of Corporate Development & Investor Relations

    • Tenure: 4.6yrs
  • Bill Noon (54yo)

    Corporate VP & Chief Accounting Officer

    • Tenure: 3.0yrs
  • Chuck Prow (60yo)

    President

    • Tenure: 2.7yrs
    • Compensation: US$3.16m
  • Francis Peloso (49yo)

    Senior VP & Chief Human Resources Officer

    • Tenure: 4.9yrs
  • Kevin Leonard (61yo)

    Senior VP of Army & Expeditionary Programs

    • Tenure: 2.4yrs
    • Compensation: US$677.77k
  • Sue Deagle (50yo)

    Senior VP & Chief Growth Officer

    • Tenure: 2.3yrs
    • Compensation: US$788.27k
  • David Hathaway (52yo)

    Senior Vice President of Programs

    • Tenure: 1.8yrs
    • Compensation: US$887.32k
  • Mario Coracides

    Senior Vice President of Enterprise Vectrus Operations

    • Tenure: 0.1yrs

Board Members

  • Steve Waechter (68yo)

    Director

    • Tenure: 5.6yrs
    • Compensation: US$214.99k
  • Mary Howell (66yo)

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: US$209.99k
  • Bill Murdy (77yo)

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: US$199.99k
  • Brad Boston (65yo)

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: US$209.99k
  • Louis Giuliano (73yo)

    Non-Executive Chairman

    • Tenure: 0.0yrs
    • Compensation: US$300.01k
  • Eric Pillmore (65yo)

    Director

    • Tenure: 5.6yrs
    • Compensation: US$209.99k
  • Phil Widman (64yo)

    Director

    • Tenure: 5.6yrs
    • Compensation: US$199.99k
  • Mel Parker (51yo)

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: US$199.99k
  • Chuck Prow (60yo)

    President

    • Tenure: 2.7yrs
    • Compensation: US$3.16m

Company Information

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


Key Information

  • Name: Vectrus, Inc.
  • Ticker: VEC
  • Exchange: NYSE
  • Founded: 2014
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: US$477.278m
  • Shares outstanding: 11.51m
  • Website: https://www.vectrus.com

Number of Employees


Location

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

Listings

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

Biography

Vectrus, Inc. provides facility and logistics, and information technology and network communication services to the U.S. government worldwide. The company offers facility and logistics services, such as ai ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/22 00:45
End of Day Share Price2019/08/21 00:00
Earnings2019/06/28
Annual Earnings2018/12/31


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