V2X (VVX): Assessing Valuation After Securing $84 Million U.S. Navy Red Hill Contract

V2X (VVX) has landed an $84 million contract with the U.S. Navy, focused on bolstering the water supply infrastructure at Red Hill, Hawaii. The multi-year agreement highlights V2X’s expertise in delivering crucial support for defense initiatives.

See our latest analysis for V2X.

V2X’s latest contract award in Hawaii comes on the heels of its recent selection for the Defense Threat Reduction Agency’s CTRIC IV initiative, signaling back-to-back wins that have reinforced its position within the defense sector. Despite strong operational momentum, the share price has been relatively steady, with long-term total shareholder returns showing gradual improvement, up close to 59% over three years, highlighting resilience and ongoing investor confidence.

If defense sector momentum has you thinking bigger, this could be a good time to check out opportunities across the space. See the full list for free with our Aerospace & Defense Stocks Screener: See the full list for free.

But with V2X shares trading just below analyst price targets and recent financials showing accelerating growth, the big question is whether the current price leaves room for further upside or if future gains are already reflected in the price.

Most Popular Narrative: 8.6% Undervalued

V2X’s last close at $58.55 sits well below the fair value estimate of $64.09 in the most widely referenced narrative, signaling a valuation gap backed by strong assumptions and sector optimism.

The company is experiencing substantial growth in its addressable market due to rising global defense spending, particularly driven by heightened geopolitical tensions and military threats. This is evident in its robust $50 billion pipeline and recent major contract wins, which are expected to support long-term revenue growth.

Read the complete narrative.

What is powering this higher price target? The narrative hinges on expectations for double-digit earnings growth, expanding margins, and a bold profit forecast a few years out. Want to see which financial turning point could ignite a fresh rally? Dive in for the details that set this estimate apart.

Result: Fair Value of $64.09 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, softer Asia-Pacific demand and delays in securing new large contracts could challenge the pace of V2X’s projected revenue and earnings growth.

Find out about the key risks to this V2X narrative.

Build Your Own V2X Narrative

If you think the story could unfold differently or want to dive into the numbers yourself, you can craft your own take in just a few minutes. Do it your way

A great starting point for your V2X research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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