V2X, Inc.
V2X, Inc. Fundamental Analysis
V2X, Inc. (VEC) shows weak financial fundamentals with a PE ratio of 15.01, profit margin of 1.11%, and ROE of 6.58%. The company generates $6.1B in annual revenue with moderate year-over-year growth of 9.06%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 52.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze VEC's fundamental strength across five key dimensions:
Efficiency Score
WeakVEC struggles to generate sufficient returns from assets.
Valuation Score
ExcellentVEC trades at attractive valuation levels.
Growth Score
ModerateVEC shows steady but slowing expansion.
Financial Health Score
ExcellentVEC maintains a strong and stable balance sheet.
Profitability Score
WeakVEC struggles to sustain strong margins.
Key Financial Metrics
Is VEC Expensive or Cheap?
P/E Ratio
VEC trades at 15.01 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, VEC's PEG of 0.06 indicates potential undervaluation.
Price to Book
The market values V2X, Inc. at 0.96 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 33.73 times EBITDA. This signals the market has high growth expectations.
How Well Does VEC Make Money?
Net Profit Margin
For every $100 in sales, V2X, Inc. keeps $1.11 as profit after all expenses.
Operating Margin
Core operations generate 4.38 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.58 in profit for every $100 of shareholder equity.
ROA
V2X, Inc. generates $2.18 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
V2X, Inc. generates limited operating cash flow of $201.33M, signaling weaker underlying cash strength.
Free Cash Flow
V2X, Inc. produces free cash flow of $208.31M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $6.74 in free cash annually.
FCF Yield
VEC converts 20.97% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.007
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.06
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.96
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.16
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.04
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.20
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How VEC Stacks Against Its Sector Peers
| Metric | VEC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.01 | 26.49 | Better (Cheaper) |
| ROE | 6.58% | 1307.00% | Weak |
| Net Margin | 1.11% | -5131.00% (disorted) | Weak |
| Debt/Equity | 0.04 | 0.81 | Strong (Low Leverage) |
| Current Ratio | 1.20 | 10.48 | Neutral |
| ROA | 2.18% | -1549793.00% (disorted) | Weak |
VEC outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews V2X, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
13.62%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-63.69%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
235.34%
Industry Style: Cyclical, Value, Infrastructure
High Growth