One-glance verdict
Overvalued
$83.25 our estimate vs market $194.77
Wall Street consensus: $390.00 (368.5% higher than our fair-value estimate)
134% above our estimate, beyond the bull case
Fundamentals snapshot
Vicor Corporation
VICR · NMS · Technology · Electronic Components
Current price
$194.77
52-week range
$80.29 - $382.65
Market cap
$8.98B
Balance sheet
Healthy
6.75x Adequate
Net cash $505.98M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
0 Risks
3 rewards · 0 risks
- Reward Revenue grew 23.9% last year.
- Reward Returns 23.5% on equity, ahead of 83% of its peers.
- Reward Free cash flow was positive in 7/10 years.
What this company does
Vicor Corporation
Vicor Corporation makes special parts that change electricity so it can power things like computers and advanced machinery, and their money mainly comes from selling these parts to companies in high-tech industries like aerospace and defense. Understanding this is important because it shows where their sales are strongest and what kinds of customers they rely on for their business.
How the company got here
Vicor Corporation was founded in 1981 and has since become a key player in the power management industry. The company's journey has been marked by a consistent focus on innovation in power conversion technology. Headquartered in Andover, Massachusetts, Vicor has grown by developing specialized solutions that address the increasing demand for efficient and reliable power in complex electronic systems. This dedication to advancing power solutions has positioned them as a critical supplier across various high-tech sectors.
What it actually does
Vicor designs and manufactures modular power components and systems. Think of them as the essential 'brains' that take electricity from a power source and transform it into the precise type and amount of power that electronic devices need to function. These components are crucial for everything from advanced computers to sophisticated industrial machinery, ensuring that sensitive electronics receive stable and efficient power. They serve a wide range of industries that rely on high-performance electronic equipment.
Modular Power Components
This is Vicor's core business, where they create standardized, building-block power converters, primarily in a 'brick' format. These components take an incoming electrical voltage and convert it to a different voltage required by specific electronic parts. Customers in sectors like aerospace, defense, and telecommunications use these bricks to efficiently power their complex systems. This segment represents a significant portion of Vicor's revenue, providing essential power conversion building blocks for many different applications.
Power Systems
Beyond individual components, Vicor also designs and sells complete custom power system solutions. This means they work with clients to create tailored power management systems for unique and demanding applications. These systems are often integrated into larger, highly specialized equipment where standard components might not suffice. While this segment is smaller than their modular components business, it often involves higher-value projects and demonstrates Vicor's engineering expertise in solving complex power challenges.
What management is betting on now
Vicor's management is focused on capitalizing on the growing demand for high-density, high-performance power solutions, particularly in areas like artificial intelligence (AI) and high-performance computing. They are investing in technologies that can deliver more power in smaller spaces with greater efficiency, which is critical for the next generation of data centers and advanced electronics. This strategic focus aims to expand their market share in rapidly evolving technology sectors where power delivery is a key bottleneck.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$8.38M
FY2025 Q1
$15.58M
FY2025 Q2
$59.02M
FY2025 Q3
$34.47M
FY2025 Q4
$10.16M
FY2026 Q1
$-16.33M
FY2026 Q2
$22.97M
FY2026 Q3
$34.03M
Revenue
$197.11M
Net income
$63.32M
Diluted EPS
1.33
Operating cash flow
$50.17M
Free cash flow
$34.03M
Fetching…
Sources
Revenue
$143.35M
Net income
$49.77M
Diluted EPS
1.04
Operating cash flow
$34.14M
Free cash flow
$22.97M
Fetching…
Sources
Revenue
$112.97M
Net income
$20.66M
Diluted EPS
0.44
Operating cash flow
$-3.94M
Free cash flow
$-16.33M
Fetching…
Sources
Revenue
$107.26M
Net income
$46.53M
Diluted EPS
1.01
Operating cash flow
$15.71M
Free cash flow
$10.16M
Fetching…
Sources
Revenue
$110.42M
Net income
$28.29M
Diluted EPS
0.63
Operating cash flow
$38.49M
Free cash flow
$34.47M
Fetching…
Sources
Revenue
$141.05M
Net income
$41.19M
Diluted EPS
0.91
Operating cash flow
$65.22M
Free cash flow
$59.02M
Fetching…
Sources
Revenue
$93.97M
Net income
$2.54M
Diluted EPS
0.06
Operating cash flow
$20.13M
Free cash flow
$15.58M
Fetching…
Sources
Revenue
$96.17M
Net income
$10.25M
Diluted EPS
0.24
Operating cash flow
$10.12M
Free cash flow
$8.38M
Fetching…
Sources
Is it cheap or expensive?
Fair value $83.25 vs current price $194.77
Wall Street consensus is the average analyst price target: $390.00 (368.5% higher than our fair-value estimate).
Our most-likely fair value is $83.25 a share — about 57.3% below today's price of $194.77, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Healthy
Net cash $506.0M - more cash than debt. Interest coverage 6.7x.
Net debt
$-505.98M
Interest coverage
6.75x
Vicor Corporation's profit covers its interest bill about 6.7 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
VICR
BASELINE
Vicor Corporation
Total debt $7.16M Interest coverage 6.75x This is the baseline the peer rows are being compared against.
Total debt $1.38B Interest coverage 13.27x +97% vs VICR Carries about 2.0x more debt cushion than VICR.
Total debt $304.01M Interest coverage 1.13x -83% vs VICR Carries about 6.0x less debt cushion than VICR.
Total debt $1.80B Interest coverage -1.82x -100% vs VICR This peer has almost no interest-payment cushion compared with VICR.
Total debt $414.05M Interest coverage 23.50x +248% vs VICR Carries about 3.5x more debt cushion than VICR.
What you should know
The case for and against VICR
3 Rewards
0 Risks
Rewards
-
Revenue grew 23.9% last year.
-
Returns 23.5% on equity, ahead of 83% of its peers.
-
Free cash flow was positive in 7/10 years.
Risks
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
50.85x
Forward P/E
32.09x
P/B
9.91x
P/S
16.02x
EV/EBITDA
50.98x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
60.6%
Operating margin
36.6%
Net margin
32.2%
ROE
23.5%
ROA
10.8%
Health
Liquidity and balance-sheet strength
Debt / equity
0.01x
Current ratio
11.44x
Quick ratio
9.56x
Total debt
$7.16M
Total cash
$513.14M
Growth
How the business has been compounding
Revenue TTM
$560.70M
Revenue 5Y CAGR
5.9%
EPS TTM
3.83
EPS 5Y CAGR
66.1%
Cash flow
How much cash the business throws off
Operating CF TTM
$96.07M
Free CF TTM
$119.23M
FCF margin
21.3%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
2011-08-05