One-glance verdict
Undervalued
$128.52 our estimate vs market $76.14
Wall Street consensus: $89.55 (-30.3% lower than our fair-value estimate)
41% below our estimate, below the bear case
Fundamentals snapshot
V2X, Inc.
VVX · NYQ · Industrials · Aerospace & Defense
Current price
$76.14
52-week range
$50.89 - $93.98
Market cap
$2.39B
Balance sheet
Stretched
2.36x Stretched
Net debt $830.18M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 11.6% last year.
- Reward Returns 8.8% on equity, ahead of 33% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Insider ownership is only 1.0% (peer median: 1.3%).
What this company does
V2X, Inc.
V2X, Inc. (VVX) helps defense customers around the world by managing complex projects and providing essential support services for their operations. Their main income comes from these large government contracts, which are important because they show the company's ability to handle big, long-term jobs and provide a steady stream of money. This expertise is crucial for national security and defense initiatives.
How the company got here
V2X, Inc. was formed in July 2022 through the merger of Vectrus and The Vertex Company's aerospace and defense services business. Vectrus itself became a public company in 2014 after being spun off from Exelis. Over the years, Vectrus acquired several companies to bolster its capabilities in areas like base operations support, supply chain and logistics, and IT mission support. The merger with Vertex significantly expanded V2X's technology and service offerings, creating a larger entity focused on delivering comprehensive solutions for national security readiness and modernization. The company's history is rooted in providing essential support services to defense and government clients, with a combined legacy of over 120 years of experience from its predecessor companies.
What it actually does
V2X provides critical mission solutions and support services primarily to defense and government customers worldwide. The company offers a broad suite of technology and services designed to support national security readiness and modernization initiatives. Essentially, V2X acts as a support contractor, ensuring that military and government operations run smoothly by providing essential services that keep systems, infrastructure, and personnel operational. Their work spans across various domains, including logistics, aviation maintenance, engineering, training, and technology-enabled mission support. V2X operates globally, supporting clients in complex environments across North America, Europe, Asia, and the Middle East.
Operations and Logistics Solutions
This segment focuses on keeping government and military operations running smoothly by managing the flow of goods and ensuring that essential infrastructure is maintained. It includes services like supply chain management, which is the process of planning, implementing, and controlling the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption to meet customer requirements. V2X also provides base operations support, which involves maintaining facilities and infrastructure, and ensuring that all necessary support services are in place to keep sites operational. This part of the business is crucial for ensuring that military forces and organizations remain supplied, supported, and ready for any challenges.
Aerospace Services
This business line provides specialized services for the aerospace sector, with a strong emphasis on aircraft maintenance, repair, and overhaul (MRO). V2X's teams maintain a significant number of aircraft globally, ensuring they are ready for flight operations. The services also extend to flight operations support and avionics upgrades, which involve modernizing aircraft systems to enhance their performance and capabilities. This segment is a key area that was expanded through the Vertex combination, bringing more technical maintenance and aviation-focused expertise to V2X.
Engineering and Technical Services
This segment delivers advanced engineering solutions to enhance the capabilities of V2X's clients' missions. It involves providing engineering support, systems integration (combining different technological systems so they function together), and technical modernization of existing systems. V2X's engineers work on solving complex challenges in mission-critical areas, often involving the development and implementation of new technologies. This part of the business also includes research and development to create innovative solutions tailored to specific client needs.
Cyber & IT Solutions
Recognizing the increasing importance of digital security, V2X offers robust cybersecurity and information technology (IT) solutions. This includes protecting critical networks and systems from cyber threats, ensuring secure and scalable connectivity, and modernizing enterprise infrastructure. V2X helps organizations advance their digital transformation by updating legacy systems and enabling new operational capabilities through secure technology infrastructure. These solutions are designed to ensure that clients can operate confidently in an evolving digital landscape.
What management is betting on now
V2X's current strategy is focused on optimizing its operations and performance following the significant merger that created the company. Management is prioritizing the integration of the two legacy businesses to operate as a single, cohesive enterprise. A key strategic goal is to improve the company's business mix by focusing on more technical and higher-value services, particularly in areas like aviation, engineering, and technology-enabled solutions. V2X is also investing in innovation, leveraging technology such as AI and machine learning to develop advanced solutions that anticipate and meet customer requirements. The company aims to drive growth by expanding its service offerings, strengthening its global presence, and continuing to deliver excellence in execution on its contracts.
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.
FY2025 Q1
$-98.16M
FY2025 Q2
$26.05M
FY2025 Q3
$34.97M
FY2025 Q4
$207.21M
FY2026 Q2
$-132.20M
FY2026 Q3
$20.47M
FY2026 Q4
$63.96M
Revenue
$1.27B
Net income
$31.99M
Diluted EPS
1.01
Operating cash flow
$67.32M
Free cash flow
$63.96M
Fetching…
Sources
Revenue
$1.26B
Net income
$25.54M
Diluted EPS
0.81
Operating cash flow
$21.55M
Free cash flow
$20.47M
Fetching…
Sources
Revenue
$1.25B
Net income
$18.93M
Diluted EPS
0.60
Operating cash flow
$-129.91M
Free cash flow
$-132.20M
Fetching…
Sources
Revenue
$1.22B
Net income
$22.78M
Diluted EPS
0.73
Operating cash flow
$209.48M
Free cash flow
$207.21M
Fetching…
Sources
Revenue
$1.17B
Net income
$24.61M
Diluted EPS
0.77
Operating cash flow
$39.45M
Free cash flow
$34.97M
Fetching…
Sources
Revenue
$1.08B
Net income
$22.39M
Diluted EPS
0.70
Operating cash flow
$28.53M
Free cash flow
$26.05M
Fetching…
Sources
Revenue
$1.02B
Net income
$8.11M
Diluted EPS
0.25
Operating cash flow
$-95.46M
Free cash flow
$-98.16M
Fetching…
Sources
Is it cheap or expensive?
Fair value $128.52 vs current price $76.14
Wall Street consensus is the average analyst price target: $89.55 (-30.3% lower than our fair-value estimate).
Our most-likely fair value is $128.52 a share — about 68.8% above today's price of $76.14, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $830.2M. Interest coverage 2.4x.
Net debt
$830.18M
Interest coverage
2.36x
V2X, Inc.'s profit covers its interest bill about 2.4 times over. which is weaker than most peers shown here.
Stretched
Worse cushion
Baseline
Better cushion
VVX
BASELINE
V2X, Inc.
Total debt $1.09B Interest coverage 2.36x This is the baseline the peer rows are being compared against.
Total debt $978.40M Interest coverage 3.75x +59% vs VVX Carries about 1.6x more debt cushion than VVX.
Total debt $2.78B Interest coverage 3.59x +52% vs VVX Carries about 1.5x more debt cushion than VVX.
Total debt $1.54B Interest coverage 8.10x +243% vs VVX Carries about 3.4x more debt cushion than VVX.
Total debt $2.70B Interest coverage 4.07x +73% vs VVX Carries about 1.7x more debt cushion than VVX.
Total debt $246.00M Interest coverage 2.89x +22% vs VVX Carries about 1.2x more debt cushion than VVX.
What you should know
The case for and against VVX
3 Rewards
1 Risk
Rewards
-
Revenue grew 11.6% last year.
-
Returns 8.8% on equity, ahead of 33% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Insider ownership is only 1.0% (peer median: 1.3%).
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)
24.25x
Forward P/E
10.86x
P/B
2.04x
P/S
0.48x
EV/EBITDA
10.16x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
8.5%
Operating margin
4.7%
Net margin
2.0%
ROE
8.8%
ROA
4.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.93x
Current ratio
1.36x
Quick ratio
1.17x
Total debt
$1.09B
Total cash
$261.07M
Growth
How the business has been compounding
Revenue TTM
$5.00B
Revenue 5Y CAGR
25.9%
EPS TTM
3.14
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$168.44M
Free CF TTM
$170.07M
FCF margin
3.4%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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