One-glance verdict
Undervalued
$101.33 our estimate vs market $76.19
Wall Street consensus: $89.18 (-12.0% lower than our fair-value estimate)
25% below our estimate, below the bear case
Fundamentals snapshot
V2X, Inc.
VVX · NYQ · Industrials · Aerospace & Defense
Current price
$76.19
52-week range
$50.89 - $93.98
Market cap
$2.39B
Balance sheet
Stretched
2.36x Stretched
Net debt $896.11M. 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 9.3% last year.
- Reward Returns 8.3% 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. is a government contractor that provides support services, like modernizing equipment and managing supply chains (the entire process of getting goods where they need to go), for defense agencies. The company earns its money from long-term government contracts, which can create a predictable stream of business. This means V2X's success is often tied to how much governments decide to spend on defense.
How the company got here
The V2X of today was born from a major merger in 2022 between two government service companies, Vectrus and The Vertex Company. [2, 4, 5] Vectrus's history traces back to a 2014 spin-off from a larger defense contractor, and it grew by acquiring smaller specialized firms. [10] The Vertex Company had a longer history in aviation services and also grew by acquiring parts of other major defense companies. [10] This combination created a much larger and more diverse company, rebranding as V2X to signal its broader mission to support military and government clients in more ways. [2]
What it actually does
V2X doesn't make tanks or planes, but it provides the essential services needed to keep them running and to support military personnel around the world. [2] Think of them as the ultimate support crew for the U.S. military and its allies. [2] Their work includes everything from managing the supply chain (the system of getting parts and supplies where they need to go) for a military base, to performing maintenance on aircraft, to providing advanced technology and training services. [2, 3] They operate globally, on land, at sea, and in the air, ensuring that military operations can be carried out effectively. [1]
Aerospace Solutions
This part of the company focuses on keeping military aircraft flying safely and effectively. Customers, mainly branches of the U.S. military and allied governments, pay V2X for services like aircraft maintenance, repair, and overhaul (MRO), as well as modernizing older planes with new technology. [3] This is a significant part of the business that came from the legacy Vertex Company, which specialized in aviation support. [2] It's a hands-on business that ensures the readiness of everything from fighter jets to transport aircraft. [28]
Operations and Logistics
This is the core business of keeping military bases and operations running smoothly day-to-day. It's like being the facility manager, supply coordinator, and logistics expert for a small city. [2] Government clients pay V2X to manage and maintain their facilities, run their supply chains, transport equipment, and provide other essential support services. [15] This segment is a continuation of the legacy Vectrus business, which had deep experience in supporting military infrastructure worldwide. [2]
Technology and Training
This segment provides the technical skills and knowledge to support modern military missions. V2X offers engineering support, integrates complex new technologies into existing systems, and provides IT and cybersecurity services. [3] They also run sophisticated training programs and simulations to prepare military personnel for their missions. [2] This is a growing area for the company as it pushes to offer more high-tech, higher-value services to its government customers. [2]
What management is betting on now
Management is focused on integrating more technology, like artificial intelligence (AI), into its services to make them more efficient and valuable. [1, 6] They are also aiming to expand their global footprint, winning more business from allied governments to diversify their customer base. [3, 18] A key priority is to continue improving profitability by focusing on more technical, higher-margin (where the profit is a larger percentage of the sale) work. [2] Finally, the company is focused on strong financial management, including paying down debt taken on during the merger. [2]
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
$222.05M
FY2025 Q1
$-98.16M
FY2025 Q2
$26.05M
FY2025 Q3
$34.97M
FY2025 Q4
$207.21M
FY2026 Q2
$-132.20M
FY2026 Q3
$20.47M
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
Revenue
$1.16B
Net income
$25.03M
Diluted EPS
0.78
Operating cash flow
$223.13M
Free cash flow
$222.05M
Fetching…
Sources
Is it cheap or expensive?
Fair value $101.33 vs current price $76.19
Wall Street consensus is the average analyst price target: $89.18 (-12.0% lower than our fair-value estimate).
Our most-likely fair value is $101.33 a share — about 33.0% above today's price of $76.19, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $896.1M. Interest coverage 2.4x.
Net debt
$896.11M
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 $1.11B Interest coverage 2.36x This is the baseline the peer rows are being compared against.
Total debt $1.01B Interest coverage 3.75x +59% vs VVX Carries about 1.6x more debt cushion than VVX.
Total debt $2.80B Interest coverage 3.59x +52% vs VVX Carries about 1.5x more debt cushion than VVX.
Total debt $1.65B 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 $193.60M 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 9.3% last year.
-
Returns 8.3% 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)
26.27x
Forward P/E
10.99x
P/B
2.11x
P/S
0.49x
EV/EBITDA
10.49x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
8.5%
Operating margin
4.3%
Net margin
1.9%
ROE
8.3%
ROA
4.0%
Health
Liquidity and balance-sheet strength
Debt / equity
0.98x
Current ratio
1.32x
Quick ratio
1.14x
Total debt
$1.11B
Total cash
$210.31M
Growth
How the business has been compounding
Revenue TTM
$4.90B
Revenue 5Y CAGR
25.9%
EPS TTM
2.90
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$140.56M
Free CF TTM
$170.07M
FCF margin
3.5%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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