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Victrex PLC (GB:VCT)
LSE:VCT
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Victrex (VCT) AI Stock Analysis

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GB:VCT

Victrex

(LSE:VCT)

Rating:67Neutral
Price Target:
742.00p
▲(3.34% Upside)
Victrex's overall stock score is driven by strong financial stability and attractive dividend yield, but is tempered by bearish technical indicators and mixed earnings call results. The company's robust cash flow and low leverage are significant strengths, while operational challenges and currency headwinds present risks.
Positive Factors
Growth and Earnings Potential
Energy & Industrial and VARs have driven growth, with Aerospace and Automotive stable, and Electronics ahead year to date, indicating potential for earnings improvement.
Valuation
The stock is trading at an 8% discount to UK Chemicals peers, which is less than the long-term average discount, suggesting a supportive valuation.
Volume Guidance
Management upgrades FY25F volume guidance to high single-digit growth due to strong volume performance in the first half of the year.
Negative Factors
Earnings Expectations
Interims are below expectations, with an implied downgrade to fiscal year 2025 forecasts despite good volume momentum.
Market Challenges
FX, China, and a lack of Medical recovery continue to pose headwinds, with further consensus downgrades possible.
Medical Segment Performance
Medical continues to perform below expectations, with profit before tax guidance significantly lower than previous estimates.

Victrex (VCT) vs. iShares MSCI United Kingdom ETF (EWC)

Victrex Business Overview & Revenue Model

Company DescriptionVictrex plc, through its subsidiaries, manufactures and sells polymers worldwide. The company operates through two segments, Industrial and Medical. It develops PEEK and PAEK polymer solutions, and semi-finished and finished parts. The company also offers specialist solutions for medical device manufacturers; sells thermoplastic polymer components; and engages in trading activities. It serves automotive, aerospace, energy and industrial, manufacturing and engineering, electronics, and medical markets. Victrex plc was founded in 1993 and is headquartered in Thornton-Cleveleys, the United Kingdom.
How the Company Makes MoneyVictrex generates revenue primarily through the sale of its high-performance polymer products, notably PEEK and its derivatives, to a diverse range of industries. The company operates a direct sales model, selling its products to manufacturers and suppliers who incorporate these materials into their final products. Key revenue streams include sales from aerospace components, automotive parts, medical devices, and electronics applications. Additionally, Victrex benefits from long-term contracts and partnerships with major industry players, which provide consistent demand and stability in its revenue. The company's focus on research and development also allows it to innovate and expand its product offerings, driving growth and increasing its market share in new and existing sectors.

Victrex Earnings Call Summary

Earnings Call Date:May 12, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Dec 02, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture, with strong volume growth and cash conversion offset by operational challenges in China, currency headwinds, and a decline in Medical revenues. The positive developments in volume growth and mega-programme milestones are tempered by flat profit figures and operational setbacks.
Q2-2025 Updates
Positive Updates
Strong Volume Growth
Victrex reported a strong 16% volume growth in the first half of 2025, primarily driven by Value Added Resellers, Aerospace, Electronics & Energy, and Industrial sectors.
Significant Mega-Programme Milestone
The company achieved a major commercial milestone in its Magma mega-programme, indicating potential for significant growth opportunities.
High Cash Conversion
Victrex demonstrated strong cash conversion at 128%, indicating effective cash management and operational efficiency.
Improved Asset Utilization
Victrex achieved better asset utilization, contributing a GBP 2.6 million tailwind from better utilization, with a 20% increase in production volumes.
Positive Outlook for Aerospace
Aerospace volumes increased by 7%, with strong growth expectations from key players like Boeing and Airbus, and emerging opportunities in Advanced Air Mobility.
Sustainable Solutions Growth
Sustainable Solutions revenue increased by 6%, with continued strong performance anticipated in Energy & Industrial sectors.
Negative Updates
Flat Profit Before Tax in Constant Currency
Profit before tax was flat in constant currency, with significant headwinds from currency impacts and operational challenges in China.
Operational Challenges in China Plant
Victrex faced start-up operational challenges in its new plant in China, leading to lower expected volumes and a GBP 2 million negative profit impact.
Decline in Medical Revenues
Medical revenues declined by 1%, primarily due to continued challenges in the Spine segment and volume-based procurement challenges in China.
Adverse Sales Mix Impact
The sales mix had a negative impact on gross margin, declining by 390 basis points, with 260 basis points attributed to challenges in the China manufacturing facility.
Currency Headwinds
Victrex faced a GBP 4.6 million year-on-year currency impact in the first half, with an expected GBP 8 million to GBP 9 million full-year impact.
Company Guidance
In the May 2025 Victrex Interim Results Meeting, the company provided detailed guidance on various financial and operational metrics. For the first half of the fiscal year, volume growth was a strong 16%, with notable increases in Aerospace, Electronics & Energy, and Industrial sectors. Revenue was up 5% to GBP 145.9 million, but PBT remained flat in constant currency due to mix impacts and operational challenges at their new China plant. The company reported a robust cash conversion of 128%. Guidance for the full year includes high single-digit volume growth, an ASP range of GBP 72 to GBP 75 per kilogram, and a gross margin target of 45% to 47%. Challenges such as currency impacts, which contributed a GBP 4.6 million headwind in H1, are expected to persist, with a full-year impact of GBP 8 million to GBP 9 million. Despite these challenges, the company remains optimistic about the second half, particularly in sectors like Aerospace and Medical, and is targeting stable PBT compared to the prior year's second half.

Victrex Financial Statement Overview

Summary
Victrex demonstrates strong balance sheet stability with low leverage and high equity ratio, but faces revenue and margin challenges impacting profitability. Cash flow performance is robust, reflecting effective financial operations despite declining net income. The company should focus on reversing revenue declines and improving profitability to enhance overall financial health.
Income Statement
72
Positive
The income statement indicates decreasing revenue over the past three years, with a decline from £341M in 2022 to £296.2M in 2024. Gross profit margin reduced from 51.2% to 45.3%, and net profit margin decreased from 17.6% to 5.8%. Despite the declines, the EBIT and EBITDA margins in 2024 are approximately 15.5% and 16.4%, respectively. The company needs to address the decreasing revenue and margins.
Balance Sheet
85
Very Positive
The balance sheet remains strong with an equity ratio of 77.9% and a debt-to-equity ratio of 0.11, indicating lower leverage and high equity stability. However, the return on equity (ROE) declined from 15.6% in 2022 to 3.7% in 2024, suggesting challenges in profitability. Overall, the company's financial position is stable with low debt levels.
Cash Flow
80
Positive
Operating cash flow increased significantly in 2024 to £84M from £40.8M in 2023, and free cash flow rose to £51.4M. The operating cash flow to net income ratio is robust at 4.88, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 3.0, showing effective cash utilization. Despite challenges in net income, cash flow management remains effective.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue291.00M296.20M307.00M341.00M306.30M266.00M
Gross Profit139.50M134.30M162.60M174.70M157.00M141.10M
EBITDA69.70M69.70M96.00M110.60M110.30M85.00M
Net Income17.20M17.20M61.70M76.20M73.20M54.20M
Balance Sheet
Total Assets592.00M592.00M626.60M641.60M615.30M549.50M
Cash, Cash Equivalents and Short-Term Investments29.30M29.30M33.50M68.80M112.40M73.10M
Total Debt50.40M50.40M50.20M32.10M15.90M7.10M
Total Liabilities130.40M130.40M125.60M151.00M103.60M68.50M
Stockholders Equity461.00M461.00M499.00M488.80M509.20M478.10M
Cash Flow
Free Cash Flow50.90M51.40M2.30M34.50M85.20M44.50M
Operating Cash Flow83.50M84.00M40.80M80.00M127.10M69.40M
Investing Cash Flow-35.40M-35.40M-32.30M-16.20M-83.20M-29.50M
Financing Cash Flow-50.80M-51.90M-32.80M-82.40M-41.70M-38.70M

Victrex Technical Analysis

Technical Analysis Sentiment
Negative
Last Price718.00
Price Trends
50DMA
720.02
Negative
100DMA
757.70
Negative
200DMA
850.18
Negative
Market Momentum
MACD
-1.60
Negative
RSI
56.72
Neutral
STOCH
80.85
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:VCT, the sentiment is Negative. The current price of 718 is above the 20-day moving average (MA) of 694.15, below the 50-day MA of 720.02, and below the 200-day MA of 850.18, indicating a neutral trend. The MACD of -1.60 indicates Negative momentum. The RSI at 56.72 is Neutral, neither overbought nor oversold. The STOCH value of 80.85 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:VCT.

Victrex Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
£3.18B9.0015.96%4.00%-9.10%239.75%
67
Neutral
£619.27M20.856.65%8.40%4.75%-3.29%
64
Neutral
£132.06M12.148.02%3.78%1.12%-0.70%
64
Neutral
£3.56B25.456.17%3.76%2.36%-13.99%
64
Neutral
£957.89M3.37%1.37%-11.78%-92.61%
61
Neutral
$10.31B6.290.76%2.95%3.36%-36.41%
45
Neutral
£107.95M-7.26%-4.41%2.29%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:VCT
Victrex
718.00
-246.64
-25.57%
GB:CRDA
Croda International
2,522.00
-1,342.60
-34.74%
GB:ELM
Elementis
165.20
7.46
4.73%
GB:JMAT
Johnson Matthey
1,930.00
378.41
24.39%
GB:SYNT
Synthomer
62.30
-178.70
-74.15%
GB:TET
Treatt plc
227.50
-257.69
-53.11%

Victrex Corporate Events

Regulatory Filings and Compliance
Victrex Announces Updated Share Capital and Voting Rights
Neutral
Jul 31, 2025

Victrex plc has announced that as of 31 July 2025, its issued share capital consists of 87,052,107 ordinary shares, each carrying one vote. This update is crucial for shareholders to calculate their interests in the company accurately, ensuring transparency and compliance with regulatory requirements.

The most recent analyst rating on (GB:VCT) stock is a Hold with a £880.00 price target. To see the full list of analyst forecasts on Victrex stock, see the GB:VCT Stock Forecast page.

Business Operations and Strategy
Norges Bank Increases Stake in Victrex PLC
Neutral
Jul 9, 2025

Norges Bank has increased its voting rights in Victrex PLC to 9.09%, up from a previous position of 8.81%. This acquisition of voting rights indicates a strengthened influence of Norges Bank in the company’s decision-making process, potentially impacting Victrex’s strategic direction and stakeholder interests.

The most recent analyst rating on (GB:VCT) stock is a Sell with a £10.00 price target. To see the full list of analyst forecasts on Victrex stock, see the GB:VCT Stock Forecast page.

Other
Victrex Chair Purchases Shares, Signaling Confidence in Future
Positive
Jul 8, 2025

Victrex plc announced that Vivienne Cox, the Chair of the company, has purchased 2,747 ordinary shares at £7.21 each on the London Stock Exchange. This transaction reflects a vote of confidence in the company’s future prospects and may positively influence stakeholder perception, reinforcing Victrex’s position in the high-performance polymer industry.

The most recent analyst rating on (GB:VCT) stock is a Sell with a £10.00 price target. To see the full list of analyst forecasts on Victrex stock, see the GB:VCT Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Victrex Reports Q3 Volume Growth Amid Medical Sector Challenges
Neutral
Jul 8, 2025

Victrex plc reported an 8% increase in sales volume for Q3 2025 compared to the previous year, driven by growth in Sustainable Solutions, although revenue decreased by 3% due to adverse sales mix and lower average selling prices. The Medical division, particularly the Spine segment, underperformed due to industry destocking and competitive pressures. The company is addressing challenges in its new China manufacturing facility and is on track for lower capital expenditure. Despite currency headwinds, Victrex maintains strong cost discipline and improvement actions, projecting high single-digit volume growth for the full year, with a focus on medium to long-term growth prospects.

The most recent analyst rating on (GB:VCT) stock is a Sell with a £10.00 price target. To see the full list of analyst forecasts on Victrex stock, see the GB:VCT Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Victrex Announces CEO Succession with Dr. James Routh
Positive
Jul 8, 2025

Victrex plc has announced a leadership change with Jakob Sigurdsson retiring as Chief Executive after nearly eight years, to be succeeded by Dr. James Routh. Dr. Routh, who brings extensive experience from international companies in sectors aligned with Victrex’s markets, is expected to drive growth through focused strategies and innovation. The transition aims to maintain Victrex’s strong market position and unlock further growth potential, aligning with global megatrends and enhancing profitability.

The most recent analyst rating on (GB:VCT) stock is a Sell with a £10.00 price target. To see the full list of analyst forecasts on Victrex stock, see the GB:VCT Stock Forecast page.

Regulatory Filings and Compliance
Victrex PLC Updates Share Capital and Voting Rights
Neutral
Jun 30, 2025

Victrex PLC has announced that as of June 30, 2025, its issued share capital consists of 87,052,107 ordinary shares, each carrying one vote, with no shares held in treasury. This update is crucial for shareholders as it provides the denominator for calculating changes in their interests, ensuring transparency and compliance with FCA regulations.

The most recent analyst rating on (GB:VCT) stock is a Sell with a £10.00 price target. To see the full list of analyst forecasts on Victrex stock, see the GB:VCT Stock Forecast page.

Executive/Board Changes
Victrex Director Janet Ashdown Joins Synthomer Board
Positive
Jun 30, 2025

Victrex plc announced that Janet Ashdown, a Non-Executive Director and Chair of the Remuneration Committee, has been appointed as a Non-Executive Director on the Board of Synthomer plc, effective 1 July 2025. This appointment is expected to enhance Victrex’s industry positioning by strengthening its leadership team with Ashdown’s extensive experience, including her previous roles at BP plc and Harvest Energy Ltd, while her responsibilities at Victrex remain unchanged.

The most recent analyst rating on (GB:VCT) stock is a Sell with a £1250.00 price target. To see the full list of analyst forecasts on Victrex stock, see the GB:VCT Stock Forecast page.

Business Operations and Strategy
Victrex Appoints Investec as Joint Corporate Broker
Positive
Jun 18, 2025

Victrex plc has announced the appointment of Investec Bank plc as a Joint Corporate Broker, joining J.P. Morgan Cazenove in this role. This strategic move is expected to enhance Victrex’s market positioning and potentially drive value for its stakeholders by leveraging Investec’s expertise alongside their existing broker.

The most recent analyst rating on (GB:VCT) stock is a Buy with a £16.80 price target. To see the full list of analyst forecasts on Victrex stock, see the GB:VCT Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
Norges Bank Increases Stake in Victrex PLC
Positive
Jun 3, 2025

Norges Bank has increased its stake in Victrex PLC, raising its voting rights from 7.43% to 8.81% as of May 30, 2025. This acquisition of voting rights signifies a growing interest in Victrex by a major institutional investor, potentially impacting the company’s strategic decisions and signaling confidence in its market position.

The most recent analyst rating on (GB:VCT) stock is a Hold with a £1491.00 price target. To see the full list of analyst forecasts on Victrex stock, see the GB:VCT Stock Forecast page.

Regulatory Filings and Compliance
Victrex PLC Announces Share Capital and Voting Rights Update
Neutral
May 30, 2025

Victrex PLC has announced that as of May 30, 2025, its issued share capital consists of 87,052,107 ordinary shares, each carrying one vote, with no shares held in treasury. This update on voting rights and capital structure is crucial for shareholders to determine their interests and any changes in their stakes in the company, reflecting Victrex’s commitment to transparency and regulatory compliance.

The most recent analyst rating on (GB:VCT) stock is a Hold with a £1491.00 price target. To see the full list of analyst forecasts on Victrex stock, see the GB:VCT Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
Victrex PLC Announces Change in Voting Rights Structure
Neutral
May 27, 2025

Victrex PLC has announced a change in the breakdown of its voting rights following a transaction involving FIL Limited. The transaction, which occurred on May 22, 2025, resulted in FIL Limited holding a total of 9.7662% of voting rights in Victrex, a slight decrease from a previous position of 10.1%. This adjustment in voting rights could impact the company’s governance dynamics and influence its strategic decisions, reflecting FIL Limited’s significant stake in the company.

The most recent analyst rating on (GB:VCT) stock is a Hold with a £1491.00 price target. To see the full list of analyst forecasts on Victrex stock, see the GB:VCT Stock Forecast page.

Business Operations and Strategy
Victrex Director Increases Stake with Share Purchase
Positive
May 13, 2025

Victrex plc announced that David Thomas, a Non-Executive Director, purchased 1,158 ordinary shares at £8.46 each on the London Stock Exchange. This transaction reflects confidence in the company’s strategic direction and potential for growth, reinforcing its position as a leader in innovative polymer solutions.

The most recent analyst rating on (GB:VCT) stock is a Hold with a £1491.00 price target. To see the full list of analyst forecasts on Victrex stock, see the GB:VCT Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Victrex Sees Strong Volume Growth Amid Operational Challenges
Neutral
May 12, 2025

Victrex reported a 16% increase in sales volumes for the first half of 2025, driven by strong performance in its Sustainable Solutions segment, despite challenges in the medical sector and currency headwinds. The company has upgraded its full-year volume guidance to high-single-digit growth, supported by operational improvements and strategic initiatives like Project Vista. However, underlying profit before tax was impacted by foreign exchange, sales mix, and operational challenges in China. Victrex remains focused on driving profitability and growth through cost control and enhanced market strategies, while also achieving a major milestone with its ‘Magma’ mega-programme in the energy industry.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 19, 2025