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Victrex plc (GB:VCT)
:VCT
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Victrex (VCT) AI Stock Analysis

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GB

Victrex

(LSE:VCT)

Rating:66Neutral
Price Target:
8.00p
▼(-98.85%Downside)
Victrex's overall score reflects strong financial stability and effective cash flow management, offset by challenges in revenue and margins. Technical analysis indicates bearish momentum, while recent corporate events and earnings guidance provide a positive outlook. The valuation, with a high dividend yield, adds moderate attractiveness.
Positive Factors
Cyclical Recovery
Victrex is viewed as one of the most attractive cyclical recovery stories, with potential improvements driven by demand in Sustainable Solutions.
Valuation
The stock is trading at a compelling valuation, with shares at 10-year lows, making it attractive for investors.
Negative Factors
Medical Sector Performance
The lack of recovery in the Medical sector continues to be a significant drag on the company's performance.
Profitability Challenges
Profitability remains challenging due to mix headwinds in the Medical sector, FX issues, and China ramp-up costs.

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 makes money primarily through the production and sale of its high-performance polymer products. The key revenue streams for the company include sales of PEEK and other related polymers to various industries such as aerospace, automotive, electronics, energy, and medical. Victrex generates revenue by supplying these materials to manufacturers who utilize them in products that require durability, lightweight, and resistance to extreme conditions. The company also collaborates with partners to develop customized polymer solutions, enhancing its market position and expanding its applications. Additionally, Victrex's focus on innovation and sustainability helps maintain its competitive edge, contributing to its financial success.

Victrex Earnings Call Summary

Earnings Call Date:May 12, 2025
(Q2-2025)
|
% Change Since: -21.52%|
Next Earnings Date:Dec 02, 2025
Earnings Call Sentiment Neutral
Victrex's performance in the first half of the fiscal year was characterized by strong volume growth and cash conversion, alongside significant operational challenges and headwinds in China and the Medical division. The company's efforts to improve operational efficiency and secure major commercial contracts are positive, although ongoing issues in certain segments and currency impacts present challenges.
Q2-2025 Updates
Positive Updates
Strong Volume Growth
Victrex reported a 16% growth in volume for the first half of the fiscal year, driven by Value Added Resellers, Aerospace, Electronics & Energy, and Industrial sectors.
Cash Conversion and Financial Performance
Victrex achieved a strong cash conversion rate of 128% in the first half, with a significant improvement in cash flow, totaling GBP 30.7 million compared to GBP 18.1 million in the prior year.
Magma Mega-Programme Milestone
Victrex reached a major commercial milestone in the Magma mega-programme, indicating a significant growth opportunity with TechnipFMC and Petrobras.
Aerospace and Electronics Growth
Aerospace volumes increased by 7%, supported by increased plane deliveries from Boeing and Airbus. Electronics volumes grew by 17%, driven by strong demand in semiconductors and smart devices.
Negative Updates
China Plant Operational Challenges
Victrex experienced initial and temporary operational challenges in its new China plant, impacting the production ramp-up and resulting in lower volumes than expected.
Medical Division Revenue Decline
Medical revenues declined by 1%, with the Spine segment facing challenges due to destocking and volume-based procurement issues in China.
Gross Margin Decline
Gross margin decreased by 390 basis points to 44.1%, primarily due to the impact of the China plant start-up costs and adverse sales mix.
Currency Headwinds
Victrex faced a GBP 4.6 million currency headwind in the first half, with a forecasted full-year impact of GBP 8 million to GBP 9 million.
Company Guidance
During the Victrex Interim Results Meeting in May 2025, the company provided detailed guidance for the fiscal year. Key metrics included a 16% volume growth in the first half, with a specific 14% increase in Q2 year-on-year, driven mainly by Value Added Resellers and growth in Aerospace, Electronics & Energy, and Industrial sectors. The pre-tax profit (PBT) remained flat in constant currency, facing headwinds such as a mix impact and operational challenges in their new China plant. Despite these challenges, cash conversion was strong at 128%. The company also reported a revenue increase of 5% to GBP 145.9 million, with gross profit slightly lower by 4% at GBP 64.3 million, yet growing by 3% in constant currency. The gross margin declined by 390 basis points to 44.1%, influenced by a mix impact and currency fluctuations. Looking ahead, Victrex upgraded its volume guidance to high single digits for the year, maintained an interim dividend of GBP 0.1342 per share, and expected a full-year gross margin between 45% and 47%, slightly below initial guidance due to the mix and their China operations.

Victrex Financial Statement Overview

Summary
Victrex shows strong balance sheet stability with low leverage and a high equity ratio. However, it faces challenges in revenue and margin declines impacting profitability. Cash flow performance remains robust, reflecting effective financial operations.
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.
BreakdownSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue296.20M307.00M341.00M306.30M266.00M
Gross Profit134.30M162.60M174.70M157.00M141.10M
EBITDA69.70M96.00M110.60M110.30M85.00M
Net Income17.20M61.70M76.20M73.20M54.20M
Balance Sheet
Total Assets592.00M626.60M641.60M615.30M549.50M
Cash, Cash Equivalents and Short-Term Investments29.30M33.50M68.80M112.40M73.10M
Total Debt50.40M50.20M32.10M15.90M7.10M
Total Liabilities130.40M125.60M151.00M103.60M68.50M
Stockholders Equity461.00M499.00M488.80M509.20M478.10M
Cash Flow
Free Cash Flow51.40M2.30M34.50M85.20M44.50M
Operating Cash Flow84.00M40.80M80.00M127.10M69.40M
Investing Cash Flow-35.40M-32.30M-16.20M-83.20M-29.50M
Financing Cash Flow-51.90M-32.80M-82.40M-41.70M-38.70M

Victrex Technical Analysis

Technical Analysis Sentiment
Negative
Last Price698.00
Price Trends
50DMA
777.16
Negative
100DMA
823.84
Negative
200DMA
869.74
Negative
Market Momentum
MACD
-21.84
Positive
RSI
30.47
Neutral
STOCH
25.91
Neutral
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 698 is below the 20-day moving average (MA) of 752.35, below the 50-day MA of 777.16, and below the 200-day MA of 869.74, indicating a bearish trend. The MACD of -21.84 indicates Positive momentum. The RSI at 30.47 is Neutral, neither overbought nor oversold. The STOCH value of 25.91 is Neutral, 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 (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
£3.11B8.7815.96%5.91%-9.10%239.75%
GBTET
69
Neutral
£148.27M13.638.02%0.02%1.12%-0.70%
GBELM
67
Neutral
£981.43M-5.93%1.50%0.71%-274.39%
GBVCT
66
Neutral
£617.53M20.796.65%8.39%4.75%-3.29%
63
Neutral
£4.08B25.746.84%3.21%-3.92%-7.30%
59
Neutral
HK$16.45B4.63-5.52%4.85%-3.57%-61.41%
52
Neutral
£167.81M-6.25%0.81%15.63%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:VCT
Victrex
698.00
-336.22
-32.51%
GB:CRDA
Croda International
2,877.00
-1,007.09
-25.93%
GB:ELM
Elementis
166.60
23.27
16.24%
GB:JMAT
Johnson Matthey
1,847.00
240.13
14.94%
GB:SYNT
Synthomer
99.70
-167.30
-62.66%
GB:TET
Treatt plc
245.00
-200.65
-45.02%

Victrex Corporate Events

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.

Product-Related AnnouncementsBusiness Operations and Strategy
Victrex’s ‘Magma’ Programme Advances with TechnipFMC Contract
Positive
May 7, 2025

Victrex plc has announced a significant advancement in its ‘Magma’ mega-programme through a technological contract awarded to TechnipFMC by Petrobras in Brazil. This development involves the use of Victrex’s PEEK polymer in TechnipFMC’s hybrid flexible pipe, which offers a lighter, corrosion-resistant solution with sustainability benefits. This milestone is expected to accelerate the commercialization of this technology, enhancing Victrex’s position in the energy industry and providing new solutions for oil and gas fields.

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

Victrex PLC has announced that as of April 30, 2025, its issued share capital comprises 87,052,107 ordinary shares, each carrying one vote, with no shares held in treasury. This update is crucial for shareholders to determine their notification requirements regarding their interests in the company, reflecting Victrex’s commitment to transparency and regulatory compliance.

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: Jul 09, 2025