Victrex (VCT) AI Stock Analysis

• Market Cap: £555.78M
• Dividend Yield: 9.62%
• Average Volume (3M): 301.81K
• Price to Earnings (P/E): 18.7
• Beta (1Y): 1.40
• Revenue Growth: 4.75%
• EPS Growth: -3.29%
• Country: UK
• Employees: 1,131
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.22
• Shares Outstanding: 87,052,110
• 10 Day Avg. Volume: 270,673
• 30 Day Avg. Volume: 301,805
• PEG Ratio: -0.68
• Price to Book (P/B): 1.83
• Price to Sales (P/S): 2.85
• P/FCF Ratio: 16.44
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £795.00
• Price Target Upside: 26.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: 695.00p ▲(10.85% Upside)

Victrex's overall stock score reflects strong financial stability and cash flow management, but is hindered by declining revenue and profitability. Technical indicators suggest bearish momentum, while valuation offers some appeal with a high dividend yield. The earnings call highlights both growth opportunities and operational challenges, particularly in China.

Positive Factors

Strong Balance Sheet

Victrex's low leverage and high equity ratio indicate financial stability, providing resilience against economic fluctuations and enabling strategic investments.

High Cash Conversion

Effective cash management and operational efficiency ensure liquidity and the ability to fund growth initiatives, supporting long-term business sustainability.

Mega-Programme Milestone

This milestone indicates potential for significant growth opportunities, enhancing Victrex's market position and driving future revenue streams.

Negative Factors

Declining Revenue

The decline in revenue suggests challenges in market demand or competitive pressures, which could impact long-term profitability and market share.

Operational Challenges in China

Operational issues in China could hinder production efficiency and growth in a key market, affecting overall company performance and strategic expansion plans.

Decline in Medical Revenues

Continued challenges in the Medical segment, particularly in Spine, may limit growth in a high-margin sector, affecting overall revenue diversification.

Victrex Business Overview & Revenue Model

Company Description

Victrex 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 Money

Victrex 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 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	297.60M	296.20M	307.00M	341.00M	306.30M	266.00M
Gross Profit	137.30M	134.30M	162.60M	174.70M	157.00M	141.10M
EBITDA	89.00M	69.70M	96.00M	110.60M	115.50M	85.00M
Net Income	29.70M	17.20M	61.70M	76.20M	73.20M	54.20M
Balance Sheet
Total Assets	582.50M	592.00M	626.60M	641.60M	615.30M	549.50M
Cash, Cash Equivalents and Short-Term Investments	25.40M	29.30M	33.50M	68.80M	112.40M	73.10M
Total Debt	66.10M	50.40M	50.20M	32.10M	15.90M	7.10M
Total Liabilities	148.70M	130.40M	125.60M	151.00M	103.60M	68.50M
Stockholders Equity	434.80M	461.00M	499.00M	488.80M	509.20M	478.10M
Cash Flow
Free Cash Flow	64.60M	51.40M	2.30M	34.50M	85.20M	44.50M
Operating Cash Flow	84.00M	84.00M	40.80M	80.00M	127.10M	69.40M
Investing Cash Flow	-20.60M	-35.40M	-32.30M	-16.20M	-83.20M	-29.50M
Financing Cash Flow	-65.60M	-51.90M	-32.80M	-82.40M	-41.70M	-38.70M

Victrex Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 627.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 627 is below the 20-day moving average (MA) of 647.40, below the 50-day MA of 684.52, and below the 200-day MA of 783.07, indicating a bearish trend. The MACD of -15.33 indicates Positive momentum. The RSI at 36.77 is Neutral, neither overbought nor oversold. The STOCH value of 10.65 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:VCT.

Victrex Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JMAT	76 Outperform	£3.57B	10.03	15.96%	3.62%	-9.10%	239.75%
CRDA	70 Outperform	£3.91B	27.92	6.17%	3.41%	2.36%	-13.99%
VCT	69 Neutral	£555.78M	18.71	6.65%	9.62%	4.75%	-3.29%
TET	67 Neutral	£140.31M	12.90	8.02%	3.53%	1.12%	-0.70%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ELM	57 Neutral	£918.66M	-16.22	3.37%	1.40%	-11.78%	-92.61%
SYNT	40 Neutral	£76.46M	-0.90	-7.26%	―	-4.41%	2.29%

Victrex Corporate Events

Victrex PLC Updates Share Capital and Voting Rights

Victrex PLC announced that as of 31 October 2025, its issued share capital comprises 87,052,107 ordinary shares, each with one vote, and no shares are held in treasury. This update provides shareholders with the necessary information to calculate their interests in the company, which is crucial for maintaining transparency and compliance with regulatory requirements.

The most recent analyst rating on (GB:VCT) stock is a Buy with a £9.40 price target. To see the full list of analyst forecasts on Victrex stock, see the GB:VCT Stock Forecast page.

Victrex Announces CEO Succession with Dr. James Routh

Victrex plc has announced that Dr. James Routh will assume the role of Chief Executive Officer starting January 1, 2026, succeeding Jakob Sigurdsson. This transition is part of a planned succession, with Sigurdsson remaining on the board until the company’s Annual General Meeting in February 2026 to ensure a smooth handover. The announcement is significant for Victrex as it continues to strengthen its leadership team, which is crucial for maintaining its position as a leader in the high-performance polymer solutions industry.

The most recent analyst rating on (GB:VCT) stock is a Buy with a £9.40 price target. To see the full list of analyst forecasts on Victrex stock, see the GB:VCT Stock Forecast page.

Victrex PLC Updates Share Capital and Voting Rights

Victrex PLC announced that as of 30 September 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 is crucial for shareholders to determine their interest or any changes in their interest in the company.

The most recent analyst rating on (GB:VCT) stock is a Buy with a £774.00 price target. To see the full list of analyst forecasts on Victrex stock, see the GB:VCT Stock Forecast page.

Victrex PLC Updates Share Capital and Voting Rights

Victrex PLC, a company known for its advanced materials and polymer solutions, has announced that as of 29 August 2025, its issued share capital consists of 87,052,107 ordinary 1p shares, each carrying one vote, with no shares held in treasury. This update on the company’s voting rights and capital structure provides shareholders with the necessary information to assess their interests and any changes therein, potentially impacting shareholder decisions and the company’s market positioning.

The most recent analyst rating on (GB:VCT) stock is a Hold with a £742.00 price target. To see the full list of analyst forecasts on Victrex stock, see the GB:VCT Stock Forecast page.