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Vicor (VICR)
:VICR
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Vicor
(NASDAQ:VICR)
65Neutral
Positive Factors
Earnings
Vicor announced that 2025 should be a record year for both revenue and profitability.
Legal Rulings
The ITC confirmed that Vicor's U.S. patents are valid and infringed, leading to a bar on unlicensed computing systems with infringing power modules from being imported into the U.S.
Licensing
Royalty estimates increased as the company announced a hyperscaler as a second licensee, and also has received orders for NBM product from this customer.
Negative Factors
Importation Costs
The bond amount for computing systems has been set at 100% of the system's value, which could impact importers financially.
Product Delays
The fab out of a new ASIC delayed the broader sampling of its Gen 5 tech, pushing out more bullish scenarios.
Stock Valuation
Given timing uncertainties on the Gen 5 product ramp and the stock trading ~27x CY26 EPS, the risk/reward is seen as fairly balanced.
Vicor (VICR) vs. S&P 500 (SPY)
Market Cap
$2.19B
Dividend YieldN/A
Average Volume (3M)332.56K
Price to Earnings (P/E)372.0
Beta (1Y)1.99
Revenue Growth-14.92%
EPS Growth-91.72%
CountryUS
Employees1,074
SectorTechnology
Sector Strength44
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.13
Shares Outstanding33,443,745
10 Day Avg. Volume213,003
30 Day Avg. Volume332,556
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)6.75
Price to Cash Flow (P/CF)59.90
P/FCF Ratio30.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$50.00Price Target Upside3.31% Upside
Rating ConsensusHold
Number of Analyst Covering2
Vicor Business Overview & Revenue Model
Company DescriptionVicor Corporation, together with its subsidiaries, designs, develops, manufactures, and markets modular power components and power systems for converting electrical power in the United States, Europe, the Asia Pacific, and internationally. The company offers a range of brick-format DC-DC converters; complementary components; and input and output voltage, and output power products, as well as electrical and mechanical accessories. It also provides custom power systems solutions. The company serves independent manufacturers of electronic devices, original equipment manufacturers, and their contract manufacturers in the aerospace and aviation, defense electronics, industrial automation and equipment, instrumentation, test equipment, solid state lighting, telecommunications and networking infrastructure, and vehicles and transportation markets. Vicor Corporation was incorporated in 1981 and is headquartered in Andover, Massachusetts.
How the Company Makes MoneyVicor makes money primarily through the sale of its modular power components and power systems. The company's revenue model revolves around the design, production, and distribution of high-performance power modules that cater to various industry needs. Vicor's key revenue streams include sales of its power converters, which are used to efficiently convert and manage electrical power in electronic devices, and power supply systems that provide reliable power solutions for complex applications. The company also benefits from strategic partnerships with key players in sectors like telecommunications and computing, which help expand its market reach and drive sales. Additionally, Vicor invests in research and development to innovate and improve its product offerings, ensuring a competitive edge in the power systems market.
Vicor Financial Statement Overview
Summary
Vicor exhibits strong financial health with consistent revenue growth and a solid balance sheet characterized by low leverage and high equity. However, there are areas for improvement, particularly in enhancing net profit margins and free cash flow. The company shows potential for growth, but must focus on cost management and cash flow efficiency to optimize financial performance.Income Statement
Vicor has demonstrated solid revenue growth over the years, with a noticeable increase in gross profit margin from 2023 to TTM 2024, reaching approximately 51.3%. The net profit margin for TTM 2024, however, is relatively low at about 2.1%, which could indicate increased costs or operational inefficiencies. The EBIT and EBITDA margins are healthy, with EBITDA margin at approximately 16.7% for TTM 2024, suggesting good operational performance. Continued vigilance on cost management could further enhance profitability.75
Positive
Balance Sheet
Vicor maintains a strong balance sheet with a low debt-to-equity ratio of approximately 0.013, indicating minimal reliance on debt financing. The equity ratio is robust at about 87.6%, signifying a solid capital structure. Return on equity for TTM 2024 is modest at around 1.0%, suggesting room for improvement in generating returns from shareholders' equity. The company's high equity ratio and minimal debt are significant strengths, although enhancing ROE should be a focus.80
Positive
Cash Flow
Vicor's free cash flow growth rate has been negative from 2023 to TTM 2024, which may raise concerns about cash generation capabilities. However, the company has maintained a healthy operating cash flow to net income ratio of about 10.7, indicating efficient cash conversion from earnings. The free cash flow to net income ratio is 5.7, suggesting that there is potential to improve free cash flow generation. Overall, the cash flow situation is stable but could benefit from better free cash flow management.70
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 269.78M | 405.06M | 399.08M | 359.36M | 296.58M | 262.98M | Gross Profit |
| 138.25M | 204.93M | 180.56M | 178.20M | 131.45M | 122.97M | EBIT |
| 13.82M | 51.36M | 27.20M | 43.90M | 6.31M | 3.49M | EBITDA |
| 45.03M | 68.60M | 40.20M | 55.60M | 17.37M | 13.82M | Net Income Common Stockholders |
| 5.75M | 53.59M | 25.45M | 56.63M | 17.91M | 14.10M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 66.61M | 242.22M | 190.61M | 227.63M | 211.91M | 84.67M | Total Assets |
| 225.00M | 613.35M | 536.90M | 477.20M | 396.24M | 240.73M | Total Debt |
| 1.68M | 8.23M | 8.46M | 4.78M | 4.60M | 4.38M | Net Debt |
| -64.94M | -233.99M | -182.15M | -177.64M | -157.15M | -80.29M | Total Liabilities |
| 34.31M | 72.25M | 72.56M | 53.30M | 45.08M | 34.86M | Stockholders Equity |
| 190.24M | 540.87M | 464.09M | 423.60M | 350.82M | 205.56M |
| Cash Flow | Free Cash Flow | ||||
| 32.65M | 40.49M | -41.03M | 6.68M | 5.89M | 9.72M | Operating Cash Flow |
| 61.68M | 73.94M | 22.94M | 54.44M | 34.55M | 22.21M | Investing Cash Flow |
| -29.03M | -33.45M | -18.97M | -43.66M | -78.62M | -12.48M | Financing Cash Flow |
| 7.23M | 11.19M | 4.44M | 10.09M | 121.04M | 4.37M |
Vicor Technical Analysis
Negative
48.40
Price Trends
53.83
Negative
53.35
Negative
45.75
Positive
Market Momentum
-0.91
Positive
40.12
Neutral
20.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VICR, the sentiment is Negative. The current price of 48.4 is below the 20-day moving average (MA) of 54.44, below the 50-day MA of 53.83, and above the 200-day MA of 45.75, indicating a neutral trend. The MACD of -0.91 indicates Positive momentum. The RSI at 40.12 is Neutral, neither overbought nor oversold. The STOCH value of 20.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VICR.
Vicor Risk Analysis
Vicor disclosed 17 risk factors in its most recent earnings report. Vicor reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Vicor Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $107.41B | 28.86 | 20.23% | 1.37% | 7.25% | 18.36% | |
73 Outperform | $3.45B | 29.62 | 9.27% | ― | -3.53% | -3.90% | |
68 Neutral | $26.19B | 85.88 | 4.71% | 3.73% | -44.31% | -86.74% | |
67 Neutral | $17.25B | 11.27 | 18.97% | ― | -14.19% | -27.42% | |
65 Neutral | $2.19B | 372.02 | 1.10% | ― | -14.92% | -91.72% | |
65 Neutral | $4.52B | 12.81 | 8.73% | 1.74% | -2.85% | -1.90% | |
58 Neutral | $21.03B | 10.58 | -16.29% | 2.47% | 4.38% | -23.63% |
* Technology Sector Average
Performance Comparison
VICR
Vicor
48.40
10.32
27.10%
AMKR
Amkor
18.30
-12.65
-40.87%
ETN
Eaton
274.17
-33.89
-11.00%
MCHP
Microchip
48.70
-38.86
-44.38%
ON
ON Semiconductor
40.94
-32.91
-44.56%
PLXS
Plexus
127.76
32.37
33.93%
Vicor Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: -6.67% | Next Earnings Date: Apr 29, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted several positive developments, including significant growth in Advanced Products and improved gross margins, as well as successful defense of intellectual property. However, these positives were balanced by a significant decline in overall revenue, operating income, and net income, indicating a challenging year overall.Highlights
Advanced Products Performance
Advanced Products revenue increased 18% sequentially, showing strength particularly in the HPC segment and also growth in industrial and aerospace & defense markets.
Gross Margin Improvement
Consolidated gross profit margin for Q4 was 52.4%, an increase of 3.3% from the prior quarter, with full year gross margin rising by 0.7% to 51.2% from 50.6% in the prior year.
Successful ITC Action
The ITC action led to exclusion and cease and desist orders, banning the importation of infringing power modules, with a hyperscaler taking a license to Vicor’s NBM IP.
Book-to-Bill Ratio Improvement
The book-to-bill ratio rose above one in Q4, indicating a strengthening order book.
Lowlights
Overall Revenue Decline
Total revenue for the year ended December 31, 2024, decreased 11.4% to $359.1 million from $405.1 million in the prior year.
Drop in Brick Products Revenue
Brick Products revenue declined 13% from the third quarter and decreased 10.7% for the year to $161.7 million from $181.2 million the previous year.
Operating Income Challenges
For the full year 2024, there was an operating loss of $1.3 million, compared to an operating income of $51.4 million in the prior year.
Net Income Decline
Net income for the full year 2024 decreased to $6.1 million from $53.6 million in the prior year, with EPS dropping to $0.14 from $1.19.
Company Guidance
During the Vicor Corporation's fourth quarter 2024 earnings call, the company provided detailed guidance on various financial metrics. Total revenue for Q4 was reported at $96.2 million, reflecting a 3.2% increase from the previous quarter and a 3.8% rise from Q4 2023. However, annual revenue for 2024 decreased by 11.4% to $359.1 million compared to 2023. Advanced Products revenue grew sequentially by 18%, while Brick Products revenue declined by 13%. The gross profit margin for Q4 improved to 52.4%, up 3.3% from the prior quarter. For the full year, the gross margin increased slightly to 51.2% from 50.6% in 2023, primarily due to increased royalty income and reduced supply chain costs. Operating expenses rose by 2% from Q3, and for the full year, they accounted for 51.6% of revenue, up from 37.9% in 2023. The company recorded a Q4 operating income of $9.2 million, equating to a 9.6% operating margin, while the full-year operating loss was $1.3 million, or negative 0.4% of revenue. The net income for Q4 totaled $10.2 million, with a GAAP diluted EPS of $0.23. For the full year, net income decreased to $6.1 million, and EPS dropped to $0.14. Additionally, the cash and equivalents at the end of Q4 were $277.3 million, and the book-to-bill ratio improved above one, with a 1-year backlog increase of 3.3% to $155.5 million. The company highlighted that 2025 presents uncertainties and opportunities, thus refraining from providing specific quarterly guidance.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.