Vicor (VICR) AI Stock Analysis

• Market Cap: $6.20B
• Dividend Yield: N/A
• Average Volume (3M): 441.80K
• Price to Earnings (P/E): 76.4
• Beta (1Y): 1.77
• Revenue Growth: 11.55%
• EPS Growth: 1745.46%
• Country: US
• Employees: 1,074
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.63
• Shares Outstanding: 32,925,915
• 10 Day Avg. Volume: 620,969
• 30 Day Avg. Volume: 441,801
• PEG Ratio: -4.00
• Price to Book (P/B): 3.81
• Price to Sales (P/S): 6.04
• P/FCF Ratio: 79.67
• Enterprise Value/Market Cap: 0.28
• Enterprise Value/Revenue: 3.88
• Enterprise Value/Gross Profit: 6.85
• Enterprise Value/Ebitda: 15.88
• 1Y Price Target: $102.50
• Price Target Upside: -26.51% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $148.00 ▲(6.12% Upside)

The score is driven primarily by strong underlying financial performance (healthy margins, strong cash generation, and very low leverage). Earnings-call takeaways are constructive but mixed due to sequential revenue decline and margin pressure, while technicals show strong momentum but an overbought RSI raises near-term risk. Valuation is the biggest constraint, with a high P/E and no stated dividend yield.

Positive Factors

High Profitability

Sustained high gross and net margins indicate Vicor’s power-conversion products command pricing power and technical differentiation. Durable margins support reinvestment in R&D and capacity, enabling long-term product competitiveness and resilience to input-cost swings across cycles.

Strong Cash Generation

Robust free cash flow growth and efficient conversion of earnings into operating cash give Vicor financial flexibility to fund R&D, sustain capital spending, and buy back stock without relying on debt, underpinning long-term capital allocation and stability.

Very Low Leverage

Minimal financial leverage and a healthy ROE indicate a conservative capital structure that reduces solvency risk, preserves investment optionality, and supports enduring operations through demand cycles while enabling opportunistic funding for growth or M&A.

Negative Factors

Sequential Revenue Volatility

Sharp sequential swings driven by one-time litigation proceeds and lumpy licensing can obscure organic demand trends and make near-term revenue visibility poorer. Reliance on irregular settlements increases earnings volatility and complicates capacity and investment planning.

Under-Utilization Pressure

Persistent under-utilized manufacturing capacity compresses gross margins through fixed-cost under-absorption. If demand softens or ramps are delayed, margin sustainability is at risk until utilization recovers, pressuring operating leverage and long-term profitability.

Historical Operational Volatility

Past negative EBIT and variable FCF growth highlight operational swings tied to product cycles and mix. Such volatility can complicate forecasting, capital investment timing, and investor confidence, posing a medium-term execution risk until results stabilize.

Vicor Business Overview & Revenue Model

Company Description

Vicor 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 Money

Vicor generates revenue primarily through the sale of its power management products, which include AC-DC power supplies, DC-DC converters, and custom power solutions. The company operates on a business model that focuses on high-value, high-margin products, catering to industries that require reliable and efficient power solutions. Key revenue streams include direct sales to OEMs (Original Equipment Manufacturers), distribution partnerships, and long-term contracts with major clients in sectors such as telecommunications and data centers. Additionally, Vicor benefits from engineering and design services, providing tailored solutions to meet specific customer needs. Strategic partnerships with technology firms enhance Vicor's market reach and innovation capabilities, contributing positively to its overall earnings.

Vicor Financial Statement Overview

Summary

Vicor demonstrates strong financial health with robust profitability, a solid balance sheet, and efficient cash flow management. The company has shown consistent revenue growth and maintains low leverage, positioning it well for future opportunities. However, historical fluctuations in operational efficiency and cash flow present potential risks.

Income Statement

Vicor's income statement shows strong profitability with a TTM gross profit margin of 51.78% and a net profit margin of 20.75%. The company has demonstrated consistent revenue growth, with a TTM revenue growth rate of 4.55%. The EBIT and EBITDA margins are healthy, indicating efficient operations. However, the previous year's EBIT was negative, which suggests some volatility in operational efficiency.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.0117, indicating minimal leverage. The return on equity (ROE) is strong at 13.78%, showcasing effective use of equity to generate profits. The equity ratio is robust, suggesting a stable capital structure. However, the slight increase in debt over the years could be monitored for future leverage risks.

Cash Flow

Vicor's cash flow statement is strong, with a significant free cash flow growth rate of 20.95% TTM, indicating improved cash generation. The operating cash flow to net income ratio of 1.90 suggests efficient cash conversion. The free cash flow to net income ratio is high at 0.88, reflecting good cash profitability. However, historical fluctuations in free cash flow growth highlight potential volatility in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	441.60M	359.06M	405.06M	399.08M	359.36M	296.58M
Gross Profit	250.37M	184.00M	204.93M	180.56M	178.20M	131.45M
EBITDA	107.96M	36.82M	68.60M	47.48M	67.31M	28.42M
Net Income	82.28M	6.13M	53.59M	25.45M	56.63M	17.91M
Balance Sheet
Total Assets	710.25M	641.12M	594.89M	536.90M	477.20M	396.24M
Cash, Cash Equivalents and Short-Term Investments	362.38M	277.27M	242.22M	190.61M	227.63M	211.91M
Total Debt	7.36M	7.34M	8.23M	8.46M	4.78M	4.60M
Total Liabilities	79.89M	70.83M	53.78M	72.56M	53.30M	45.08M
Stockholders Equity	630.08M	570.07M	540.87M	464.09M	423.60M	350.82M
Cash Flow
Free Cash Flow	117.45M	27.24M	41.08M	-41.03M	7.12M	6.09M
Operating Cash Flow	133.96M	50.84M	74.53M	22.94M	54.88M	34.74M
Investing Cash Flow	-16.51M	-23.60M	-33.45M	-18.97M	-43.66M	-78.82M
Financing Cash Flow	-22.60M	7.99M	10.60M	4.44M	10.09M	121.04M

Vicor Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 139.47
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VICR, the sentiment is Positive. The current price of 139.47 is above the 20-day moving average (MA) of 109.57, above the 50-day MA of 97.95, and above the 200-day MA of 60.84, indicating a bullish trend. The MACD of 10.69 indicates Negative momentum. The RSI at 82.89 is Negative, neither overbought nor oversold. The STOCH value of 71.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VICR.

Vicor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BELFA	77 Outperform	$2.29B	32.28	16.40%	0.15%	23.70%	14.78%
OSIS	76 Outperform	$4.83B	31.14	17.58%	―	9.37%	15.70%
BELFB	73 Outperform	$2.29B	36.20	16.40%	0.16%	23.70%	14.78%
VICR	71 Outperform	$6.20B	76.40	13.89%	―	11.55%	1745.46%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ROG	58 Neutral	$1.73B	-25.67	-5.34%	―	-4.87%	-235.48%
PENG	55 Neutral	$1.13B	81,922.40	4.85%	―	16.91%	―