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V2X (VVX)
NYSE:VVX

V2X (VVX) AI Stock Analysis

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VV

V2X

(NYSE:VVX)

Rating:71Outperform
Price Target:
$54.00
▲(9.25%Upside)
V2X's overall stock score is driven by strong financial performance and strategic initiatives, including contract wins and a share repurchase program. However, the high P/E ratio and technical indicators suggest caution. The company's solid growth prospects and liquidity position are balanced by challenges in profitability and cash flow.
Positive Factors
Contract Wins
V2X was awarded a $100mn contract by the US Navy to support the Aegis Ashore missile defense facilities in Poland.
Financial Stability
V2X successfully repriced and extended its Term Loan and Revolver, resulting in additional interest expense savings and cash flow.
Market Position
V2X is seen as a key beneficiary of increasingly complex full lifecycle military support, with enhanced readiness being a focus area for the DoD.
Negative Factors
Growth Challenges
V2X's exposure to supporting the US Army and some sunsetting programs puts pressure on near term growth.
Pricing Pressure
Pricing pressure on logistics-related Operations and Maintenance accounts is anticipated, which is seen as a negative for V2X.
Profitability Risk
Potential downside risk to profitability is seen as V2X may need to take on the cost of implementing digitalization efforts to remain competitive.

V2X (VVX) vs. SPDR S&P 500 ETF (SPY)

V2X Business Overview & Revenue Model

Company DescriptionV2X, Inc. is based in Colorado Springs, Colorado.
How the Company Makes MoneyV2X (VVX) makes money through multiple revenue streams primarily centered around the sale and licensing of its V2X communication technologies and solutions. The company partners with automotive manufacturers, infrastructure developers, and smart city projects to integrate its proprietary technologies into vehicles and transportation systems. Additionally, V2X generates revenue from ongoing support and maintenance services, software updates, and data analytics services that optimize the functionality of its communication systems. Strategic partnerships with technology firms and governmental agencies further enhance its market reach and revenue potential by facilitating large-scale deployments and pilot projects.

V2X Earnings Call Summary

Earnings Call Date:May 05, 2025
(Q1-2025)
|
% Change Since: 1.04%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Positive
The earnings call revealed a strong financial performance with significant contract wins and improved liquidity, offset by some challenges in cash flow and a slow start in bookings. Overall, the sentiment is positive but tempered by some caution due to the noted challenges.
Q1-2025 Updates
Positive Updates
Strong Financial Performance
Revenue for the first quarter was $1.02 billion, representing growth driven by a 10% year-over-year increase in the Indo-Pacific region. Adjusted EBITDA was $67 million, and adjusted EPS was $0.98.
Strategic Wins and Contract Extensions
V2X secured several significant contracts including a $62 million contract with the Space Force for the COBRA DANE radar system and a $140 million award to support the Space Force tracking station at Ascension Island. The Army extended several LOGCAP task orders into June 2030.
Liquidity and Capital Structure Improvements
The company enhanced its capital structure by reducing interest expenses and improving credit facility terms. Liquidity remains strong at approximately $650 million.
Reduced Recompete Risk
The percentage of recompetes comprising expected 2025 revenue has been significantly reduced, providing enhanced revenue visibility and allowing focus on new program wins.
Positive Market Trends
There is increased demand for V2X's solutions in foreign military sales and international markets, with growing opportunities in these areas.
Negative Updates
Cash Flow Challenges in Q1
Adjusted net cash used by operating activities was $118.1 million, reflecting a larger than typical seasonal cash outflow, primarily due to working capital timing.
Slow Start in Bookings
Bookings were back-half weighted for the year, with some delays in administrative processing by contracting officers affecting the pace.
Sunsetting of Specific Programs
The sunsetting of programs such as KC-10 and T1A affected revenue, particularly impacting Air Force revenue.
Company Guidance
In the V2X First Quarter 2025 Earnings Conference Call, the company reported a solid financial performance, with revenue reaching $1.02 billion, a 10% increase year-over-year in the Indo-Pacific region. The adjusted EBITDA was $67 million, aligning with their quarterly expectations, and adjusted EPS stood at $0.98. The company's liquidity remained robust at approximately $650 million, and they reaffirmed their 2025 guidance, projecting $4.4 billion in revenue, $313 million in adjusted EBITDA, and an adjusted EPS of $4.65. V2X highlighted several strategic wins, including a $62 million contract with the Space Force and a $103 million award for the Navy's C-26 aircraft. They also noted a strong pipeline of opportunities, with plans to submit bids on five projects each valued at over $1 billion, indicating a focus on growth and value creation while reducing debt and enhancing their capital structure.

V2X Financial Statement Overview

Summary
V2X displays a solid financial position with strong revenue growth and effective cash management. The income statement shows consistent revenue increase, and the balance sheet reflects a stable equity base with improved debt metrics. Cash flow analysis indicates robust cash generation. However, net income volatility poses some risks.
Income Statement
78
Positive
The income statement shows a strong revenue base with consistent growth, evidenced by the increase in total revenue from $1.8 billion in 2021 to $4.3 billion in TTM (Trailing-Twelve-Months). Gross profit margin and net profit margin have shown positive trends, with gross profit margin at 8.1% and net profit margin improving to 0.96% in the TTM period. The EBIT and EBITDA margins also indicate healthy operating efficiency. However, the net income has been volatile, which poses some risks.
Balance Sheet
72
Positive
The balance sheet reflects a stable equity base with stockholders' equity reaching $1.0 billion in TTM. The debt-to-equity ratio appears manageable, improving significantly from 3.80 in 2022 to 0.05 in TTM. Return on equity has improved but remains modest at 4.02%. The equity ratio of 33.37% suggests a balanced capital structure. The company's reduction in total debt is a positive sign for future stability.
Cash Flow
81
Very Positive
Cash flow analysis indicates robust cash generation, with operating cash flow consistently exceeding net income, resulting in a strong operating cash flow to net income ratio. Free cash flow has also shown positive growth, with a significant increase from $59 million in 2020 to $224 million in TTM. This suggests effective operational cash management and potential for reinvestment or debt reduction.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.33B4.32B3.96B2.89B1.78B1.40B
Gross Profit350.79M342.96M334.86M295.01M160.42M124.15M
EBITDA247.76M268.58M237.25M118.05M62.02M43.48M
Net Income41.65M34.68M-22.57M-14.33M45.73M36.95M
Balance Sheet
Total Assets3.10B3.23B3.08B3.23B889.46M843.81M
Cash, Cash Equivalents and Short-Term Investments169.06M268.32M72.65M116.07M38.51M66.95M
Total Debt52.28M1.15B1.16B1.33B151.16M197.57M
Total Liabilities2.07B2.20B2.09B2.24B539.37M538.87M
Stockholders Equity1.04B1.03B990.80M997.08M350.09M304.94M
Cash Flow
Free Cash Flow223.77M242.45M162.95M81.07M51.56M59.58M
Operating Cash Flow216.00M254.24M187.97M93.50M61.34M64.08M
Investing Cash Flow-6.55M-28.65M-22.65M175.96M-12.64M-138.03M
Financing Cash Flow-74.76M-24.50M-211.02M-193.24M-75.58M105.77M

V2X Technical Analysis

Technical Analysis Sentiment
Positive
Last Price49.43
Price Trends
50DMA
47.53
Positive
100DMA
47.71
Positive
200DMA
52.13
Negative
Market Momentum
MACD
0.85
Negative
RSI
64.18
Neutral
STOCH
79.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VVX, the sentiment is Positive. The current price of 49.43 is above the 20-day moving average (MA) of 46.95, above the 50-day MA of 47.53, and below the 200-day MA of 52.13, indicating a neutral trend. The MACD of 0.85 indicates Negative momentum. The RSI at 64.18 is Neutral, neither overbought nor oversold. The STOCH value of 79.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VVX.

V2X Risk Analysis

V2X disclosed 51 risk factors in its most recent earnings report. V2X reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

V2X Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AIAIR
74
Outperform
$2.59B246.75-1.08%21.07%-120.95%
VVVVX
71
Outperform
$1.56B37.764.10%7.38%
71
Outperform
$1.29B33.8613.07%1.19%10.06%-7.56%
DCDCO
68
Neutral
$1.26B36.025.25%3.02%95.76%
61
Neutral
C$6.60B7.223.42%2.83%6.74%-16.67%
TGTGI
55
Neutral
$2.01B56.6546.74%-4.74%
SPSPR
37
Underperform
$4.56B81.63%-2.91%-109.95%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VVX
V2X
49.43
-0.02
-0.04%
AIR
AAR
73.26
-0.22
-0.30%
DCO
Ducommun
84.47
24.93
41.87%
SPR
Spirit AeroSystems
39.98
5.49
15.92%
TGI
Triumph Group
25.90
9.70
59.88%
CDRE
Cadre Holdings
32.55
-2.58
-7.34%

V2X Corporate Events

Private Placements and Financing
V2X Completes Public Offering of Common Stock
Neutral
May 19, 2025

On May 15, 2025, V2X, Inc. entered into an underwriting agreement with Vertex Aerospace Holdco LLC and RBC Capital Markets, LLC for a public offering of 2,000,000 shares of common stock by the Selling Shareholder, with an option for an additional 300,000 shares. The offering, which closed on May 19, 2025, was made under the company’s shelf registration statement and the company will not receive any proceeds from the sale.

The most recent analyst rating on (VVX) stock is a Buy with a $65.00 price target. To see the full list of analyst forecasts on V2X stock, see the VVX Stock Forecast page.

Shareholder MeetingsStock Buyback
V2X Announces New Share Repurchase Program
Positive
May 12, 2025

At the 2025 Annual Meeting held on May 8, V2X, Inc. shareholders approved the third amendment and restatement of the 2014 Omnibus Incentive Plan, increasing the number of shares available for issuance by 900,000. Additionally, the Board of Directors authorized a share repurchase program effective May 12, 2025, allowing the company to buy back up to $100 million of its common stock over three years. This initiative reflects V2X’s commitment to enhancing shareholder returns and optimizing capital allocation.

The most recent analyst rating on (VVX) stock is a Buy with a $65.00 price target. To see the full list of analyst forecasts on V2X stock, see the VVX Stock Forecast page.

Business Operations and Strategy
V2X Secures LOGCAP V Contract Extension to 2030
Positive
Apr 21, 2025

On April 17, 2025, the U.S. Department of the Army announced an extension of the performance period for V2X, Inc. under the LOGCAP V contract, which supports U.S. military operations globally. This extension, which includes task orders in Kuwait, Iraq, and INDOPACOM, will continue through June 2030, reinforcing V2X’s significant role in military logistics support.

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: Jun 27, 2025