V2X (VVX) AI Stock Analysis

• Market Cap: $1.44B
• Dividend Yield: N/A
• Average Volume (3M): 218.59K
• Price to Earnings (P/E): 34.7
• Beta (1Y): 0.88
• Revenue Growth: 7.38%
• EPS Growth: N/A
• Country: US
• Employees: 16,100
• Sector: Industrials
• Sector Strength: 92
• Industry: Aerospace & Defense
• EPS (TTM): 0.98
• Shares Outstanding: 31,684,496
• 10 Day Avg. Volume: 360,247
• 30 Day Avg. Volume: 218,585
• PEG Ratio: N/A
• Price to Book (P/B): 1.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.89
• 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: $65.33
• Price Target Upside: 43.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 69 Neutral
• Price Target: $53.00 ▲( 16.69% Upside)

V2X's overall stock score reflects solid financial performance and strategic contract wins, supporting a strong position in the Aerospace & Defense industry. However, technical analysis suggests potential resistance, and the high P/E ratio indicates overvaluation risks. Positive corporate events and a favorable earnings call sentiment enhance growth prospects, but caution is warranted due to cash flow challenges and valuation concerns.

Positive Factors

Contract wins

V2X was awarded a $100mn contract by the US Navy to support the Aegis Ashore missile defense facilities in Poland.

Earnings performance

V2X reported adjusted EPS well above expectations due to record topline performance, improved operations, and lower interest expenses.

Revenue growth

Record sales and profitability indicate heightened demand, especially in the Indo-Pacific region, contributing to V2X's strong position.

Negative Factors

Policy limitations

Significant earnings upside for V2X is capped by US foreign policy.

Pricing pressure

Pricing pressure on logistics-related Operations and Maintenance accounts is anticipated, which is seen as a negative for V2X.

Profitability risks

Potential downside risk to profitability is seen as V2X may need to take on the cost of implementing digitalization efforts to remain competitive.

V2X Business Overview & Revenue Model

Company Description

V2X, Inc. is based in Colorado Springs, Colorado.

How the Company Makes Money

V2X generates revenue primarily through the sale of its communication systems and software to automotive manufacturers, infrastructure developers, and government agencies. The company also earns income from licensing its proprietary technology and software solutions to third-party developers and partners. Additionally, V2X may engage in strategic partnerships and collaborations with other technology firms and industries to expand its market reach and develop integrated solutions, which can also contribute to its revenue streams.

V2X Financial Statement Overview

Summary

V2X demonstrates strong revenue growth and effective cash management, with a significant reduction in leverage and consistent cash flow generation. However, profitability metrics show room for improvement, and net income volatility poses some risks.

Income Statement

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

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

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.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.33B	4.32B	3.96B	2.89B	1.78B	1.40B
	Gross Profit
350.79M	342.96M	334.86M	295.01M	160.42M	124.15M
	EBIT
163.17M	159.20M	124.42M	55.77M	62.02M	43.48M
	EBITDA
247.76M	268.58M	237.25M	118.05M	62.02M	43.48M
	Net Income Common Stockholders
41.65M	34.68M	-22.57M	-14.33M	45.73M	36.95M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
72.65M	268.32M	72.65M	116.07M	38.51M	66.95M
	Total Assets
3.08B	3.23B	3.08B	3.23B	889.46M	843.81M
	Total Debt
1.24B	1.15B	1.16B	1.33B	151.16M	197.57M
	Net Debt
1.17B	884.20M	1.09B	1.22B	112.65M	130.62M
	Total Liabilities
2.09B	2.20B	2.09B	2.24B	539.37M	538.87M
	Stockholders Equity
990.80M	1.03B	990.80M	997.08M	350.09M	304.94M
Cash Flow		Free Cash Flow
223.77M	242.45M	162.95M	81.07M	51.56M	59.58M
	Operating Cash Flow
216.00M	254.24M	187.97M	93.50M	61.34M	64.08M
	Investing Cash Flow
-6.55M	-28.65M	-22.65M	175.96M	-12.64M	-138.03M
	Financing Cash Flow
-74.76M	-24.50M	-211.02M	-193.24M	-75.58M	105.77M

V2X Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 45.42
• 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 VVX, the sentiment is Negative. The current price of 45.42 is below the 20-day moving average (MA) of 49.34, below the 50-day MA of 49.20, and below the 200-day MA of 52.80, indicating a bearish trend. The MACD of -0.53 indicates Positive momentum. The RSI at 35.03 is Neutral, neither overbought nor oversold. The STOCH value of 5.30 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VVX.

V2X Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DCO	75 Outperform	$1.01B	29.04	5.25%	―	3.02%	95.76%
CDRE	73 Outperform	$1.33B	34.80	13.07%	1.09%	10.06%	-7.56%
AIR	71 Outperform	$2.16B	246.75	-1.08%	―	21.07%	-120.95%
VVX	69 Neutral	$1.44B	34.69	4.10%	―	7.38%	―
Sector *	64 Neutral	$4.39B	11.81	5.20%	249.39%	3.96%	-12.36%
TGI	54 Neutral	$1.99B	284.07	46.74%	―	-8.59%	―
SPR	37 Underperform	$4.35B	―	81.63%	―	-2.91%	-109.95%

V2X Corporate Events

V2X Completes Public Offering of Common Stock

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.

V2X Announces New Share Repurchase Program

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.

V2X Secures LOGCAP V Contract Extension to 2030

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.