V2X (VVX) AI Stock Analysis

• Market Cap: $1.69B
• Dividend Yield: N/A
• Average Volume (3M): 325.73K
• Price to Earnings (P/E): 21.2
• Beta (1Y): 1.20
• Revenue Growth: 5.10%
• EPS Growth: 774.57%
• Country: US
• Employees: 16,100
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 1.37
• Shares Outstanding: 31,535,084
• 10 Day Avg. Volume: 400,509
• 30 Day Avg. Volume: 325,729
• PEG Ratio: -0.17
• Price to Book (P/B): 1.47
• Price to Sales (P/S): 0.35
• P/FCF Ratio: 6.21
• Enterprise Value/Market Cap: 1.60
• Enterprise Value/Revenue: 0.61
• Enterprise Value/Gross Profit: 7.19
• Enterprise Value/Ebitda: 9.16
• 1Y Price Target: $64.29
• Price Target Upside: 20.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 5.01
• Revenue Forecast (FY): $4.47B

• Rating: 73 Outperform
• Price Target: $65.00 ▲(21.54% Upside)

V2X's strong financial performance and positive earnings call outlook are the primary drivers of its stock score. The technical indicators support a positive trend, though the valuation suggests potential overvaluation. The absence of a dividend yield and concerns about government-related risks slightly temper the overall score.

Positive Factors

Revenue Growth

Exceeding revenue expectations indicates strong demand for V2X's solutions, supporting sustained growth and market expansion.

Contract Wins

Major contract wins validate V2X's strategic direction and enhance its long-term revenue visibility and customer relationships.

Cash Flow Strength

Strong cash flow growth supports reinvestment in the business, enhancing financial stability and strategic flexibility.

Negative Factors

Margin Pressure

Lower margins compared to peers suggest challenges in cost management, potentially impacting profitability and competitiveness.

Geographic Revenue Decline

Declining revenue in key regions could signal market challenges, affecting overall growth and diversification strategies.

Program Reductions

Reduction in key programs may lead to revenue volatility and require strategic adjustments to maintain growth momentum.

V2X Business Overview & Revenue Model

Company Description

V2X (VVX) is a leading provider of advanced technology solutions focused on enhancing transportation systems and infrastructure through innovative vehicle-to-everything (V2X) communications. Operating primarily in the transportation and smart city sectors, the company develops products and services that facilitate real-time data exchange between vehicles, infrastructure, and the surrounding environment, ultimately improving safety, efficiency, and sustainability in urban mobility. Its core offerings include V2X communication platforms, software solutions for traffic management, and consulting services for urban planning.

How the Company Makes Money

V2X generates revenue through multiple streams, including the sale of its V2X communication hardware and software solutions to municipalities and transportation agencies. Additionally, the company earns income from licensing its technology to automotive manufacturers and providing ongoing support and maintenance services. Strategic partnerships with technology firms and government entities amplify its market reach and provide opportunities for joint ventures, further enhancing its revenue potential. Furthermore, V2X engages in consulting services to assist cities in implementing smart mobility solutions, contributing to its overall earnings.

V2X Financial Statement Overview

Summary

V2X shows strong revenue growth and improved profitability with a significant reduction in leverage, enhancing financial stability. Robust cash flow generation supports operational flexibility, though profit margins could improve to meet industry standards.

Income Statement

V2X has shown consistent revenue growth with a TTM increase of 1.97% and a strong recovery from previous years. The gross profit margin is stable at 8.6%, and the net profit margin has improved to 1.63% in the TTM, indicating enhanced profitability. However, margins remain relatively low compared to industry standards, suggesting room for improvement in cost management.

Balance Sheet

The company's debt-to-equity ratio has significantly improved to 0.04 in the TTM from over 1 in prior years, reflecting a substantial reduction in leverage. Return on equity has increased to 6.84%, indicating better utilization of equity. However, the equity ratio remains moderate at around 34%, suggesting a balanced but cautious approach to asset financing.

Cash Flow

V2X's cash flow performance is strong, with a notable free cash flow growth of 28.58% in the TTM. The operating cash flow to net income ratio is healthy at 0.17, and the free cash flow to net income ratio is robust at 1.07, indicating efficient cash generation relative to earnings. This solid cash flow position supports the company's financial stability and potential for reinvestment.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.42B	4.32B	3.96B	2.89B	1.78B	1.40B
Gross Profit	375.76M	342.96M	334.86M	295.01M	160.42M	124.15M
EBITDA	294.86M	262.88M	212.20M	118.40M	78.57M	51.60M
Net Income	80.14M	34.68M	-22.57M	-14.33M	45.73M	36.95M
Balance Sheet
Total Assets	3.18B	3.23B	3.08B	3.23B	889.46M	843.81M
Cash, Cash Equivalents and Short-Term Investments	179.32M	268.32M	72.65M	116.07M	38.51M	66.95M
Total Debt	1.14B	1.15B	1.16B	1.33B	151.16M	197.57M
Total Liabilities	2.10B	2.20B	2.09B	2.24B	539.37M	538.87M
Stockholders Equity	1.08B	1.03B	990.80M	997.08M	350.09M	304.94M
Cash Flow
Free Cash Flow	184.90M	242.45M	162.95M	81.07M	51.56M	59.58M
Operating Cash Flow	195.65M	254.24M	187.97M	93.50M	61.34M	64.08M
Investing Cash Flow	-35.90M	-28.65M	-22.65M	175.96M	-12.64M	-138.03M
Financing Cash Flow	-31.64M	-24.50M	-211.02M	-193.24M	-75.58M	105.77M

V2X Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 53.48
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 53.48 is below the 20-day moving average (MA) of 54.82, below the 50-day MA of 55.99, and above the 200-day MA of 52.14, indicating a neutral trend. The MACD of -0.35 indicates Positive momentum. The RSI at 42.67 is Neutral, neither overbought nor oversold. The STOCH value of 14.10 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
CDRE	80 Outperform	$1.69B	37.56	14.17%	0.91%	19.94%	33.38%
VVX	73 Outperform	$1.69B	21.21	7.70%	―	5.10%	774.57%
ATRO	68 Neutral	$1.95B	-403.76	-1.72%	―	6.19%	52.10%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DCO	58 Neutral	$1.41B	-40.33	-5.27%	―	3.16%	-213.56%
VOYG	53 Neutral	$1.61B	-14.67	―	―	―	―
LUNR	52 Neutral	$2.69B	-8.00	―	―	8.07%	33.37%

V2X Corporate Events

V2X Board Changes and Shareholder Agreement Termination

V2X, Inc. announced the resignations of Dino M. Cusumano and Joel M. Rotroff from its Board of Directors on November 13, 2025, following the sale of shares by Vertex Aerospace Holdco LLC. This move reduced the board size from nine to seven members. The resignations were not due to any disagreements with the company. Concurrently, V2X entered into an underwriting agreement with RBC Capital Markets for a public offering of 2.25 million shares, which closed on the same day. The company repurchased some shares but did not sell any securities or receive proceeds from the sale. The sale led to the automatic termination of the Shareholders Agreement, ending the Selling Shareholder’s rights to nominate board members.

V2X Appoints New Chief Accounting Officer

V2X, Inc. has announced the appointment of Mr. Daniel G. Demases as its new Chief Accounting Officer, effective December 5, 2025, replacing Mr. William B. Noon. Mr. Demases will receive a base salary of $335,500 and be eligible for various incentive awards, aligning his compensation with company and individual performance, which may impact the company’s financial management and stakeholder interests.