V2X (VVX) AI Stock Analysis

• Market Cap: $1.73B
• Dividend Yield: N/A
• Average Volume (3M): 456.78K
• Price to Earnings (P/E): 24.5
• Beta (1Y): 0.99
• Revenue Growth: 5.07%
• EPS Growth: N/A
• Country: US
• Employees: 16,100
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 1.33
• Shares Outstanding: 31,709,822
• 10 Day Avg. Volume: 375,811
• 30 Day Avg. Volume: 456,781
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.44
• Enterprise Value/Revenue: 0.57
• Enterprise Value/Gross Profit: 6.67
• Enterprise Value/Ebitda: 10.16
• 1Y Price Target: $62.50
• Price Target Upside: 14.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 73 Outperform
• Price Target: $64.00 ▲(17.60% Upside)

V2X's strong technical indicators and positive earnings call sentiment are the most significant factors driving the score. Financial performance is solid but could improve in profitability and cash flow growth. Valuation is a concern due to the high P/E ratio, and recent corporate events slightly dampen the outlook.

Positive Factors

Revenue Growth

The company's robust revenue growth indicates strong demand for its products and services, enhancing its market position and long-term growth potential.

Strategic Contract Wins

Securing long-term contracts like the T-6 award strengthens V2X's revenue visibility and showcases its competitive edge in the aerospace and defense sector.

Debt Reduction

The reduction in leverage enhances financial stability and flexibility, allowing V2X to invest in growth opportunities and withstand economic fluctuations.

Negative Factors

Low Net Profit Margins

Persistently low net profit margins suggest challenges in cost management and profitability, potentially limiting future earnings growth and shareholder returns.

Decline in Free Cash Flow Growth

A decline in free cash flow growth could impact V2X's ability to fund operations and strategic initiatives, posing a risk to its financial health and expansion plans.

Board Changes and Governance Concerns

Recent board changes following a stock offering may affect governance stability, potentially impacting strategic decision-making and shareholder confidence.

V2X Business Overview & Revenue Model

Company Description

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

How the Company Makes Money

V2X generates revenue through multiple streams, primarily from the sale of its V2X communication hardware and software solutions to automotive manufacturers, infrastructure developers, and government agencies. The company also earns income from ongoing service agreements and maintenance contracts associated with its products. Additionally, V2X partners with city governments and transportation agencies to implement smart city projects, receiving funding and grants that contribute to its earnings. Strategic collaborations with major automotive players further enhance its market presence and revenue potential.

V2X Financial Statement Overview

Summary

V2X shows strong revenue growth and improved leverage, indicating a solid financial position. However, low net profit margins and a decline in free cash flow growth suggest areas for improvement.

Income Statement

V2X has demonstrated strong revenue growth with a 14.2% increase in the TTM period, indicating robust demand in the Aerospace & Defense sector. The gross profit margin improved to 8.6% from 7.9% in the previous year, showcasing better cost management. However, the net profit margin remains relatively low at 1.6%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are stable, reflecting consistent operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has significantly improved to 0.04 in the TTM period, indicating a strong reduction in leverage and better financial stability. Return on equity has increased to 6.8%, showing improved profitability for shareholders. The equity ratio stands at a healthy level, suggesting a solid capital structure. However, the previous high leverage could pose a risk if not managed carefully.

Cash Flow

V2X's free cash flow to net income ratio is strong at 1.07, indicating efficient cash generation relative to net income. However, the free cash flow growth rate has declined by 28.3% in the TTM period, which could impact future liquidity. The operating cash flow to net income ratio is moderate, suggesting that cash flow generation is aligned with profitability but could be improved.

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	372.69M	342.96M	334.86M	295.01M	160.42M	124.15M
EBITDA	244.66M	268.58M	237.25M	118.05M	62.02M	43.48M
Net Income	70.58M	34.68M	-22.57M	-14.33M	45.73M	36.95M
Balance Sheet
Total Assets	3.15B	3.23B	3.08B	3.23B	889.46M	843.81M
Cash, Cash Equivalents and Short-Term Investments	190.46M	268.32M	72.65M	116.07M	38.51M	66.95M
Total Debt	44.89M	1.15B	1.16B	1.33B	151.16M	197.57M
Total Liabilities	2.08B	2.20B	2.09B	2.24B	539.37M	538.87M
Stockholders Equity	1.07B	1.03B	990.80M	997.08M	350.09M	304.94M
Cash Flow
Free Cash Flow	160.48M	242.45M	162.95M	81.07M	51.56M	59.58M
Operating Cash Flow	149.77M	254.24M	187.97M	93.50M	61.34M	64.08M
Investing Cash Flow	-8.73M	-28.65M	-22.65M	175.96M	-12.64M	-138.03M
Financing Cash Flow	-66.64M	-24.50M	-211.02M	-193.24M	-75.58M	105.77M

V2X Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 54.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 54.42 is below the 20-day moving average (MA) of 56.61, above the 50-day MA of 53.20, and above the 200-day MA of 50.35, indicating a bullish trend. The MACD of 0.25 indicates Positive momentum. The RSI at 54.96 is Neutral, neither overbought nor oversold. The STOCH value of 47.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VVX.

V2X Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AIR	77 Outperform	2.68B	222.64	1.03%	―	19.91%	-73.61%
VVX	73 Outperform	$1.73B	24.52	6.86%	―	5.07%	―
DCO	73 Outperform	1.37B	34.85	5.65%	―	2.42%	72.72%
CDRE	70 Outperform	1.33B	35.24	11.46%	1.14%	7.66%	-9.96%
SPR	41 Neutral	4.55B	-1.93	81.63%	―	-2.60%	-94.76%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

V2X Corporate Events

V2X Announces Board Changes After Vertex Share Sale

V2X, Inc. announced changes to its Board of Directors following the sale of shares by Vertex Aerospace Holdco LLC. On August 13, 2025, Jordan F. Ransom and Lee E. Evangelakos resigned from their positions on the Board, effective August 14, 2025, as part of the Shareholders Agreement with Vertex Aerospace. Their resignations were not due to any disagreements with the company. Consequently, the Board reduced its size from 11 to 10 members. David E. Farnsworth was appointed to fill Ms. Evangelakos’s position as a Class I Director and join the Audit and Nominating and Governance Committees. Farnsworth, with extensive experience in the aerospace and defense industry, was previously a non-voting advisor to the Board.

V2X Reduces Shareholder Influence After Stock Offering

On August 8, 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. The offering closed on August 11, 2025, and the company repurchased 200,000 shares but did not sell any securities or receive proceeds from the sale. Following the offering, the Selling Shareholder’s influence on the company’s board and corporate actions was significantly reduced, including the resignation of two directors and limitations on designating directors and consent rights over certain corporate actions.