VICR  Vicor Corporation

Exchange

NASDAQ

Sector

Capital Goods

Industry

Industrial Machinery/Components

Market Cap.

596.42M

Vuru Grade

29.00/100

Current Price

$15.35
+0.25 (+1.66%)

Growth Price

$3.87
Overvalued by 74.79%

Stability Price

$7.68
Overvalued by 49.99%

Company Metrics

  • P/E 77.01
  • P/S 2.88
  • P/B 4.43
  • EPS -0.14
  • Cash ROIC 2.11%
  • Cash Ratio 3.06
  • Dividend 0.00 / 0.00 %
  • Avg. Vol. 44,554.00
  • Shares 38.85M
  • Market Cap. 596.42M

Company Description

Vicor Corporation, together with its subsidiaries, engages in the design, development, manufacture, and marketing of modular power components and power systems. It offers a range of high current density/low voltage DC-DC converters, bus converters, and individual models for regulation and transformation; configurable products that provide power solutions configured to customers' specific needs; fa... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Vicor Corporation Reports Results for the Fourth Quarter and Year Ended ...
Yahoo Finance - 13 hours ago
ANDOVER, MA--(Marketwired - Feb 23, 2017) - Vicor Corporation ( NASDAQ : VICR ) today reported financial results for the fourth quarter and year ended December 31, 2016.
Vicor Corporation (NASDAQ:VICR) Files An 8-K Results of Operations and ... - Market Exclusive
Vicor's (VICR) CEO Patrizio Vinciarelli on Q4 2016 Results - Earnings Call ... - Seeking Alpha
Vicor Corporation Schedules Fourth Quarter Earnings Release and Investor ...
Yahoo Finance - Feb 10, 2017
ANDOVER, MA--(Marketwired - Feb 10, 2017) - Vicor Corporation ( NASDAQ : VICR ) today released instructions for its quarterly investor conference call, which will be held on Thursday, February 23, 2017, beginning promptly at 5:00 p.m.
Vicor Corporation (VICR) Soars 5.15% on January 24
Equities.com - Jan 24, 2017
Vicor Corporation (VICR) had a good day on the market for Tuesday January 24 as shares jumped 5.15% to close at $15.30. About 45,659 shares traded hands on 376 trades for the day, compared with an average daily volume of 49,636 shares out of a total ...
Vicor Corporation's (VICR) CEO Patrizio Vinciarelli on Q2 2016 Results ...
Seeking Alpha - Jul 27, 2016
Welcome to the Vicor Corporation Earnings Results for the Second Quarter ended June 30, 2016 conference call. My name is Tijuana and I will be your operator for today.
Has Vicor Corporation (VICR) Got Enough Cash To Cover Its Short-Term Obligations?
Simply Wall St - 22 hours ago
Vicor Corporation (NASDAQ:VICR), which has zero-debt on its balance sheet, can maximize capital returns by increasing debt.
Vicor Corporation's 48V Direct-to-POL (Point of Load) Datacenter Solution ...
Marketwired (press release) - Dec 15, 2016
ANDOVER, MA--(Marketwired - Dec 15, 2016) - Vicor Corporation ( NASDAQ : VICR) today announced it has been named a winner in the 2016 UBM Americas ACE Awards in the Power category.
Vicor Has 48 Volt Solutions To Electrify Your Portfolio
Seeking Alpha - Feb 13, 2017
Vicor has pioneered the trend toward quadrupling the voltage in data centers in order to provide a more efficient power train for servers.
Vicor Corporation Risk Points versus Technology
CML News - Feb 13, 2017
This is a scatter plot analysis of the critical risk points from the option market for Vicor Corporation (NASDAQ:VICR) compared to its own past and the Technology ETF.
Vicor Corporation Announces Recent Federal Circuit Decision / SynQor Power ...
Marketwired (press release) - Mar 16, 2015
ANDOVER, MA--(Marketwired - Mar 16, 2015) - In a unanimous decision, the U.S. Court of Appeals for the Federal Circuit in Washington, D.C.
Vicor: Planned Revenue Growth Of 3X In 5 Years, Powered By New Products
Seeking Alpha (registration) - Aug 25, 2014
Vicor has a plan to triple their revenue in five years, and this was discussed at the Vicor annual meeting and past conference calls.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for VICR to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate VICR's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$15.35 Current Price

$3.87 Growth Price (DCF)

Overvalued by 74.79%


Growth Rate Assumed by Market: 82.58%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$7.68 Stability Price (EPV)

Overvalued by 49.99%


Discount Rate: 15.0%

$2.39 NCA Price

Overvalued by 84.41%

$9.21 Book Price

Overvalued by 40.00%


Poor Cash Return on Invested Capital over the past 5 years

VICR has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

VICR has only created $2.11 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20112012201320142015
Free Cash Flow 18.94M 9.84M -10.87M -4.94M 2.38M
divided by
Invested Capital 116.29M 100.46M 88.18M 76.93M 73.96M
Cash ROIC 16.29% 9.80% -12.33% -6.42% 3.21%

Very Poor Return on Equity over the past 5 years

VICR has shown an inability to deliver results for shareholders. This could be due to poor management, VICR operating in a highly competitive industry, or having a weak business in general.

VICR has generated a $4.26 loss for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20112012201320142015
Net Income 8.84M -3.80M -23.50M -14.07M 5.16M
divided by
Stockholders' Equity 180.95M 178.35M 139.18M 127.77M 135.03M
Return on Equity 4.89% -2.13% -16.89% -11.01% 3.82%

Good Business Performance over the past 10 years

It's likely VICR has been unable to maintain profitability in tough economic times, making it a somewhat cyclical business. The other possibility is VICR has expended significant capital on items such as property, plant and equipment in specific years. Look for correlations.

VICR has created positive free cash flow for 7 or 8 of the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Free Cash Flow 8.73M -27.68M 798,000.00 14.16M 4.79M 18.94M 9.84M -10.87M -4.94M 2.38M

Very Strong Balance Sheet

VICR has more Cash than its Total Liabilities, resulting in $1.04 Net Cash per share. In other words, if you buy VICR today, the price you're paying for shares is actually $14.31 because $1.04 of Cash is included in the current share price. This much Cash is very healthy. It can help VICR sustain itself in the face of any economic turmoil and makes a stock buyback more of a possibility.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Cash 118.59M 77.51M 24.41M 42.81M 49.28M 71.91M 84.55M 56.80M 55.46M 62.98M
Current Assets 189.67M 136.96M 82.76M 95.45M 128.15M 144.33M 146.06M 118.52M 113.48M 115.51M
Total Assets 248.11M 192.46M 171.92M 180.58M 204.91M 208.14M 202.58M 165.64M 155.54M 157.55M
Current Liabilities 68.78M 21.04M 17.46M 20.66M 22.70M 19.95M 17.57M 20.66M 23.16M 20.60M
Total Liabilities 76.76M 28.02M 24.75M 28.79M 29.88M 27.20M 24.23M 26.46M 27.77M 22.51M
Stockholder' Equity 171.35M 164.44M 147.17M 151.79M 175.03M 180.95M 178.35M 139.18M 127.77M 135.03M
Current Ratio 2.76 6.51 4.74 4.62 5.65 7.24 8.32 5.74 4.90 5.61
TL-to-TA 0.31 0.15 0.14 0.16 0.15 0.13 0.12 0.16 0.18 0.14

Low or No Reinvestment of Profits over the past 10 years

VICR has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to VICR operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Retained Earnings 134.58M 126.26M 110.17M 112.97M 133.79M 136.36M 132.29M 108.65M 94.76M 99.69M
Retained Earnings Growth - -6.18% -12.74% 2.54% 18.43% 1.92% -2.99% -17.87% -12.78% 5.20%

Loss Making Entity over the past 10 years

VICR has been unable to maintain profitability. It's Costs of Sales have outstripped Revenue consistently. This is a huge red flag, unless the company has been investing heavily for the future. However, even that is dubious since accurately predicting the future of a company like that is extremely difficult.

$1.37 of every $100 of Revenue have been a loss, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Net Income -29.74M 5.34M -3.60M 2.80M 33.33M 8.84M -3.80M -23.50M -14.07M 5.16M
divided by
Revenue 192.05M 195.83M 205.37M 197.96M 250.73M 252.97M 218.51M 199.16M 225.73M 220.19M
Net Profit Margin -15.48% 2.72% -1.75% 1.41% 13.29% 3.50% -1.74% -11.80% -6.23% 2.34%

Strong Pricing Power over the past 10 years

VICR has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$47.06 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Gross Profit 81.84M 79.01M 86.29M 87.59M 114.52M 214.00M 91.65M 81.48M 97.12M 99.52M
divided by
Revenue 192.05M 195.83M 205.37M 197.96M 250.73M 252.97M 218.51M 199.16M 225.73M 220.19M
Gross Margin 42.61% 40.35% 42.01% 44.25% 45.67% 84.60% 41.94% 40.91% 43.02% 45.20%

High Capital Intensity over the past 10 years

VICR spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

172.41% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Capital Expenditure 5.60M 9.86M 8.27M 10.64M 12.10M 7.47M 7.40M 6.18M 7.13M 9.09M
divided by
Net Income -29.74M 5.34M -3.60M 2.80M 33.33M 8.84M -3.80M -23.50M -14.07M 5.16M
Capital Expenditure Ratio -18.84% 184.74% -229.90% 380.38% 36.32% 84.43% -194.73% -26.29% -50.66% 176.20%

Inconsistent Dividend History over the past 10 years

VICR has started distributing dividends in the past couple years or has recently suspended their dividend distribution. The reliability of future distributions is unclear.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Dividend Paid 11.34M 12.57M 13.66M - 12.51M 6.96M 378,000.00 531,000.00 162,000.00 -
divided by
Shares Outstanding 41.84M 41.69M 41.65M 41.67M 41.77M 41.86M 41.81M 39.20M 38.57M 39.15M
Dividend Paid Per Share 0.27 0.30 0.33 - 0.30 0.17 0.01 0.01 0.00 -
Price at Year End 10.18 14.25 5.55 9.08 15.98 7.96 5.40 13.46 12.09 9.13
Dividend Yield 2.66% 2.12% 5.91% - 1.87% 2.09% 0.17% 0.10% 0.03% -

History of Stock Buybacks over the past 10 years

VICR has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Shares Outstanding 41.84M 41.69M 41.65M 41.67M 41.77M 41.86M 41.81M 39.20M 38.57M 39.15M
Stock Bought Back - 0.36% 0.09% -0.05% -0.24% -0.20% 0.11% 6.67% 1.62% -1.47%
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