VICR  Vicor Corporation

Exchange

NASDAQ

Sector

Capital Goods

Industry

Industrial Machinery/Components

Market Cap.

904.78M

Vuru Grade

27.00/100

Current Price

$23.05
-0.35 (-1.50%)

Growth Price

$2.04
Overvalued by 91.15%

Stability Price

$3.35
Overvalued by 85.45%

Company Metrics

  • P/E 77.01
  • P/S 4.3
  • P/B 6.97
  • EPS -0.05
  • Cash ROIC -3.23%
  • Cash Ratio 2.53
  • Dividend 0 / 0%
  • Avg. Vol. 36,597.00
  • Shares 39.25M
  • Market Cap. 904.78M

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 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's New Proprietary Products Will Drive Revenue And Earnings Growth
Seeking Alpha - Oct 2, 2017
Vicor Corp. (NASDAQ:VICR) just hit a new 16-year high on above-average volume. I believe this price movement is from the anticipated strong revenue and earnings growth as a result of the company's new products powering servers in large data centers.
Vicor Corporation (VICR) Moves Higher on Volume Spike for September 25
Equities.com - Sep 25, 2017
Vicor Corporation (VICR) traded on unusually high volume on Sep. 25, as the stock gained 2.26% to close at $20.35. On the day, Vicor Corporation saw 52,815 shares trade hands on 452 trades. Considering that the stock averages only a daily volume of ...
Vicor Corporation (NASDAQ:VICR) Sees Significantly Lower Trading Volume - HugoPress
Signature Estate & Investment Advisors Has Lifted Prudential Finl (PRU) Stake ... - UtahHerald.com
Vicor Corporation (VICR) Soars 10.53% on September 27
Equities.com - Sep 27, 2017
Vicor Corporation (VICR) had a good day on the market for Wednesday September 27 as shares jumped 10.53% to close at $23.10.
After Touching 52-Week High, Is Vicor Corp (VICR)'s Near-Term Analysis Positive? - BZ Weekly
Vicor Corporation (VICR) Moves Higher on Volume Spike for September 29
Equities.com - Sep 29, 2017
Vicor Corporation (VICR) traded on unusually high volume on Sep. 29, as the stock gained 0.21% to close at $23.60. On the day, Vicor Corporation saw 70,043 shares trade hands on 716 trades. Considering that the stock averages only a daily volume of ...
Vicor Corp (NASDAQ:VICR) Stock Price While Sentiment Increases - WeeklyHub
Vicor Corporation (NASDAQ:VICR) at 'Overbought' As Indicated by Its RSI(14) - First News 24
Vicor Corporation (VICR) Breaks into New 52-Week High on September 26 Session
Equities.com - Sep 26, 2017
Shares of Vicor Corporation (VICR) broke into a new 52-week high yesterday, hitting a peak of $21.10. Shares closed at $20.90 after opening at $20.35 for a move of 2.7%.
Breaking: Vicor Corporation (NASDAQ:VICR) Stock Through Resistance ... - CML News
Equity Research Analyst's Stock Ratings: Real Industry, Inc. (RELY), Vicor ... - Analyst Journal
Vicor Corporation (VICR) Breaks into New 52-Week High on October 04 Session
Equities.com - Oct 4, 2017
Shares of Vicor Corporation (VICR) broke into a new 52-week high yesterday, hitting a peak of $25.65. Shares closed at $24.90 after opening at $24.95 for a move of -0.2%.
Vicor Corporation (VICR) Moves Higher on Volume Spike for September 15
Equities.com - Sep 15, 2017
Vicor Corporation (VICR) traded on unusually high volume on Sep. 15, as the stock gained 0.54% to close at $18.60. On the day, Vicor Corporation saw 83,663 shares trade hands on 361 trades. Considering that the stock averages only a daily volume of ...
Swing Trading Earnings Bullish Momentum With Options in Vicor Corporation
CML News - 8 hours ago
There is a pattern of bullish momentum in Vicor Corporation (NASDAQ:VICR) stock just days before earnings, and we can track that by looking at swing returns in the option market.
Vicor Corp (NASDAQ:VICR) Shifting Institutional Investors Sentiment
WeeklyHub - Oct 20, 2017
Vicor Corp (NASDAQ:VICR) institutional sentiment increased to 1.27 in Q2 2017. Its up 0.11, from 1.16 in 2017Q1. The ratio increased, as 42 funds increased and started new positions, while 33 decreased and sold their stock positions in Vicor Corp.
Vicor Corporation (VICR) to Release Quarterly Earnings on Monday - TrueBlueTribune
Vicor Corporation (NASDAQ:VICR) Experiences Lighter than Usual Trading Volume - Modern Readers
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.

$23.05 Current Price

$2.04 Growth Price (DCF)

Overvalued by 91.15%


Growth Rate Assumed by Market: 500.00%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


VICR's most recent year of (normalized) free cash flow is negative. This is the base number for forward projections. This means that if you increase the growth rate, the amount of negative FCF grows, thereby decreasing the price.

Show Free Cash Flow numbers

$3.35 Stability Price (EPV)

Overvalued by 85.45%


Discount Rate: 15.0%

$2.25 NCA Price

Overvalued by 90.22%

$9.14 Book Price

Overvalued by 60.34%


Very Poor Cash Return on Invested Capital over the past 5 years

VICR has failed to generate positive returns on 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 lost $3.23 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow 9.84M -10.87M -4.94M 2.38M -7.88M
divided by
Invested Capital 100.46M 88.18M 76.93M 73.96M 75.67M
Cash ROIC 9.80% -12.33% -6.42% 3.21% -10.42%

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 $6.20 loss for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income -3.80M -23.50M -14.07M 5.16M -6.26M
divided by
Stockholders' Equity 178.35M 139.18M 127.77M 135.03M 130.81M
Return on Equity -2.13% -16.89% -11.01% 3.82% -4.79%

Mediocre Business Performance over the past 10 years

VICR isn't a strong business and might be consistently attempting to fuel growth with debt or has trouble staying profitable. The lack of predictability in free cash flow should be concerning for the reliability of future earnings.

VICR has been unable to consistently create value for shareholders.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Free Cash Flow -27.68M 798,000.00 14.16M 4.79M 18.94M 9.84M -10.87M -4.94M 2.38M -7.88M

Very Strong Balance Sheet

VICR has more Cash than its Total Liabilities, resulting in $0.84 Net Cash per share. In other words, if you buy VICR today, the price you're paying for shares is actually $22.21 because $0.84 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
2007200820092010201120122013201420152016
Cash 77.51M 24.41M 42.81M 49.28M 71.91M 84.55M 56.80M 55.46M 62.98M 56.17M
Current Assets 136.96M 82.76M 95.45M 128.15M 144.33M 146.06M 118.52M 113.48M 115.51M 111.77M
Total Assets 192.46M 171.92M 180.58M 204.91M 208.14M 202.58M 165.64M 155.54M 157.55M 154.07M
Current Liabilities 21.04M 17.46M 20.66M 22.70M 19.95M 17.57M 20.66M 23.16M 20.60M 22.23M
Total Liabilities 28.02M 24.75M 28.79M 29.88M 27.20M 24.23M 26.46M 27.77M 22.51M 23.26M
Stockholder' Equity 164.44M 147.17M 151.79M 175.03M 180.95M 178.35M 139.18M 127.77M 135.03M 130.81M
Current Ratio 6.51 4.74 4.62 5.65 7.24 8.32 5.74 4.90 5.61 5.03
TL-to-TA 0.15 0.14 0.16 0.15 0.13 0.12 0.16 0.18 0.14 0.15

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
2007200820092010201120122013201420152016
Retained Earnings 126.26M 110.17M 112.97M 133.79M 136.36M 132.29M 108.65M 94.76M 99.69M 93.44M
Retained Earnings Growth - -12.74% 2.54% 18.43% 1.92% -2.99% -17.87% -12.78% 5.20% -6.27%

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.

$0.14 of every $100 of Revenue have been a loss, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income 5.34M -3.60M 2.80M 33.33M 8.84M -3.80M -23.50M -14.07M 5.16M -6.26M
divided by
Revenue 195.83M 205.37M 197.96M 250.73M 252.97M 218.51M 199.16M 225.73M 220.19M 200.28M
Net Profit Margin 2.72% -1.75% 1.41% 13.29% 3.50% -1.74% -11.80% -6.23% 2.34% -3.13%

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.

$47.35 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
2007200820092010201120122013201420152016
Gross Profit 79.01M 86.29M 87.59M 114.52M 214.00M 91.65M 81.48M 97.12M 99.52M 91.21M
divided by
Revenue 195.83M 205.37M 197.96M 250.73M 252.97M 218.51M 199.16M 225.73M 220.19M 200.28M
Gross Margin 40.35% 42.01% 44.25% 45.67% 84.60% 41.94% 40.91% 43.02% 45.20% 45.54%

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
2007200820092010201120122013201420152016
Capital Expenditure 9.86M 8.27M 10.64M 12.10M 7.47M 7.40M 6.18M 7.13M 9.09M 8.43M
divided by
Net Income 5.34M -3.60M 2.80M 33.33M 8.84M -3.80M -23.50M -14.07M 5.16M -6.26M
Capital Expenditure Ratio 184.74% -229.90% 380.38% 36.32% 84.43% -194.73% -26.29% -50.66% 176.20% -134.61%

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
2007200820092010201120122013201420152016
Dividend Paid 12.57M 13.66M - 12.51M 6.96M 378,000.00 531,000.00 162,000.00 - -
divided by
Shares Outstanding 41.69M 41.65M 41.67M 41.77M 41.86M 41.81M 39.20M 38.57M 39.15M 38.84M
Dividend Paid Per Share 0.30 0.33 - 0.30 0.17 0.01 0.01 0.00 - -
Price at Year End 14.25 5.55 9.08 15.98 7.96 5.40 13.46 12.09 9.13 15.10
Dividend Yield 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
2007200820092010201120122013201420152016
Shares Outstanding 41.69M 41.65M 41.67M 41.77M 41.86M 41.81M 39.20M 38.57M 39.15M 38.84M
Stock Bought Back - 0.09% -0.05% -0.24% -0.20% 0.11% 6.67% 1.62% -1.47% 0.78%
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