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Victrex
(LSE:VCT)
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Rating:70Outperform
Price Target:
966.00 p
▲(14.86% Upside)
Action:Upgraded
Date:09/10/26
The score is driven primarily by solid financial stability (strong equity position and low leverage) despite weakening revenue, margins, and free cash flow trends. Technically, the stock shows strong upside momentum and a clear uptrend above major moving averages, but extremely overbought readings (RSI/Stoch near ~89) raise near-term pullback risk. Valuation is a modest drag given the negative P/E, partially offset by a ~2.66% dividend yield.
Positive Factors
Specialty-materials positioning
Victrex operates in specialized applications where high temperature tolerance, chemical resistance, strength-to-weight benefits, and wear resistance make substitution difficult. This supports differentiated products and specialty pricing, helping preserve competitive relevance across demanding customer programs over the medium term.
Negative Factors
Revenue and margin decline
Recent contraction in revenue alongside declining margins indicates weaker operating momentum and reduced efficiency. If this pattern persists, it could limit earnings growth, weaken operating leverage, and make it harder for the company to convert its specialized market position into expanding profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Specialty-materials positioning
Victrex operates in specialized applications where high temperature tolerance, chemical resistance, strength-to-weight benefits, and wear resistance make substitution difficult. This supports differentiated products and specialty pricing, helping preserve competitive relevance across demanding customer programs over the medium term.
Read all positive factors
Victrex (VCT) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£804.00M
Dividend Yield2.95%
Average Volume (3M)353.90K
Price to Earnings (P/E)―
Beta (1Y)1.28
Revenue Growth-1.24%
EPS Growth-166.15%
CountryUK
Employees1,169
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)-0.23
Shares Outstanding87,156,380
10 Day Avg. Volume430,182
30 Day Avg. Volume353,898
Financial Highlights & Ratios
PEG Ratio0.38
Price to Book (P/B)1.44
Price to Sales (P/S)2.11
P/FCF Ratio12.71
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£842.50Price Target Upside0.18% Upside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)0.49
Revenue Forecast (FY)£317.58M
Victrex Business Overview & Revenue Model
Company Description
Operating globally through its subsidiaries, Victrex plc is a specialized producer and distributor of polymer materials. The company organizes its business into two core divisions: Industrial and Medical. It concentrates on creating PEEK and PAEK ...
How the Company Makes Money
Victrex primarily makes money by selling high-performance polymer materials and related engineered products to manufacturers and processors that use these materials in end-use parts. The core revenue stream is the sale of PAEK/PEEK polymer resin (...
Victrex Earnings Call Summary
Earnings Call Date:Dec 02, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Dec 08, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with notable achievements in volume growth and cash conversion, while facing significant challenges due to currency impacts, weaker medical spine performance, and losses from the China facility. The profit improvement plan and diversification in medical revenues are positive steps, but current financial challenges weigh heavily.Positive Updates
Strong Volume Growth
Sales volume increased by 12% to 4,164 tonnes, primarily driven by value-added resellers and Energy & Industrial sectors.
Negative Updates
Currency Impact on Profit
Underlying profit before tax was adversely affected by GBP 8 million due to currency impacts, contributing to a 21% decrease in PBT.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Volume Growth
Sales volume increased by 12% to 4,164 tonnes, primarily driven by value-added resellers and Energy & Industrial sectors.
Read all positive updates
Company Guidance
In the call, Victrex provided guidance on various financial metrics for fiscal year 2025 and the outlook for 2026. The company reported a 12% increase in sales volume, reaching 4,164 tonnes, mainly driven by value-added resellers (VARs) and the Energy & Industrial sector. Despite the robust volume growth, underlying profit before tax (PBT) was impacted by an adverse currency effect of GBP 8 million, resulting in a 21% decrease to GBP 46.4 million. However, cash conversion was strong at 121%, benefiting from efficient working capital management. Capital expenditures (CapEx) saw a significant reduction, reflecting the conclusion of recent investment phases. For fiscal 2026, Victrex is targeting low to mid-single-digit volume growth and aims to achieve at least GBP 10 million in savings through a profit improvement plan. Gross margin for FY '26 is expected to be flat to slightly ahead, with the China manufacturing facility remaining a focus for operational improvements. The company will maintain its dividend and review its capital allocation policy, aiming to retain a strong balance sheet with a net debt-to-EBITDA range of 0.5x to 1x.Victrex Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
78
Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 293.90M | 296.40M | 296.20M | 307.00M | 341.00M | 306.30M |
| Gross Profit | 126.40M | 132.60M | 134.30M | 162.60M | 174.70M | 157.00M |
| EBITDA | 65.90M | 61.10M | 69.70M | 96.00M | 120.80M | 115.50M |
| Net Income | -19.70M | 27.80M | 17.20M | 61.70M | 76.20M | 73.20M |
Balance Sheet | ||||||
| Total Assets | 505.30M | 566.90M | 592.00M | 626.60M | 641.60M | 615.30M |
| Cash, Cash Equivalents and Short-Term Investments | 31.70M | 24.20M | 29.30M | 33.50M | 68.80M | 112.40M |
| Total Debt | 77.10M | 49.00M | 50.40M | 50.20M | 32.10M | 15.90M |
| Total Liabilities | 161.50M | 135.70M | 130.40M | 125.60M | 151.00M | 103.60M |
| Stockholders Equity | 361.90M | 433.50M | 461.00M | 499.00M | 488.80M | 509.20M |
Cash Flow | ||||||
| Free Cash Flow | 48.00M | 49.30M | 51.40M | 2.30M | 34.50M | 85.20M |
| Operating Cash Flow | 68.60M | 71.10M | 84.00M | 40.80M | 80.00M | 127.10M |
| Investing Cash Flow | -20.60M | -21.80M | -35.40M | -32.30M | -16.20M | -83.20M |
| Financing Cash Flow | -42.00M | -54.60M | -51.90M | -32.80M | -82.40M | -41.70M |
Victrex Technical Analysis
Neutral
841.00
Price Trends
860.22
Positive
744.55
Positive
682.63
Positive
Market Momentum
18.26
Positive
51.31
Neutral
33.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:VCT, the sentiment is Neutral. The current price of 841 is below the 20-day moving average (MA) of 935.90, below the 50-day MA of 860.22, and above the 200-day MA of 682.63, indicating a neutral trend. The MACD of 18.26 indicates Positive momentum. The RSI at 51.31 is Neutral, neither overbought nor oversold. The STOCH value of 33.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:VCT.
Victrex Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | £804.00M | -39.61 | -4.95% | 2.95% | -1.24% | -166.15% | |
68 Neutral | £216.40M | 8.56 | 18.18% | 1.86% | 14.35% | 3370.14% | |
62 Neutral | £4.65B | 57.89 | 3.65% | 3.39% | 3.36% | -43.08% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | £1.01B | 17.83 | 11.29% | 1.90% | -11.73% | ― | |
55 Neutral | £316.92M | 58.42 | 2.02% | 1.89% | 6.98% | -41.36% | |
53 Neutral | £171.81M | -1.36 | -13.27% | 9.77% | -4.98% | -43.98% |
* Basic Materials Sector Average
GB:VCT
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Victrex Corporate Events
Business Operations and StrategyStock BuybackDividends
Victrex outlines turnaround plan and cash-return targets as it leans on PEEK leadership
Positive
Sep 24, 2026
Victrex is leveraging its position as the global market leader in PEEK polymers, with more than 45% volume share, to capitalise on expected 5% compound annual growth in global PEEK demand across aerospace, automotive, electronics, energy and medic...
Business Operations and StrategyExecutive/Board ChangesFinancial DisclosuresM&A Transactions
Victrex lifts profit guidance as trading momentum and cost savings build
Positive
Sep 9, 2026
Victrex has signalled stronger‑than‑expected trading for the year to 30 September 2026, lifting its guidance for underlying pre‑tax profit to a range of £45m to £47m from £42m to £44m on the back of sustained ...
Business Operations and StrategyExecutive/Board ChangesFinancial DisclosuresM&A Transactions
Victrex lifts profit guidance as trading improves and streamlines non-core operations
Positive
Sep 9, 2026
Victrex has raised its full-year 2026 underlying profit-before-tax guidance to between £45m and £47m, up from £42m to £44m, after strong trading momentum continued into the fourth quarter with year-on-year revenue growth across...
Business Operations and StrategyRegulatory Filings and Compliance
Victrex Updates Share Capital After Employee Share Plan Issuance
Neutral
Aug 28, 2026
Victrex plc has reported that its issued share capital now stands at 87,156,259 ordinary shares, each carrying one voting right, with no shares held in treasury, setting the benchmark for investors’ disclosure obligations under UK transparen...
Business Operations and StrategyRegulatory Filings and Compliance
Victrex updates total voting rights after employee share issuance
Neutral
Jul 31, 2026
Victrex plc has confirmed that its issued share capital as of 31 July 2026 comprises 87,126,221 ordinary shares of 1p each, all carrying one voting right and with no shares held in treasury. This figure provides the denominator shareholders must u...
Business Operations and StrategyExecutive/Board Changes
Victrex Reshapes Leadership Team Ahead of Next Growth Phase
Positive
Jul 24, 2026
Victrex has announced a major reshaping of its leadership, with Chief Financial Officer Ian Melling set to step down on 31 July 2026 as the company begins a search for his successor and prepares an interim finance arrangement. Recent appointments ...
Business Operations and StrategyDividendsFinancial Disclosures
Victrex Maintains Guidance as Q3 Revenue Jumps on Aerospace and Electronics Demand
Positive
Jul 7, 2026
Victrex reported an 18% year-on-year rise in third-quarter revenue to £84.5m, driven by a 17% increase in sales volumes, with aerospace and electronics leading growth and medical demand stabilising. Year-to-date revenues are up 7% and volumes...
Business Operations and StrategyDelistings and Listing Changes
Victrex Seeks Block Listing to Expand Employee Share Plan Capacity
Neutral
Jul 2, 2026
Victrex PLC has applied for a block listing of 310,000 new ordinary shares on the London Stock Exchange to support its employee share plans. The shares, each with a nominal value of 1 pence, are intended for future awards, acquisitions and share i...
Regulatory Filings and Compliance
Victrex Updates Share Capital and Voting Rights After Employee Option Exercises
Neutral
Jun 30, 2026
Victrex plc, a specialist in high-performance polymer solutions for sectors such as automotive, aerospace, energy, electronics and medical, reported that its issued share capital as of 30 June 2026 stands at 87,124,917 ordinary shares, each carryi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.