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Vector (VCT) AI Stock Analysis
Vector
(NZX:VCT)
Improved balance sheet stability and strong earnings momentum with constructive FY27 guidance are the primary drivers. Attractive dividend yield supports valuation while neutral technical indicators and gas segment pressures are secondary factors.
Vector (VCT) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- NZD 4.55B
- Dividend Yield
- 5.72%
- Average Volume (3M)
- 168.85K
- Price to Earnings (P/E)
- 19.0
- Beta (1Y)
- 0.18
- Revenue Growth
- 8.27%
- EPS Growth
- 47.72%
- Country
- NZ
- Employees
- 584
- Sector
- Utilities
- Sector Strength
- 66
- Industry
- Diversified Utilities
Vector Business Overview & Revenue Model
Company Description
Vector Limited, together with its subsidiaries, engages in electricity and gas distribution, telecommunication and new energy solutions businesses in New Zealand. The company operates in two segments, Electricity and Gas Distribution. It provides ele...
Vector Earnings Call Summary
The call presents a predominantly positive performance: strong revenue (+12%), sizeable EBITDA growth (+20%), a large increase in NPAT (+55%), record electricity network investment and improved operating cash flow. Management provided bullish FY'27 guidance (higher EBITDA and record-level capex) and retained a BBB+ rating with positive outlook. Headwinds include flat gas earnings with declining volumes, higher operating and pass-through costs, an accounting loss from the Bluecurrent JV (offset by cash distributions), modestly higher net debt and variability in capital contributions. On balance the operational and financial improvements and constructive guidance outweigh the challenges.
Q4-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Vector guided FY27 adjusted EBITDA of $540–$560 million (up from FY26’s $482m), gross capital expenditure of $605–$635 million (versus $544m in FY26, likely another record year driven primarily by higher replacement CapEx), and capital contributions of $160–$190 million (FY26: $191m) — the FY27 EBITDA forecast also includes recovery of an additional net $54 million of revenue wash‑ups and IRIS adjustments under DPP4; management expects customer‑driven activity to be broadly in line with FY26 and reiterated a conservative dividend stance given heavy near‑term CapEx (FY26 full‑year dividend $0.26 per share, payout at the bottom of the 70% range).
Vector Financial Statement Overview
Summary
Vector shows improving financial stability with lower leverage to 0.64 debt-to-equity and recovering cash flows, though revenue volatility and historically weak free cash flow present risks.
Income Statement
68PositiveBalance Sheet
78PositiveCash Flow
62Positive| Breakdown | TTM | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.20B | 1.20B | 1.04B | 1.14B | 1.13B | 1.27B |
| Gross Profit | 566.30M | 518.00M | 771.00M | 560.40M | 689.20M | 823.10M |
| EBITDA | 682.60M | 684.70M | 567.30M | 499.00M | 514.40M | 468.90M |
| Net Income | 240.20M | 240.20M | 166.50M | 88.60M | 1.71B | 158.90M |
Balance Sheet | ||||||
| Total Assets | 7.16B | 7.16B | 6.92B | 7.13B | 7.53B | 6.81B |
| Cash, Cash Equivalents and Short-Term Investments | 5.40M | 5.40M | 23.30M | 104.60M | 537.00M | 22.50M |
| Total Debt | 2.31B | 2.31B | 2.10B | 2.11B | 2.33B | 3.26B |
| Total Liabilities | 3.53B | 3.53B | 3.32B | 3.35B | 3.57B | 4.38B |
| Stockholders Equity | 3.63B | 3.63B | 3.60B | 3.76B | 3.94B | 2.41B |
Cash Flow | ||||||
| Free Cash Flow | 101.20M | 101.20M | 40.30M | -43.60M | -121.90M | -40.00M |
| Operating Cash Flow | 632.50M | 632.50M | 515.20M | 445.10M | 517.10M | 518.80M |
| Investing Cash Flow | -504.90M | -504.90M | -274.40M | -393.00M | 1.07B | -534.40M |
| Financing Cash Flow | -145.50M | -145.50M | -322.10M | -484.50M | -1.07B | 20.70M |
Vector Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NZ:VCT, the sentiment is Negative. The current price of 4.55 is below the 20-day moving average (MA) of 4.64, below the 50-day MA of 4.68, and below the 200-day MA of 4.72, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 44.69 is Neutral, neither overbought nor oversold. The STOCH value of 34.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NZ:VCT.
Vector Peers Comparison
Overall Rating
- NZ:VCT72Outperform
NZ:MCY64Neutral
NZ:MEL64Neutral
NZ:CEN63Neutral
NZ:GNE57Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| NZ:VCT | 72Outperform | NZD 4.55B | 18.96 | 6.64% | 5.72% | 8.27% | 47.72% |
| Sector * | 66Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% |
| NZ:MCY | 64Neutral | NZD 9.73B | 30.20 | 6.38% | 4.69% | -7.83% | 56250.00% |
| NZ:MEL | 64Neutral | NZD 14.67B | 111.07 | 1.38% | 4.71% | -19.65% | ― |
| NZ:CEN | 63Neutral | NZD 9.23B | 20.31 | 8.71% | 5.27% | -6.33% | -0.10% |
| NZ:GNE | 57Neutral | NZD 3.15B | 30.52 | 2.78% | 7.27% | -24.15% | -49.61% |
* Utilities Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| NZ:VCT | Vector | 4.55 | -0.19 | -4.05% | |
| NZ:CEN | Contact Energy Limited | 8.53 | -0.45 | -5.04% | |
| NZ:MEL | Meridian Energy Limited | 5.52 | -0.14 | -2.54% | |
| NZ:MCY | Mercury NZ Ltd. | 6.77 | 0.57 | 9.18% | |
| NZ:GNE | Genesis Energy Limited | 2.39 | 0.07 | 3.06% |
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.
Date of analysis: Oct 05, 2026