Vector (VETTF) AI Stock Analysis

Vector

(Other OTC:VETTF)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Profitability GrowthStrong EBITDA and NPAT growth indicates improved earnings capacity, supported by higher regulated electricity revenue and the absence of a prior gas impairment. Management’s FY27 EBITDA guidance of $540–$560 million suggests this stronger profitability is expected to continue.

Negative Factors

Heavy Capital IntensityPersistent heavy capital requirements absorb much of Vector’s operating cash flow, leaving free cash flow thin and volatile. This reduces flexibility for debt reduction, dividends, or other investment if operating conditions weaken, especially as FY27 capex is guided to another record level.

Vector (VETTF) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $2.73B
Dividend Yield: 5.85%
Average Volume (3M): ―
Price to Earnings (P/E): 19.0
Beta (1Y): 0.12
Revenue Growth: 7.19%
EPS Growth: 44.99%
Country: US
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

Earnings Call Date:Aug 17, 2026(Q4-2026)|% Change Since:-4.91%|Next Earnings Date:Feb 21, 2027

Earnings Call SentimentPositive

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.

Positive Updates

Revenue Growth from Continuing Operations

Revenue from continuing operations increased by $111 million (12%) to just over $1.0 billion, driven primarily by the DPP4 reset applying for the full 12 months.

Negative Updates

Gas Distribution Weakness and Uncertainty

Gas Distribution adjusted EBITDA was flat at $47 million. Gas volumes declined 1.7% year-on-year and total gas connections fell 0.5% to 119,991. Management flagged ongoing market uncertainty and a shift from growth capex to maintenance spending.

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 Peers Comparison

Overall Rating

UnderperformOutperform

Sector (66)

Financial Indicators

VETTF against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
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

VETTF and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
VETTF	Vector	2.52	-0.06	-2.29%
NZ:CEN	Contact Energy Limited	8.51	-0.56	-6.15%
NZ:MEL	Meridian Energy Limited	5.40	-0.35	-6.09%
NZ:MCY	Mercury NZ Ltd.	6.75	0.47	7.52%
NZ:GNE	Genesis Energy Limited	2.41	0.10	4.33%

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.

Vector AI Stock Analysis