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Vicor (VICR)
:VICR
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Vicor
(NASDAQ:VICR)
Rating:72Outperform
Price Target:
$49.00
▲(11.19%Upside)
Positive Factors
Financial Performance
Vicor announced that 2025 should be a record year for both revenue and profitability.
Legal and Patent Developments
The ITC confirmed that Vicor's U.S. patents are valid and infringed, preventing unlicensed imports and potentially increasing market share.
Licensing and Partnerships
Vicor signed a new hyperscaler licensee, potentially boosting future revenues.
Negative Factors
Product and Market Challenges
Near-term licensing revenue visibility is challenged as Vicor navigates the transition to a new generation of unlicensed products.
Product Development Delays
The timeline for Gen 5 sample shipments to Vicor's lead customer has slipped, impacting expected growth.
Tariffs and Trade
A 10% surcharge on all shipments is set to commence in response to tariffs, potentially affecting costs and pricing.
Vicor (VICR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.99B
Dividend YieldN/A
Average Volume (3M)177.22K
Price to Earnings (P/E)86.2
Beta (1Y)1.75
Revenue Growth-5.61%
EPS Growth-18.63%
CountryUS
Employees1,074
SectorTechnology
Sector Strength82
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.06
Shares Outstanding33,469,513
10 Day Avg. Volume147,179
30 Day Avg. Volume177,215
Financial Highlights & Ratios
PEG Ratio0.34
Price to Book (P/B)3.43
Price to Sales (P/S)0.00
P/FCF Ratio41.94
Enterprise Value/Market Cap0.85
Enterprise Value/Revenue1.70
Enterprise Value/Gross Profit12.12
Enterprise Value/Ebitda10.93
Forecast
1Y Price Target
$50.00Price Target Upside13.46% Upside
Rating ConsensusHold
Number of Analyst Covering2
Vicor Business Overview & Revenue Model
Company DescriptionVicor Corporation, together with its subsidiaries, designs, develops, manufactures, and markets modular power components and power systems for converting electrical power in the United States, Europe, the Asia Pacific, and internationally. The company offers a range of brick-format DC-DC converters; complementary components; and input and output voltage, and output power products, as well as electrical and mechanical accessories. It also provides custom power systems solutions. The company serves independent manufacturers of electronic devices, original equipment manufacturers, and their contract manufacturers in the aerospace and aviation, defense electronics, industrial automation and equipment, instrumentation, test equipment, solid state lighting, telecommunications and networking infrastructure, and vehicles and transportation markets. Vicor Corporation was incorporated in 1981 and is headquartered in Andover, Massachusetts.
How the Company Makes MoneyVicor Corporation generates revenue primarily through the sale of its comprehensive range of power components and systems. The company's revenue model is centered around the production and distribution of power conversion products, including proprietary power modules and custom power systems designed to meet specific customer requirements. Key revenue streams include direct sales to end-users, as well as sales through distributors and resellers in various global markets. Vicor's earnings are significantly influenced by its ability to innovate and deliver high-quality, reliable power solutions that meet the evolving needs of industries such as data centers, telecommunications, and automotive. Strategic partnerships with leading technology companies and OEMs further bolster its revenue, enabling Vicor to expand its market reach and enhance its product offerings.
Vicor Earnings Call Summary
Earnings Call Date:Apr 29, 2025
(Q1-2025)
| % Change Since: -15.10%|
Next Earnings Date:Jul 17, 2025
Earnings Call Sentiment Neutral
The earnings call revealed a mix of positive and negative aspects. While there were several highlights such as growth in Advanced Products revenue, an increase in the book-to-bill ratio and backlog, and new product introductions, there were also significant lowlights including a sequential revenue decline, gross margin decrease, and challenges with licensing revenue. The impact of tariffs poses an additional challenge, potentially affecting future revenue. Overall, the sentiment appears balanced with both positive developments and ongoing challenges.Q1-2025 Updates
Positive Updates
Advanced Products Revenue Growth
Advanced Products revenue increased by 2.7% sequentially to $59.9 million, with Advanced Products' share of total revenue increasing to 63.7%.
Increase in Book-to-Bill Ratio and Backlog
The Q1 book-to-bill ratio was above 1, with one-year backlog increasing 10.4% from the prior quarter, closing at $171.7 million.
Cash Flow and Balance Sheet Strength
Operating cash flow totaled $20.1 million for the quarter, with cash and cash equivalents totaling $296.1 million at the end of Q1.
Growth in Export Revenue
Exports for the first quarter increased sequentially as a percentage of total revenue to approximately 60.8% from the prior quarter's 56.9%.
New Product Introductions and Market Opportunities
Announced availability of new high-density 48-volt DC to DC converter family and initiated sampling of new three-phase AC to DC power modules for aerospace market.
Negative Updates
Sequential Revenue Decline
Total revenue for Q1 was $94 million, down 2.3% sequentially from the fourth quarter of 2024.
Gross Margin Decline
Consolidated gross profit margin decreased by 520 basis points from the prior quarter to 47.2%.
Decrease in Brick Products Revenue
Brick Products revenue decreased 10% sequentially to $34.1 million.
Impact of Tariffs and Tariff Surcharge
Vicor announced a 10% tariff surcharge on invoices for shipments after July 2 due to tariff increases.
Challenges with Licensing Revenue
Reduced income from a licensee transitioning to a new generation of unlicensed products, impacting revenue and margins.
Company Guidance
During the Q1 2025 Vicor Earnings Conference Call, the company provided guidance on several financial metrics. Vicor's total revenue for the first quarter was $94 million, which represented a 2.3% sequential decrease from Q4 2024's $96.2 million and a 12% increase year-over-year. Advanced Products revenue saw a sequential increase of 2.7% to $59.9 million, whereas Brick Products revenue decreased by 10% to $34.1 million. The company's gross margin was 47.2%, a decrease of 520 basis points from the previous quarter, attributed to factors such as ERP system transition costs and a decline in royalty revenue. Operating expenses rose by 8.2% sequentially to $44.5 million, driven by higher research and development costs. Vicor recorded a tax provision of $0.4 million for an effective tax rate of 14.2%, with net income at $2.5 million and GAAP diluted EPS of $0.06. Cash and cash equivalents stood at $296.1 million, with operating cash flow totaling $20.1 million. The company reported a Q1 book-to-bill ratio above 1, with a 10.4% increase in one-year backlog to $171.7 million. Despite uncertainties, Vicor expressed optimism about growth opportunities in both product revenues and licensing income but refrained from providing specific quarterly guidance due to the wide range of possible outcomes.Vicor Financial Statement Overview
Summary
Vicor shows solid financial stability with a strong balance sheet and effective cash flow management. Despite a decline in revenue and modest profitability margins, the company maintains minimal leverage and high financial stability.Income Statement
Vicor's income statement displays solid profitability with a gross profit margin of 49.6% and a net profit margin of 8.6% for the TTM. However, the revenue growth rate is concerning, declining from $405M to $283M in the TTM period. EBIT and EBITDA margins are modest at 5.1% and 10.2%, reflecting operational efficiency challenges.75
Positive
Balance Sheet
The balance sheet is robust, with a low debt-to-equity ratio of 0.01, indicating minimal leverage. Return on Equity (ROE) is healthy at 4.2% in the TTM, although it has declined from previous years. The equity ratio is strong at 87.3%, suggesting high financial stability.85
Very Positive
Cash Flow
Vicor demonstrates strong cash flow management, with a significant free cash flow increase to $47.5M in the TTM. The operating cash flow to net income ratio is 2.81, indicating effective cash generation from operations, but the free cash flow to net income ratio suggests potential room for improvement.80
Positive
| Breakdown | |||||
| TTM | Jun 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 283.39M | 169.73K | 405.06M | 399.08M | 359.36M | 296.58M | Gross Profit |
| 140.51M | 87.89K | 204.93M | 180.56M | 178.20M | 131.45M | EBIT |
| 14.44M | -15.90K | 51.36M | 27.20M | 43.90M | 6.31M | EBITDA |
| 28.79M | -15.90K | 68.60M | 40.20M | 55.60M | 17.37M | Net Income Common Stockholders |
| 24.34M | 15.67K | 53.59M | 25.45M | 56.63M | 17.91M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 296.10M | 277.27M | 242.22M | 190.61M | 227.63M | 211.91M | Total Assets |
| 665.04M | 641.12M | 594.89M | 536.90M | 477.20M | 396.24M | Total Debt |
| 7.03M | 7.34M | 8.23M | 8.46M | 4.78M | 4.60M | Net Debt |
| -289.07M | -269.94M | -233.99M | -182.15M | -177.64M | -157.15M | Total Liabilities |
| 84.47M | 70.83M | 53.78M | 72.56M | 53.30M | 45.08M | Stockholders Equity |
| 580.31M | 570.07M | 540.87M | 464.09M | 423.60M | 350.82M |
| Cash Flow | Free Cash Flow | ||||
| 47.51M | 27.24M | 40.49M | -41.03M | 6.68M | 5.89M | Operating Cash Flow |
| 68.39M | 50.84M | 73.94M | 22.94M | 54.44M | 34.55M | Investing Cash Flow |
| -20.88M | -23.60M | -33.45M | -18.97M | -43.66M | -78.62M | Financing Cash Flow |
| 9.40M | 7.99M | 11.19M | 4.44M | 10.09M | 121.04M |
Vicor Technical Analysis
Negative
44.07
Price Trends
44.54
Negative
48.56
Negative
48.10
Negative
Market Momentum
0.16
Negative
48.67
Neutral
37.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VICR, the sentiment is Negative. The current price of 44.07 is above the 20-day moving average (MA) of 43.98, below the 50-day MA of 44.54, and below the 200-day MA of 48.10, indicating a neutral trend. The MACD of 0.16 indicates Negative momentum. The RSI at 48.67 is Neutral, neither overbought nor oversold. The STOCH value of 37.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VICR.
Vicor Risk Analysis
Vicor disclosed 17 risk factors in its most recent earnings report. Vicor reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Vicor Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $3.61B | 26.15 | 16.73% | ― | 14.93% | 12.89% | |
74 Outperform | $4.14B | 34.53 | 4.20% | 1.70% | -5.61% | ― | |
74 Outperform | $3.73B | 49.00 | 5.02% | ― | 11.65% | ― | |
72 Outperform | $1.99B | 86.23 | 4.16% | ― | -5.61% | -18.63% | |
68 Neutral | $1.34B | 25.65 | 4.84% | 1.83% | -7.36% | -20.46% | |
65 Neutral | $1.24B | 73.76 | 1.34% | ― | -8.06% | -75.10% | |
62 Neutral | $31.72B | 6.46 | -12.45% | 1.96% | 5.62% | -22.66% |
* Technology Sector Average
Performance Comparison
VICR
Vicor
43.83
11.45
35.36%
BHE
Benchmark Electronics
37.63
-0.53
-1.39%
OSIS
OSI Systems
215.69
78.80
57.56%
ROG
Rogers
67.65
-51.73
-43.33%
ST
Sensata
28.62
-9.02
-23.96%
TTMI
TTM Technologies
36.69
17.57
91.89%
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.