Wednesday, March 03, 2021
Vectrus (VEC)
Solid 4Q20 and FY2020 Even in Face of COVID
Vectrus Inc is a U.S.-based company that provides services to the U.S. government. It operates as one segment and offer facility and logistics services and information technology and network communications services. The information technology and network communications capabilities consist of communications systems operations and maintenance, management and service support, systems installation and activation, system-of-systems engineering and software development, and mission support for the department of defense. The facility and logistics service include airfield management, ammunition management, civil engineering, communications, emergency services, life support activities, public works, security, transportation operations and others.
Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
4Q20 Results. Revenue of $355.3 million, compared to $365.2 million in 4Q19, but 4Q20 revenue was adversely impacted by $26 million due to COVID. On a sequential basis, revenue rose 0.8%. Adjusted EBITDA margin in the quarter was a record 5.0% or 5.1% excluding COVID impacts, up from 4.9% a year ago. Reported EPS was $1.42 and adjusted EPS was $1.18, versus $0.91 and $0.93, respectively, last year. We were at $363 million and $0.91, respectively.
Expanding Portfolio. Vectrus continues to expand its portfolio, both through customer diversification, but also by an expanded offering set and moving up the value chain. This bodes well for the Company going forward. U.S. Army related revenue was 69% of 2020 revenue, down from 84% in 2016 and Middle East derived revenue is down to 65% of overall, from 82% in 2016. Vectrus’ new business pipeline …
This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
