Despite its growth, NASDAQ:VICR remains within the realm of affordability.

Last update: Nov 21, 2023

Consider VICOR CORP (NASDAQ:VICR) as an affordable growth stock, identified by our stock screening tool. NASDAQ:VICR is showcasing impressive growth figures and is well-positioned in terms of profitability, solvency, and liquidity. Moreover, it seems to be priced reasonably. Let's dive deeper into the analysis.

How We Gauge Growth for NASDAQ:VICR

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:VICR has received a 8 out of 10:

The Earnings Per Share has grown by an impressive 61.64% over the past year.
VICR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 29.10% yearly.
Looking at the last year, VICR shows a quite strong growth in Revenue. The Revenue has grown by 8.87% in the last year.
Measured over the past years, VICR shows a quite strong growth in Revenue. The Revenue has been growing by 11.87% on average per year.
The Earnings Per Share is expected to grow by 54.26% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 14.62% on average over the next years. This is quite good.
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Deciphering NASDAQ:VICR's Valuation Rating

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:VICR boasts a 5 out of 10:

Compared to the rest of the industry, the Price/Earnings ratio of VICR indicates a somewhat cheap valuation: VICR is cheaper than 69.77% of the companies listed in the same industry.
Based on the Price/Forward Earnings ratio, VICR is valued a bit cheaper than 65.12% of the companies in the same industry.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VICR indicates a somewhat cheap valuation: VICR is cheaper than 67.44% of the companies listed in the same industry.
70.93% of the companies in the same industry are more expensive than VICR, based on the Price/Free Cash Flow ratio.
VICR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
VICR has an outstanding profitability rating, which may justify a higher PE ratio.
VICR's earnings are expected to grow with 54.26% in the coming years. This may justify a more expensive valuation.

Evaluating Health: NASDAQ:VICR

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:VICR, the assigned 8 reflects its health status:

An Altman-Z score of 21.63 indicates that VICR is not in any danger for bankruptcy at the moment.
VICR's Altman-Z score of 21.63 is amongst the best of the industry. VICR outperforms 96.51% of its industry peers.
There is no outstanding debt for VICR. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
VICR has a Current Ratio of 8.57. This indicates that VICR is financially healthy and has no problem in meeting its short term obligations.
VICR's Current ratio of 8.57 is amongst the best of the industry. VICR outperforms 94.19% of its industry peers.
A Quick Ratio of 6.33 indicates that VICR has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 6.33, VICR belongs to the top of the industry, outperforming 89.53% of the companies in the same industry.

A Closer Look at Profitability for NASDAQ:VICR

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:VICR, the assigned 8 is noteworthy for profitability:

VICR has a Return On Assets of 9.07%. This is amongst the best in the industry. VICR outperforms 86.05% of its industry peers.
Looking at the Return On Equity, with a value of 10.03%, VICR is in the better half of the industry, outperforming 79.07% of the companies in the same industry.
The Return On Invested Capital of VICR (7.66%) is better than 77.91% of its industry peers.
The last Return On Invested Capital (7.66%) for VICR is above the 3 year average (6.59%), which is a sign of increasing profitability.
VICR's Profit Margin of 12.68% is amongst the best of the industry. VICR outperforms 87.21% of its industry peers.
In the last couple of years the Profit Margin of VICR has grown nicely.
VICR's Operating Margin of 12.47% is amongst the best of the industry. VICR outperforms 81.40% of its industry peers.
In the last couple of years the Operating Margin of VICR has grown nicely.
VICR has a Gross Margin of 49.47%. This is amongst the best in the industry. VICR outperforms 98.84% of its industry peers.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

Check the latest full fundamental report of VICR for a complete fundamental analysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.