Tuesday, March 08, 2022
Vectrus (VEC)
A Transformational Combination; Reports 4Q21 Results
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.
Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Vertex Combination. Yesterday, Vectrus announced it is combining with The Vertex Company in an all-stock merger that values Vertex at $2.1 billion. The combined company will offer significantly expanded technology and service capabilities, delivering a comprehensive suite of integrated solutions and critical service offerings to support national security readiness and modernization initiatives around the world.
Through the $2.5 billion, 7% Margin Goal. With pro forma 2021 combined revenue of $3.4 billion and adjusted EBITDA of $283 million, or an 8.3% margin, Vectrus will exceed its $2.5 billion, 7% adjusted EBITDA margin goal. Significantly, the combined entity’s $11.3 billion backlog provides high revenue visibility with the potential of increased adjusted EBITDA margin going forward …
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.