Vectren Corporation [NYSE:VVC]: Analyst Rating and Earnings
Experts stock market traders frequently make a point to check what top Wall Street analysts say regarding a potential buy. Regarding Vectren Corporation [VVC] currently, the latest Wall Street ratings we can see is from the fiscal quarter that’s going to end in December. On average, stock market experts give VVC an Hold rating. Its stock price has been found in the range of 28.30 to 36.84. This is compared to its latest closing price of $71.82.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Vectren Corporation [VVC] is sitting at 3.00. This is compared to 1 month ago, when its average rating was 3.00.
For the quarter ending in Mar-18 Vectren Corporation [VVC] generated $0.66 billion in sales. That’s 14.27% lower than the average estimate of $0.77 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.
Stay on the lookout for the next publication of this organization’s financial results for the quarter, which will be made public on Tue 19 Feb (In 36 Days).
Fundamental Analysis of Vectren Corporation [VVC]
Now let’s turn to look at profitability: with a current Operating Margin for Vectren Corporation [VVC] sitting at +12.11 and its Gross Margin at +13.26, this company’s Net Margin is now 7.40%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 8.36, and its Return on Invested Capital has reached 5.80%. Its Return on Equity is 11.94, and its Return on Assets is 3.59. These metrics suggest that this Vectren Corporation does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, Vectren Corporation [VVC] has generated a Total Debt to Total Equity ratio of 112.92. Similarly, its Total Debt to Total Capital is 53.03, while its Total Debt to Total Assets stands at 33.47. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 94.02, and its Long-Term Debt to Total Capital is 44.16. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 13.54 and its Total Debt to EBITDA Value is 3.51. The Enterprise Value to Sales for this firm is now 3.03, and its Total Debt to Enterprise Value stands at 0.28. Vectren Corporation [VVC] has a Price to Book Ratio of 2.92, a Price to Cash Flow Ratio of 10.82 and P/E Ratio of 30.26. These metrics show that this company has a mixed appeal, and ROI could be a gain or a loss.
Shifting the focus to workforce efficiency, Vectren Corporation [VVC] earns $477,855 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 5.73 and its Total Asset Turnover is 0.44. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.59 and its Current Ratio is 0.72. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.
Let’s now turn our attention to trading performance: Vectren Corporation [VVC] has 82.98M shares outstanding, amounting to a total market cap of $5.97B. Its stock price has been found in the range of 58.00 to 72.18. At its current price, it has moved by -0.37% from its 52-week high, and it has moved 23.98% from its 52-week low.
This stock’s Beta value is currently 0.33, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 55.35. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Vectren Corporation [VVC] a Reliable Buy?
Vectren Corporation [VVC] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.