Why Has Vicor Stock Underperformed The S&P Despite Strong Sales Growth?

VICR: Vicor logo
VICR
Vicor

Vicor Corp (NASDAQ: VICR) stock price dropped 42% from $92 at 2020 end, to around $53 currently, primarily due to unfavorable changes in its P/S multiple. The company, in fact, witnessed a rise in revenue per share over this period, helped by rising sales and a drop in its outstanding share count. Despite this, the stock failed to outperform the S&P, which has risen around 2% in comparison over this period.

In our interactive dashboard, Why Vicor Stock Moved: VICR Stock Has Lost 42% Since 2020, we break down the factors behind this move.

(A) Vicor’s Total Revenue has grown 21% from $296.6 million in FY 2020 to $359 million currently

  • Vicor’s total revenue has risen strongly from $296.6 million in FY ’20 to $359 million in FY ’21, and currently stands at around the same level.
  • As of FY ’21, 53% of Vicor’s sales come from its Brick Power Component segment, which sold $189 million worth of products in FY ’21.
  • Advanced Power Products made up the remaining 47% of the company’s sales, bringing in $170 million in FY ’21.
  • For details about Vicor revenues and comparison to peers, see Vicor (VICR) Revenue Comparison
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(B) Revenue per share (RPS) increased 14% from $6.95 in FY ’20 to $7.90 currently

  • Vicor revenue rose from $296.6 million in FY ’20 to $359 million currently, while the outstanding share count increased from 42.6 million in FY ’20 to 45.4 million currently.
  • Due to this, RPS has risen from $6.95 in FY ’20 to $7.90 currently.

(C) Price-To-Sales (P/S) multiple for Vicor Corp rose from 10x at 2020-end to 11.4x by 2021-end, but has since pulled back to 6.8x currently, much lower than its 2020 level

  • Despite Vicor’s stellar performance since FY ’20, its P/S multiple has dropped around 32% from 10x in 2020 to around 7x currently.
  • For additional details about the company stock returns and comparison to peers, see Vicor (VICR) Stock Return Comparison.

With inflation rising and the Fed raising interest rates, Vicor stock has fallen 62% this year. Can it drop more? See how low can VICR stock go by comparing its decline in previous market crashes. Here is a performance summary of all stocks in previous market crashes.

What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.

Returns Jul 2022
MTD [1]
2022
YTD [1]
2017-22
Total [2]
 VICR Return -2% -58% 254%
 S&P 500 Return 2% -19% 72%
 Trefis Multi-Strategy Portfolio 4% -22% 211%

[1] Month-to-date and year-to-date as of 7/6/2022
[2] Cumulative total returns since the end of 2016

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