Q: Can you look at Vicor's potential regarding market competitors and product offerings. What do you think of the company in general?
Thank You
Peter
Thank You
Peter
5i Research Answer:
VICR operates as an electrical equipment manufacturer that develops modular power components and power systems for converting electrical power, a niche sector, some competitors such as NVTS, HPS.A. The company experienced extremely negative momentum recently, as revenue FY2024 is expected to decline 13% (largely due to the cyclical nature of the industry). Despite having a strong balance sheet with a net cash of $234M, VICR did not return any capital to shareholders in the last few years. In fact, VICR occasionally issued more shares. Overall, a cyclical name that is going through a downturn cycle, we would not be adding here.