VSE CORP (VSEC) Stock Fundamental Analysis
USA - NASDAQ:VSEC - US9182841000 - Common Stock
172.39 USD
+6.91 (+4.18%)
172 USD
-0.39 (-0.23%)
VSEC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 84 industry peers in the Commercial Services & Supplies industry. VSEC has only an average score on both its financial health and profitability. While showing a medium growth rate, VSEC is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year VSEC was profitable.
VSEC had a positive operating cash flow in the past year.
Of the past 5 years VSEC 4 years were profitable.
In multiple years VSEC reported negative operating cash flow during the last 5 years.
1.2 Ratios
VSEC has a Return On Assets (1.18%) which is in line with its industry peers.
VSEC has a Return On Equity (1.93%) which is in line with its industry peers.
With a Return On Invested Capital value of 5.49%, VSEC perfoms like the industry average, outperforming 55.95% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for VSEC is below the industry average of 10.60%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.18% | ||
| ROE | 1.93% | ||
| ROIC | 5.49% |
ROA(3y)2.2%
ROA(5y)1.36%
ROE(3y)4.72%
ROE(5y)2.92%
ROIC(3y)5.73%
ROIC(5y)5.23%
1.3 Margins
VSEC has a Profit Margin of 1.72%. This is comparable to the rest of the industry: VSEC outperforms 53.57% of its industry peers.
VSEC's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 9.05%, VSEC is doing good in the industry, outperforming 67.86% of the companies in the same industry.
In the last couple of years the Operating Margin of VSEC has grown nicely.
Looking at the Gross Margin, with a value of 12.57%, VSEC is doing worse than 83.33% of the companies in the same industry.
VSEC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.05% | ||
| PM (TTM) | 1.72% | ||
| GM | 12.57% |
OM growth 3Y45.15%
OM growth 5Y2.81%
PM growth 3Y10.02%
PM growth 5Y-22.01%
GM growth 3Y26.16%
GM growth 5Y0.93%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VSEC is destroying value.
VSEC has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, VSEC has more shares outstanding
VSEC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.94 indicates that VSEC is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.94, VSEC is in the better half of the industry, outperforming 77.38% of the companies in the same industry.
VSEC has a debt to FCF ratio of 28.47. This is a negative value and a sign of low solvency as VSEC would need 28.47 years to pay back of all of its debts.
With a Debt to FCF ratio value of 28.47, VSEC perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
VSEC has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.38, VSEC is in line with its industry, outperforming 59.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 28.47 | ||
| Altman-Z | 4.94 |
ROIC/WACC0.65
WACC8.48%
2.3 Liquidity
VSEC has a Current Ratio of 3.73. This indicates that VSEC is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 3.73, VSEC belongs to the best of the industry, outperforming 88.10% of the companies in the same industry.
VSEC has a Quick Ratio of 1.44. This is a normal value and indicates that VSEC is financially healthy and should not expect problems in meeting its short term obligations.
VSEC has a Quick ratio (1.44) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.73 | ||
| Quick Ratio | 1.44 |
3. Growth
3.1 Past
VSEC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.44%.
The earnings per share for VSEC have been decreasing by -23.99% on average. This is quite bad
VSEC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.99%.
VSEC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.49% yearly.
EPS 1Y (TTM)2.44%
EPS 3Y10.22%
EPS 5Y-23.99%
EPS Q2Q%51.56%
Revenue 1Y (TTM)12.99%
Revenue growth 3Y12.88%
Revenue growth 5Y7.49%
Sales Q2Q%2.32%
3.2 Future
VSEC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.09% yearly.
The Revenue is expected to grow by 3.65% on average over the next years.
EPS Next Y13.31%
EPS Next 2Y21.67%
EPS Next 3Y23.09%
EPS Next 5YN/A
Revenue Next Year2.02%
Revenue Next 2Y8.15%
Revenue Next 3Y10.03%
Revenue Next 5Y3.65%
3.3 Evolution
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 51.31 indicates a quite expensive valuation of VSEC.
Compared to the rest of the industry, the Price/Earnings ratio of VSEC is on the same level as its industry peers.
When comparing the Price/Earnings ratio of VSEC to the average of the S&P500 Index (27.20), we can say VSEC is valued expensively.
With a Price/Forward Earnings ratio of 37.33, VSEC can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as VSEC.
The average S&P500 Price/Forward Earnings ratio is at 22.71. VSEC is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.31 | ||
| Fwd PE | 37.33 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as VSEC.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VSEC is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 267.72 | ||
| EV/EBITDA | 28.03 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates VSEC does not grow enough to justify the current Price/Earnings ratio.
VSEC's earnings are expected to grow with 23.09% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.85
PEG (5Y)N/A
EPS Next 2Y21.67%
EPS Next 3Y23.09%
5. Dividend
5.1 Amount
VSEC has a yearly dividend return of 0.24%, which is pretty low.
Compared to an average industry Dividend Yield of 2.27, VSEC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, VSEC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.24% |
5.2 History
The dividend of VSEC has a limited annual growth rate of 2.67%.
VSEC has been paying a dividend for at least 10 years, so it has a reliable track record.
VSEC has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)2.67%
Div Incr Years0
Div Non Decr Years34
5.3 Sustainability
VSEC pays out 42.31% of its income as dividend. This is a bit on the high side, but may be sustainable.
VSEC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP42.31%
EPS Next 2Y21.67%
EPS Next 3Y23.09%
172.39
+6.91 (+4.18%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners117.74%
Inst Owner Change-3.49%
Ins Owners2.28%
Ins Owner Change-0.07%
Market Cap3.57B
Analysts84.62
Price Target186.78 (8.35%)
Short Float %7.5%
Short Ratio6.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.24% |
Yearly Dividend0.39
Dividend Growth(5Y)2.67%
DP42.31%
Div Incr Years0
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)33.27%
Min EPS beat(2)32.61%
Max EPS beat(2)33.94%
EPS beat(4)4
Avg EPS beat(4)26.3%
Min EPS beat(4)15.76%
Max EPS beat(4)33.94%
EPS beat(8)7
Avg EPS beat(8)18.7%
EPS beat(12)10
Avg EPS beat(12)16.53%
EPS beat(16)13
Avg EPS beat(16)13.7%
Revenue beat(2)2
Avg Revenue beat(2)1.49%
Min Revenue beat(2)1.28%
Max Revenue beat(2)1.7%
Revenue beat(4)3
Avg Revenue beat(4)1.21%
Min Revenue beat(4)-0.07%
Max Revenue beat(4)1.93%
Revenue beat(8)5
Avg Revenue beat(8)1.07%
Revenue beat(12)5
Avg Revenue beat(12)-4.26%
Revenue beat(16)9
Avg Revenue beat(16)-1.69%
PT rev (1m)7.98%
PT rev (3m)24.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.32%
EPS NY rev (1m)2.41%
EPS NY rev (3m)3.29%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.18%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)-0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.31 | ||
| Fwd PE | 37.33 | ||
| P/S | 3.24 | ||
| P/FCF | 267.72 | ||
| P/OCF | 115.71 | ||
| P/B | 3.64 | ||
| P/tB | 10.41 | ||
| EV/EBITDA | 28.03 |
EPS(TTM)3.36
EY1.95%
EPS(NY)4.62
Fwd EY2.68%
FCF(TTM)0.64
FCFY0.37%
OCF(TTM)1.49
OCFY0.86%
SpS53.23
BVpS47.37
TBVpS16.55
PEG (NY)3.85
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.18% | ||
| ROE | 1.93% | ||
| ROCE | 7.11% | ||
| ROIC | 5.49% | ||
| ROICexc | 5.56% | ||
| ROICexgc | 10.3% | ||
| OM | 9.05% | ||
| PM (TTM) | 1.72% | ||
| GM | 12.57% | ||
| FCFM | 1.21% |
ROA(3y)2.2%
ROA(5y)1.36%
ROE(3y)4.72%
ROE(5y)2.92%
ROIC(3y)5.73%
ROIC(5y)5.23%
ROICexc(3y)5.78%
ROICexc(5y)5.26%
ROICexgc(3y)10.59%
ROICexgc(5y)10.1%
ROCE(3y)7.42%
ROCE(5y)6.77%
ROICexcg growth 3Y31.62%
ROICexcg growth 5Y-9.39%
ROICexc growth 3Y31.63%
ROICexc growth 5Y-4.64%
OM growth 3Y45.15%
OM growth 5Y2.81%
PM growth 3Y10.02%
PM growth 5Y-22.01%
GM growth 3Y26.16%
GM growth 5Y0.93%
F-Score8
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 28.47 | ||
| Debt/EBITDA | 2.75 | ||
| Cap/Depr | 49.37% | ||
| Cap/Sales | 1.59% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 22.82% | ||
| Profit Quality | 70.32% | ||
| Current Ratio | 3.73 | ||
| Quick Ratio | 1.44 | ||
| Altman-Z | 4.94 |
F-Score8
WACC8.48%
ROIC/WACC0.65
Cap/Depr(3y)65.18%
Cap/Depr(5y)51%
Cap/Sales(3y)1.76%
Cap/Sales(5y)1.47%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)2.44%
EPS 3Y10.22%
EPS 5Y-23.99%
EPS Q2Q%51.56%
EPS Next Y13.31%
EPS Next 2Y21.67%
EPS Next 3Y23.09%
EPS Next 5YN/A
Revenue 1Y (TTM)12.99%
Revenue growth 3Y12.88%
Revenue growth 5Y7.49%
Sales Q2Q%2.32%
Revenue Next Year2.02%
Revenue Next 2Y8.15%
Revenue Next 3Y10.03%
Revenue Next 5Y3.65%
EBIT growth 1Y1.63%
EBIT growth 3Y63.86%
EBIT growth 5Y10.52%
EBIT Next Year91.5%
EBIT Next 3Y39.43%
EBIT Next 5YN/A
FCF growth 1Y125.86%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y183.5%
OCF growth 3YN/A
OCF growth 5YN/A