206.01 USD
-6.42 (-3.02%)
206.01 USD
0 (0%)
Taking everything into account, VSEC scores 4 out of 10 in our fundamental rating. VSEC was compared to 73 industry peers in the Aerospace & Defense industry. The financial health of VSEC is average, but there are quite some concerns on its profitability. VSEC is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year VSEC was profitable.
- In the past year VSEC had a positive cash flow from operations.
- VSEC had positive earnings in 4 of the past 5 years.
- The reported operating cash flow has been mixed in the past 5 years: VSEC reported negative operating cash flow in multiple years.
1.2 Ratios
- VSEC has a Return On Assets of 0.72%. This is comparable to the rest of the industry: VSEC outperforms 46.58% of its industry peers.
- VSEC has a Return On Equity (1.14%) which is in line with its industry peers.
- Looking at the Return On Invested Capital, with a value of 4.81%, VSEC is in line with its industry, outperforming 49.32% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for VSEC is below the industry average of 8.56%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.72% | ||
| ROE | 1.14% | ||
| ROIC | 4.81% |
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 (1.01%) which is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of VSEC has declined.
- VSEC has a Operating Margin (7.73%) which is in line with its industry peers.
- VSEC's Operating Margin has improved in the last couple of years.
- VSEC has a worse Gross Margin (13.39%) than 73.97% of its industry peers.
- In the last couple of years the Gross Margin of VSEC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.73% | ||
| PM (TTM) | 1.01% | ||
| GM | 13.39% |
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
- VSEC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, VSEC has more shares outstanding
- Compared to 5 years ago, VSEC has more shares outstanding
- Compared to 1 year ago, VSEC has an improved debt to assets ratio.
2.2 Solvency
- VSEC has an Altman-Z score of 6.82. This indicates that VSEC is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 6.82, VSEC is in the better half of the industry, outperforming 64.38% of the companies in the same industry.
- The Debt to FCF ratio of VSEC is 13.22, which is on the high side as it means it would take VSEC, 13.22 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of VSEC (13.22) is comparable to the rest of the industry.
- A Debt/Equity ratio of 0.35 indicates that VSEC is not too dependend on debt financing.
- VSEC's Debt to Equity ratio of 0.35 is fine compared to the rest of the industry. VSEC outperforms 60.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 13.22 | ||
| Altman-Z | 6.82 |
ROIC/WACC0.48
WACC9.94%
2.3 Liquidity
- VSEC has a Current Ratio of 3.94. This indicates that VSEC is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Current ratio, with a value of 3.94, VSEC is in the better half of the industry, outperforming 72.60% of the companies in the same industry.
- A Quick Ratio of 1.41 indicates that VSEC should not have too much problems paying its short term obligations.
- VSEC has a Quick ratio (1.41) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.94 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
- VSEC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.57%, which is quite good.
- The earnings per share for VSEC have been decreasing by -23.99% on average. This is quite bad
- The Revenue has grown by 9.22% in the past year. This is quite good.
- VSEC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.49% yearly.
EPS 1Y (TTM)18.57%
EPS 3Y10.22%
EPS 5Y-23.99%
EPS Q2Q%39.44%
Revenue 1Y (TTM)9.22%
Revenue growth 3Y12.88%
Revenue growth 5Y7.49%
Sales Q2Q%3.4%
3.2 Future
- Based on estimates for the next years, VSEC will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.81% on average per year.
- The Revenue is expected to grow by 18.24% on average over the next years. This is quite good.
EPS Next Y17.66%
EPS Next 2Y18.09%
EPS Next 3Y19.34%
EPS Next 5Y14.81%
Revenue Next Year2.39%
Revenue Next 2Y9.17%
Revenue Next 3Y9.55%
Revenue Next 5Y18.24%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 56.60, VSEC can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Earnings ratio of VSEC is on the same level as its industry peers.
- The average S&P500 Price/Earnings ratio is at 27.21. VSEC is valued rather expensively when compared to this.
- The Price/Forward Earnings ratio is 47.35, which means the current valuation is very expensive for VSEC.
- The rest of the industry has a similar Price/Forward Earnings ratio as VSEC.
- VSEC is valuated expensively when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.6 | ||
| Fwd PE | 47.35 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VSEC is on the same level as its industry peers.
- VSEC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 178.83 | ||
| EV/EBITDA | 42.91 |
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 19.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.2
PEG (5Y)N/A
EPS Next 2Y18.09%
EPS Next 3Y19.34%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.19%, VSEC is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.34, VSEC pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.19, VSEC pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.19% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.67%
Div Incr Years0
Div Non Decr Years34
5.3 Sustainability
- VSEC pays out 73.55% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of VSEC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP73.55%
EPS Next 2Y18.09%
EPS Next 3Y19.34%
VSE CORP / VSEC FAQ
Can you provide the ChartMill fundamental rating for VSE CORP?
ChartMill assigns a fundamental rating of 4 / 10 to VSEC.
What is the valuation status for VSEC stock?
ChartMill assigns a valuation rating of 2 / 10 to VSE CORP (VSEC). This can be considered as Overvalued.
How profitable is VSE CORP (VSEC) stock?
VSE CORP (VSEC) has a profitability rating of 3 / 10.
What are the PE and PB ratios of VSE CORP (VSEC) stock?
The Price/Earnings (PE) ratio for VSE CORP (VSEC) is 56.6 and the Price/Book (PB) ratio is 4.9.
How sustainable is the dividend of VSE CORP (VSEC) stock?
The dividend rating of VSE CORP (VSEC) is 5 / 10 and the dividend payout ratio is 73.55%.