172.77 USD
-2.23 (-1.27%)
172.77 USD
0 (0%)
VSEC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 71 industry peers in the Aerospace & Defense industry. The financial health of VSEC is average, but there are quite some concerns on its profitability. While showing a medium growth rate, VSEC is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
VSEC had positive earnings in the past year.
VSEC had a positive operating cash flow in the past year.
Of the past 5 years VSEC 4 years were profitable.
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 (0.72%) which is comparable to the rest of the industry.
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 47.89% 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 8.60%.
| 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 of 1.01%. This is comparable to the rest of the industry: VSEC outperforms 45.07% of its industry peers.
VSEC's Profit Margin has declined in the last couple of years.
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's Gross Margin of 13.39% is on the low side compared to the rest of the industry. VSEC is outperformed by 77.46% of its industry peers.
VSEC's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VSEC is destroying value.
VSEC has more shares outstanding than it did 1 year ago.
VSEC has more shares outstanding than it did 5 years ago.
VSEC has a better debt/assets ratio than last year.
2.2 Solvency
VSEC has an Altman-Z score of 5.91. This indicates that VSEC is financially healthy and has little risk of bankruptcy at the moment.
VSEC has a better Altman-Z score (5.91) than 61.97% of its industry peers.
VSEC has a debt to FCF ratio of 13.22. This is a negative value and a sign of low solvency as VSEC would need 13.22 years to pay back of all of its debts.
The Debt to FCF ratio of VSEC (13.22) is comparable to the rest of the industry.
VSEC has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of VSEC (0.35) is better than 60.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 13.22 | ||
| Altman-Z | 5.91 |
ROIC/WACC0.48
WACC10.12%
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.
VSEC has a better Current ratio (3.94) than 73.24% of its industry peers.
VSEC has a Quick Ratio of 1.41. This is a normal value and indicates that VSEC is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.41, VSEC is in line with its industry, outperforming 45.07% of the companies in the same 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.
Measured over the past years, VSEC shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -23.99% on average per year.
VSEC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.22%.
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
VSEC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.81% yearly.
VSEC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.24% yearly.
EPS Next Y17.66%
EPS Next 2Y18.09%
EPS Next 3Y19.34%
EPS Next 5Y14.81%
Revenue Next Year2.29%
Revenue Next 2Y8.45%
Revenue Next 3Y8.7%
Revenue Next 5Y18.24%
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.
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
VSEC is valuated quite expensively with a Price/Earnings ratio of 47.46.
VSEC's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of VSEC to the average of the S&P500 Index (26.51), we can say VSEC is valued expensively.
Based on the Price/Forward Earnings ratio of 39.71, the valuation of VSEC can be described as expensive.
VSEC's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.13, VSEC is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.46 | ||
| Fwd PE | 39.71 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as VSEC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 149.98 | ||
| EV/EBITDA | 35.84 |
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.
A more expensive valuation may be justified as VSEC's earnings are expected to grow with 19.34% in the coming years.
PEG (NY)2.69
PEG (5Y)N/A
EPS Next 2Y18.09%
EPS Next 3Y19.34%
5. Dividend
5.1 Amount
VSEC has a yearly dividend return of 0.22%, which is pretty low.
VSEC's Dividend Yield is a higher than the industry average which is at 0.39.
Compared to an average S&P500 Dividend Yield of 2.00, VSEC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.22% |
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.
VSEC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP73.55%
EPS Next 2Y18.09%
EPS Next 3Y19.34%
172.77
-2.23 (-1.27%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners103.94%
Inst Owner Change1.76%
Ins Owners1.99%
Ins Owner Change0.11%
Market Cap4.04B
Revenue(TTM)1.11B
Net Income(TTM)11.20M
Analysts86.67
Price Target211.66 (22.51%)
Short Float %6.86%
Short Ratio5.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.22% |
Yearly Dividend0.39
Dividend Growth(5Y)2.67%
DP73.55%
Div Incr Years0
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)24.74%
Min EPS beat(2)15.55%
Max EPS beat(2)33.94%
EPS beat(4)4
Avg EPS beat(4)26.25%
Min EPS beat(4)15.55%
Max EPS beat(4)33.94%
EPS beat(8)7
Avg EPS beat(8)18.32%
EPS beat(12)10
Avg EPS beat(12)17.22%
EPS beat(16)13
Avg EPS beat(16)14.54%
Revenue beat(2)2
Avg Revenue beat(2)0.79%
Min Revenue beat(2)0.3%
Max Revenue beat(2)1.28%
Revenue beat(4)4
Avg Revenue beat(4)1.3%
Min Revenue beat(4)0.3%
Max Revenue beat(4)1.93%
Revenue beat(8)5
Avg Revenue beat(8)0.61%
Revenue beat(12)6
Avg Revenue beat(12)-1.77%
Revenue beat(16)9
Avg Revenue beat(16)-1.95%
PT rev (1m)0.21%
PT rev (3m)13.32%
EPS NQ rev (1m)1.28%
EPS NQ rev (3m)-7.05%
EPS NY rev (1m)3.02%
EPS NY rev (3m)3.42%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)-1.6%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.46 | ||
| Fwd PE | 39.71 | ||
| P/S | 3.64 | ||
| P/FCF | 149.98 | ||
| P/OCF | 90.36 | ||
| P/B | 4.11 | ||
| P/tB | 11.45 | ||
| EV/EBITDA | 35.84 |
EPS(TTM)3.64
EY2.11%
EPS(NY)4.35
Fwd EY2.52%
FCF(TTM)1.15
FCFY0.67%
OCF(TTM)1.91
OCFY1.11%
SpS47.46
BVpS42.04
TBVpS15.08
PEG (NY)2.69
PEG (5Y)N/A
Graham Number58.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.72% | ||
| ROE | 1.14% | ||
| ROCE | 6.23% | ||
| ROIC | 4.81% | ||
| ROICexc | 4.84% | ||
| ROICexgc | 8.98% | ||
| OM | 7.73% | ||
| PM (TTM) | 1.01% | ||
| GM | 13.39% | ||
| FCFM | 2.43% |
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%
ROICexgc growth 3Y31.62%
ROICexgc 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-Score7
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 13.22 | ||
| Debt/EBITDA | 2.81 | ||
| Cap/Depr | 46.68% | ||
| Cap/Sales | 1.6% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 36.1% | ||
| Profit Quality | 240.62% | ||
| Current Ratio | 3.94 | ||
| Quick Ratio | 1.41 | ||
| Altman-Z | 5.91 |
F-Score7
WACC10.12%
ROIC/WACC0.48
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)18.57%
EPS 3Y10.22%
EPS 5Y-23.99%
EPS Q2Q%39.44%
EPS Next Y17.66%
EPS Next 2Y18.09%
EPS Next 3Y19.34%
EPS Next 5Y14.81%
Revenue 1Y (TTM)9.22%
Revenue growth 3Y12.88%
Revenue growth 5Y7.49%
Sales Q2Q%3.4%
Revenue Next Year2.29%
Revenue Next 2Y8.45%
Revenue Next 3Y8.7%
Revenue Next 5Y18.24%
EBIT growth 1Y-10.63%
EBIT growth 3Y63.86%
EBIT growth 5Y10.52%
EBIT Next Year118.48%
EBIT Next 3Y45.32%
EBIT Next 5Y31.19%
FCF growth 1Y151.72%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y219.23%
OCF growth 3YN/A
OCF growth 5YN/A
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 47.46 and the Price/Book (PB) ratio is 4.11.
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%.