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VSE CORP (VSEC) Stock Fundamental Analysis

NASDAQ:VSEC - Nasdaq - US9182841000 - Common Stock - Currency: USD

100.01  -1.99 (-1.95%)

After market: 100.01 0 (0%)

Fundamental Rating

4

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. VSEC is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

VSEC had positive earnings in the past year.
In the past year VSEC has reported a negative 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.
VSEC Yearly Net Income VS EBIT VS OCF VS FCFVSEC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20M -20M 40M -40M 60M 80M

1.2 Ratios

VSEC has a Return On Assets (0.95%) which is in line with its industry peers.
The Return On Equity of VSEC (1.76%) is comparable to the rest of the industry.
VSEC has a Return On Invested Capital (5.54%) which is in line with its industry peers.
VSEC had an Average Return On Invested Capital over the past 3 years of 4.65%. This is significantly below the industry average of 10.12%.
The last Return On Invested Capital (5.54%) for VSEC is above the 3 year average (4.65%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 0.95%
ROE 1.76%
ROIC 5.54%
ROA(3y)2.19%
ROA(5y)2.06%
ROE(3y)4.84%
ROE(5y)4.65%
ROIC(3y)4.65%
ROIC(5y)5.42%
VSEC Yearly ROA, ROE, ROICVSEC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5 10

1.3 Margins

VSEC has a Profit Margin (1.36%) 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 better Operating Margin (9.05%) than 65.85% of its industry peers.
VSEC's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 11.70%, VSEC is doing worse than 84.15% of the companies in the same industry.
In the last couple of years the Gross Margin of VSEC has grown nicely.
Industry RankSector Rank
OM 9.05%
PM (TTM) 1.36%
GM 11.7%
OM growth 3Y7.23%
OM growth 5Y6.24%
PM growth 3YN/A
PM growth 5Y-2.01%
GM growth 3Y3.91%
GM growth 5Y4.27%
VSEC Yearly Profit, Operating, Gross MarginsVSEC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 2 4 6 8 10

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4

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VSEC 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 a worse debt to assets ratio.
VSEC Yearly Shares OutstandingVSEC Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 5M 10M 15M
VSEC Yearly Total Debt VS Total AssetsVSEC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B

2.2 Solvency

VSEC has an Altman-Z score of 3.58. This indicates that VSEC is financially healthy and has little risk of bankruptcy at the moment.
VSEC has a better Altman-Z score (3.58) than 74.39% of its industry peers.
A Debt/Equity ratio of 0.53 indicates that VSEC is somewhat dependend on debt financing.
VSEC's Debt to Equity ratio of 0.53 is in line compared to the rest of the industry. VSEC outperforms 46.34% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.53
Debt/FCF N/A
Altman-Z 3.58
ROIC/WACC0.63
WACC8.81%
VSEC Yearly LT Debt VS Equity VS FCFVSEC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M 400M 600M

2.3 Liquidity

VSEC has a Current Ratio of 3.69. This indicates that VSEC is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 3.69, VSEC belongs to the best of the industry, outperforming 86.59% of the companies in the same industry.
VSEC has a Quick Ratio of 1.15. This is a normal value and indicates that VSEC is financially healthy and should not expect problems in meeting its short term obligations.
VSEC's Quick ratio of 1.15 is in line compared to the rest of the industry. VSEC outperforms 40.24% of its industry peers.
Industry RankSector Rank
Current Ratio 3.69
Quick Ratio 1.15
VSEC Yearly Current Assets VS Current LiabilitesVSEC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M

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5

3. Growth

3.1 Past

The earnings per share for VSEC have decreased by -5.54% in the last year.
Measured over the past years, VSEC shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.11% on average per year.
The Revenue has grown by 18.26% in the past year. This is quite good.
The Revenue has been growing slightly by 4.30% on average over the past years.
EPS 1Y (TTM)-5.54%
EPS 3YN/A
EPS 5Y-3.11%
EPS Q2Q%-22.83%
Revenue 1Y (TTM)18.26%
Revenue growth 3Y9.15%
Revenue growth 5Y4.3%
Sales Q2Q%18.27%

3.2 Future

Based on estimates for the next years, VSEC will show a very strong growth in Earnings Per Share. The EPS will grow by 20.78% on average per year.
VSEC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.82% yearly.
EPS Next Y-12.08%
EPS Next 2Y13.44%
EPS Next 3Y17.98%
EPS Next 5Y20.78%
Revenue Next Year24.25%
Revenue Next 2Y25.65%
Revenue Next 3Y20.61%
Revenue Next 5Y7.82%

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 accelerating: in the next years the growth will be better than in the last years.
VSEC Yearly Revenue VS EstimatesVSEC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 500M 1B 1.5B
VSEC Yearly EPS VS EstimatesVSEC Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6

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2

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 32.58 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.
VSEC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 29.63.
The Price/Forward Earnings ratio is 22.72, which indicates a rather expensive current valuation of VSEC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VSEC indicates a somewhat cheap valuation: VSEC is cheaper than 63.41% of the companies listed in the same industry.
VSEC is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 32.58
Fwd PE 22.72
VSEC Price Earnings VS Forward Price EarningsVSEC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, VSEC is valued a bit more expensive than 62.20% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 21.32
VSEC Per share dataVSEC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40

4.3 Compensation for Growth

A more expensive valuation may be justified as VSEC's earnings are expected to grow with 17.98% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y13.44%
EPS Next 3Y17.98%

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5

5. Dividend

5.1 Amount

VSEC has a yearly dividend return of 0.39%, which is pretty low.
Compared to an average industry Dividend Yield of 2.12, VSEC pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.39, VSEC pays less dividend than the S&P500 average, which is at 2.29.
Industry RankSector Rank
Dividend Yield 0.39%

5.2 History

The dividend of VSEC has a limited annual growth rate of 4.84%.
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)4.84%
Div Incr Years0
Div Non Decr Years34
VSEC Yearly Dividends per shareVSEC Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 0 0 0 0

5.3 Sustainability

VSEC pays out 47.56% 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.
DP47.56%
EPS Next 2Y13.44%
EPS Next 3Y17.98%
VSEC Yearly Income VS Free CF VS DividendVSEC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20M -20M 40M -40M
VSEC Dividend Payout.VSEC Dividend Payout, showing the Payout Ratio.VSEC Dividend Payout.PayoutRetained Earnings

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VSE CORP

NASDAQ:VSEC (2/21/2025, 8:00:01 PM)

After market: 100.01 0 (0%)

100.01

-1.99 (-1.95%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)11-06 2024-11-06/bmo
Earnings (Next)02-26 2025-02-26/amc
Inst Owners109.34%
Inst Owner Change6.09%
Ins Owners1.98%
Ins Owner Change-0.64%
Market Cap2.04B
Analysts85
Price Target136.88 (36.87%)
Short Float %8.47%
Short Ratio7.08
Dividend
Industry RankSector Rank
Dividend Yield 0.39%
Yearly Dividend0.38
Dividend Growth(5Y)4.84%
DP47.56%
Div Incr Years0
Div Non Decr Years34
Ex-Date01-23 2025-01-23 (0.1)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6%
Min EPS beat(2)-3.77%
Max EPS beat(2)15.76%
EPS beat(4)3
Avg EPS beat(4)10.39%
Min EPS beat(4)-3.77%
Max EPS beat(4)18.79%
EPS beat(8)6
Avg EPS beat(8)12.7%
EPS beat(12)9
Avg EPS beat(12)10.64%
EPS beat(16)13
Avg EPS beat(16)11.57%
Revenue beat(2)1
Avg Revenue beat(2)0.8%
Min Revenue beat(2)-0.07%
Max Revenue beat(2)1.68%
Revenue beat(4)1
Avg Revenue beat(4)-0.09%
Min Revenue beat(4)-1.79%
Max Revenue beat(4)1.68%
Revenue beat(8)2
Avg Revenue beat(8)-3.3%
Revenue beat(12)5
Avg Revenue beat(12)-3.04%
Revenue beat(16)8
Avg Revenue beat(16)-1.61%
PT rev (1m)-0.59%
PT rev (3m)23.12%
EPS NQ rev (1m)5.99%
EPS NQ rev (3m)-11.5%
EPS NY rev (1m)0.96%
EPS NY rev (3m)-0.14%
Revenue NQ rev (1m)3.31%
Revenue NQ rev (3m)0.98%
Revenue NY rev (1m)0.28%
Revenue NY rev (3m)0.65%
Valuation
Industry RankSector Rank
PE 32.58
Fwd PE 22.72
P/S 2.01
P/FCF N/A
P/OCF N/A
P/B 2.59
P/tB 8.63
EV/EBITDA 21.32
EPS(TTM)3.07
EY3.07%
EPS(NY)4.4
Fwd EY4.4%
FCF(TTM)-4.1
FCFYN/A
OCF(TTM)-2.86
OCFYN/A
SpS49.8
BVpS38.6
TBVpS11.59
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.95%
ROE 1.76%
ROCE 7.34%
ROIC 5.54%
ROICexc 5.58%
ROICexgc 10.01%
OM 9.05%
PM (TTM) 1.36%
GM 11.7%
FCFM N/A
ROA(3y)2.19%
ROA(5y)2.06%
ROE(3y)4.84%
ROE(5y)4.65%
ROIC(3y)4.65%
ROIC(5y)5.42%
ROICexc(3y)4.67%
ROICexc(5y)5.43%
ROICexgc(3y)8.45%
ROICexgc(5y)11.18%
ROCE(3y)6.16%
ROCE(5y)7.17%
ROICexcg growth 3Y-6.7%
ROICexcg growth 5Y-7.41%
ROICexc growth 3Y-0.92%
ROICexc growth 5Y-3.32%
OM growth 3Y7.23%
OM growth 5Y6.24%
PM growth 3YN/A
PM growth 5Y-2.01%
GM growth 3Y3.91%
GM growth 5Y4.27%
F-Score5
Asset Turnover0.69
Health
Industry RankSector Rank
Debt/Equity 0.53
Debt/FCF N/A
Debt/EBITDA 3.55
Cap/Depr 95.97%
Cap/Sales 2.49%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 3.69
Quick Ratio 1.15
Altman-Z 3.58
F-Score5
WACC8.81%
ROIC/WACC0.63
Cap/Depr(3y)54.88%
Cap/Depr(5y)43.75%
Cap/Sales(3y)1.58%
Cap/Sales(5y)1.34%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-5.54%
EPS 3YN/A
EPS 5Y-3.11%
EPS Q2Q%-22.83%
EPS Next Y-12.08%
EPS Next 2Y13.44%
EPS Next 3Y17.98%
EPS Next 5Y20.78%
Revenue 1Y (TTM)18.26%
Revenue growth 3Y9.15%
Revenue growth 5Y4.3%
Sales Q2Q%18.27%
Revenue Next Year24.25%
Revenue Next 2Y25.65%
Revenue Next 3Y20.61%
Revenue Next 5Y7.82%
EBIT growth 1Y22.7%
EBIT growth 3Y17.04%
EBIT growth 5Y10.81%
EBIT Next Year51.5%
EBIT Next 3Y33.75%
EBIT Next 5Y30.44%
FCF growth 1Y-5071.36%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-771.31%
OCF growth 3YN/A
OCF growth 5YN/A