VSE CORP (VSEC) Stock Fundamental Analysis
NASDAQ:VSEC - Nasdaq - US9182841000 - Common Stock - Currency: USD
Overall VSEC gets a fundamental rating of 4 out of 10. We evaluated VSEC against 83 industry peers in the Commercial Services & Supplies industry. VSEC has an average financial health and profitability rating. 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 (0.75%) which is in line with its industry peers.
VSEC has a Return On Equity (1.33%) which is in line with its industry peers.
The Return On Invested Capital of VSEC (5.16%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for VSEC is significantly below the industry average of 11.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 1.33% | ||
| ROIC | 5.16% |
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
Looking at the Profit Margin, with a value of 1.18%, VSEC is in line with its industry, outperforming 50.60% of the companies in the same industry.
In the last couple of years the Profit Margin of VSEC has declined.
With a decent Operating Margin value of 9.08%, VSEC is doing good in the industry, outperforming 66.27% of the companies in the same industry.
VSEC's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 11.72%, VSEC is not doing good in the industry: 85.54% of the companies in the same industry are doing better.
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 | 9.08% | ||
| PM (TTM) | 1.18% | ||
| GM | 11.72% |
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.
Compared to 1 year ago, VSEC has more shares outstanding
Compared to 5 years ago, VSEC has more shares outstanding
VSEC has a better debt/assets ratio than last year.
2.2 Solvency
VSEC has an Altman-Z score of 3.72. This indicates that VSEC is financially healthy and has little risk of bankruptcy at the moment.
VSEC has a better Altman-Z score (3.72) than 72.29% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that VSEC is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.47, VSEC perfoms like the industry average, outperforming 49.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.72 |
ROIC/WACC0.6
WACC8.66%
2.3 Liquidity
A Current Ratio of 3.90 indicates that VSEC has no problem at all paying its short term obligations.
VSEC's Current ratio of 3.90 is amongst the best of the industry. VSEC outperforms 86.75% of its industry peers.
A Quick Ratio of 2.12 indicates that VSEC has no problem at all paying its short term obligations.
VSEC has a better Quick ratio (2.12) than 84.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.9 | ||
| Quick Ratio | 2.12 |
3. Growth
3.1 Past
The earnings per share for VSEC have decreased strongly by -12.43% in the last year.
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 19.83%.
The Revenue has been growing slightly by 7.49% on average over the past years.
EPS 1Y (TTM)-12.43%
EPS 3Y10.22%
EPS 5Y-23.99%
EPS Q2Q%-10.34%
Revenue 1Y (TTM)19.83%
Revenue growth 3Y12.88%
Revenue growth 5Y7.49%
Sales Q2Q%6.01%
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 23.43% on average per year.
The Revenue is expected to grow by 3.65% on average over the next years.
EPS Next Y10.64%
EPS Next 2Y21.52%
EPS Next 3Y23.43%
EPS Next 5YN/A
Revenue Next Year2.2%
Revenue Next 2Y6.79%
Revenue Next 3Y8.86%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 42.23, the valuation of VSEC can be described as expensive.
VSEC's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.45, VSEC is valued quite expensively.
Based on the Price/Forward Earnings ratio of 27.77, the valuation of VSEC can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VSEC is on the same level as its industry peers.
VSEC is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.23 | ||
| Fwd PE | 27.77 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VSEC is valued a bit more expensive than the industry average as 62.65% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 23.5 |
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 23.43% in the coming years.
PEG (NY)3.97
PEG (5Y)N/A
EPS Next 2Y21.52%
EPS Next 3Y23.43%
5. Dividend
5.1 Amount
With a yearly dividend of 0.31%, VSEC is not a good candidate for dividend investing.
VSEC's Dividend Yield is a higher than the industry average which is at 2.46.
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 | 0.31% |
5.2 History
The dividend of VSEC has a limited annual growth rate of 2.67%.
VSEC has paid a dividend for at least 10 years, which is 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
58.19% of the earnings are spent on dividend by VSEC. This is a bit on the high side, but may be sustainable.
The dividend of VSEC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP58.19%
EPS Next 2Y21.52%
EPS Next 3Y23.43%
127.97
-2.38 (-1.83%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners116.88%
Inst Owner Change10.36%
Ins Owners2.28%
Ins Owner Change2.35%
Market Cap2.65B
Analysts84.62
Price Target150.53 (17.63%)
Short Float %8.52%
Short Ratio6.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.31% |
Yearly Dividend0.39
Dividend Growth(5Y)2.67%
DP58.19%
Div Incr Years0
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)27.75%
Min EPS beat(2)22.89%
Max EPS beat(2)32.61%
EPS beat(4)3
Avg EPS beat(4)16.87%
Min EPS beat(4)-3.77%
Max EPS beat(4)32.61%
EPS beat(8)7
Avg EPS beat(8)15.37%
EPS beat(12)10
Avg EPS beat(12)15.38%
EPS beat(16)13
Avg EPS beat(16)12.02%
Revenue beat(2)2
Avg Revenue beat(2)1.82%
Min Revenue beat(2)1.7%
Max Revenue beat(2)1.93%
Revenue beat(4)3
Avg Revenue beat(4)1.31%
Min Revenue beat(4)-0.07%
Max Revenue beat(4)1.93%
Revenue beat(8)4
Avg Revenue beat(8)0.48%
Revenue beat(12)5
Avg Revenue beat(12)-3.82%
Revenue beat(16)9
Avg Revenue beat(16)-1.58%
PT rev (1m)7.12%
PT rev (3m)6.08%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)-2.58%
EPS NY rev (1m)0.85%
EPS NY rev (3m)22.53%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)1.06%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)-7.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.23 | ||
| Fwd PE | 27.77 | ||
| P/S | 2.42 | ||
| P/FCF | N/A | ||
| P/OCF | 1901.61 | ||
| P/B | 2.71 | ||
| P/tB | 7.32 | ||
| EV/EBITDA | 23.5 |
EPS(TTM)3.03
EY2.37%
EPS(NY)4.61
Fwd EY3.6%
FCF(TTM)-0.7
FCFYN/A
OCF(TTM)0.07
OCFY0.05%
SpS52.96
BVpS47.21
TBVpS17.47
PEG (NY)3.97
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 1.33% | ||
| ROCE | 6.69% | ||
| ROIC | 5.16% | ||
| ROICexc | 5.18% | ||
| ROICexgc | 8.87% | ||
| OM | 9.08% | ||
| PM (TTM) | 1.18% | ||
| GM | 11.72% | ||
| FCFM | N/A |
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-Score4
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.48 | ||
| Cap/Depr | 48.44% | ||
| Cap/Sales | 1.45% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 1.05% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.9 | ||
| Quick Ratio | 2.12 | ||
| Altman-Z | 3.72 |
F-Score4
WACC8.66%
ROIC/WACC0.6
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)-12.43%
EPS 3Y10.22%
EPS 5Y-23.99%
EPS Q2Q%-10.34%
EPS Next Y10.64%
EPS Next 2Y21.52%
EPS Next 3Y23.43%
EPS Next 5YN/A
Revenue 1Y (TTM)19.83%
Revenue growth 3Y12.88%
Revenue growth 5Y7.49%
Sales Q2Q%6.01%
Revenue Next Year2.2%
Revenue Next 2Y6.79%
Revenue Next 3Y8.86%
Revenue Next 5Y3.65%
EBIT growth 1Y4.26%
EBIT growth 3Y63.86%
EBIT growth 5Y10.52%
EBIT Next Year86.07%
EBIT Next 3Y38.87%
EBIT Next 5YN/A
FCF growth 1Y58.96%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y106.2%
OCF growth 3YN/A
OCF growth 5YN/A