207.62 USD
-0.93 (-0.45%)
207.62 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to VSEC. VSEC was compared to 71 industry peers in the Aerospace & Defense industry. While VSEC seems to be doing ok healthwise, there are quite some concerns on its profitability. VSEC is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year VSEC was profitable.
VSEC had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 0.72%, VSEC is in line with its industry, outperforming 45.07% of the companies in the same industry.
VSEC has a Return On Equity of 1.14%. This is comparable to the rest of the industry: VSEC outperforms 47.89% of its industry peers.
The Return On Invested Capital of VSEC (4.81%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for VSEC is below the industry average of 8.54%.
| 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
The Profit Margin of VSEC (1.01%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of VSEC has declined.
With a Operating Margin value of 7.73%, VSEC perfoms like the industry average, outperforming 50.70% of the companies in the same industry.
VSEC's Operating Margin has improved in the last couple of years.
The Gross Margin of VSEC (13.39%) is worse than 76.06% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VSEC is destroying value.
The number of shares outstanding for VSEC has been increased compared to 1 year ago.
Compared to 5 years ago, VSEC has more shares outstanding
The debt/assets ratio for VSEC has been reduced compared to a year ago.
2.2 Solvency
VSEC has an Altman-Z score of 6.72. 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 6.72, VSEC is in the better half of the industry, outperforming 64.79% 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.
VSEC has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.35, VSEC is doing good in the industry, outperforming 60.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 13.22 | ||
| Altman-Z | 6.72 |
ROIC/WACC0.5
WACC9.59%
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.
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
Looking at the last year, VSEC shows a quite strong growth in Revenue. The Revenue has grown by 9.22% in the last year.
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.
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
The Price/Earnings ratio is 57.04, which means the current valuation is very expensive for VSEC.
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 27.30. VSEC is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 47.72 indicates a quite expensive valuation of VSEC.
VSEC's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 24.04. VSEC is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 57.04 | ||
| Fwd PE | 47.72 |
4.2 Price Multiples
VSEC's Enterprise Value to EBITDA is on the same level as the industry average.
VSEC's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 180.23 | ||
| EV/EBITDA | 42.17 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as VSEC's earnings are expected to grow with 19.34% in the coming years.
PEG (NY)3.23
PEG (5Y)N/A
EPS Next 2Y18.09%
EPS Next 3Y19.34%
5. Dividend
5.1 Amount
With a yearly dividend of 0.20%, VSEC is not a good candidate for dividend investing.
VSEC's Dividend Yield is a higher than the industry average which is at 0.37.
Compared to an average S&P500 Dividend Yield of 1.92, VSEC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.2% |
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
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%
207.62
-0.93 (-0.45%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners103.9%
Inst Owner Change0.21%
Ins Owners1.99%
Ins Owner Change0.34%
Market Cap4.86B
Revenue(TTM)1.11B
Net Income(TTM)11.20M
Analysts87.5
Price Target211.66 (1.95%)
Short Float %6.86%
Short Ratio5.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.2% |
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)11.71%
EPS NQ rev (1m)-3.46%
EPS NQ rev (3m)-7.43%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)3.42%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)-1.43%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 57.04 | ||
| Fwd PE | 47.72 | ||
| P/S | 4.37 | ||
| P/FCF | 180.23 | ||
| P/OCF | 108.58 | ||
| P/B | 4.94 | ||
| P/tB | 13.77 | ||
| EV/EBITDA | 42.17 |
EPS(TTM)3.64
EY1.75%
EPS(NY)4.35
Fwd EY2.1%
FCF(TTM)1.15
FCFY0.55%
OCF(TTM)1.91
OCFY0.92%
SpS47.46
BVpS42.04
TBVpS15.08
PEG (NY)3.23
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 | 6.72 |
F-Score7
WACC9.59%
ROIC/WACC0.5
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 57.04 and the Price/Book (PB) ratio is 4.94.
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%.