VSE CORP (VSEC) Stock Fundamental Analysis
USA - NASDAQ:VSEC - US9182841000 - Common Stock
164.855 USD
+1.78 (+1.09%)
Overall VSEC gets a fundamental rating of 4 out of 10. We evaluated VSEC 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
In the past year VSEC was profitable.
In the past year VSEC had a positive cash flow from operations.
Of the past 5 years VSEC 4 years were profitable.
In multiple years VSEC reported negative operating cash flow during the last 5 years.
1.2 Ratios
With a Return On Assets value of 0.72%, VSEC perfoms like the industry average, outperforming 45.07% of the companies in the same industry.
Looking at the Return On Equity, with a value of 1.14%, VSEC is in line with its industry, outperforming 47.89% of the companies in the same industry.
VSEC's Return On Invested Capital of 4.81% is in line compared to the rest of the industry. VSEC outperforms 49.30% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VSEC is below the industry average of 8.46%.
| 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
Looking at the Profit Margin, with a value of 1.01%, VSEC is in line with its industry, outperforming 46.48% of the companies in the same 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.
The Gross Margin of VSEC (13.39%) is worse than 74.65% 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 5.16. This indicates that VSEC is financially healthy and has little risk of bankruptcy at the moment.
VSEC has a Altman-Z score of 5.16. This is in the better half of the industry: VSEC outperforms 67.61% 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.
Looking at the Debt to FCF ratio, with a value of 13.22, VSEC is in line with its industry, outperforming 53.52% of the companies in the same industry.
VSEC has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.35, VSEC is in the better half of 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 | 5.16 |
ROIC/WACC0.49
WACC9.83%
2.3 Liquidity
A Current Ratio of 3.94 indicates that VSEC has no problem at all paying its short term obligations.
VSEC has a Current ratio of 3.94. This is amongst the best in the industry. VSEC outperforms 80.28% 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's Quick ratio of 1.41 is in line compared to the rest of the industry. VSEC outperforms 47.89% of its industry peers.
| 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.
VSEC shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -23.99% yearly.
The Revenue has grown by 9.22% in the past year. This is quite good.
The Revenue has been growing slightly by 7.49% on average over the past years.
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 Y14.22%
EPS Next 2Y18.44%
EPS Next 3Y19.86%
EPS Next 5Y14.81%
Revenue Next Year2.2%
Revenue Next 2Y9.29%
Revenue Next 3Y10.06%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 45.29, which means the current valuation is very expensive for VSEC.
The rest of the industry has a similar Price/Earnings ratio as VSEC.
VSEC is valuated expensively when we compare the Price/Earnings ratio to 25.51, which is the current average of the S&P500 Index.
VSEC is valuated quite expensively with a Price/Forward Earnings ratio of 37.66.
VSEC's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.98, VSEC is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.29 | ||
| Fwd PE | 37.66 |
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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 126.52 | ||
| EV/EBITDA | 30.02 |
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 19.86% in the coming years.
PEG (NY)3.19
PEG (5Y)N/A
EPS Next 2Y18.44%
EPS Next 3Y19.86%
5. Dividend
5.1 Amount
VSEC has a yearly dividend return of 0.22%, which is pretty low.
Compared to an average industry Dividend Yield of 1.37, VSEC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, 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 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.
The dividend of VSEC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP73.55%
EPS Next 2Y18.44%
EPS Next 3Y19.86%
NASDAQ:VSEC (11/19/2025, 10:48:31 AM)
164.855
+1.78 (+1.09%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners113.88%
Inst Owner Change1.52%
Ins Owners2.29%
Ins Owner Change0.15%
Market Cap3.41B
Revenue(TTM)1.11B
Net Income(TTM)11.20M
Analysts86.67
Price Target192.85 (16.98%)
Short Float %7.79%
Short Ratio5.9
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)1.78%
PT rev (3m)11.49%
EPS NQ rev (1m)-7.88%
EPS NQ rev (3m)-7.5%
EPS NY rev (1m)0.4%
EPS NY rev (3m)3.23%
Revenue NQ rev (1m)-1.39%
Revenue NQ rev (3m)-1.55%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.29 | ||
| Fwd PE | 37.66 | ||
| P/S | 3.07 | ||
| P/FCF | 126.52 | ||
| P/OCF | 76.23 | ||
| P/B | 3.47 | ||
| P/tB | 9.66 | ||
| EV/EBITDA | 30.02 |
EPS(TTM)3.64
EY2.21%
EPS(NY)4.38
Fwd EY2.66%
FCF(TTM)1.3
FCFY0.79%
OCF(TTM)2.16
OCFY1.31%
SpS53.68
BVpS47.55
TBVpS17.06
PEG (NY)3.19
PEG (5Y)N/A
Graham Number62.4
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 | 5.16 |
F-Score7
WACC9.83%
ROIC/WACC0.49
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 Y14.22%
EPS Next 2Y18.44%
EPS Next 3Y19.86%
EPS Next 5Y14.81%
Revenue 1Y (TTM)9.22%
Revenue growth 3Y12.88%
Revenue growth 5Y7.49%
Sales Q2Q%3.4%
Revenue Next Year2.2%
Revenue Next 2Y9.29%
Revenue Next 3Y10.06%
Revenue Next 5Y18.24%
EBIT growth 1Y-10.63%
EBIT growth 3Y63.86%
EBIT growth 5Y10.52%
EBIT Next Year112.51%
EBIT Next 3Y41.66%
EBIT Next 5Y31.36%
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 of VSE CORP (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.
Can you provide the PE and PB ratios for VSEC stock?
The Price/Earnings (PE) ratio for VSE CORP (VSEC) is 45.29 and the Price/Book (PB) ratio is 3.47.
Can you provide the financial health for VSEC stock?
The financial health rating of VSE CORP (VSEC) is 5 / 10.