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. 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 has reported a negative 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
VSEC has a Return On Assets (0.88%) which is in line with its industry peers.
VSEC has a Return On Equity of 1.55%. This is comparable to the rest of the industry: VSEC outperforms 49.40% of its industry peers.
VSEC's Return On Invested Capital of 5.21% is in line compared to the rest of the industry. VSEC outperforms 51.81% of its industry peers.
VSEC had an Average Return On Invested Capital over the past 3 years of 5.73%. This is significantly below the industry average of 10.77%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.88% | ||
| ROE | 1.55% | ||
| ROIC | 5.21% |
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 (1.42%) is comparable to the rest of the industry.
VSEC's Profit Margin has declined in the last couple of years.
The Operating Margin of VSEC (9.08%) is better than 66.27% of its industry peers.
VSEC's Operating Margin has improved in the last couple of years.
VSEC has a worse Gross Margin (11.66%) than 84.34% of its industry peers.
VSEC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.08% | ||
| PM (TTM) | 1.42% | ||
| GM | 11.66% |
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
The number of shares outstanding for VSEC has been increased compared to 5 years ago.
VSEC has a better debt/assets ratio than last year.
2.2 Solvency
VSEC has an Altman-Z score of 3.33. This indicates that VSEC is financially healthy and has little risk of bankruptcy at the moment.
VSEC has a better Altman-Z score (3.33) than 67.47% of its industry peers.
VSEC has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
VSEC has a Debt to Equity ratio (0.40) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.33 |
ROIC/WACC0.6
WACC8.61%
2.3 Liquidity
VSEC has a Current Ratio of 3.10. This indicates that VSEC is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of VSEC (3.10) is better than 85.54% of its industry peers.
VSEC has a Quick Ratio of 1.06. 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 1.06 is on the low side compared to the rest of the industry. VSEC is outperformed by 65.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.1 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
VSEC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.77%.
VSEC shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -23.99% yearly.
Looking at the last year, VSEC shows a very strong growth in Revenue. The Revenue has grown by 25.52%.
The Revenue has been growing slightly by 7.49% on average over the past years.
EPS 1Y (TTM)-8.77%
EPS 3Y10.22%
EPS 5Y-23.99%
EPS Q2Q%5.88%
Revenue 1Y (TTM)25.52%
Revenue growth 3Y12.88%
Revenue growth 5Y7.49%
Sales Q2Q%27.07%
3.2 Future
The Earnings Per Share is expected to grow by 26.65% on average over the next years. This is a very strong growth
VSEC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.65% yearly.
EPS Next Y-3.5%
EPS Next 2Y24.68%
EPS Next 3Y26.65%
EPS Next 5YN/A
Revenue Next Year-1.83%
Revenue Next 2Y4.88%
Revenue Next 3Y6.89%
Revenue Next 5Y3.65%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 34.68, which means the current valuation is very expensive for VSEC.
VSEC's Price/Earnings is on the same level as the industry average.
VSEC's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.29.
Based on the Price/Forward Earnings ratio of 35.94, the valuation of VSEC can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as VSEC.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.08, VSEC is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.68 | ||
| Fwd PE | 35.94 |
4.2 Price Multiples
62.65% of the companies in the same industry are cheaper than VSEC, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 20.8 |
4.3 Compensation for Growth
VSEC's earnings are expected to grow with 26.65% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y24.68%
EPS Next 3Y26.65%
5. Dividend
5.1 Amount
With a yearly dividend of 0.37%, VSEC is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.58, VSEC pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.37, VSEC pays less dividend than the S&P500 average, which is at 2.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.37% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)2.67%
Div Incr Years0
Div Non Decr Years34
5.3 Sustainability
46.07% 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.
DP46.07%
EPS Next 2Y24.68%
EPS Next 3Y26.65%
108.19
-1.9 (-1.73%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners109.34%
Inst Owner Change-0.05%
Ins Owners1.98%
Ins Owner Change1.81%
Market Cap2.24B
Analysts83.33
Price Target141.9 (31.16%)
Short Float %10.71%
Short Ratio8.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.37% |
Yearly Dividend0.39
Dividend Growth(5Y)2.67%
DP46.07%
Div Incr Years0
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)19.32%
Min EPS beat(2)15.76%
Max EPS beat(2)22.89%
EPS beat(4)3
Avg EPS beat(4)13.42%
Min EPS beat(4)-3.77%
Max EPS beat(4)22.89%
EPS beat(8)7
Avg EPS beat(8)16.96%
EPS beat(12)10
Avg EPS beat(12)15.2%
EPS beat(16)13
Avg EPS beat(16)11.43%
Revenue beat(2)1
Avg Revenue beat(2)0.93%
Min Revenue beat(2)-0.07%
Max Revenue beat(2)1.93%
Revenue beat(4)2
Avg Revenue beat(4)0.84%
Min Revenue beat(4)-0.17%
Max Revenue beat(4)1.93%
Revenue beat(8)3
Avg Revenue beat(8)-2.63%
Revenue beat(12)5
Avg Revenue beat(12)-2.99%
Revenue beat(16)9
Avg Revenue beat(16)-1.34%
PT rev (1m)3.82%
PT rev (3m)3.05%
EPS NQ rev (1m)-4.06%
EPS NQ rev (3m)-20.24%
EPS NY rev (1m)-30.84%
EPS NY rev (3m)-33.31%
Revenue NQ rev (1m)1.24%
Revenue NQ rev (3m)-14.71%
Revenue NY rev (1m)-11.42%
Revenue NY rev (3m)-22.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.68 | ||
| Fwd PE | 35.94 | ||
| P/S | 2.07 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.26 | ||
| P/tB | 7.47 | ||
| EV/EBITDA | 20.8 |
EPS(TTM)3.12
EY2.88%
EPS(NY)3.01
Fwd EY2.78%
FCF(TTM)-2.5
FCFYN/A
OCF(TTM)-1.5
OCFYN/A
SpS52.26
BVpS47.81
TBVpS14.49
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.88% | ||
| ROE | 1.55% | ||
| ROCE | 6.75% | ||
| ROIC | 5.21% | ||
| ROICexc | 5.31% | ||
| ROICexgc | 10.29% | ||
| OM | 9.08% | ||
| PM (TTM) | 1.42% | ||
| GM | 11.66% | ||
| 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-Score3
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.16 | ||
| Cap/Depr | 71.98% | ||
| Cap/Sales | 1.92% | ||
| Interest Coverage | 2.64 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.1 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | 3.33 |
F-Score3
WACC8.61%
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)-8.77%
EPS 3Y10.22%
EPS 5Y-23.99%
EPS Q2Q%5.88%
EPS Next Y-3.5%
EPS Next 2Y24.68%
EPS Next 3Y26.65%
EPS Next 5YN/A
Revenue 1Y (TTM)25.52%
Revenue growth 3Y12.88%
Revenue growth 5Y7.49%
Sales Q2Q%27.07%
Revenue Next Year-1.83%
Revenue Next 2Y4.88%
Revenue Next 3Y6.89%
Revenue Next 5Y3.65%
EBIT growth 1Y11.75%
EBIT growth 3Y63.86%
EBIT growth 5Y10.52%
EBIT Next Year80.46%
EBIT Next 3Y41.64%
EBIT Next 5YN/A
FCF growth 1Y-27.77%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-42.18%
OCF growth 3YN/A
OCF growth 5YN/A