181.99 USD
+7.04 (+4.02%)
181.99 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 valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
VSEC had positive earnings in the past year.
In the past year VSEC had a positive 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.
1.2 Ratios
VSEC has a Return On Assets (0.72%) which is in line with its industry peers.
VSEC has a Return On Equity (1.14%) which is in line with its industry peers.
VSEC has a Return On Invested Capital of 4.81%. This is comparable 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 8.52%.
| 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
VSEC has a Profit Margin of 1.01%. This is comparable to the rest of the industry: VSEC outperforms 46.48% of its industry peers.
In the last couple of years the Profit Margin of VSEC has declined.
The Operating Margin of VSEC (7.73%) is comparable to the rest of the industry.
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.
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 | 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
VSEC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
VSEC has more shares outstanding than it did 1 year ago.
VSEC has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, VSEC has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.41 indicates that VSEC is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.41, VSEC is in the better half of the industry, outperforming 67.61% 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.
VSEC has a Debt to FCF ratio (13.22) which is in line with its industry peers.
A Debt/Equity ratio of 0.35 indicates that VSEC is not too dependend on debt financing.
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 | 5.41 |
ROIC/WACC0.47
WACC10.27%
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 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 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.
Measured over the past years, VSEC shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -23.99% on average per year.
The Revenue has grown by 9.22% in the past year. This is quite good.
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 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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 50.00 indicates a quite expensive valuation of 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 25.98, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 41.58, which means the current valuation is very expensive for VSEC.
The rest of the industry has a similar Price/Forward Earnings ratio as VSEC.
When comparing the Price/Forward Earnings ratio of VSEC to the average of the S&P500 Index (35.79), we can say VSEC is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50 | ||
| Fwd PE | 41.58 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VSEC is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 139.68 | ||
| EV/EBITDA | 32 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
VSEC's earnings are expected to grow with 19.86% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.52
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.
VSEC's Dividend Yield is a higher than the industry average which is at 1.15.
Compared to an average S&P500 Dividend Yield of 2.41, 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%
181.99
+7.04 (+4.02%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners113.88%
Inst Owner Change1.37%
Ins Owners2.29%
Ins Owner Change0.12%
Market Cap3.76B
Revenue(TTM)1.11B
Net Income(TTM)11.20M
Analysts86.67
Price Target211.21 (16.06%)
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)11.47%
PT rev (3m)18.83%
EPS NQ rev (1m)-7.06%
EPS NQ rev (3m)-6.67%
EPS NY rev (1m)0.4%
EPS NY rev (3m)0.8%
Revenue NQ rev (1m)-1.57%
Revenue NQ rev (3m)-1.73%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50 | ||
| Fwd PE | 41.58 | ||
| P/S | 3.39 | ||
| P/FCF | 139.68 | ||
| P/OCF | 84.15 | ||
| P/B | 3.83 | ||
| P/tB | 10.67 | ||
| EV/EBITDA | 32 |
EPS(TTM)3.64
EY2%
EPS(NY)4.38
Fwd EY2.41%
FCF(TTM)1.3
FCFY0.72%
OCF(TTM)2.16
OCFY1.19%
SpS53.68
BVpS47.55
TBVpS17.06
PEG (NY)3.52
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 | 5.41 |
F-Score7
WACC10.27%
ROIC/WACC0.47
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 50 and the Price/Book (PB) ratio is 3.83.
Can you provide the financial health for VSEC stock?
The financial health rating of VSE CORP (VSEC) is 5 / 10.