VSE CORP (VSEC) Stock Fundamental Analysis
USA - NASDAQ:VSEC - US9182841000 - Common Stock
176.73 USD
+2.07 (+1.19%)
176.73 USD
0 (0%)
Taking everything into account, VSEC scores 4 out of 10 in our fundamental rating. 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
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.
In multiple years VSEC reported negative operating cash flow during the last 5 years.
1.2 Ratios
VSEC's Return On Assets of 0.72% is in line compared to the rest of the industry. VSEC outperforms 43.66% of its industry peers.
VSEC has a Return On Equity of 1.14%. This is comparable to the rest of the industry: VSEC outperforms 45.07% of its industry peers.
VSEC has a Return On Invested Capital (4.81%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for VSEC is below the industry average of 8.48%.
| 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 (1.01%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of VSEC has declined.
VSEC has a Operating Margin (7.73%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of VSEC has grown nicely.
VSEC has a Gross Margin of 13.39%. This is in the lower half of the industry: VSEC underperforms 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
VSEC has a better debt/assets ratio than last year.
2.2 Solvency
VSEC has an Altman-Z score of 5.41. This indicates that VSEC is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of VSEC (5.41) is better than 66.20% of its industry peers.
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's Debt to FCF ratio of 13.22 is in line compared to the rest of the industry. VSEC outperforms 52.11% of its industry peers.
A Debt/Equity ratio of 0.35 indicates that VSEC is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.35, VSEC is doing good in the industry, outperforming 61.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 13.22 | ||
| Altman-Z | 5.41 |
ROIC/WACC0.5
WACC9.67%
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 Current ratio of 3.94. This is amongst the best in the industry. VSEC outperforms 81.69% of its industry peers.
A Quick Ratio of 1.41 indicates that VSEC should not have too much problems paying its short term obligations.
The Quick ratio of VSEC (1.41) 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
VSEC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.22%.
Measured over the past years, VSEC shows a small growth in Revenue. The Revenue has been growing by 7.49% on average per year.
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
VSEC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.81% yearly.
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
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
A Price/Earnings ratio of 48.55 indicates a quite expensive valuation of VSEC.
VSEC's Price/Earnings ratio is in line with the industry average.
VSEC's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.83.
VSEC is valuated quite expensively with a Price/Forward Earnings ratio of 40.38.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VSEC is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 32.68. VSEC is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.55 | ||
| Fwd PE | 40.38 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as VSEC.
VSEC's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 135.64 | ||
| EV/EBITDA | 31.96 |
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)3.41
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 1.12.
Compared to an average S&P500 Dividend Yield of 2.39, 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 been paying a dividend for at least 10 years, so it has 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
73.55% of the earnings are spent on dividend by VSEC. 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%
176.73
+2.07 (+1.19%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners113.88%
Inst Owner Change-0.8%
Ins Owners2.29%
Ins Owner Change0%
Market Cap3.65B
Revenue(TTM)1.11B
Net Income(TTM)11.20M
Analysts86.67
Price Target192.85 (9.12%)
Short Float %8.69%
Short Ratio7.93
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)3.25%
PT rev (3m)27.11%
EPS NQ rev (1m)0.6%
EPS NQ rev (3m)-6.84%
EPS NY rev (1m)0%
EPS NY rev (3m)2.83%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-1.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.55 | ||
| Fwd PE | 40.38 | ||
| P/S | 3.29 | ||
| P/FCF | 135.64 | ||
| P/OCF | 81.72 | ||
| P/B | 3.72 | ||
| P/tB | 10.36 | ||
| EV/EBITDA | 31.96 |
EPS(TTM)3.64
EY2.06%
EPS(NY)4.38
Fwd EY2.48%
FCF(TTM)1.3
FCFY0.74%
OCF(TTM)2.16
OCFY1.22%
SpS53.68
BVpS47.55
TBVpS17.06
PEG (NY)3.41
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
WACC9.67%
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 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 48.55 and the Price/Book (PB) ratio is 3.72.
Can you provide the financial health for VSEC stock?
The financial health rating of VSE CORP (VSEC) is 5 / 10.