207.06 USD
-4.42 (-2.09%)
Overall VSEC gets a fundamental rating of 4 out of 10. We evaluated VSEC against 73 industry peers in the Aerospace & Defense industry. The financial health of VSEC is average, but 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.
- 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 comparable to the rest of the industry.
- 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 49.32% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for VSEC is below the industry average of 8.56%.
| 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.
- VSEC's Profit Margin has declined in the last couple of years.
- With a Operating Margin value of 7.73%, VSEC perfoms like the industry average, outperforming 52.05% of the companies in the same industry.
- In the last couple of years the Operating Margin of VSEC has grown nicely.
- With a Gross Margin value of 13.39%, VSEC is not doing good in the industry: 73.97% of the companies in the same industry are doing better.
- 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.
- Compared to 1 year ago, VSEC has more shares outstanding
- VSEC has more shares outstanding than it did 5 years ago.
- VSEC has a better debt/assets ratio than last year.
2.2 Solvency
- VSEC has an Altman-Z score of 6.79. This indicates that VSEC is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of VSEC (6.79) is better than 64.38% 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.
- With a Debt to FCF ratio value of 13.22, VSEC perfoms like the industry average, outperforming 53.42% 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.
- With a decent Debt to Equity ratio value of 0.35, VSEC is doing good in the industry, outperforming 60.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 13.22 | ||
| Altman-Z | 6.79 |
ROIC/WACC0.47
WACC10.17%
2.3 Liquidity
- A Current Ratio of 3.94 indicates that VSEC has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 3.94, VSEC is in the better half of the industry, outperforming 72.60% of the companies in the same industry.
- 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 of 1.41. This is comparable to the rest of the industry: VSEC outperforms 49.32% 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.
- 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%.
- 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
- The Earnings Per Share is expected to grow by 14.81% on average over the next years. This is quite good.
- The Revenue is expected to grow by 18.24% on average over the next years. This is quite good.
EPS Next Y16.68%
EPS Next 2Y20.13%
EPS Next 3Y20.8%
EPS Next 5Y14.81%
Revenue Next Year2.39%
Revenue Next 2Y9.33%
Revenue Next 3Y10.03%
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
- Based on the Price/Earnings ratio of 56.88, the valuation of VSEC can be described as expensive.
- 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 28.82. VSEC is valued rather expensively when compared to this.
- Based on the Price/Forward Earnings ratio of 45.99, the valuation of VSEC can be described as expensive.
- VSEC's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.95. VSEC is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.88 | ||
| Fwd PE | 45.99 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as VSEC.
- The rest of the industry has a similar Price/Free Cash Flow ratio as VSEC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 179.74 | ||
| EV/EBITDA | 42.73 |
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 20.80% in the coming years.
PEG (NY)3.41
PEG (5Y)N/A
EPS Next 2Y20.13%
EPS Next 3Y20.8%
5. Dividend
5.1 Amount
- VSEC has a yearly dividend return of 0.19%, which is pretty low.
- VSEC's Dividend Yield is a higher than the industry average which is at 0.34.
- Compared to an average S&P500 Dividend Yield of 1.82, VSEC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.19% |
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 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 2Y20.13%
EPS Next 3Y20.8%
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 56.88 and the Price/Book (PB) ratio is 4.93.
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%.