VSE CORP (VSEC) Stock Fundamental Analysis
USA - NASDAQ:VSEC - US9182841000 - Common Stock
166.27 USD
+6.81 (+4.27%)
166.27 USD
0 (0%)
Overall VSEC gets a fundamental rating of 4 out of 10. We evaluated VSEC against 70 industry peers in the Aerospace & Defense industry. VSEC scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. 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.
VSEC had a positive operating cash flow in the past year.
Of the past 5 years VSEC 4 years were profitable.
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
With a Return On Assets value of 1.18%, VSEC perfoms like the industry average, outperforming 47.14% of the companies in the same industry.
VSEC's Return On Equity of 1.93% is in line compared to the rest of the industry. VSEC outperforms 47.14% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.49%, VSEC is in line with its industry, outperforming 48.57% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for VSEC is below the industry average of 8.41%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.18% | ||
| ROE | 1.93% | ||
| ROIC | 5.49% |
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 (1.72%) which 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 (9.05%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of VSEC has grown nicely.
With a Gross Margin value of 12.57%, VSEC is not doing good in the industry: 75.71% 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 | 9.05% | ||
| PM (TTM) | 1.72% | ||
| GM | 12.57% |
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.
The number of shares outstanding for VSEC has been increased compared to 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 4.82 indicates that VSEC is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.82, VSEC is in the better half of the industry, outperforming 61.43% of the companies in the same industry.
VSEC has a debt to FCF ratio of 28.47. This is a negative value and a sign of low solvency as VSEC would need 28.47 years to pay back of all of its debts.
The Debt to FCF ratio of VSEC (28.47) is comparable to the rest of the industry.
VSEC has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.38, VSEC perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 28.47 | ||
| Altman-Z | 4.82 |
ROIC/WACC0.57
WACC9.58%
2.3 Liquidity
A Current Ratio of 3.73 indicates that VSEC has no problem at all paying its short term obligations.
The Current ratio of VSEC (3.73) is better than 81.43% of its industry peers.
VSEC has a Quick Ratio of 1.44. 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 1.44 is in line compared to the rest of the industry. VSEC outperforms 47.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.73 | ||
| Quick Ratio | 1.44 |
3. Growth
3.1 Past
VSEC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.44%.
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.
Looking at the last year, VSEC shows a quite strong growth in Revenue. The Revenue has grown by 12.99% in the last year.
VSEC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.49% yearly.
EPS 1Y (TTM)2.44%
EPS 3Y10.22%
EPS 5Y-23.99%
EPS Q2Q%51.56%
Revenue 1Y (TTM)12.99%
Revenue growth 3Y12.88%
Revenue growth 5Y7.49%
Sales Q2Q%2.32%
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 16.42% on average per year.
Based on estimates for the next years, VSEC will show a quite strong growth in Revenue. The Revenue will grow by 18.24% on average per year.
EPS Next Y13.77%
EPS Next 2Y21.36%
EPS Next 3Y23.09%
EPS Next 5Y16.42%
Revenue Next Year2.02%
Revenue Next 2Y7.73%
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.
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
With a Price/Earnings ratio of 49.49, VSEC can be considered very expensive at the moment.
VSEC's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.69. VSEC is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 36.18, the valuation of VSEC can be described as expensive.
VSEC's Price/Forward Earnings ratio is in line with the industry average.
VSEC's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.18.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.49 | ||
| Fwd PE | 36.18 |
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 ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 258.22 | ||
| EV/EBITDA | 27.11 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates VSEC does not grow enough to justify the current Price/Earnings ratio.
VSEC's earnings are expected to grow with 23.09% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.59
PEG (5Y)N/A
EPS Next 2Y21.36%
EPS Next 3Y23.09%
5. Dividend
5.1 Amount
With a yearly dividend of 0.26%, VSEC is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.16, VSEC pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.26, VSEC pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.26% |
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 42.31% of its income as dividend. 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.
DP42.31%
EPS Next 2Y21.36%
EPS Next 3Y23.09%
166.27
+6.81 (+4.27%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners113.88%
Inst Owner Change-0.02%
Ins Owners2.29%
Ins Owner Change0%
Market Cap3.44B
Analysts87.14
Price Target189.48 (13.96%)
Short Float %7.05%
Short Ratio5.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.26% |
Yearly Dividend0.39
Dividend Growth(5Y)2.67%
DP42.31%
Div Incr Years0
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)33.27%
Min EPS beat(2)32.61%
Max EPS beat(2)33.94%
EPS beat(4)4
Avg EPS beat(4)26.3%
Min EPS beat(4)15.76%
Max EPS beat(4)33.94%
EPS beat(8)7
Avg EPS beat(8)18.7%
EPS beat(12)10
Avg EPS beat(12)16.53%
EPS beat(16)13
Avg EPS beat(16)13.7%
Revenue beat(2)2
Avg Revenue beat(2)1.49%
Min Revenue beat(2)1.28%
Max Revenue beat(2)1.7%
Revenue beat(4)3
Avg Revenue beat(4)1.21%
Min Revenue beat(4)-0.07%
Max Revenue beat(4)1.93%
Revenue beat(8)5
Avg Revenue beat(8)1.07%
Revenue beat(12)5
Avg Revenue beat(12)-4.26%
Revenue beat(16)9
Avg Revenue beat(16)-1.69%
PT rev (1m)1.45%
PT rev (3m)24.88%
EPS NQ rev (1m)1.33%
EPS NQ rev (3m)-10.62%
EPS NY rev (1m)0.4%
EPS NY rev (3m)2.83%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)-0.37%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.49 | ||
| Fwd PE | 36.18 | ||
| P/S | 3.12 | ||
| P/FCF | 258.22 | ||
| P/OCF | 111.6 | ||
| P/B | 3.51 | ||
| P/tB | 10.04 | ||
| EV/EBITDA | 27.11 |
EPS(TTM)3.36
EY2.02%
EPS(NY)4.6
Fwd EY2.76%
FCF(TTM)0.64
FCFY0.39%
OCF(TTM)1.49
OCFY0.9%
SpS53.23
BVpS47.37
TBVpS16.55
PEG (NY)3.59
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.18% | ||
| ROE | 1.93% | ||
| ROCE | 7.11% | ||
| ROIC | 5.49% | ||
| ROICexc | 5.56% | ||
| ROICexgc | 10.3% | ||
| OM | 9.05% | ||
| PM (TTM) | 1.72% | ||
| GM | 12.57% | ||
| FCFM | 1.21% |
ROA(3y)2.2%
ROA(5y)1.36%
ROE(3y)4.72%
ROE(5y)2.92%
ROIC(3y)5.73%
ROIC(5y)5.23%
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-Score8
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 28.47 | ||
| Debt/EBITDA | 2.75 | ||
| Cap/Depr | 49.37% | ||
| Cap/Sales | 1.59% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 22.82% | ||
| Profit Quality | 70.32% | ||
| Current Ratio | 3.73 | ||
| Quick Ratio | 1.44 | ||
| Altman-Z | 4.82 |
F-Score8
WACC9.58%
ROIC/WACC0.57
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)2.44%
EPS 3Y10.22%
EPS 5Y-23.99%
EPS Q2Q%51.56%
EPS Next Y13.77%
EPS Next 2Y21.36%
EPS Next 3Y23.09%
EPS Next 5Y16.42%
Revenue 1Y (TTM)12.99%
Revenue growth 3Y12.88%
Revenue growth 5Y7.49%
Sales Q2Q%2.32%
Revenue Next Year2.02%
Revenue Next 2Y7.73%
Revenue Next 3Y10.03%
Revenue Next 5Y18.24%
EBIT growth 1Y1.63%
EBIT growth 3Y63.86%
EBIT growth 5Y10.52%
EBIT Next Year112.51%
EBIT Next 3Y41.66%
EBIT Next 5Y30.07%
FCF growth 1Y125.86%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y183.5%
OCF growth 3YN/A
OCF growth 5YN/A