VSE CORP (VSEC) Stock Fundamental Analysis
USA - NASDAQ:VSEC - US9182841000 - Common Stock
176.73 USD
+2.07 (+1.19%)
176.73 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to VSEC. VSEC was compared to 72 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
In the past year VSEC was profitable.
In the past year VSEC had a positive cash flow from operations.
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
The Return On Assets of VSEC (0.72%) is comparable to the rest of the industry.
VSEC has a Return On Equity (1.14%) which is comparable to the rest of the industry.
The Return On Invested Capital of VSEC (4.81%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for VSEC is below the industry average of 8.49%.
| 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
With a Profit Margin value of 1.01%, VSEC perfoms like the industry average, outperforming 42.47% of the companies in the same industry.
In the last couple of years the Profit Margin of VSEC has declined.
Looking at the Operating Margin, with a value of 7.73%, VSEC is in line with its industry, outperforming 52.05% of the companies in the same industry.
In the last couple of years the Operating Margin of VSEC has grown nicely.
The Gross Margin of VSEC (13.39%) is worse than 75.34% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VSEC is destroying value.
Compared to 1 year ago, VSEC has more shares outstanding
VSEC has more shares outstanding than it did 5 years ago.
The debt/assets ratio for VSEC has been reduced compared to a year ago.
2.2 Solvency
VSEC has an Altman-Z score of 5.45. This indicates that VSEC is financially healthy and has little risk of bankruptcy at the moment.
VSEC has a Altman-Z score of 5.45. This is in the better half of the industry: VSEC outperforms 67.12% 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.
Looking at the Debt to FCF ratio, with a value of 13.22, VSEC is in line with its industry, outperforming 52.05% 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.
VSEC has a Debt to Equity ratio of 0.35. This is in the better half of the industry: VSEC outperforms 63.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 13.22 | ||
| Altman-Z | 5.45 |
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.
The Current ratio of VSEC (3.94) is better than 82.19% 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's Quick ratio of 1.41 is in line compared to the rest of the industry. VSEC outperforms 47.95% 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.
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.
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
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.
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 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.
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
VSEC is valuated quite expensively with a Price/Earnings ratio of 48.55.
The rest of the industry has a similar Price/Earnings ratio as VSEC.
When comparing the Price/Earnings ratio of VSEC to the average of the S&P500 Index (26.06), we can say VSEC is valued expensively.
The Price/Forward Earnings ratio is 40.38, which means the current valuation is very expensive for VSEC.
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 32.73. 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
VSEC's Enterprise Value to EBITDA ratio is in line with the industry average.
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 | 135.64 | ||
| EV/EBITDA | 32.3 |
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 19.86% in the coming years.
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.
Compared to an average industry Dividend Yield of 1.12, VSEC pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.22, VSEC pays less dividend than the S&P500 average, which is at 2.37.
| 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%
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 Change0.88%
Ins Owners2.29%
Ins Owner Change0.13%
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)1.78%
PT rev (3m)11.49%
EPS NQ rev (1m)-7.88%
EPS NQ rev (3m)-10.39%
EPS NY rev (1m)0.4%
EPS NY rev (3m)3.23%
Revenue NQ rev (1m)-1.39%
Revenue NQ rev (3m)-1.44%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)-0.09%
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 | 32.3 |
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 | 5.45 |
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.