VSE CORP (VSEC) Stock Fundamental Analysis
NASDAQ:VSEC - Nasdaq - US9182841000 - Common Stock - Currency: USD
VSEC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 83 industry peers in the Commercial Services & Supplies industry. VSEC has an average financial health and profitability rating. 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.
VSEC had a positive operating cash flow in the past year.
Of the past 5 years VSEC 4 years were profitable.
In multiple years VSEC reported negative operating cash flow during the last 5 years.
1.2 Ratios
With a Return On Assets value of 0.75%, VSEC perfoms like the industry average, outperforming 48.19% of the companies in the same industry.
VSEC has a Return On Equity (1.33%) which is in line with its industry peers.
The Return On Invested Capital of VSEC (5.16%) is comparable to the rest of the industry.
VSEC had an Average Return On Invested Capital over the past 3 years of 5.73%. This is significantly below the industry average of 11.53%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 1.33% | ||
| ROIC | 5.16% |
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 (1.18%) which is in line with its industry peers.
In the last couple of years the Profit Margin of VSEC has declined.
The Operating Margin of VSEC (9.08%) is better than 66.27% of its industry peers.
VSEC's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 11.72%, VSEC is doing worse than 83.13% of the companies in the same industry.
VSEC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.08% | ||
| PM (TTM) | 1.18% | ||
| GM | 11.72% |
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
The number of shares outstanding for VSEC has been increased compared to 5 years ago.
The debt/assets ratio for VSEC has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.19 indicates that VSEC is not in any danger for bankruptcy at the moment.
VSEC has a Altman-Z score of 4.19. This is in the better half of the industry: VSEC outperforms 74.70% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that VSEC is not too dependend on debt financing.
The Debt to Equity ratio of VSEC (0.47) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.19 |
ROIC/WACC0.6
WACC8.59%
2.3 Liquidity
VSEC has a Current Ratio of 3.90. This indicates that VSEC is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 3.90, VSEC belongs to the best of the industry, outperforming 87.95% of the companies in the same industry.
A Quick Ratio of 2.12 indicates that VSEC has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.12, VSEC belongs to the top of the industry, outperforming 85.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.9 | ||
| Quick Ratio | 2.12 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.44% over the past year.
VSEC shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -23.99% yearly.
The Revenue has grown by 25.53% in the past year. This is a very strong growth!
The Revenue has been growing slightly by 7.49% on average over the past years.
EPS 1Y (TTM)2.44%
EPS 3Y10.22%
EPS 5Y-23.99%
EPS Q2Q%51.56%
Revenue 1Y (TTM)25.53%
Revenue growth 3Y12.88%
Revenue growth 5Y7.49%
Sales Q2Q%2.32%
3.2 Future
VSEC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.43% yearly.
VSEC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.65% yearly.
EPS Next Y10.64%
EPS Next 2Y21.52%
EPS Next 3Y23.43%
EPS Next 5YN/A
Revenue Next Year2.29%
Revenue Next 2Y6.79%
Revenue Next 3Y8.86%
Revenue Next 5Y3.65%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 43.53 indicates a quite expensive valuation of VSEC.
VSEC's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.82. VSEC is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 31.75, which means the current valuation is very expensive for VSEC.
VSEC's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 36.21. VSEC is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.53 | ||
| Fwd PE | 31.75 |
4.2 Price Multiples
VSEC's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. VSEC is more expensive than 60.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 27.98 |
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 23.43% in the coming years.
PEG (NY)4.09
PEG (5Y)N/A
EPS Next 2Y21.52%
EPS Next 3Y23.43%
5. Dividend
5.1 Amount
VSEC has a yearly dividend return of 0.26%, which is pretty low.
Compared to an average industry Dividend Yield of 2.42, VSEC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, VSEC's dividend is way lower than the S&P500 average.
| 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 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
58.19% of the earnings are spent on dividend by VSEC. 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.
DP58.19%
EPS Next 2Y21.52%
EPS Next 3Y23.43%
146.27
-10.27 (-6.56%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners116.88%
Inst Owner Change-0.78%
Ins Owners2.28%
Ins Owner Change2.35%
Market Cap3.02B
Analysts84.62
Price Target151.72 (3.73%)
Short Float %8.45%
Short Ratio8.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.26% |
Yearly Dividend0.39
Dividend Growth(5Y)2.67%
DP58.19%
Div Incr Years0
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)27.75%
Min EPS beat(2)22.89%
Max EPS beat(2)32.61%
EPS beat(4)3
Avg EPS beat(4)16.87%
Min EPS beat(4)-3.77%
Max EPS beat(4)32.61%
EPS beat(8)7
Avg EPS beat(8)15.37%
EPS beat(12)10
Avg EPS beat(12)15.38%
EPS beat(16)13
Avg EPS beat(16)12.02%
Revenue beat(2)2
Avg Revenue beat(2)1.82%
Min Revenue beat(2)1.7%
Max Revenue beat(2)1.93%
Revenue beat(4)3
Avg Revenue beat(4)1.31%
Min Revenue beat(4)-0.07%
Max Revenue beat(4)1.93%
Revenue beat(8)4
Avg Revenue beat(8)0.48%
Revenue beat(12)5
Avg Revenue beat(12)-3.82%
Revenue beat(16)9
Avg Revenue beat(16)-1.58%
PT rev (1m)0.79%
PT rev (3m)7.97%
EPS NQ rev (1m)-9.75%
EPS NQ rev (3m)-12.07%
EPS NY rev (1m)0%
EPS NY rev (3m)14.66%
Revenue NQ rev (1m)-1.48%
Revenue NQ rev (3m)-0.44%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.53 | ||
| Fwd PE | 31.75 | ||
| P/S | 2.76 | ||
| P/FCF | N/A | ||
| P/OCF | 2173.54 | ||
| P/B | 3.1 | ||
| P/tB | 8.37 | ||
| EV/EBITDA | 27.98 |
EPS(TTM)3.36
EY2.3%
EPS(NY)4.61
Fwd EY3.15%
FCF(TTM)-0.7
FCFYN/A
OCF(TTM)0.07
OCFY0.05%
SpS52.96
BVpS47.21
TBVpS17.47
PEG (NY)4.09
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 1.33% | ||
| ROCE | 6.69% | ||
| ROIC | 5.16% | ||
| ROICexc | 5.18% | ||
| ROICexgc | 8.87% | ||
| OM | 9.08% | ||
| PM (TTM) | 1.18% | ||
| GM | 11.72% | ||
| FCFM | N/A |
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-Score4
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.48 | ||
| Cap/Depr | 48.44% | ||
| Cap/Sales | 1.45% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 1.05% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.9 | ||
| Quick Ratio | 2.12 | ||
| Altman-Z | 4.19 |
F-Score4
WACC8.59%
ROIC/WACC0.6
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 Y10.64%
EPS Next 2Y21.52%
EPS Next 3Y23.43%
EPS Next 5YN/A
Revenue 1Y (TTM)25.53%
Revenue growth 3Y12.88%
Revenue growth 5Y7.49%
Sales Q2Q%2.32%
Revenue Next Year2.29%
Revenue Next 2Y6.79%
Revenue Next 3Y8.86%
Revenue Next 5Y3.65%
EBIT growth 1Y4.26%
EBIT growth 3Y63.86%
EBIT growth 5Y10.52%
EBIT Next Year86.07%
EBIT Next 3Y38.87%
EBIT Next 5YN/A
FCF growth 1Y58.96%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y106.2%
OCF growth 3YN/A
OCF growth 5YN/A