VSE CORP (VSEC) Stock Fundamental Analysis
NASDAQ:VSEC - US9182841000 - Common Stock
167 USD
+4.07 (+2.5%)
167 USD
0 (0%)
VSEC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 84 industry peers in the Commercial Services & Supplies industry. VSEC has an average financial health and profitability rating. 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.
In the past year VSEC had a positive cash flow from operations.
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
VSEC has a Return On Assets of 1.18%. This is comparable to the rest of the industry: VSEC outperforms 52.38% of its industry peers.
VSEC has a Return On Equity (1.93%) which is in line with its industry peers.
The Return On Invested Capital of VSEC (5.49%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for VSEC is significantly below the industry average of 11.08%.
| 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.
With a decent Operating Margin value of 9.05%, VSEC is doing good in the industry, outperforming 66.67% 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 12.57%, VSEC is not doing good in the industry: 80.95% of the companies in the same industry are doing better.
VSEC's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, VSEC has more shares outstanding
Compared to 5 years ago, VSEC has more shares outstanding
Compared to 1 year ago, VSEC has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.89 indicates that VSEC is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.89, VSEC is doing good in the industry, outperforming 78.57% of the companies in the same industry.
The Debt to FCF ratio of VSEC is 28.47, which is on the high side as it means it would take VSEC, 28.47 years of fcf income to pay off all of its debts.
VSEC has a Debt to FCF ratio of 28.47. This is comparable to the rest of the industry: VSEC outperforms 46.43% of its industry peers.
VSEC has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of VSEC (0.38) is better than 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 28.47 | ||
| Altman-Z | 4.89 |
ROIC/WACC0.63
WACC8.71%
2.3 Liquidity
A Current Ratio of 3.73 indicates that VSEC has no problem at all paying its short term obligations.
VSEC has a Current ratio of 3.73. This is amongst the best in the industry. VSEC outperforms 88.10% of its industry peers.
A Quick Ratio of 1.44 indicates that VSEC should not have too much problems paying its short term obligations.
VSEC has a Quick ratio (1.44) which is comparable to the rest of the industry.
| 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.
VSEC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.99%.
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)12.99%
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.
The Revenue is expected to grow by 3.65% on average over the next years.
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
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 49.70 indicates a quite expensive valuation of VSEC.
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 27.24. VSEC is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 36.25 indicates a quite expensive valuation of VSEC.
VSEC's Price/Forward Earnings ratio is in line with the industry average.
VSEC's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 35.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.7 | ||
| Fwd PE | 36.25 |
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 | 259.23 | ||
| EV/EBITDA | 27.63 |
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 23.43% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.67
PEG (5Y)N/A
EPS Next 2Y21.52%
EPS Next 3Y23.43%
5. Dividend
5.1 Amount
VSEC has a yearly dividend return of 0.24%, which is pretty low.
VSEC's Dividend Yield is a higher than the industry average which is at 2.30.
Compared to an average S&P500 Dividend Yield of 2.36, VSEC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.24% |
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
42.31% of the earnings are spent on dividend by VSEC. This is a bit on the high side, but may be sustainable.
VSEC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP42.31%
EPS Next 2Y21.52%
EPS Next 3Y23.43%
167
+4.07 (+2.5%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners117.74%
Inst Owner Change-3.14%
Ins Owners2.28%
Ins Owner Change2.38%
Market Cap3.45B
Analysts84.62
Price Target172.97 (3.57%)
Short Float %7.23%
Short Ratio6.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.24% |
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)14.91%
PT rev (3m)23.09%
EPS NQ rev (1m)-11.79%
EPS NQ rev (3m)-25.99%
EPS NY rev (1m)0%
EPS NY rev (3m)0.85%
Revenue NQ rev (1m)-0.53%
Revenue NQ rev (3m)-20.53%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.7 | ||
| Fwd PE | 36.25 | ||
| P/S | 3.14 | ||
| P/FCF | 259.23 | ||
| P/OCF | 112.04 | ||
| P/B | 3.52 | ||
| P/tB | 10.08 | ||
| EV/EBITDA | 27.63 |
EPS(TTM)3.36
EY2.01%
EPS(NY)4.61
Fwd EY2.76%
FCF(TTM)0.64
FCFY0.39%
OCF(TTM)1.49
OCFY0.89%
SpS53.26
BVpS47.39
TBVpS16.56
PEG (NY)4.67
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 | 4.89 |
F-Score8
WACC8.71%
ROIC/WACC0.63
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)12.99%
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 1Y1.63%
EBIT growth 3Y63.86%
EBIT growth 5Y10.52%
EBIT Next Year91.5%
EBIT Next 3Y39.43%
EBIT Next 5YN/A
FCF growth 1Y125.86%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y183.5%
OCF growth 3YN/A
OCF growth 5YN/A