VSE CORP (VSEC)
US9182841000 - Common Stock
Taking everything into account, VSEC scores 4 out of 10 in our fundamental rating. VSEC was compared to 85 industry peers in the Commercial Services & Supplies industry. There are concerns on the financial health of VSEC while its profitability can be described as average. VSEC is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year VSEC was profitable.
VSEC had a negative operating cash flow in the past year.
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 of 2.90%. This is in the better half of the industry: VSEC outperforms 63.86% of its industry peers.
With a decent Return On Equity value of 6.36%, VSEC is doing good in the industry, outperforming 62.65% of the companies in the same industry.
VSEC has a Return On Invested Capital of 6.27%. This is in the better half of the industry: VSEC outperforms 65.06% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VSEC is significantly below the industry average of 10.11%.
The 3 year average ROIC (4.65%) for VSEC is below the current ROIC(6.27%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.9% | ||
| ROE | 6.36% | ||
| ROIC | 6.27% |
ROA(3y)2.19%
ROA(5y)2.06%
ROE(3y)4.84%
ROE(5y)4.65%
ROIC(3y)4.65%
ROIC(5y)5.42%
1.3 Margins
VSEC has a better Profit Margin (4.56%) than 69.88% of its industry peers.
In the last couple of years the Profit Margin of VSEC has declined.
VSEC has a Operating Margin of 10.26%. This is in the better half of the industry: VSEC outperforms 74.70% of its industry peers.
VSEC's Operating Margin has improved in the last couple of years.
VSEC has a worse Gross Margin (12.79%) than 80.72% of its industry peers.
In the last couple of years the Gross Margin of VSEC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.26% | ||
| PM (TTM) | 4.56% | ||
| GM | 12.79% |
OM growth 3Y7.23%
OM growth 5Y6.24%
PM growth 3YN/A
PM growth 5Y-2.01%
GM growth 3Y3.91%
GM growth 5Y4.27%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VSEC is destroying value.
The number of shares outstanding for VSEC has been increased compared to 1 year ago.
Compared to 5 years ago, VSEC has more shares outstanding
VSEC has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.76 indicates that VSEC is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.76, VSEC is in the better half of the industry, outperforming 61.45% of the companies in the same industry.
A Debt/Equity ratio of 0.66 indicates that VSEC is somewhat dependend on debt financing.
VSEC has a Debt to Equity ratio (0.66) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.76 |
ROIC/WACC0.71
WACC8.83%
2.3 Liquidity
VSEC has a Current Ratio of 2.70. This indicates that VSEC is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.70, VSEC belongs to the top of the industry, outperforming 81.93% of the companies in the same industry.
A Quick Ratio of 0.95 indicates that VSEC may have some problems paying its short term obligations.
VSEC's Quick ratio of 0.95 is on the low side compared to the rest of the industry. VSEC is outperformed by 69.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.7 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.53% over the past year.
VSEC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.11% yearly.
The Revenue has decreased by -1.61% in the past year.
Measured over the past years, VSEC shows a small growth in Revenue. The Revenue has been growing by 4.30% on average per year.
EPS 1Y (TTM)17.53%
EPS 3YN/A
EPS 5Y-3.11%
EPS growth Q2Q25%
Revenue 1Y (TTM)-1.61%
Revenue growth 3Y9.15%
Revenue growth 5Y4.3%
Revenue growth Q2Q0.44%
3.2 Future
The Earnings Per Share is expected to grow by 20.62% on average over the next years. This is a very strong growth
Based on estimates for the next years, VSEC will show a small growth in Revenue. The Revenue will grow by 7.82% on average per year.
EPS Next Y9.55%
EPS Next 2Y20.62%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year21.86%
Revenue Next 2Y15.73%
Revenue Next 3Y11.9%
Revenue Next 5Y7.82%
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
The Price/Earnings ratio is 24.24, which indicates a rather expensive current valuation of VSEC.
Based on the Price/Earnings ratio, VSEC is valued a bit cheaper than the industry average as 63.86% of the companies are valued more expensively.
VSEC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.28, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 22.13, VSEC is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VSEC indicates a somewhat cheap valuation: VSEC is cheaper than 60.24% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of VSEC to the average of the S&P500 Index (20.88), we can say VSEC is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.24 | ||
| Fwd PE | 22.13 |
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.52 |
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.
A more expensive valuation may be justified as VSEC's earnings are expected to grow with 20.62% in the coming years.
PEG (NY)2.54
PEG (5Y)N/A
EPS Next 2Y20.62%
EPS Next 3YN/A
5. Dividend
5.1 Amount
VSEC has a yearly dividend return of 0.50%, which is pretty low.
VSEC's Dividend Yield is a higher than the industry average which is at 2.37.
Compared to an average S&P500 Dividend Yield of 2.41, VSEC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
5.2 History
The dividend of VSEC has a limited annual growth rate of 4.84%.
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)4.84%
Div Incr Years0
Div Non Decr Years15
5.3 Sustainability
13.87% of the earnings are spent on dividend by VSEC. This is a low number and sustainable payout ratio.
The dividend of VSEC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP13.87%
EPS Next 2Y20.62%
EPS Next 3YN/A
VSE CORP
NASDAQ:VSEC (5/3/2024, 7:25:22 PM)
After market: 82.9 0 (0%)82.9
+2.51 (+3.12%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.31B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.24 | ||
| Fwd PE | 22.13 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.54
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.9% | ||
| ROE | 6.36% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.26% | ||
| PM (TTM) | 4.56% | ||
| GM | 12.79% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.7 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)17.53%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y9.55%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.61%
Revenue growth 3Y9.15%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y