VSE CORP (VSEC) Stock Fundamental Analysis
USA - NASDAQ:VSEC - US9182841000 - Common Stock
156.3 USD
-1.1 (-0.7%)
156.3 USD
0 (0%)
Taking everything into account, VSEC scores 4 out of 10 in our fundamental rating. VSEC was compared to 84 industry peers in the Commercial Services & Supplies industry. Both the profitability and the financial health of VSEC get a neutral evaluation. Nothing too spectacular is happening here. While showing a medium growth rate, VSEC is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
VSEC had positive earnings in the past year.
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 (1.18%) which is comparable to the rest of the industry.
VSEC has a Return On Equity (1.93%) which is comparable to the rest of the industry.
The Return On Invested Capital of VSEC (5.49%) 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 below the industry average of 10.17%.
| 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 in line with its industry peers.
In the last couple of years the Profit Margin of VSEC has declined.
The Operating Margin of VSEC (9.05%) is better than 69.05% of its industry peers.
In the last couple of years the Operating Margin of VSEC has grown nicely.
VSEC's Gross Margin of 12.57% is on the low side compared to the rest of the industry. VSEC is outperformed by 83.33% 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 | 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.
VSEC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.78 indicates that VSEC is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.78, 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 (28.47) which is in line with its industry peers.
A Debt/Equity ratio of 0.38 indicates that VSEC is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.38, VSEC is doing good in the industry, outperforming 60.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 28.47 | ||
| Altman-Z | 4.78 |
ROIC/WACC0.65
WACC8.45%
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 better Current ratio (3.73) than 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's Quick ratio of 1.44 is in line compared to the rest of the industry. VSEC outperforms 57.14% 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.
VSEC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.99%.
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)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
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 46.52, the valuation of VSEC can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as VSEC.
Compared to an average S&P500 Price/Earnings ratio of 27.31, VSEC is valued quite expensively.
Based on the Price/Forward Earnings ratio of 34.01, the valuation of VSEC can be described as expensive.
VSEC's Price/Forward Earnings is on the same level as the industry average.
VSEC's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.52 | ||
| Fwd PE | 34.01 |
4.2 Price Multiples
VSEC's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as VSEC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 242.74 | ||
| EV/EBITDA | 26.79 |
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 23.09% in the coming years.
PEG (NY)3.38
PEG (5Y)N/A
EPS Next 2Y21.36%
EPS Next 3Y23.09%
5. Dividend
5.1 Amount
VSEC has a yearly dividend return of 0.25%, which is pretty low.
VSEC's Dividend Yield is a higher than the industry average which is at 2.41.
Compared to an average S&P500 Dividend Yield of 2.40, VSEC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.25% |
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 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.
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%
156.3
-1.1 (-0.7%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners113.88%
Inst Owner Change0.01%
Ins Owners2.29%
Ins Owner Change0%
Market Cap3.23B
Analysts87.14
Price Target189.48 (21.23%)
Short Float %7.05%
Short Ratio5.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.25% |
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)6.6%
PT rev (3m)25.87%
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 | 46.52 | ||
| Fwd PE | 34.01 | ||
| P/S | 2.94 | ||
| P/FCF | 242.74 | ||
| P/OCF | 104.91 | ||
| P/B | 3.3 | ||
| P/tB | 9.44 | ||
| EV/EBITDA | 26.79 |
EPS(TTM)3.36
EY2.15%
EPS(NY)4.6
Fwd EY2.94%
FCF(TTM)0.64
FCFY0.41%
OCF(TTM)1.49
OCFY0.95%
SpS53.23
BVpS47.37
TBVpS16.55
PEG (NY)3.38
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 | 4.78 |
F-Score8
WACC8.45%
ROIC/WACC0.65
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