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VSE CORP (VSEC) Stock Fundamental Analysis

NASDAQ:VSEC - Nasdaq - US9182841000 - Common Stock - Currency: USD

133  +3.86 (+2.99%)

Fundamental Rating

4

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. The financial health of VSEC is average, but there are quite some concerns on its profitability. While showing a medium growth rate, VSEC is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

In the past year VSEC was profitable.
In the past year VSEC has reported a negative cash flow from operations.
VSEC had positive earnings in 4 of the past 5 years.
In multiple years VSEC reported negative operating cash flow during the last 5 years.
VSEC Yearly Net Income VS EBIT VS OCF VS FCFVSEC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M -50M

1.2 Ratios

VSEC has a Return On Assets of 0.88%. This is comparable to the rest of the industry: VSEC outperforms 48.19% of its industry peers.
VSEC has a Return On Equity (1.55%) which is in line with its industry peers.
The Return On Invested Capital of VSEC (5.21%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for VSEC is below the industry average of 10.68%.
Industry RankSector Rank
ROA 0.88%
ROE 1.55%
ROIC 5.21%
ROA(3y)2.2%
ROA(5y)1.36%
ROE(3y)4.72%
ROE(5y)2.92%
ROIC(3y)5.73%
ROIC(5y)5.23%
VSEC Yearly ROA, ROE, ROICVSEC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 10

1.3 Margins

VSEC's Profit Margin of 1.42% is in line compared to the rest of the industry. VSEC outperforms 49.40% of its industry peers.
In the last couple of years the Profit Margin of VSEC has declined.
VSEC has a Operating Margin of 9.08%. This is in the better half of the industry: VSEC outperforms 67.47% of its industry peers.
VSEC's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 11.66%, VSEC is not doing good in the industry: 84.34% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of VSEC has remained more or less at the same level.
Industry RankSector Rank
OM 9.08%
PM (TTM) 1.42%
GM 11.66%
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%
VSEC Yearly Profit, Operating, Gross MarginsVSEC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2 4 6 8 10

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5

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
Compared to 1 year ago, VSEC has an improved debt to assets ratio.
VSEC Yearly Shares OutstandingVSEC Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5M 10M 15M 20M
VSEC Yearly Total Debt VS Total AssetsVSEC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

2.2 Solvency

VSEC has an Altman-Z score of 3.68. This indicates that VSEC is financially healthy and has little risk of bankruptcy at the moment.
VSEC has a better Altman-Z score (3.68) than 72.29% of its industry peers.
VSEC has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of VSEC (0.40) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.4
Debt/FCF N/A
Altman-Z 3.68
ROIC/WACC0.6
WACC8.68%
VSEC Yearly LT Debt VS Equity VS FCFVSEC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M 800M

2.3 Liquidity

VSEC has a Current Ratio of 3.10. This indicates that VSEC is financially healthy and has no problem in meeting its short term obligations.
VSEC has a Current ratio of 3.10. This is amongst the best in the industry. VSEC outperforms 83.13% of its industry peers.
VSEC has a Quick Ratio of 1.06. This is a normal value and indicates that VSEC is financially healthy and should not expect problems in meeting its short term obligations.
VSEC has a Quick ratio of 1.06. This is in the lower half of the industry: VSEC underperforms 67.47% of its industry peers.
Industry RankSector Rank
Current Ratio 3.1
Quick Ratio 1.06
VSEC Yearly Current Assets VS Current LiabilitesVSEC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

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4

3. Growth

3.1 Past

The earnings per share for VSEC have decreased strongly by -12.43% in the last 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.
VSEC shows a strong growth in Revenue. In the last year, the Revenue has grown by 25.53%.
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)-12.43%
EPS 3Y10.22%
EPS 5Y-23.99%
EPS Q2Q%-10.34%
Revenue 1Y (TTM)25.53%
Revenue growth 3Y12.88%
Revenue growth 5Y7.49%
Sales Q2Q%6.01%

3.2 Future

Based on estimates for the next years, VSEC will show a very strong growth in Earnings Per Share. The EPS will grow by 26.65% on average per year.
The Revenue is expected to grow by 3.65% on average over the next years.
EPS Next Y-3.5%
EPS Next 2Y24.68%
EPS Next 3Y26.65%
EPS Next 5YN/A
Revenue Next Year-1.19%
Revenue Next 2Y5.01%
Revenue Next 3Y6.83%
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.
VSEC Yearly Revenue VS EstimatesVSEC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 200M 400M 600M 800M 1B
VSEC Yearly EPS VS EstimatesVSEC Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2019 2020 2021 2022 2023 2024 2025 2026 2027 2 4 6

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1

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 43.89, VSEC can be considered very expensive at the moment.
VSEC's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of VSEC to the average of the S&P500 Index (24.21), we can say VSEC is valued expensively.
The Price/Forward Earnings ratio is 27.42, which means the current valuation is very expensive for VSEC.
VSEC's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.44, VSEC is valued a bit more expensive.
Industry RankSector Rank
PE 43.89
Fwd PE 27.42
VSEC Price Earnings VS Forward Price EarningsVSEC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, VSEC is valued a bit more expensive than the industry average as 62.65% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 24.22
VSEC Per share dataVSEC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40 50

4.3 Compensation for Growth

A more expensive valuation may be justified as VSEC's earnings are expected to grow with 26.65% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y24.68%
EPS Next 3Y26.65%

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5

5. Dividend

5.1 Amount

VSEC has a yearly dividend return of 0.31%, which is pretty low.
Compared to an average industry Dividend Yield of 2.49, VSEC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, VSEC's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.31%

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
VSEC Yearly Dividends per shareVSEC Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 0 0 0 0

5.3 Sustainability

46.07% 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.
DP46.07%
EPS Next 2Y24.68%
EPS Next 3Y26.65%
VSEC Yearly Income VS Free CF VS DividendVSEC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20M -20M 40M -40M
VSEC Dividend Payout.VSEC Dividend Payout, showing the Payout Ratio.VSEC Dividend Payout.PayoutRetained Earnings

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VSE CORP

NASDAQ:VSEC (5/12/2025, 1:40:01 PM)

133

+3.86 (+2.99%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)05-06 2025-05-06/amc
Earnings (Next)07-29 2025-07-29/amc
Inst Owners109.34%
Inst Owner Change0.73%
Ins Owners1.98%
Ins Owner Change1.81%
Market Cap2.75B
Analysts84.62
Price Target140.52 (5.65%)
Short Float %12.56%
Short Ratio9.17
Dividend
Industry RankSector Rank
Dividend Yield 0.31%
Yearly Dividend0.39
Dividend Growth(5Y)2.67%
DP46.07%
Div Incr Years0
Div Non Decr Years34
Ex-Date05-01 2025-05-01 (0.1)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)19.32%
Min EPS beat(2)15.76%
Max EPS beat(2)22.89%
EPS beat(4)3
Avg EPS beat(4)13.42%
Min EPS beat(4)-3.77%
Max EPS beat(4)22.89%
EPS beat(8)7
Avg EPS beat(8)16.96%
EPS beat(12)10
Avg EPS beat(12)15.2%
EPS beat(16)13
Avg EPS beat(16)11.43%
Revenue beat(2)1
Avg Revenue beat(2)0.93%
Min Revenue beat(2)-0.07%
Max Revenue beat(2)1.93%
Revenue beat(4)2
Avg Revenue beat(4)0.84%
Min Revenue beat(4)-0.17%
Max Revenue beat(4)1.93%
Revenue beat(8)3
Avg Revenue beat(8)-2.63%
Revenue beat(12)5
Avg Revenue beat(12)-2.99%
Revenue beat(16)9
Avg Revenue beat(16)-1.34%
PT rev (1m)-0.97%
PT rev (3m)2.66%
EPS NQ rev (1m)-15.2%
EPS NQ rev (3m)-34.72%
EPS NY rev (1m)6.87%
EPS NY rev (3m)-32.87%
Revenue NQ rev (1m)-0.31%
Revenue NQ rev (3m)-27.1%
Revenue NY rev (1m)0.65%
Revenue NY rev (3m)-22.24%
Valuation
Industry RankSector Rank
PE 43.89
Fwd PE 27.42
P/S 2.55
P/FCF N/A
P/OCF N/A
P/B 2.78
P/tB 9.18
EV/EBITDA 24.22
EPS(TTM)3.03
EY2.28%
EPS(NY)4.85
Fwd EY3.65%
FCF(TTM)-2.5
FCFYN/A
OCF(TTM)-1.5
OCFYN/A
SpS52.26
BVpS47.81
TBVpS14.49
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.88%
ROE 1.55%
ROCE 6.75%
ROIC 5.21%
ROICexc 5.31%
ROICexgc 10.29%
OM 9.08%
PM (TTM) 1.42%
GM 11.66%
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-Score3
Asset Turnover0.62
Health
Industry RankSector Rank
Debt/Equity 0.4
Debt/FCF N/A
Debt/EBITDA 3.16
Cap/Depr 71.98%
Cap/Sales 1.92%
Interest Coverage 2.64
Cash Conversion N/A
Profit Quality N/A
Current Ratio 3.1
Quick Ratio 1.06
Altman-Z 3.68
F-Score3
WACC8.68%
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)-12.43%
EPS 3Y10.22%
EPS 5Y-23.99%
EPS Q2Q%-10.34%
EPS Next Y-3.5%
EPS Next 2Y24.68%
EPS Next 3Y26.65%
EPS Next 5YN/A
Revenue 1Y (TTM)25.53%
Revenue growth 3Y12.88%
Revenue growth 5Y7.49%
Sales Q2Q%6.01%
Revenue Next Year-1.19%
Revenue Next 2Y5.01%
Revenue Next 3Y6.83%
Revenue Next 5Y3.65%
EBIT growth 1Y11.75%
EBIT growth 3Y63.86%
EBIT growth 5Y10.52%
EBIT Next Year80.46%
EBIT Next 3Y41.64%
EBIT Next 5YN/A
FCF growth 1Y-27.77%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-42.18%
OCF growth 3YN/A
OCF growth 5YN/A