NasdaqGS:VSEC

Stock Analysis Report

Executive Summary

VSE Corporation operates as a diversified services and supply company in the United States.


Snowflake Analysis

Fair value with mediocre balance sheet.


Similar Companies

Share Price & News

How has VSE's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: VSEC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.5%

VSEC

0.2%

US Commercial Services

0.7%

US Market


1 Year Return

26.2%

VSEC

23.3%

US Commercial Services

18.2%

US Market

Return vs Industry: VSEC exceeded the US Commercial Services industry which returned 23.3% over the past year.

Return vs Market: VSEC exceeded the US Market which returned 18.2% over the past year.


Shareholder returns

VSECIndustryMarket
7 Day-3.5%0.2%0.7%
30 Day0.6%0.9%1.5%
90 Day19.9%3.6%5.0%
1 Year27.6%26.2%27.6%23.3%20.8%18.2%
3 Year-2.8%-5.0%55.6%46.1%45.2%35.8%
5 Year62.2%56.2%105.7%84.6%71.6%52.7%

Price Volatility Vs. Market

How volatile is VSE's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is VSE undervalued compared to its fair value and its price relative to the market?

11.87x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: VSEC ($39.36) is trading above our estimate of fair value ($17.74)

Significantly Below Fair Value: VSEC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: VSEC is good value based on its PE Ratio (11.9x) compared to the Commercial Services industry average (26.4x).

PE vs Market: VSEC is good value based on its PE Ratio (11.9x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate VSEC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: VSEC is good value based on its PB Ratio (1.2x) compared to the US Commercial Services industry average (2x).


Next Steps

Future Growth

How is VSE forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

18.9%

Forecasted Commercial Services industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as VSE has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has VSE performed over the past 5 years?

14.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VSEC has high quality earnings.

Growing Profit Margin: VSEC's current net profit margins (4.9%) are lower than last year (6.1%).


Past Earnings Growth Analysis

Earnings Trend: VSEC's earnings have grown by 14.1% per year over the past 5 years.

Accelerating Growth: VSEC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: VSEC had negative earnings growth (-16%) over the past year, making it difficult to compare to the Commercial Services industry average (-3.1%).


Return on Equity

High ROE: VSEC's Return on Equity (10.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is VSE's financial position?


Financial Position Analysis

Short Term Liabilities: VSEC's short term assets ($340.5M) exceed its short term liabilities ($139.4M).

Long Term Liabilities: VSEC's short term assets ($340.5M) exceed its long term liabilities ($332.4M).


Debt to Equity History and Analysis

Debt Level: VSEC's debt to equity ratio (75.9%) is considered high.

Reducing Debt: VSEC's debt to equity ratio has increased from 28.1% to 75.9% over the past 5 years.

Debt Coverage: VSEC's debt is not well covered by operating cash flow (12.2%).

Interest Coverage: VSEC's interest payments on its debt are well covered by EBIT (4.7x coverage).


Balance Sheet

Inventory Level: VSEC has a high level of physical assets or inventory.

Debt Coverage by Assets: VSEC's debt is covered by short term assets (assets are 1.3x debt).


Next Steps

Dividend

What is VSE's current dividend yield, its reliability and sustainability?

0.91%

Current Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%1.4%markettop25%3.7%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: VSEC's dividend (0.91%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: VSEC's dividend (0.91%) is low compared to the top 25% of dividend payers in the US market (3.7%).


Stability and Growth of Payments

Stable Dividend: VSEC's dividend payments have been volatile in the past 10 years.

Growing Dividend: VSEC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (10.3%), VSEC's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of VSE's salary, the management and board of directors tenure and is there insider trading?

4.9yrs

Average management tenure


CEO

John Cuomo 0

0.7yrs

Tenure

0

Mr. John A. Cuomo has been CEO, President and Director of VSE Corporation since April 15, 2019. Mr. Cuomo has been Vice President and General Manager of Aerospace Solutions Group at KLX Inc. since December ...


Management Age and Tenure

4.9yrs

Average Tenure

60yo

Average Age

Experienced Management: VSEC's management team is considered experienced (4.9 years average tenure).


Board Age and Tenure

6.9yrs

Average Tenure

66yo

Average Age

Experienced Board: VSEC's board of directors are considered experienced (6.9 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$70,24805 Aug 19
Calvin Koonce
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,400
Max PriceUS$29.27
BuyUS$87,02126 Jun 19
Calvin Koonce
EntityIndividual
Role
Member of the Board of Directors
Director
Shares3,300
Max PriceUS$26.37
BuyUS$10,80021 May 19
Thomas Kiernan
EntityIndividual
Role
Chief Legal Officer
VP, General Counsel & Secretary
Shares400
Max PriceUS$27.00
BuyUS$98,82014 May 19
John Cuomo
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares3,600
Max PriceUS$27.45
BuyUS$69,00014 May 19
Thomas Loftus
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares2,500
Max PriceUS$27.60

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Tom Loftus (63yo)

    Executive VP & CFO

    • Tenure: 17.8yrs
    • Compensation: US$921.35k
  • Tom Kiernan (51yo)

    VP, General Counsel & Secretary

    • Tenure: 11.1yrs
    • Compensation: US$728.76k
  • Tina Bailey (60yo)

    Vice President of Human Resources

    • Tenure: 9.9yrs
  • Paul Goffredi (61yo)

    President & COO of VSE Aviation Inc.

    • Tenure: 4.9yrs
    • Compensation: US$593.79k
  • Chad Wheeler (44yo)

    President & COO of Wheeler Bros Inc

    • Tenure: 6.4yrs
    • Compensation: US$831.09k
  • John Cuomo

    CEO, President & Director

    • Tenure: 0.7yrs
  • Matt Mullenix

    Chief Information Officer

    • Tenure: 4.3yrs
  • Rob Moore

    President of Federal Services Group

    • Tenure: 0.3yrs
  • Elizabeth Huggins

    Chief of Staff & Corporate VP of Strategy

    • Tenure: 0.3yrs

Board Members

  • Bonnie Wachtel (63yo)

    Independent Director

    • Tenure: 28.9yrs
    • Compensation: US$149.01k
  • James Lafond (77yo)

    Independent Director

    • Tenure: 16.2yrs
    • Compensation: US$164.01k
  • Calvin Koonce (82yo)

    Director

    • Tenure: 27.9yrs
    • Compensation: US$201.51k
  • Ed Eberhart (72yo)

    Non-Executive Chairman

    • Tenure: 0.4yrs
    • Compensation: US$159.01k
  • Jack Potter (63yo)

    Independent Director

    • Tenure: 5.9yrs
    • Compensation: US$149.01k
  • Jack Stultz (66yo)

    Independent Director

    • Tenure: 7.9yrs
    • Compensation: US$154.01k
  • John Cuomo

    CEO, President & Director

    • Tenure: 0.7yrs
  • Mark Ferguson (62yo)

    Independent Director

    • Tenure: 2yrs
    • Compensation: US$149.01k

Company Information

VSE Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: VSE Corporation
  • Ticker: VSEC
  • Exchange: NasdaqGS
  • Founded: 1959
  • Industry: Diversified Support Services
  • Sector: Commercial Services
  • Market Cap: US$426.080m
  • Shares outstanding: 10.97m
  • Website: https://www.vsecorp.com

Number of Employees


Location

  • VSE Corporation
  • 6348 Walker Lane
  • Alexandria
  • Virginia
  • 22310
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VSECNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 1980

Biography

VSE Corporation operates as a diversified services and supply company in the United States. The company operates in three segments: Supply Chain Management Group, Aviation Group, and Federal Services Group ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/08 23:44
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.