NasdaqGS:VSEC

Stock Analysis Report

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Executive Summary

VSE Corporation operates as a diversified products and services aftermarket company in the United States. More Details


Snowflake Analysis

Fair value with moderate growth potential.


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: VSEC's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-4.5%

VSEC

0.03%

US Commercial Services

1.4%

US Market


1 Year Return

17.2%

VSEC

6.2%

US Commercial Services

22.6%

US Market

Return vs Industry: VSEC exceeded the US Commercial Services industry which returned 6.8% over the past year.

Return vs Market: VSEC underperformed the US Market which returned 22.8% over the past year.


Shareholder returns

VSECIndustryMarket
7 Day-4.5%0.03%1.4%
30 Day1.2%-0.4%4.9%
90 Day27.9%4.2%14.6%
1 Year18.7%17.2%7.6%6.2%25.4%22.6%
3 Year-18.1%-20.6%40.7%31.0%46.8%37.0%
5 Year41.7%35.6%135.3%110.7%132.0%106.1%

Long-Term 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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VSEC ($40.14) is trading below our estimate of fair value ($185.24)

Significantly Below Fair Value: VSEC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: VSEC is unprofitable, so we can't compare its PE Ratio to the US Commercial Services industry average.

PE vs Market: VSEC is unprofitable, so we can't compare its PE Ratio to the US market.


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 (1.3x) compared to the US Commercial Services industry average (2.3x).


Next Steps

Future Growth

How is VSE forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

110.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VSEC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: VSEC is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: VSEC's is expected to become profitable in the next 3 years.

Revenue vs Market: VSEC's revenue (5.2% per year) is forecast to grow slower than the US market (10.5% per year).

High Growth Revenue: VSEC's revenue (5.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if VSEC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has VSE performed over the past 5 years?

-2.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VSEC is currently unprofitable.

Growing Profit Margin: VSEC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: VSEC is unprofitable, and losses have increased over the past 5 years at a rate of 2.4% per year.

Accelerating Growth: Unable to compare VSEC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: VSEC is unprofitable, making it difficult to compare its past year earnings growth to the Commercial Services industry (-9%).


Return on Equity

High ROE: VSEC has a negative Return on Equity (-0.34%), as it is currently unprofitable.


Next Steps

Financial Health

How is VSE's financial position?


Financial Position Analysis

Short Term Liabilities: VSEC's short term assets ($342.3M) exceed its short term liabilities ($134.1M).

Long Term Liabilities: VSEC's short term assets ($342.3M) exceed its long term liabilities ($286.1M).


Debt to Equity History and Analysis

Debt Level: VSEC's debt to equity ratio (70.9%) is considered high.

Reducing Debt: VSEC's debt to equity ratio has reduced from 110.5% to 70.9% over the past 5 years.

Debt Coverage: VSEC's debt is not well covered by operating cash flow (14.4%).

Interest Coverage: VSEC is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

0.90%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: VSEC's dividend (0.9%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.37%).

High Dividend: VSEC's dividend (0.9%) is low compared to the top 25% of dividend payers in the US market (3.86%).


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: VSEC is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of VSEC's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.6yrs

Average management tenure


CEO

John Cuomo (46 yo)

1.75yrs

Tenure

US$1,458,633

Compensation

Mr. John A. Cuomo has been Chief Executive Officer, President and Director of VSE Corporation since April 15, 2019. . Mr. Cuomo served as the Interim president of VSE Aviation, Inc since May 1, 2020 until ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD1.46M) is about average for companies of similar size in the US market ($USD1.64M).

Compensation vs Earnings: Insufficient data to compare John's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
John Cuomo
CEO, President & Director1.75yrsUS$1.46m0.25%
$ 1.1m
Thomas Kiernan
VP, General Counsel & Secretary12.17yrsUS$696.39k0.34%
$ 1.5m
Chad Wheeler
President & COO of Wheeler Fleet Solutions7.5yrsUS$723.12k0.11%
$ 493.3k
Paul Goffredi
President & COO of VSE Aviation Inc.6yrsUS$640.66k0.060%
$ 266.6k
Stephen Griffin
Senior VP & CFO0.17yrno data0.030%
$ 131.2k
Matthew Mullenix
Chief Information Officer5.42yrsno datano data
Noel Ryan
Head of Investor Relationsno datano datano data
Tina Bailey
Vice President of Human Resources11yrsno datano data
Krista Stafford
Chief Human Resources Officer1yrno datano data
Robert Moore
President of Federal & Defense Services1.33yrsno data0.018%
$ 78.6k
Elizabeth Huggins
Chief of Staff & Corporate VP of Strategyno datano datano data
Benjamin Thomas
President of Aviation Segment0.25yrno data0.070%
$ 311.1k

3.6yrs

Average Tenure

50.5yo

Average Age

Experienced Management: VSEC's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Cuomo
CEO, President & Director1.75yrsUS$1.46m0.25%
$ 1.1m
Bonnie Wachtel
Independent Director30yrsUS$160.27k1.2%
$ 5.3m
James Lafond
Independent Director17.25yrsUS$175.27k0.28%
$ 1.2m
Calvin Koonce
Director29yrsUS$208.18k16.88%
$ 74.9m
Ralph Eberhart
Non-Executive Chairman1.5yrsUS$197.35k0.33%
$ 1.5m
John Potter
Independent Director7yrsUS$160.27k0.16%
$ 710.5k
Jack Stultz
Independent Director9yrsUS$167.77k0.20%
$ 895.1k
Mark Ferguson
Independent Director3.08yrsUS$160.27k0.098%
$ 433.7k

8.0yrs

Average Tenure

65.5yo

Average Age

Experienced Board: VSEC's board of directors are considered experienced (8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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$443.587m
  • Shares outstanding: 11.05m
  • 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 products and services aftermarket company in the United States. The company operates in three segments: Supply Chain Management Group, Aviation Group, and Federal ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/22 00:33
End of Day Share Price2021/01/21 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.