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

Adequate balance sheet and fair value.


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

-0.1%

VSEC

-0.5%

US Commercial Services

-0.7%

US Market


1 Year Return

-8.1%

VSEC

8.7%

US Commercial Services

19.9%

US Market

Return vs Industry: VSEC underperformed the US Commercial Services industry which returned 8.7% over the past year.

Return vs Market: VSEC underperformed the US Market which returned 19.9% over the past year.


Shareholder returns

VSECIndustryMarket
7 Day-0.1%-0.5%-0.7%
30 Day3.4%4.6%5.8%
90 Day7.4%14.0%8.3%
1 Year-6.9%-8.1%10.4%8.7%22.7%19.9%
3 Year-43.7%-45.3%51.9%42.2%43.5%33.9%
5 Year48.5%42.2%113.7%92.0%86.9%65.8%

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 ($31.46) is trading below our estimate of fair value ($72.53)

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


Price To Earnings Ratio

PE vs Industry: VSEC is poor value based on its PE Ratio (281x) compared to the US Commercial Services industry average (27.3x).

PE vs Market: VSEC is poor value based on its PE Ratio (281x) compared to the US market (19x).


Price to Earnings Growth Ratio

PEG Ratio: VSEC is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: VSEC is good value based on its PB Ratio (1x) compared to the US Commercial Services industry average (1.5x).


Next Steps

Future Growth

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

97.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VSEC's forecast earnings growth (97.1% per year) is above the savings rate (2.2%).

Earnings vs Market: VSEC's earnings (97.1% per year) are forecast to grow faster than the US market (22.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: VSEC's revenue (3.1% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: VSEC's revenue (3.1% 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?

5.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VSEC has a large one-off loss of $41.2M impacting its June 30 2020 financial results.

Growing Profit Margin: VSEC's current net profit margins (0.2%) are lower than last year (5%).


Past Earnings Growth Analysis

Earnings Trend: VSEC's earnings have grown by 5.2% 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 (-96.6%) over the past year, making it difficult to compare to the Commercial Services industry average (-8%).


Return on Equity

High ROE: VSEC's Return on Equity (0.4%) is considered low.


Next Steps

Financial Health

How is VSE's financial position?


Financial Position Analysis

Short Term Liabilities: VSEC's short term assets ($354.1M) exceed its short term liabilities ($146.8M).

Long Term Liabilities: VSEC's short term assets ($354.1M) exceed its long term liabilities ($297.9M).


Debt to Equity History and Analysis

Debt Level: VSEC's debt to equity ratio (75.6%) is considered high.

Reducing Debt: VSEC's debt to equity ratio has reduced from 112.1% to 75.6% over the past 5 years.

Debt Coverage: VSEC's debt is not well covered by operating cash flow (14.2%).

Interest Coverage: VSEC's interest payments on its debt are well covered by EBIT (4.4x coverage).


Balance Sheet


Next Steps

Dividend

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

1.14%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: VSEC's dividend (1.14%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: VSEC's dividend (1.14%) is low compared to the top 25% of dividend payers in the US market (4.66%).


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 high payout ratio (321.6%), VSEC's dividend payments are not well covered by earnings.


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?

5.8yrs

Average management tenure


CEO

John Cuomo (46 yo)

1.5yrs

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 is the Interim president of VSE Aviation, Inc since May 1, 2020. Mr. Cuomo ha ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD1.46M) is about average for companies of similar size in the US market ($USD1.91M).

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


Leadership Team

NamePositionTenureCompensationOwnership
John Cuomo
CEO, President & Director1.5yrsUS$1.46m0.25%
$ 852.2k
Thomas Loftus
Executive VP & CFO18.58yrsUS$809.14k0.79%
$ 2.8m
Thomas Kiernan
VP, General Counsel & Secretary11.92yrsUS$696.39k0.34%
$ 1.2m
Chad Wheeler
President & COO of Wheeler Fleet Solutions7.25yrsUS$723.12k0.11%
$ 386.6k
Paul Goffredi
President & COO of VSE Aviation Inc.5.75yrsUS$640.66k0.060%
$ 209.0k
Matthew Mullenix
Chief Information Officer5.17yrsno datano data
Christine Kaineg
Director of Investor Relations & Assistant Corporate Secretaryno datano datano data
Tina Bailey
Vice President of Human Resources10.75yrsno datano data
Krista Stafford
Chief Human Resources Officer0.75yrno datano data
Robert Moore
President of Federal & Defense Services1.08yrsno data0.018%
$ 61.6k
Elizabeth Huggins
Chief of Staff & Corporate VP of Strategyno datano datano data
Richard Hannah
Treasurerno datano datano data

5.8yrs

Average Tenure

52yo

Average Age

Experienced Management: VSEC's management team is seasoned and experienced (5.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Cuomo
CEO, President & Director1.5yrsUS$1.46m0.25%
$ 852.2k
Bonnie Wachtel
Independent Director29.75yrsUS$160.27k1.18%
$ 4.1m
James Lafond
Independent Director17yrsUS$175.27k0.27%
$ 924.9k
Calvin Koonce
Director28.75yrsUS$208.18k16.69%
$ 58.0m
Ralph Eberhart
Non-Executive Chairman1.25yrsUS$197.35k0.30%
$ 1.1m
John Potter
Independent Director6.75yrsUS$160.27k0.14%
$ 484.5k
Jack Stultz
Independent Director8.75yrsUS$167.77k0.18%
$ 629.2k
Mark Ferguson
Independent Director2.83yrsUS$160.27k0.077%
$ 267.4k

7.8yrs

Average Tenure

65.5yo

Average Age

Experienced Board: VSEC's board of directors are considered experienced (7.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: VSEC 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$347.421m
  • Shares outstanding: 11.04m
  • 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 Analysis2020/10/19 06:56
End of Day Share Price2020/10/16 00:00
Earnings2020/06/30
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.