VSE Corporation
VSE Corporation Fundamental Analysis
VSE Corporation (VSEC) shows weak financial fundamentals with a PE ratio of 173.89, profit margin of 2.39%, and ROE of 2.71%. The company generates $1.1B in annual revenue with strong year-over-year growth of 25.53%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 52.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze VSEC's fundamental strength across five key dimensions:
Efficiency Score
WeakVSEC struggles to generate sufficient returns from assets.
Valuation Score
ModerateVSEC shows balanced valuation metrics.
Growth Score
ModerateVSEC shows steady but slowing expansion.
Financial Health Score
ExcellentVSEC maintains a strong and stable balance sheet.
Profitability Score
ModerateVSEC maintains healthy but balanced margins.
Key Financial Metrics
Is VSEC Expensive or Cheap?
P/E Ratio
VSEC trades at 173.89 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, VSEC's PEG of -6.32 indicates potential undervaluation.
Price to Book
The market values VSE Corporation at 4.70 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 33.96 times EBITDA. This signals the market has high growth expectations.
How Well Does VSEC Make Money?
Net Profit Margin
For every $100 in sales, VSE Corporation keeps $2.39 as profit after all expenses.
Operating Margin
Core operations generate 10.37 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.71 in profit for every $100 of shareholder equity.
ROA
VSE Corporation generates $1.70 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
VSE Corporation generates limited operating cash flow of $44.69M, signaling weaker underlying cash strength.
Free Cash Flow
VSE Corporation generates weak or negative free cash flow of $26.93M, restricting financial flexibility.
FCF Per Share
Each share generates $1.30 in free cash annually.
FCF Yield
VSEC converts 0.59% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
173.89
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-6.32
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.70
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.16
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.44
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.94
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How VSEC Stacks Against Its Sector Peers
| Metric | VSEC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 173.89 | 26.49 | Worse (Expensive) |
| ROE | 2.71% | 1307.00% | Weak |
| Net Margin | 2.39% | -5131.00% (disorted) | Weak |
| Debt/Equity | 0.44 | 0.81 | Strong (Low Leverage) |
| Current Ratio | 3.94 | 10.48 | Strong Liquidity |
| ROA | 1.70% | -1549793.00% (disorted) | Weak |
VSEC outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews VSE Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-12.04%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
-74.63%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
-205.71%
Industry Style: Cyclical, Value, Infrastructure
Declining