VSE Corp (VSECU) stock analysis

P/E below its 5-year median

VSE's P/E of 59.5 is below its own 5-year median of 67.6.

P/E above the industry

VSE's P/E of 59.5 is above the Engineering, Accounting, Research, Management, and Related Services median of 26.2.

EV/EBITDA above its 5-year median

VSE's EV/EBITDA of 30.0 is above its 5-year median of 30.0.

P/B below the industry

VSE's price-to-book of 1.56 is below the Engineering, Accounting, Research, Management, and Related Services median of 3.01.

Trading above fair value

The share price of $162.96 is above our fair value estimate of $136.59.

Margin of safety under 20%

The price is 19.3% above fair value, so there is no margin of safety.

Revenue growing 10%+ a year

Revenue grew 18.4% a year over the last three fiscal years.

EPS growing under 10% a year

Diluted EPS grew -36.9% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 41.6% over the last twelve months; the Engineering, Accounting, Research, Management, and Related Services median is 0.2%.

Guidance raised

VSE raised its full year 2026 revenue growth outlook on Aug 5, 2026.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was 3.8% over the last twelve months and averaged 3.7% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 3.7%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

VSE's return on equity of 3.8% is below the Engineering, Accounting, Research, Management, and Related Services median of 10.5%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was 5.5% over the last twelve months, against a 5-year average of 3.2%.

Net margin above the industry

VSE's net margin of 5.5% is above the Engineering, Accounting, Research, Management, and Related Services median of 4.2%.

Low debt

Debt is 32.3% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 70.5% five years ago to 32.3%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 2.9% of total debt; we look for at least 20%.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 3.77 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.68; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

VSE paid dividends worth 0.2% of the share price over the last twelve months.

Yield below Treasuries

The 0.2% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.9% or more; VSE yields 0.2%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 12.4% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.