VSE (VSEC) AI Stock Analysis

• Market Cap: $4.23B
• Dividend Yield: 0.24%
• Average Volume (3M): 288.54K
• Price to Earnings (P/E): 139.2
• Beta (1Y): 1.23
• Revenue Growth: 9.22%
• EPS Growth: 65.05%
• Country: US
• Employees: 1,400
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 0.99
• Shares Outstanding: 23,392,242
• 10 Day Avg. Volume: 272,347
• 30 Day Avg. Volume: 288,540
• PEG Ratio: -0.81
• Price to Book (P/B): 1.72
• Price to Sales (P/S): 1.57
• P/FCF Ratio: -32.86
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 3.46
• Enterprise Value/Gross Profit: 30.89
• Enterprise Value/Ebitda: 31.03
• 1Y Price Target: $198.83
• Price Target Upside: 10.08% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 3.62
• Revenue Forecast (FY): $1.09B

• Rating: 71 Outperform
• Price Target: $200.00 ▲(10.73% Upside)

VSE's strong earnings performance and positive technical indicators are offset by high valuation concerns and profitability challenges. The earnings call provided a positive outlook, but the high P/E ratio and low dividend yield suggest caution.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and effective strategic execution, enhancing VSE's market position.

Strategic Acquisitions

The acquisition of Aero 3 will strengthen VSE's service offerings and improve profitability, supporting long-term growth in the aviation sector.

Balance Sheet Strength

Improved leverage ratio and strong cash flow generation enhance financial stability, providing flexibility for future investments.

Negative Factors

Profitability Margins

Lower profit margins suggest cost management challenges, which could impact long-term profitability if not addressed.

Cash Flow Alignment

Misalignment between cash flow and profitability indicates potential cash management issues, affecting financial flexibility.

Seasonal Revenue Expectation

Seasonal revenue fluctuations could hinder consistent growth, requiring strategic planning to mitigate impact on financial performance.

VSE Business Overview & Revenue Model

Company Description

VSE Corporation operates as a diversified aftermarket products and services company in the United States. The company operates through three segments: Aviation, Fleet, and Federal and Defense. The Aviation segment provides international parts supply and distribution, supply chain solutions, and component and engine accessory maintenance, repair, and overhaul (MRO) services. This segment serves commercial airlines, regional airlines, cargo transporters, MRO integrators and providers, aviation manufacturers, corporate and private aircraft owners, and fixed-base operators. The Fleet segment offers parts supply, inventory management, e-commerce fulfillment, logistics, and other services to assist aftermarket commercial and federal customers with their supply chain management. This segment also provides sale of vehicle parts and supply chain services to support client truck fleets, as well as sustainment solutions and managed inventory services to government and commercial truck fleets. The Federal and Defense segment offers aftermarket refurbishment and sustainment services to extend and maintain the life cycle of military vehicles, ships, and aircraft for the United States Department of Defense (DoD). This segment also provides foreign military sales services, engineering, logistics, maintenance, configuration management, prototyping, technology, and field support services to the DoD and other customers. In addition, this segment offers energy consulting services and IT solutions to various DoD, federal civilian agencies, and commercial clients. The company also provides vehicle and equipment maintenance and refurbishment, logistics, engineering support, energy services, and IT and health care IT solutions, as well as consulting services. VSE Corporation was incorporated in 1959 and is headquartered in Alexandria, Virginia.

How the Company Makes Money

VSE generates revenue through multiple streams, primarily by offering services in maintenance, repair, and overhaul (MRO) for military and commercial aircraft, as well as providing logistics and supply chain management services. The company earns income from government contracts, which often involve long-term agreements for support and maintenance of defense systems. Additionally, VSE benefits from partnerships with various defense and aerospace entities, which can enhance its service offerings and market reach. The company also generates revenue through the sale of parts and equipment related to its services, and by acquiring complementary businesses that add to its capabilities and customer base.

VSE Financial Statement Overview

Summary

VSE shows strong revenue growth and effective leverage management, but faces challenges with profitability margins and cash flow alignment with earnings. Improvements in cost management and shareholder returns are needed.

Income Statement

VSE's income statement shows a positive trajectory with a revenue growth rate of 7.69% in the TTM period, indicating strong sales performance. However, the gross profit margin has decreased over time, currently at 8.12%, which is below industry averages, suggesting potential cost management issues. The net profit margin is modest at 1.01%, reflecting limited profitability. Despite these challenges, the EBIT and EBITDA margins are relatively stable, indicating operational efficiency.

Balance Sheet

The balance sheet reflects a strong financial position with a low debt-to-equity ratio of 0.046 in the TTM period, showcasing effective leverage management. The equity ratio is healthy, indicating a solid asset base supported by equity. However, the return on equity has decreased to 1.14%, suggesting room for improvement in generating returns for shareholders.

Cash Flow

Cash flow analysis reveals significant improvement in free cash flow, with a growth rate of 102.35% in the TTM period. The operating cash flow to net income ratio is 0.24, indicating moderate cash generation relative to earnings. However, the free cash flow to net income ratio of 0.60 suggests that cash flow generation is not fully aligned with profitability, highlighting potential cash management challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.11B	1.08B	860.49M	669.45M	750.85M	661.66M
Gross Profit	124.17M	108.20M	95.61M	57.24M	25.14M	57.88M
EBITDA	123.60M	110.18M	111.41M	78.21M	47.12M	38.06M
Net Income	26.58M	30.52M	39.13M	28.06M	7.97M	-5.17M
Balance Sheet
Total Assets	1.56B	1.73B	1.35B	999.79M	918.56M	780.08M
Cash, Cash Equivalents and Short-Term Investments	8.78M	29.03M	7.77M	305.00K	518.00K	378.00K
Total Debt	45.11M	485.21M	459.26M	308.64M	317.73M	277.92M
Total Liabilities	577.11M	746.43M	733.61M	550.26M	501.23M	423.76M
Stockholders Equity	983.34M	988.19M	616.73M	449.53M	417.33M	356.32M
Cash Flow
Free Cash Flow	26.95M	-51.74M	-40.49M	-3.16M	-28.12M	31.33M
Operating Cash Flow	44.72M	-31.04M	-21.83M	8.05M	-17.60M	35.76M
Investing Cash Flow	-99.58M	-263.67M	-235.69M	-2.38M	-61.63M	20.22M
Financing Cash Flow	55.74M	315.81M	264.97M	-5.71M	79.37M	-56.34M

VSE Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 180.62
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VSEC, the sentiment is Positive. The current price of 180.62 is above the 20-day moving average (MA) of 173.90, above the 50-day MA of 169.21, and above the 200-day MA of 140.73, indicating a bullish trend. The MACD of 1.22 indicates Negative momentum. The RSI at 58.65 is Neutral, neither overbought nor oversold. The STOCH value of 86.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VSEC.

VSE Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VVX	73 Outperform	$1.72B	21.65	7.70%	―	5.10%	774.57%
VSEC	71 Outperform	$4.23B	139.20	5.28%	0.24%	9.22%	65.05%
AIR	68 Neutral	$3.29B	104.98	2.35%	―	17.59%	-56.15%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DCO	58 Neutral	$1.36B	―	-5.27%	―	3.16%	-213.56%
MRCY	52 Neutral	$4.18B	―	-2.24%	―	8.63%	72.72%
SPR	41 Neutral	$4.23B	-1.63	―	―	-1.31%	-78.19%

VSE Corporate Events

VSE Finalizes Stock Offering with Underwriters

On October 27, 2025, VSE Corporation entered into an Underwriting Agreement with Jefferies LLC and Morgan Stanley & Co. LLC to issue and sell 2,352,941 shares of its common stock at $170.00 per share, with an option for underwriters to purchase an additional 352,941 shares. The underwriters exercised this option in full on October 28, 2025, and the offering is set to close on October 29, 2025. The company expects net proceeds of approximately $441.6 million, which will be used to fund the acquisition of GenNx/AeroRepair IntermediateCo Inc., support potential future acquisitions, and for general corporate purposes.

The most recent analyst rating on (VSEC) stock is a Buy with a $201.00 price target. To see the full list of analyst forecasts on VSE stock, see the VSEC Stock Forecast page.

VSE Corporation Focuses on Aviation Growth Amid Earnings Challenges

VSE Corporation is a leading provider of aftermarket parts distribution and maintenance, repair, and overhaul (MRO) services for air transportation assets, serving both commercial and government markets. In its latest earnings report for the quarter ending September 30, 2025, VSE Corporation reported total revenues of $282.9 million, a significant increase from $203.6 million in the same period last year. The company’s net income from continuing operations was $3.6 million, down from $8.7 million in the previous year, while the net loss including discontinued operations was $1.9 million.

VSE Acquires GenNx/AeroRepair and Reports Q3 Growth

On October 27, 2025, VSE Corporation announced its acquisition of GenNx/AeroRepair IntermediateCo Inc., alongside reporting record third-quarter 2025 financial results. The company achieved a 38.9% increase in total revenues to $282.9 million, despite a decrease in GAAP net income by 58.9%. The adjusted EBITDA rose by 58.4%, and adjusted net income increased by 110.5%. VSE also announced several new and renewed program awards, including agreements with AMETEK, Eaton, Bridgestone, and a defense MRO expansion with V2X, Inc. The company raised its full-year revenue and adjusted EBITDA margin guidance, reflecting strong execution of strategic priorities and operational efficiencies.

The most recent analyst rating on (VSEC) stock is a Buy with a $201.00 price target. To see the full list of analyst forecasts on VSE stock, see the VSEC Stock Forecast page.

VSE’s Chief Accounting Officer Resigns

On October 8, 2025, Tarang Sharma, Chief Accounting Officer of VSE Corporation, announced his resignation effective October 31, 2025, to pursue an opportunity outside the Aviation industry. He will continue to provide consulting and advisory services to VSE Corporation through March 2026, ensuring a smooth transition. His resignation is not due to any disagreements with the company’s operations, policies, practices, or financial reporting.

The most recent analyst rating on (VSEC) stock is a Buy with a $190.00 price target. To see the full list of analyst forecasts on VSE stock, see the VSEC Stock Forecast page.

VSE Corporation Soars with Record Earnings and Strategic Growth

VSE Corporation’s recent earnings call was marked by a strong positive sentiment, underscored by record financial performance and strategic initiatives. The company demonstrated resilience and growth, particularly in the aviation aftermarket, despite facing some challenges such as a strategic decline in USM revenue and initial tariff-related softness. Overall, the positive achievements significantly outweighed these issues, painting a promising picture for the company’s future.

VSE Corporation Reports Record Q2 2025 Results

VSE Corporation is a leading provider of aftermarket distribution and repair services, primarily serving the aviation sector, with a focus on enhancing the productivity and longevity of business-critical assets.

VSE Declares Quarterly Cash Dividend Announcement

On July 31, 2025, VSE Corporation announced that its Board of Directors declared a quarterly cash dividend of $0.10 per share, payable on October 29, 2025, to stockholders of record as of October 15, 2025. This decision reflects VSE’s commitment to returning value to its shareholders, potentially enhancing its attractiveness to investors and solidifying its position in the aviation aftermarket industry.

The most recent analyst rating on (VSEC) stock is a Buy with a $100.00 price target. To see the full list of analyst forecasts on VSE stock, see the VSEC Stock Forecast page.