VSE (VSEC) AI Stock Analysis

• Market Cap: $3.41B
• Dividend Yield: 0.24%
• Average Volume (3M): 259.97K
• Price to Earnings (P/E): 94.3
• Beta (1Y): 1.21
• Revenue Growth: 13.00%
• EPS Growth: 120.90%
• Country: US
• Employees: 1,400
• Sector: Industrials
• Sector Strength: 73
• Industry: Aerospace & Defense
• EPS (TTM): 0.97
• Shares Outstanding: 20,676,320
• 10 Day Avg. Volume: 189,143
• 30 Day Avg. Volume: 259,968
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 2.83
• Enterprise Value/Gross Profit: 26.92
• Enterprise Value/Ebitda: 24.63
• 1Y Price Target: $167.50
• Price Target Upside: 0.76% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 77 Outperform
• Price Target: $166.00 ▼(-0.14% Downside)

VSE Corporation's strong financial performance and strategic growth initiatives are the primary drivers of its stock score. The company's robust revenue growth and improved profitability margins, coupled with successful acquisitions, position it well for future growth. However, the high P/E ratio suggests potential overvaluation, and technical indicators point to possible short-term volatility.

Positive Factors

Financial Performance

VSE reported strong second-quarter results above consensus.

Guidance

Management raised its 2025 adjusted EBITDA margin guidance.

Partnerships

VSE has established deep distribution and MRO partnerships with several leading OEMs, including Pratt & Whitney Canada, Honeywell, and Triumph.

Negative Factors

Acquisitions

VSEC remains in consolidation mode of Turbine Weld Industries, TCI, and Kellstrom acquisitions before seeing larger contributions later this year.

VSE Business Overview & Revenue Model

Company Description

VSE Corporation (VSEC) is a diversified services company that provides a wide range of support solutions for government and commercial clients. Operating primarily in the defense, aviation, and transportation sectors, VSE offers services such as logistics, maintenance, repair, and overhaul (MRO), and supply chain management. The company focuses on enhancing operational efficiency and reducing costs for its clients through innovative solutions and tailored services.

How the Company Makes Money

VSE generates revenue through multiple key streams, primarily by providing MRO services and logistics support to government and commercial customers. The company earns money from contracts with the U.S. Department of Defense and other governmental agencies, which typically involve long-term agreements for maintenance and support services. Additionally, VSE has partnerships with various original equipment manufacturers (OEMs) that enable it to supply parts and services, further contributing to its revenue. The company also benefits from its strategic acquisitions that expand its service offerings and customer base, enhancing its market position and driving growth.

VSE Financial Statement Overview

Summary

VSE has demonstrated strong revenue growth and improved profitability margins, reflecting operational efficiencies. The balance sheet reveals a strong equity base and prudent debt management, enhancing financial resilience. Cash flow improvements are promising, although past challenges in cash operations need to be monitored.

Income Statement

VSE has demonstrated strong revenue growth from $661.7 million in 2020 to $1.1 billion in TTM, indicating robust expansion. The Gross Profit Margin for TTM is relatively low at 5.3%, but the Net Profit Margin has improved significantly to 4.8% from negative margins in prior years, showing effective cost management. The EBIT and EBITDA margins have also strengthened, suggesting improved operational efficiency.

Balance Sheet

The company has strengthened its equity position with Stockholders' Equity increasing to $979.5 million in TTM from $356.3 million in 2020, enhancing financial stability. The Debt-to-Equity Ratio is low at 0.05, indicating conservative leveraging. However, the Equity Ratio of 61.1% in TTM suggests a strong reliance on equity financing, which is a positive indicator of financial health.

Cash Flow

The Free Cash Flow has improved to $13.3 million in TTM from negative figures in prior years, reflecting better cash management. The Operating Cash Flow to Net Income Ratio is positive, indicating effective conversion of income into cash. However, historical negative operating cash flows highlight past cash management challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.10B	1.08B	860.49M	949.76M	750.85M	661.66M
Gross Profit	115.77M	108.20M	95.61M	77.93M	43.63M	75.39M
EBITDA	126.52M	110.18M	111.41M	78.21M	22.38M	78.90M
Net Income	18.94M	15.32M	39.13M	28.06M	7.97M	-5.17M
Balance Sheet
Total Assets	1.60B	1.73B	1.35B	999.79M	918.56M	780.08M
Cash, Cash Equivalents and Short-Term Investments	16.91M	29.03M	7.77M	478.00K	518.00K	378.00K
Total Debt	45.76M	485.21M	459.26M	308.64M	317.73M	277.92M
Total Liabilities	622.50M	746.43M	733.61M	550.26M	501.23M	423.76M
Stockholders Equity	979.53M	988.19M	616.73M	449.53M	417.33M	356.32M
Cash Flow
Free Cash Flow	13.32M	-51.74M	-40.49M	-3.16M	-28.12M	31.33M
Operating Cash Flow	30.81M	-31.04M	-21.83M	8.05M	-17.60M	35.76M
Investing Cash Flow	-99.24M	-263.67M	-235.69M	-2.38M	-61.63M	20.22M
Financing Cash Flow	66.34M	315.81M	264.97M	-5.71M	79.37M	-56.34M

VSE Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 166.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 166.24 is above the 20-day moving average (MA) of 162.80, above the 50-day MA of 146.56, and above the 200-day MA of 122.38, indicating a bullish trend. The MACD of 4.69 indicates Positive momentum. The RSI at 62.03 is Neutral, neither overbought nor oversold. The STOCH value of 56.99 is Neutral, 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
VSEC	77 Outperform	$3.41B	94.28	6.22%	0.24%	13.00%	120.90%
AIR	77 Outperform	$2.77B	225.25	1.02%	―	19.91%	-73.61%
DCO	73 Outperform	$1.36B	34.25	5.86%	―	2.42%	72.72%
VVX	73 Outperform	$1.76B	25.54	6.86%	―	5.07%	―
Sector *	64 Neutral	$10.73B	15.74	7.56%	2.01%	2.76%	-15.10%
MRCY	63 Neutral	$4.07B	―	-2.57%	―	9.19%	72.88%
TGI	58 Neutral		―		―	-4.74%	―

VSE Corporate Events

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.