One-glance verdict
Overvalued
$-15.83 our estimate vs market $186.59
Wall Street consensus: $247.78 (-1,665.6% lower than our fair-value estimate)
1279% below our estimate, beyond the bull case
Fundamentals snapshot
VSE Corporation
VSEC · NMS · Industrials · Aerospace & Defense
Current price
$186.59
52-week range
$138.85 - $247.85
Market cap
$5.24B
Balance sheet
Watch
5.78x Adequate
Net debt $969.97M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 45.3% last year.
- Reward Free cash flow was positive in 6/10 years.
- Reward Dividend yield is 0.2% with 40-year payout history.
- Risk Insider ownership is only 1.7% (peer median: 1.8%).
What this company does
VSE Corporation
VSE Corporation provides important airplane parts and repair services to airlines and the government. This means they help keep planes flying by supplying what's needed or fixing things that are broken. Their business relies on keeping these aviation assets in good working order, which is crucial for travel and defense.
How the company got here
VSE Corporation was founded in 1959, initially focusing on engineering and technical services for transportation assets like ships, vehicles, and aircraft. Over the decades, the company grew and diversified, expanding into areas like logistics and government services. A significant turning point was its strategic move into the aviation aftermarket, driven by acquisitions of companies specializing in parts distribution and repair. In recent years, VSE has been actively reshaping its business to concentrate more on aviation, selling off its Fleet and Federal and Defense segments to become a more focused aviation aftermarket provider. This strategic shift aims to capitalize on the recurring demand for maintenance and repair services in the aviation industry.
What it actually does
VSE Corporation is a company that provides essential services to keep transportation assets, particularly aircraft, running smoothly. Think of them as a specialized support system for the aviation industry. They supply hard-to-find parts that are needed when an aircraft needs maintenance or a component replaced. Beyond just supplying parts, they also offer repair and overhaul services for aircraft components, ensuring that parts can be fixed and reused, which is often more cost-effective and environmentally friendly. Essentially, VSE helps airlines and other aircraft operators keep their planes in the air by managing the complex supply chain of parts and repair services.
Aviation
This is the main engine of VSE Corporation's business today. The Aviation segment is all about supporting the aerospace industry by providing a wide range of services related to aircraft parts. This includes distributing new and replacement parts for various types of aircraft, from large commercial airliners to smaller business jets. They also offer maintenance, repair, and overhaul (MRO) services, which means they can fix and refurbish aircraft components and engine parts, making them ready for reuse. This segment serves a global customer base, including commercial airlines, cargo carriers, and operators of business and private aircraft, ensuring they have the necessary parts and services to keep their fleets operational.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$52.11M
FY2025 Q1
$-49.51M
FY2025 Q2
$6.30M
FY2025 Q3
$18.04M
FY2025 Q4
$30.87M
FY2026 Q1
$-68.72M
FY2026 Q2
$18.69M
FY2026 Q3
$46.62M
Revenue
$541.01M
Net income
$47.26M
Diluted EPS
1.49
Operating cash flow
$55.99M
Free cash flow
$46.62M
Fetching…
Sources
Revenue
$449.14M
Net income
$28.52M
Diluted EPS
0.91
Operating cash flow
$27.56M
Free cash flow
$18.69M
Fetching…
Sources
Revenue
$324.58M
Net income
$29.05M
Diluted EPS
1.04
Operating cash flow
$-62.26M
Free cash flow
$-68.72M
Fetching…
Sources
Revenue
$301.18M
Net income
$13.57M
Diluted EPS
0.64
Operating cash flow
$37.64M
Free cash flow
$30.87M
Fetching…
Sources
Revenue
$282.91M
Net income
$3.91M
Diluted EPS
0.19
Operating cash flow
$24.09M
Free cash flow
$18.04M
Fetching…
Sources
Revenue
$272.14M
Net income
$3.20M
Diluted EPS
0.16
Operating cash flow
$11.89M
Free cash flow
$6.30M
Fetching…
Sources
Revenue
$256.05M
Net income
$-8.97M
Diluted EPS
-0.44
Operating cash flow
$-46.63M
Free cash flow
$-49.51M
Fetching…
Sources
Revenue
$299.02M
Net income
$13.06M
Diluted EPS
0.79
Operating cash flow
$55.38M
Free cash flow
$52.11M
Fetching…
Sources
Is it cheap or expensive?
Fair value $-15.83 vs current price $186.59
Wall Street consensus is the average analyst price target: $247.78 (-1,665.6% lower than our fair-value estimate).
Our most-likely fair value is $-15.83 a share — about 108.5% below today's price of $186.59, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $970.0M. Interest coverage 5.8x.
Net debt
$969.97M
Interest coverage
5.78x
VSE Corporation's profit covers its interest bill about 5.8 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
VSEC
BASELINE
VSE Corporation
Total debt $1.04B Interest coverage 5.78x This is the baseline the peer rows are being compared against.
Total debt $978.40M Interest coverage 3.75x -35% vs VSEC Carries about 1.5x less debt cushion than VSEC.
Total debt $3.49B Interest coverage 3.11x -46% vs VSEC Carries about 1.9x less debt cushion than VSEC.
Total debt $1.38B Interest coverage 10.48x +81% vs VSEC Carries about 1.8x more debt cushion than VSEC.
Total debt $8.18B Interest coverage 2.74x -53% vs VSEC Carries about 2.1x less debt cushion than VSEC.
What you should know
The case for and against VSEC
3 Rewards
1 Risk
Rewards
-
Revenue grew 45.3% last year.
-
Free cash flow was positive in 6/10 years.
-
Dividend yield is 0.2% with 40-year payout history.
Risks
-
Insider ownership is only 1.7% (peer median: 1.8%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
41.74x
Forward P/E
22.44x
P/B
1.97x
P/S
3.24x
EV/EBITDA
24.46x
PEG ratio
3.00x
Profitability
How much profit each dollar creates
Gross margin
16.6%
Operating margin
13.2%
Net margin
7.3%
ROE
6.4%
ROA
4.2%
Health
Liquidity and balance-sheet strength
Debt / equity
0.35x
Current ratio
3.63x
Quick ratio
1.12x
Total debt
$1.04B
Total cash
$65.79M
Growth
How the business has been compounding
Revenue TTM
$1.62B
Revenue 5Y CAGR
23.3%
EPS TTM
4.47
EPS 5Y CAGR
-36.9%
Cash flow
How much cash the business throws off
Operating CF TTM
$58.93M
Free CF TTM
$5.71M
FCF margin
0.4%
Dividend
Shareholder payout
Yield
0.2%
Payout ratio
8.9%
Last ex-div date
2027-01-15