One-glance verdict
Overvalued
$-8.91 our estimate vs market $180.77
Wall Street consensus: $270.00 (-3,131.2% lower than our fair-value estimate)
2129% below our estimate, beyond the bull case
Fundamentals snapshot
VSE Corporation
VSEC · NMS · Industrials · Aerospace & Defense
Current price
$180.77
52-week range
$154.67 - $247.85
Market cap
$5.07B
Balance sheet
Watch
5.78x Adequate
Net debt $950.31M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 22.1% last year.
- Reward Free cash flow was positive in 6/10 years.
- Risk Stock trades 32.7% above its 5-year average P/E.
- Risk Insider ownership is only 1.7% (peer median: 1.8%).
What this company does
VSE Corporation
VSE Corporation is like a specialty mechanic and parts shop for airplanes, serving everyone from big commercial airlines to government fleets. A large part of its business is built on recurring revenue (predictable sales from ongoing service contracts and repeat parts orders) because aircraft require constant maintenance to fly safely. This long-term need creates a steady demand for VSE's parts and repair services.
How the company got here
VSE Corporation started in 1959, originally providing engineering and technical services for government and military transportation like ships, vehicles, and aircraft. For decades, it operated as a diversified company with several different business lines. Recently, the company made a major change by selling off its government defense and ground vehicle fleet businesses. This strategic shift, known as divesting (selling off parts of the company), has transformed VSE into a company that is now almost entirely focused on the aviation industry.
What it actually does
VSE Corporation works in the aviation aftermarket, which means it provides parts and services for airplanes after they have been built and sold. Think of it like the auto parts and repair shop for aircraft. The company distributes new and used parts and also provides maintenance, repair, and overhaul (or MRO, the detailed process of inspecting, repairing, and servicing aircraft parts) for critical components like engine accessories. Their customers are the owners and operators of aircraft, such as commercial airlines, air cargo companies, and owners of private or business jets.
Aviation
This is now the company's sole business focus, making up nearly all of its operations. This segment acts as a massive parts distributor and a specialized repair shop for the aviation world. Airlines and other aircraft operators pay VSE for new and refurbished parts to keep their planes flying safely. They also pay for VSE's MRO services (the detailed process of inspecting, repairing, and servicing aircraft parts) to fix and maintain complex components, which helps extend the life of their expensive aircraft.
What management is betting on now
Management is focused on making VSE a leading company in the aviation aftermarket. Their strategy involves becoming a pure-play business (a company that focuses on only one industry or product) dedicated to aviation parts and services. They are strengthening partnerships with original equipment manufacturers (OEMs, the companies that make the original aircraft parts) to distribute more of their products. They are also growing by acquiring other companies that specialize in high-value repair services, positioning themselves to benefit from the strong demand for air travel and the need to maintain the current global fleet of aircraft.
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 Q3
$4.41M
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
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
Revenue
$273.61M
Net income
$11.65M
Diluted EPS
0.63
Operating cash flow
$10.18M
Free cash flow
$4.41M
Fetching…
Sources
Is it cheap or expensive?
Fair value $-8.91 vs current price $180.77
Wall Street consensus is the average analyst price target: $270.00 (-3,131.2% lower than our fair-value estimate).
Our most-likely fair value is $-8.91 a share — about 104.9% below today's price of $180.77, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $950.3M. Interest coverage 5.8x.
Net debt
$950.31M
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 $1.03B Interest coverage 5.78x This is the baseline the peer rows are being compared against.
Total debt $1.01B Interest coverage 3.75x -35% vs VSEC Carries about 1.5x less debt cushion than VSEC.
Total debt $3.50B 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 $8.45B 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
2 Risks
Rewards
-
Revenue grew 22.1% last year.
-
Free cash flow was positive in 6/10 years.
-
Dividend yield is 0.2% with 40-year payout history.
Risks
-
Stock trades 32.7% above its 5-year average P/E.
-
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)
57.75x
Forward P/E
22.56x
P/B
1.94x
P/S
3.74x
EV/EBITDA
29.93x
PEG ratio
3.00x
Profitability
How much profit each dollar creates
Gross margin
15.6%
Operating margin
12.7%
Net margin
5.5%
ROE
4.3%
ROA
3.4%
Health
Liquidity and balance-sheet strength
Debt / equity
0.35x
Current ratio
3.77x
Quick ratio
1.16x
Total debt
$1.03B
Total cash
$75.36M
Growth
How the business has been compounding
Revenue TTM
$1.36B
Revenue 5Y CAGR
23.3%
EPS TTM
3.13
EPS 5Y CAGR
1.4%
Cash flow
How much cash the business throws off
Operating CF TTM
$27.02M
Free CF TTM
$5.71M
FCF margin
0.4%
Dividend
Shareholder payout
Yield
0.2%
Payout ratio
12.8%
Last ex-div date
2026-10-15