VSE (VSEC) AI Stock Analysis

• Market Cap: $4.18B
• Dividend Yield: 0.23%
• Average Volume (3M): 239.81K
• Price to Earnings (P/E): 137.8
• Beta (1Y): 1.24
• 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: 412,561
• 30 Day Avg. Volume: 239,814
• PEG Ratio: -1.61
• Price to Book (P/B): 1.72
• Price to Sales (P/S): 1.57
• P/FCF Ratio: -32.86
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 3.46
• Enterprise Value/Gross Profit: 30.89
• Enterprise Value/Ebitda: 31.03
• 1Y Price Target: $198.83
• Price Target Upside: 13.01% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: $201.00 ▲(14.24% Upside)

VSE Corporation's strong earnings call performance and positive technical indicators are the primary drivers of its stock score. However, high valuation and profitability challenges slightly offset these strengths. The company's strategic focus on aviation aftermarket services and successful acquisitions bolster its growth prospects.

Positive Factors

Strategic Acquisitions

The acquisition of GenNx/AeroRepair expands VSE's global wheel and brake aftermarket capabilities, enhancing its competitive position and growth potential in the aviation sector.

Revenue Growth

Strong revenue growth indicates VSE's successful execution of strategic initiatives and robust demand for its aviation aftermarket services, supporting long-term business expansion.

Cash Flow Improvement

Significant improvement in free cash flow enhances VSE's ability to invest in growth opportunities and maintain financial flexibility, supporting sustainable business operations.

Negative Factors

Profitability Challenges

Declining gross profit margins suggest potential cost management issues, which may impact VSE's ability to sustain profitability and compete effectively in the long term.

USM Business Challenges

The decline in USM revenue reflects strategic shifts but may indicate challenges in adapting to market changes, potentially affecting VSE's revenue streams and market position.

Cash Flow Alignment

Low cash flow alignment with earnings suggests potential cash management challenges, which could affect VSE's ability to fund operations and growth initiatives sustainably.

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 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	1.11B	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: 175.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 175.94 is above the 20-day moving average (MA) of 170.45, above the 50-day MA of 167.14, and above the 200-day MA of 135.63, indicating a bullish trend. The MACD of 4.53 indicates Negative momentum. The RSI at 56.08 is Neutral, neither overbought nor oversold. The STOCH value of 51.12 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	74 Outperform	$4.18B	137.79	5.28%	0.23%	9.22%	65.05%
VVX	73 Outperform	$1.80B	22.65	7.70%	―	5.10%	774.57%
DCO	69 Neutral	$1.36B	34.78	5.86%	―	2.42%	72.72%
AIR	68 Neutral	$3.32B	105.48	2.35%	―	17.59%	-56.15%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MRCY	56 Neutral	$4.55B	―	-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.