Last Updated: 17 Sep 2024
Executive Summary
VSE Corporation (VSEC), a diversified aftermarket products and services provider, has a strong financial position with a market capitalization of $1.6 billion and an EBITDA of $123.5 million. Despite a relatively high P/E ratio of 40.28, the company's solid earnings growth and analyst recommendations make it an attractive investment opportunity.
Company Overview
Headquartered in Alexandria, Virginia, VSE Corporation offers a range of aftermarket products and services in the United States. The company's products include electronic components, systems, and services for the defense, aerospace, and industrial markets.
Fundamental Analysis
Revenue: Revenue for the trailing twelve months (TTM) reached $974.2 million, representing a 0.296% growth year-over-year.
Earnings: Diluted EPS for TTM was $2.17, indicating a 0.938% increase from the previous year.
Profitability: The company's gross profit margin is 7.99%, while its operating margin is 7.33%.
Return on Assets: VSE Corporation has a return on assets (ROA) of 4.83% and a return on equity (ROE) of 5.48%.
Valuation: The current P/E ratio of 40.28 is higher than the industry average, but the forward P/E of 20.92 suggests potential for growth.
Technical Analysis
52-Week Range: The stock price has fluctuated between $48.18 and $94.1 in the past year.
Moving Averages: The stock is currently trading above its 50-day and 200-day moving averages, indicating a bullish trend.
Support and Resistance: Key support levels are at $80 and $70, while resistance levels are at $90 and $100.
Short Term Outlook
In the short term, VSE Corporation is expected to continue its positive momentum. The company's strong earnings growth and analyst recommendations suggest that the stock price could rise towards the $90 resistance level.
Long Term Outlook
The long-term outlook for VSE Corporation is also favorable. The company's diversified product portfolio and strong financial position position it well for continued growth in the aftermarket products and services industry.
Analyst Recommendations
Analysts have a positive outlook on VSE Corporation. Three analysts have a "Strong Buy" rating, four have a "Buy" rating, and none have a "Sell" rating. The average analyst target price is $99.33, representing a potential upside of 13.7% from the current price.
