VSE Corporation Common Stock (VSEC)

FairStock Score: 31/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

VSE operates in aviation aftermarket parts distribution and MRO, serving airlines, cargo operators, government, and private aircraft. Recent filed results are dramatically better: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $449.1M and net income $28.5M, or diluted EPS $0.91, versus fiscal Q2 2025 revenue of $272.1M and net income of $3.2M. Fiscal Q1 2026, the quarter ended 2026-03-31, had revenue of $324.6M and net income of $29.1M. That is real acceleration. But history is erratic: FY2023 net income was $39.1M on $544.0M revenue; FY2024 net income fell to $15.3M on $786.3M revenue; FY2025 net income was only $11.7M on $1.1B revenue. The latest quarter net margin was 6.35%, so this is a thin-margin distribution and repair business, and I see no clear durable moat in the supplied figures. Financial health is mixed: FairStock calculates D/E of 0.35 and Altman Z of 2.43, but Piotroski of 4/9, ROE of 4.27%, ROCE of 3.43%, and trailing free cash flow of -$15.8M, with FCF yield of -0.3%. Valuation looks demanding: at the 2026-10-13 close of $163.33, FairStock’s P/E is 52.18, EV/EBITDA is 31.28, Graham Number is $85.80, and margin of safety is -90.36%. The low PEG of 0.07 reflects explosive recent profit growth from a depressed base, not a margin of safety. FairStock scores it 31/100 and classifies it as a STALWART — steady growth: profit 10.1% a year over 4 years, revenue 23.3%. I would need to see consistent cash generation before calling this cheap.

In plain English: VSE supplies and repairs parts for airplanes, mainly for commercial and government aviation customers. Recent sales and profits have jumped, but the company is not producing free cash and the stock price looks high compared with its profit and accounting value. It looks like a mixed, expensive situation rather than an obvious bargain.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer