VSEC

Industrials

VSE Corporation · Aerospace & Defense · $4B

UQS Score — Balanced Preset
50.2
Below Average

VSE Corporation scores 50.2/100 using the Balanced preset.

UQS vs Industrials Sector
VSEC
50.2
Sector avg
42.4
Quality
Weak
Moat
Weak
Growth
Strong
Risk
Strong
Valuation
Neutral

What is VSE Corporation?

VSE Corporation is a mid-cap industrials company specializing in aftermarket products and services across aviation, fleet, and defense markets. Headquartered in Miramar, the company supports customers ranging from commercial airlines to the U.S. Department of Defense.

VSE generates revenue through three segments. Its Aviation segment distributes parts and provides maintenance, repair, and overhaul services to airlines, cargo carriers, and private operators. The Fleet segment manages supply chains and parts fulfillment for commercial and government truck fleets. The Federal and Defense segment extends the lifecycle of military vehicles, ships, and aircraft through refurbishment, sustainment, and engineering services for the DoD and foreign military customers.

VSE Corporation was founded in 1982 and is headquartered in Miramar, US.

  • Aviation parts distribution and MRO services
  • Fleet supply chain management and e-commerce fulfillment
  • Military vehicle and aircraft sustainment services
  • Foreign military sales and logistics support
  • Energy consulting and IT solutions for defense customers

Is VSEC a Good Stock to Buy?

UQS Score rates VSEC as Below Average overall.

The most notable bright spot in VSEC's profile is its Growth pillar, which ranks among the stronger readings in the industrials sector — reflecting expanding demand across its aviation and defense segments. The Risk pillar also registers as Good, suggesting the company's financial structure carries a manageable level of near-term concern relative to peers.

Both the Quality and Moat pillars come in as Weak, pointing to challenges around returns on capital and durable competitive advantages. The Valuation pillar reads as Elevated, meaning the market may already be pricing in a favorable growth trajectory.

See the exact pillar breakdown and underlying financial metrics by signing up for a UQS Pro account. Sign up free →

Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.

Does VSEC pay dividends?

Yes — VSE Corporation pays a dividend.

VSE Corporation pays a regular dividend, which is relatively uncommon among mid-cap industrials companies still investing heavily in growth. The dividend signals a degree of financial discipline, though investors focused on income should weigh the payout against the company's Elevated Valuation and Weak Quality pillar before treating it as a primary income vehicle.

When does VSEC report earnings?

VSE Corporation reports earnings on a quarterly cadence, consistent with standard practice for US-listed equities.

VSEC's Growth pillar suggests the company has been expanding its revenue base, particularly in aviation aftermarket and defense sustainment. However, the Weak Quality pillar indicates that top-line growth has not yet translated into consistently strong profitability metrics.

For the most recent quarter's results, visit VSE Corporation's investor relations page directly.

VSEC Price History

+321.1% over 5Y

Monthly close, adjusted for stock splits and dividend reinvestment.

Return Calculator

What if I invested in VSE Corporation?

$
Today it would be worth
$46,293
That's a +363% total return, or +35.9% annualized.

Based on VSE Corporation's historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.

VSEC Long-term Outlook

VSEC's Strong Growth pillar points to meaningful expansion potential, driven by sustained demand for aftermarket aviation services and ongoing U.S. defense spending on fleet sustainment. The Good Risk pillar suggests the company is not in immediate financial distress. That said, the Weak Quality and Moat pillars indicate that converting growth into durable, high-return business outcomes remains a challenge. The Elevated Valuation pillar means the current price leaves limited margin of safety if growth disappoints.

Growth drivers

  • Rising commercial aviation aftermarket demand post-pandemic recovery
  • Sustained U.S. Department of Defense spending on fleet sustainment
  • Expansion of e-commerce and supply chain services for fleet customers

Key risks

  • Weak moat leaves VSEC exposed to pricing pressure from competitors
  • Elevated valuation reduces buffer if growth slows or misses expectations
  • Dependence on DoD contract renewals introduces revenue concentration risk

VSEC vs Peers

VSE Corporation operates in a competitive aftermarket and defense services landscape alongside several specialized peers.

AIRVSEC scores lower
AAR Corp.

AAR focuses more narrowly on commercial aviation MRO and parts supply, without VSE's fleet or federal defense segments.

MRCYVSEC scores higher
Mercury Systems, Inc.

Mercury Systems concentrates on advanced defense electronics and processing technology, targeting a higher-technology tier of the defense market than VSE's sustainment focus.

ACHRVSEC scores higher
Archer Aviation Inc.

Archer Aviation is an early-stage electric air taxi developer, representing a very different risk and business-model profile compared to VSE's established aftermarket services.

Frequently Asked Questions

What does VSE Corporation do?

VSE Corporation provides aftermarket products and services across three segments: Aviation, Fleet, and Federal and Defense. It distributes parts, manages supply chains, and delivers maintenance and sustainment services to commercial airlines, truck fleet operators, and the U.S. Department of Defense.

Does VSEC pay dividends?

Yes, VSE Corporation pays a regular dividend. This is relatively uncommon for a mid-cap industrials company still pursuing growth. Investors should review the current yield and payout sustainability through VSE's investor relations page before making income-focused decisions.

When does VSEC report earnings?

VSEC reports on a quarterly cadence, in line with standard US-listed company practice. For the exact schedule and most recent results, check VSE Corporation's investor relations page, as specific dates are subject to change.

Is VSEC a good stock to buy?

UQS Score rates VSEC as Below Average overall. The Growth pillar is Strong and Risk is Good, but Quality and Moat are both Weak, and Valuation is Elevated. Whether it fits your portfolio depends on your risk tolerance and investment horizon. The full pillar breakdown is available to Pro members.

Is VSEC overvalued?

VSEC's Valuation pillar is rated Elevated by UQS Score, suggesting the stock is priced above what the underlying quality and moat metrics might typically support. This does not mean the stock will fall, but it does reduce the margin of safety for investors entering at current levels.

How does VSEC compare to its competitors?

Compared to peers like AAR Corp. and Mercury Systems, VSE stands out for its diversified exposure across aviation, fleet, and defense sustainment. However, its Weak Moat pillar suggests it has not yet built the same durable competitive advantages seen in more specialized defense technology firms.

What is VSEC's market cap bracket?

VSEC is classified as a mid-cap stock. This places it in a range that typically offers more growth potential than large-caps but with greater volatility and less analyst coverage than mega-cap industrials peers.

Who founded VSE Corporation?

VSE Corporation was founded in 1982. For detailed founding history and leadership background, VSE's official corporate history and investor relations materials are the most reliable sources.

Is VSEC a long-term quality indicator?

From a long-term quality perspective, VSEC's Strong Growth pillar is encouraging, but the Weak Quality and Moat pillars suggest the business has not yet demonstrated the durable returns and competitive insulation that typically characterize high-quality long-term compounders. The full analysis is available to Pro members.

What is the main competitive advantage of VSE Corporation?

VSE's broadest advantage lies in its diversified aftermarket platform — spanning commercial aviation, fleet logistics, and defense sustainment — which gives it multiple revenue streams. However, UQS Score's Weak Moat rating indicates this diversification has not yet translated into a strongly defensible competitive position.

What sector does VSEC belong to?

VSEC belongs to the Industrials sector, specifically within aftermarket services and defense sustainment. Investors can explore other [top Industrials stocks](/sector/industrials) on UQS Score to compare quality profiles across the sector.

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Pro Analysis

VSEC — Score History

354045505560Apr 2Apr 12Apr 22May 2May 12May 22May 24v5
Score changes· 11 most recent
DateUQSQualityMoatGrowthRiskValueChange
May 22, 202650.123.130.081.895.341.4+6.6
May 8, 202643.515.030.081.845.360.9-0.6
May 7, 202644.119.930.081.869.532.2-0.2
May 3, 202644.319.930.081.869.533.80.0
Apr 26, 202644.319.930.081.869.533.4+0.3
Apr 19, 202644.019.930.081.869.531.6-0.1
Apr 18, 202644.119.930.081.869.532.1-1.2
Apr 14, 202645.319.930.081.869.540.1+0.1
Apr 12, 202645.219.930.081.869.539.9-0.3
Apr 5, 202645.519.930.081.869.541.4+0.1

VSEC — Pillar Breakdown

Quality

23.1/100 (25%)

VSE Corporation currently shows below-average quality metrics, suggesting challenges with profitability.

Capital Efficiency (ROIC)Weak

How effectively capital is deployed to generate returns.

Return on EquityWeak

Profitability relative to shareholders' equity.

Operating ProfitabilityModerate

Ability to convert revenue into operating profit.

Net ProfitabilityWeak

Bottom-line profit as a share of revenue.

Gross Profit / AssetsWeak

Asset productivity — how much gross profit each dollar of assets generates.

Cash GenerationWeak

Free cash flow relative to market value.

Growth

81.8/100 (20%)

VSE Corporation is growing rapidly with strong revenue and earnings expansion.

Recent Revenue TrendWeak

Revenue trajectory over the last twelve months.

3Y Revenue CAGRStrong

Compound annual revenue growth rate over 3 years.

EPS GrowthStrong

Year-over-year earnings per share growth.

Forward Revenue OutlookStrong

Analyst consensus for future revenue growth.

Forward EPS GrowthStrong

Analyst consensus for future earnings growth.

Risk

95.3/100 (15%)

VSE Corporation carries minimal financial risk with conservative leverage and strong solvency.

Financial LeverageStrong

Debt levels relative to earnings capacity.

Debt/EquityStrong

Total debt relative to shareholder equity.

Current RatioStrong

Short-term liquidity — ability to pay near-term obligations.

Interest CoverageStrong

Earnings capacity relative to interest payments.

Valuation

41.9/100 (15%)

VSE Corporation has a mixed valuation — some metrics suggest fair value while others appear stretched.

Earnings YieldWeak

Inverse of forward P/E — higher yield means cheaper stock.

Price to Free Cash FlowWeak

How many years of FCF the market cap represents.

PEG RatioStrong

P/E relative to earnings growth — lower is more attractive.

EV/EBITDA vs SectorWeak

Enterprise value multiple relative to sector median.

Moat

30/100 (25%)

VSE Corporation operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for VSEC.

Score Composition

Quality
23.1×25%5.8
Growth
81.8×20%16.4
Risk
95.3×15%14.3
Valuation
41.9×15%6.3
Moat
30.0×25%7.5
Total
50.2Below Average

Financial Data

More Stock Analysis

How is the VSEC UQS Score Calculated?

The UQS (Unified Quality Score) for VSE Corporation is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.

Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.

Moat (25%) assesses VSE Corporation's competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.

Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.

Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.

Valuation (15%) measures whether VSE Corporation is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.

Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.