Latest Ratios: P/E Ratio 70.8x · EV/EBITDA 32.0x · ROE 4.4%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $5.0B | $3.7B | $1.7B | $916M | $601M | $770M | $425M | $420M | $327M | $526M | $421M |
| Enterprise Value | $5.3B | $3.9B | $2.2B | $1.4B | $910M | $1.1B | $702M | $718M | $508M | $719M | $657M |
| P/E Ratio → | 70.85 | 68.56 | 55.94 | 23.41 | 21.41 | 96.73 | — | 11.36 | 9.32 | 13.45 | 15.72 |
| P/S Ratio | 4.50 | 3.30 | 1.58 | 1.07 | 0.90 | 1.03 | 0.64 | 0.56 | 0.47 | 0.69 | 0.61 |
| P/B Ratio | 2.63 | 2.55 | 1.73 | 1.49 | 1.34 | 1.84 | 1.19 | 1.16 | 1.00 | 1.80 | 1.65 |
| P/FCF | 877.44 | 642.39 | — | — | — | — | 13.55 | 50.23 | 20.78 | 11.28 | 10.35 |
| P/OCF | 185.60 | 135.88 | — | — | 74.70 | — | 11.88 | 23.35 | 17.35 | 10.44 | 8.91 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.54 | 2.00 | 1.59 | 1.36 | 1.45 | 1.06 | 0.95 | 0.73 | 0.95 | 0.95 |
| EV / EBITDA | 32.03 | 23.90 | 16.47 | 11.88 | 11.63 | 23.07 | 8.71 | 8.02 | 6.49 | 8.96 | 8.47 |
| EV / EBIT | 42.26 | 43.98 | 26.60 | 15.55 | 16.97 | 50.51 | 50.44 | 11.91 | 9.37 | 13.23 | 12.75 |
| EV / FCF | — | 690.28 | — | — | — | — | 22.41 | 85.79 | 32.28 | 15.40 | 16.16 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 11.9% | 11.9% | 10.0% | 11.1% | 8.6% | 3.3% | 8.7% | 8.6% | 8.1% | 7.5% | 8.4% |
| Operating Margin | 11.2% | 11.2% | 9.5% | 10.7% | 8.0% | 2.9% | 8.5% | 8.3% | 7.6% | 7.1% | 7.4% |
| Net Profit Margin | 4.8% | 4.8% | 2.8% | 4.5% | 4.2% | 1.1% | -0.8% | 4.9% | 5.0% | 5.1% | 3.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 4.4% | 4.4% | 3.8% | 7.3% | 6.5% | 2.1% | -1.4% | 10.7% | 11.3% | 14.3% | 11.1% |
| ROA | 2.8% | 2.8% | 2.0% | 3.3% | 2.9% | 0.9% | -0.6% | 5.0% | 5.5% | 6.1% | 4.2% |
| ROIC | 5.9% | 5.9% | 6.1% | 7.5% | 5.4% | 2.4% | 6.6% | 8.0% | 8.0% | 8.3% | 7.9% |
| ROCE | 7.7% | 7.7% | 8.2% | 10.0% | 7.1% | 3.1% | 8.5% | 10.3% | 10.1% | 10.6% | 9.9% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.24 | 0.24 | 0.49 | 0.74 | 0.69 | 0.76 | 0.78 | 0.82 | 0.55 | 0.66 | 0.93 |
| Debt / EBITDA | 2.08 | 2.08 | 3.69 | 3.99 | 3.95 | 6.74 | 3.45 | 3.33 | 2.31 | 2.41 | 3.05 |
| Net Debt / Equity | — | 0.19 | 0.46 | 0.73 | 0.69 | 0.76 | 0.78 | 0.82 | 0.55 | 0.66 | 0.93 |
| Net Debt / EBITDA | 1.66 | 1.66 | 3.47 | 3.92 | 3.94 | 6.73 | 3.44 | 3.32 | 2.31 | 2.40 | 3.04 |
| Debt / FCF | — | 47.90 | — | — | — | — | 8.86 | 35.56 | 11.50 | 4.12 | 5.81 |
| Interest Coverage | 4.36 | 4.36 | 2.33 | 2.83 | 3.00 | 1.78 | 1.03 | 4.36 | 6.04 | 5.88 | 5.23 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 3.76 | 3.76 | 3.10 | 2.70 | 2.44 | 2.58 | 2.55 | 2.16 | 2.68 | 2.18 | 1.74 |
| Quick Ratio | 1.43 | 1.43 | 1.06 | 0.95 | 0.75 | 0.79 | 0.73 | 0.83 | 1.09 | 1.02 | 0.82 |
| Cash Ratio | 0.29 | 0.29 | 0.10 | 0.03 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.01 | 0.00 |
| Asset Turnover | — | 0.55 | 0.62 | 0.64 | 0.67 | 0.82 | 0.85 | 0.89 | 1.09 | 1.21 | 1.05 |
| Inventory Turnover | 1.77 | 1.77 | 1.69 | 1.53 | 1.61 | 2.25 | 2.38 | 3.15 | 3.85 | 5.30 | 4.65 |
| Days Sales Outstanding | — | 76.20 | 76.89 | 57.69 | 53.44 | 54.10 | 44.43 | 56.70 | 53.01 | 47.22 | 53.40 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.2% | 0.2% | 0.4% | 0.6% | 0.8% | 0.6% | 0.9% | 0.9% | 1.0% | 0.5% | 0.6% |
| Payout Ratio | 15.4% | 15.4% | 23.1% | 13.9% | 18.2% | 55.6% | — | 10.1% | 9.3% | 7.2% | 9.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.4% | 1.5% | 1.8% | 4.3% | 4.7% | 1.0% | — | 8.8% | 10.7% | 7.4% | 6.4% |
| FCF Yield | 0.1% | 0.2% | — | — | — | — | 7.4% | 2.0% | 4.8% | 8.9% | 9.7% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.2% | 0.2% | 0.0% | 0.1% | 0.1% |
| Total Shareholder Yield | 0.2% | 0.2% | 0.4% | 0.6% | 0.8% | 0.6% | 1.1% | 1.1% | 1.0% | 0.6% | 0.7% |
| Shares Outstanding | — | $21M | $18M | $14M | $13M | $13M | $11M | $11M | $11M | $11M | $11M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying VSEC stock.
VSE Corporation's current P/E ratio is 70.8x. The historical average is 20.8x. This places it at the 96th percentile of its historical range.
VSE Corporation's current EV/EBITDA is 32.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 8.4x.
VSE Corporation's return on equity (ROE) is 4.4%. The historical average is 11.8%.
Based on historical data, VSE Corporation is trading at a P/E of 70.8x. This is at the 96th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
VSE Corporation's current dividend yield is 0.22% with a payout ratio of 15.4%.
VSE Corporation has 11.9% gross margin and 11.2% operating margin. Operating margin between 10-20% is typical for established companies.
VSE Corporation's Debt/EBITDA ratio is 2.1x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Integration and leverage risk
Metrics are mathematically derived from official filings.
Margin Expansion Masks Earnings Volatility
Gross margin expanded from 10.0% in 2024Q2 to 17.0% in 2026Q2, per reported figures, yet net margin swung from -11.9% to 6.4%, indicating mix shift but persistent earnings instability.
The 700 basis point gross margin improvement reflects the strategic pivot toward higher-margin aviation aftermarket services, as evidenced by the Honeywell acquisition. However, net margin volatility—ranging from -11.9% in 2024Q1 to 9.0% in 2026Q1—suggests that operating leverage is not yet translating into consistent bottom-line profitability. The narrow gap between gross (17.0%) and operating margins (10.9%) in 2026Q2 implies a lean cost structure, but investors should monitor whether this is sustainable post-integration.
ROIC Stagnant Despite Strategic Shift
ROIC has hovered between 1.0% and 1.8% over the past ten quarters, per financial statements, despite a transformative acquisition, suggesting that capital deployment has yet to generate meaningful returns above cost of capital.
Despite the record acquisition and revenue surge, ROIC remains below 2%, indicating that the expanded asset base is not yet producing commensurate returns. The 2026Q2 ROIC of 1.3% is essentially unchanged from 2024Q1's 1.2%, implying that the Honeywell deal has not yet improved capital efficiency. This may reflect integration costs and the goodwill-heavy balance sheet, where goodwill now represents 41% of total assets. Investors should watch for ROIC to inflect upward as synergies materialize, or the acquisition may be value-destructive.
Working Capital Drag Intensifies
Cash conversion cycle lengthened from 202 days in 2024Q4 to 205 days in 2026Q2, per reported data, driven by DIO of 182 days, indicating significant inventory absorption that may strain liquidity.
The CCC remains elevated at over 200 days, primarily due to high days inventory outstanding (182 days in 2026Q2), which reflects the inventory-heavy nature of the aviation aftermarket business. While DSO has improved from 88 days in 2024Q3 to 63 days in 2026Q2, the persistent inventory build—likely tied to the Honeywell acquisition—continues to consume cash. The negative operating cash flow in 2026Q1 (-$86.8M) underscores this working capital drag, and investors should monitor whether inventory turnover improves as integration completes.
Leverage Understated by Acquisition Debt
Reported D/E of 0.35 in 2026Q2, per financial statements, appears low, but D/EBITDA of 14.06 and interest coverage of 8.51 suggest elevated leverage relative to earnings, warranting close monitoring.
The balance sheet shows a modest D/E ratio, but the D/EBITDA of 14.06 in 2026Q2 is significantly higher than the 7.23 in 2025Q4, indicating that the acquisition has increased debt burden relative to cash flows. Interest coverage of 8.51 remains comfortable, but it has declined from 37.80 in 2025Q4, reflecting higher interest costs. Given the $1.0B in total debt and the $1.8B cash outflow for acquisitions, the true leverage may be understated if off-balance-sheet items exist. Investors should monitor deleveraging progress and the sustainability of coverage ratios.
Liquidity Buffer Thins Post-Acquisition
Current ratio of 3.77 in 2026Q2, per reported data, appears strong, but cash dropped from $1.2B in 2026Q1 to $75.4M, indicating the acquisition consumed most of the cash buffer, leaving limited liquidity for shocks.
While the current ratio remains above 3.0, the sharp decline in cash reserves—from $1.2B to $75.4M in one quarter—signals that the company has deployed its liquidity into the acquisition. The quick ratio of 1.30 in 2026Q2, down from 6.24 in 2026Q1, further highlights reduced short-term flexibility. This suggests that under a severe operational stress, the company may have limited cash to absorb unexpected working capital needs or debt service requirements. The reliance on inventory (DIO of 182 days) to meet obligations could be a vulnerability if demand softens.
Misapplied P/E on Transitional Earnings
The trailing P/E of 86.34, per current valuation multiples, is misleading given the volatile earnings base; EV/EBITDA of 38.67 better captures the acquisition's impact, but even that may overstate value.
The most commonly misapplied ratio for VSEC is the P/E, as the company's earnings have been highly erratic due to acquisition-related costs and divestitures. The trailing P/E of 86.34 is distorted by the low earnings base, while the forward P/E of 49.13 still appears rich. EV/EBITDA of 38.67 is more appropriate, but it remains elevated relative to peers like TransDigm (20.57) and Kadant (18.99), suggesting the market is pricing in significant future growth. Investors should use EV/EBITDA on normalized EBITDA, adjusting for one-time items, to assess valuation, and monitor whether the acquisition delivers the expected margin expansion to justify the premium.