VSE Corporation (VSEC): fair value, margin of safety and Wheel Score

Is VSEC undervalued?

VSEC closed at 158.65 on 16 Oct 2026, more than 30% above the GLS average fair value of 38.40. Only 0 of the 8 models that produced a value sit above the price. By our models the shares are priced well beyond what the filed earnings, cash flow and book value support; the Sunday Scan drops names like this at the "below fair value" rule.

There is a wide gap between DCF (2.90) and Graham Growth (85.20). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.

The nightly engine files VSEC under Blend.

Nine valuation models for VSEC

Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.

Quality and financial health

VSE Corporation scores 5 of 9 on the Piotroski F-score: a middling result that falls one point short of the Sunday Scan's "6 or more" rule. Some of the nine tests on profitability, leverage and efficiency are failed, so the accounts are worth a look before selling a put on the name. A GLS Moat score of 4.1/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, so the Moat part of the Wheel Score contributes little.

Returns on capital are thin or negative - ROIC 3.0%, ROE 3.7%, ROA 2.6% - with debt at 0.24 times equity and negative free cash flow.

The dividend yield is 0.25% with a payout ratio of 12% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from Service 55%, Product 45% (quarter Q2 FY2026).

Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.

Wheel Score 52: Fair

A Wheel Score of 52 puts VSE Corporation in the Fair band - below the 70 the Sunday Scan requires. Value 0/25, Health 11/20, Moat 6/15, Premium 20/20 and Stability 15/20; the weakest part is Value (0/25).

Implied volatility is 60% on the near-the-money contracts 20-60 days out - above the 60% ceiling of the sweet spot. Premiums are large, but the Wheel Score tapers the Premium points (20 of 20) because volatility this high usually comes with a reason. Chain open interest is 5,444 contracts across all expiries - enough for the wheel at normal size.

Volume runs at 588k shares a day on a market cap of $4.5B, with a beta of 1.27 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score gives that 15 of 20.

The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.

Upcoming events

VSE Corporation reports earnings on 26 Oct 2026 (after the close) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.

Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.

Similar stocks in Aerospace & Defense

The 12 companies below are the closest to VSE Corporation by market cap within the Aerospace & Defense industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.

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