Added to YB: 2026-05-28
Pitch date: 2026-05-26
VSEC [bullish]
VSE Corporation
-2.52%
current return
Author Info
Ex L/S Hedge Fund. Actionable investment ideas & write-ups on GARP and Value. Sector generalist / focus on multi-year theses. Sign up for the newsletter.
Company Info
VSE Corporation engages in providing aviation aftermarket parts distribution and maintenance, repair, and overhaul services for air transportation assets for commercial and government markets.
Market Cap
$4.9B
Pitch Price
$178.04
Price Target
275.00 (+58%)
Dividend
0.23%
EV/EBITDA
21.46
P/E
58.40
EV/Sales
3.43
Sector
Aerospace and Defense
Category
growth
VSE Corp: Aerospace aftermarket compounder mispriced on M&A
VSEC: Aero aftermarket pure-play closed $2.025B PAG deal 5/5/26, stock down 24% on TEU/equity issuance overhang despite Q1 beat (+27% rev, +37% EBITDA, 15% organic). PAG's >20% margin (vs VSE 16.4%) drives structural step-up to 20%+ consolidated margin by '28. Mgmt guides $500M EBITDA '28, FCF inflecting H2 '26 after inventory build. PT $275 (60% upside, 20% IRR) at 17.5x '28 EBITDA. Risks: FCF delay, integration miss, multiple compression.
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