Latest news with #VSEC
Yahoo
6 days ago
- Business
- Yahoo
3 Inflated Stocks in Hot Water
The stocks in this article are all trading near their 52-week highs. This strength often reflects positive developments such as new product launches, favorable industry trends, or improved financial performance. While momentum can be a leading indicator, it has burned many investors as it doesn't always correlate with long-term success. Keeping that in mind, here are three stocks that are likely overheated and some you should look into instead. One-Month Return: +11.2% With roots dating back to 1959 and a strategic focus on extending the life of transportation assets, VSE Corporation (NASDAQ:VSEC) provides aftermarket parts distribution and maintenance, repair, and overhaul services for aircraft and vehicle fleets in commercial and government markets. Why Do We Think Twice About VSEC? Gross margin of 12.3% reflects its high production costs Cash burn makes us question whether it can achieve sustainable long-term growth ROIC of 5% reflects management's challenges in identifying attractive investment opportunities At $130.19 per share, VSE Corporation trades at 35.5x forward P/E. If you're considering VSEC for your portfolio, see our FREE research report to learn more. One-Month Return: +5.9% Originally focused on refrigeration technology, Raytheon (NSYE:RTX) provides a a variety of products and services to the aerospace and defense industries. Why Are We Hesitant About RTX? Estimated sales growth of 4% for the next 12 months implies demand will slow from its two-year trend Earnings per share were flat while its revenue grew over the last five years, partly because it issued new shares Underwhelming 2.5% return on capital reflects management's difficulties in finding profitable growth opportunities RTX is trading at $136.23 per share, or 21.9x forward P/E. To fully understand why you should be careful with RTX, check out our full research report (it's free). One-Month Return: +3.6% Pioneering the shift from bulky, short-term heart monitors to sleek, wire-free patches, iRhythm Technologies (NASDAQ:IRTC) provides wearable cardiac monitoring devices and AI-powered analysis services that help physicians detect and diagnose heart rhythm disorders. Why Does IRTC Worry Us? Issuance of new shares over the last five years caused its earnings per share to fall by 5.6% annually while its revenue grew Negative free cash flow raises questions about the return timeline for its investments 124× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings iRhythm's stock price of $140.65 implies a valuation ratio of 78.5x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including IRTC in your portfolio, it's free. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Business Wire
28-04-2025
- Automotive
- Business Wire
Comvest Credit Partners Leads Debt Financing to Wheeler Fleet Solutions to Fund its Acquisition by One Equity Partners
WEST PALM BEACH, Fla.--(BUSINESS WIRE)--Comvest Credit Partners, a leading provider of flexible direct financing solutions to middle-market companies, is pleased to announce that it is acting as Administrative Agent and is the sole lender on a senior secured credit facility (the 'Financing') for Wheeler Fleet Solutions ('Wheeler' or the 'Company'), a leading aftermarket truck parts distribution company based in Somerset, Pa. The Financing supported the acquisition of the Company from VSE Corporation (NASDAQ: VSEC) by private equity firm One Equity Partners. 'Our credit strategy continues to invest in well-positioned middle-market companies in the industrials vertical, one of our targeted industries of firm expertise,' said Bryce Peterson, a Managing Director of Comvest Credit Partners. Founded in 1960, Wheeler provides replacement parts and engineering solutions to the medium and heavy-duty fleet market, offering a complete line of products along with inventory management, e-commerce fulfillment, logistics, supply chain support and other aftermarket services. Wheeler operates distribution centers in Pennsylvania, Mississippi and Texas. 'Wheeler is an established, long-tenured brand with strong performance in an attractive niche market with recurrent customer demand for parts and services,' said Bryce Peterson, a Managing Director of Comvest Credit Partners. 'Our credit strategy continues to invest in well-positioned middle-market companies in the industrials vertical, one of our targeted industries of firm expertise.' 'We are pleased to complete another transaction with One Equity Partners, which has also built a deep industrials investment practice. We look forward to working with the team in support of the acquisition and Wheeler's continued growth,' said Tom Goila, Partner and Head of Originations at Comvest Credit Partners. 'We are appreciative of Comvest Credit Partners' ability to move quickly in their diligence and investment decision, bringing a certainty to the transaction process that contributed to our acquisition's successful close,' said Steve Lunau, Partner at One Equity Partners. About Wheeler Fleet Solutions Wheeler Fleet Solutions ('Wheeler') began as Wheeler Bros. in 1960 as a small engine repair shop in Somerset, Pennsylvania. From those roots, the company has grown into a fleet-focused parts distribution and services company with over 300 employees. Wheeler Fleet Solutions ships over three million line items yearly to 700 managed inventory stock rooms and thousands of B2B customers across the United States. Wheeler offers a huge selection of parts as well as stockroom and inventory management services, fleet management software and curated custom-engineered service parts. For more information, please visit About One Equity Partners One Equity Partners ('OEP') is a middle market private equity firm focused on the industrial, healthcare, and technology sectors in North America and Europe. The firm seeks to build market-leading companies by identifying and executing transformative business combinations. OEP is a trusted partner with a differentiated investment process, a broad and senior team, and an established track record generating long-term value for its partners. Since 2001, the firm has completed more than 400 transactions worldwide. OEP, founded in 2001, spun out of JP Morgan in 2015. The firm has offices in New York, Chicago, Frankfurt and Amsterdam. For more information, please visit About Comvest Credit Partners Comvest Credit Partners, the direct lending platform of Comvest Partners, focuses on providing flexible financing solutions to middle-market companies. Comvest Credit Partners provides senior secured, unitranche, and second lien capital to sponsored and non-sponsored companies in support of growth, acquisitions, buyouts, refinancings, and recapitalizations, with credit facilities up to $300 million-plus. For more information, please visit About Comvest Partners Comvest Partners ('Comvest') is a private investment firm that has provided equity and debt capital to well-positioned middle-market companies throughout North America since 2000. Through its private equity, direct lending and opportunistic credit investment platforms, Comvest offers tailored investment solutions across the capital structure along with deep industry expertise, operating resources, a collaborative approach, and significant transaction experience as an active investor. In 2025, Comvest Partners proudly celebrates 25 years of investment management leadership, and today manages $15.7 billion in assets, with over $16.8 billion invested since inception. Comvest Partners is based in West Palm Beach, with offices in Chicago and New York City. For more information, please visit
Yahoo
01-04-2025
- Business
- Yahoo
VSE Corporation Completes Sale of Fleet Segment
Sale Completes Strategic Portfolio Transformation to a Pure-Play Aviation Aftermarket Parts and Services Provider MIRAMAR, Fla., April 01, 2025--(BUSINESS WIRE)--VSE Corporation ("VSE" or the "Company") (NASDAQ: VSEC), a leading provider of aftermarket distribution and repair services, announced today that the Company has completed the sale of its Fleet business segment, Wheeler Fleet Solutions, to One Equity Partners ("OEP") for up to $230 million in total consideration. "The sale of our Fleet business marks the completion of VSE's strategic transformation into a pure-play aviation aftermarket parts and services provider," said John Cuomo, President and CEO of VSE Corporation. "With our full focus now on the aviation aftermarket, we are well-positioned to capitalize on significant growth opportunities and drive long-term value for our customers, employees, and shareholders. I want to thank the Wheeler Fleet Solutions team for their dedication and contributions over the years. We wish them continued success as part of OEP." VSE intends to use the initial cash proceeds from the sale of the Fleet segment to repay outstanding borrowings under its revolving loan facility. TRANSACTION OVERVIEWVSE sold the Fleet Segment to OEP for a total consideration of up to $230 million, comprising a $140 million cash payment at closing, a $25 million seller note and up to $65 million in additional contingent earnout consideration. ADVISORSJones Day served as legal counsel and Jefferies, LLC acted as exclusive financial advisor to VSE Corporation with respect to the Fleet segment sale. ABOUT VSE CORPORATIONVSE is a leading provider of aftermarket distribution and repair services. Operating through its two key segments, VSE significantly enhances the productivity and longevity of its customers' high-value, business-critical assets. The Aviation segment is a leading provider of aftermarket parts distribution and maintenance, repair, and overhaul (MRO) services for components and engine accessories to commercial, business, and general aviation operators. The Fleet segment specializes in part distribution, engineering solutions, and supply chain management services catered to the medium and heavy-duty fleet market. For more detailed information, please visit VSE's website at ABOUT ONE EQUITY PARTNERSOne Equity Partners ("OEP") is a middle market private equity firm focused on the industrial, healthcare, and technology sectors in North America and Europe. The firm seeks to build market-leading companies by identifying and executing transformative business combinations. OEP is a trusted partner with a differentiated investment process, a broad and senior team, and an established track record generating long-term value for its partners. Since 2001, the firm has completed more than 400 transactions worldwide. OEP, founded in 2001, spun out of JP Morgan in 2015. The firm has offices in New York, Chicago, Frankfurt and Amsterdam. For more information, please visit FORWARD-LOOKING STATEMENTSThis press release contains certain forward-looking statements, including statements regarding the expected timing and benefits of the proposed disposition of VSE's Fleet Segment. These forward-looking statements, which are included in accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, may involve known and unknown risks, uncertainties and other factors that may cause VSE's actual results to vary materially from those indicated or anticipated by such statements. Many factors could cause actual results and performance to be materially different from any future results or performance, including, among others, our ability to satisfy all required closing conditions and complete the proposed disposition of VSE's Fleet segment, our ability realize the expected benefits of the proposed disposition and the risk factors described in our reports filed or expected to be filed with the SEC. Any forward-looking statement or statement of belief speaks only as of the date of this press release. We undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results. View source version on Contacts INVESTOR RELATIONS CONTACT: Michael PerlmanVice President of Investor Relations and TreasuryPhone: (954) 547-0480Email: investors@ Sign in to access your portfolio
Yahoo
30-03-2025
- Business
- Yahoo
Why VSE Corporation (VSEC) Is Surging In 2025?
We recently published a list of . In this article, we are going to take a look at where VSE Corporation (NASDAQ:VSEC) stands against other aerospace stocks that are surging in 2025. The aerospace industry is riding a wave of growth as global conflicts across the world have sparked a surge in demand. This has led to swelling backlogs and a flood of orders from every corner of the globe. Meanwhile, recent administration changes in the United States have shaken things up. European countries are ramping up their aerospace orders and are eager to secure advanced technology. Some nations have hesitated over U.S. orders amid shifting policies, but cancellations seem unlikely since trade wars have simmered down a bit. Beyond geopolitics, the industry is buzzing with other trends. The commercial aviation sector is roaring back with record passenger traffic. This has pushed airlines to modernize fleets with fuel-efficient aircraft. Moreover, AI software is making defense aircraft more potent, and the entire industry has seen a bump in growth. For this article, I screened the best-performing aerospace stocks year-to-date. I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A close-up of a technician's hands assembling parts for a commercial aircraft. Number of Hedge Fund Holders In Q4 2024: 17 VSE Corporation (NASDAQ:VSEC) provides aftermarket distribution, maintenance, repair, and overhaul services for aviation and fleet assets. The stock is up significantly so far in 2025 as VSE Corporation (NASDAQ:VSEC) announced an agreement to sell its Fleet business (Wheeler Fleet Solutions) to One Equity Partners for up to $230 million, including $140 million upfront cash, a $25 million seller note, and $65 million in potential earn-outs. This divestiture streamlines operations to focus on higher-margin aviation services, with proceeds earmarked for debt reduction. In Q4 2024, the aviation segment revenue surged 45% year-over-year, and 2025 guidance projects 35-40% year-over-year aviation revenue growth, with EBITDA margins at 15.5-16.5%. The company's December 2024 acquisition of Kellstrom Aerospace expanded VSE's commercial aerospace engine aftermarket capabilities and contributed 26% year-over-year total revenue growth in 2024 to $1.08 billion and $52 million in Q4 free cash flow. The consensus price target of $118.67 implies 5.29% downside. VSEC stock is up 31.87% year-to-date. Overall, VSEC ranks 7th on our list of aerospace stocks that are surging in 2025. While we acknowledge the potential of VSEC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than VSEC but that trades at less than 5 times its earnings, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
13-03-2025
- Business
- Yahoo
Why VSE's (NASDAQ:VSEC) Shaky Earnings Are Just The Beginning Of Its Problems
Despite VSE Corporation's (NASDAQ:VSEC) most recent earnings report having soft headline numbers, its stock has had a positive performance. Our analysis suggests that there are some positive factors lying below the troubling profit numbers which investors are finding comfort in. Check out our latest analysis for VSE In order to understand the potential for per share returns, it is essential to consider how much a company is diluting shareholders. In fact, VSE increased the number of shares on issue by 31% over the last twelve months by issuing new shares. That means its earnings are split among a greater number of shares. To talk about net income, without noticing earnings per share, is to be distracted by the big numbers while ignoring the smaller numbers that talk to per share value. You can see a chart of VSE's EPS by clicking here. Three years ago, VSE lost money. Even looking at the last year, profit was still down 15%. Sadly, earnings per share fell further, down a full 33% in that time. Therefore, one can observe that the dilution is having a fairly profound effect on shareholder returns. In the long term, if VSE's earnings per share can increase, then the share price should too. But on the other hand, we'd be far less excited to learn profit (but not EPS) was improving. For that reason, you could say that EPS is more important that net income in the long run, assuming the goal is to assess whether a company's share price might grow. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Alongside that dilution, it's also important to note that VSE's profit suffered from unusual items, which reduced profit by US$17m in the last twelve months. While deductions due to unusual items are disappointing in the first instance, there is a silver lining. We looked at thousands of listed companies and found that unusual items are very often one-off in nature. And that's hardly a surprise given these line items are considered unusual. Assuming those unusual expenses don't come up again, we'd therefore expect VSE to produce a higher profit next year, all else being equal. To sum it all up, VSE took a hit from unusual items which pushed its profit down; without that, it would have made more money. But unfortunately the dilution means that shareholders now own a smaller proportion of the company (assuming they maintained the same number of shares). That will weigh on earnings per share, even if it is not reflected in net income. Having considered these factors, we don't think VSE's statutory profits give an overly harsh view of the business. Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. Be aware that VSE is showing 4 warning signs in our investment analysis and 2 of those are potentially serious... In this article we've looked at a number of factors that can impair the utility of profit numbers, as a guide to a business. But there is always more to discover if you are capable of focussing your mind on minutiae. Some people consider a high return on equity to be a good sign of a quality business. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
