The following are today's upgrades for Validea's Book/Market Investor model based on the published strategy of Joseph Piotroski . This value-quant strategy screens for high book-to-market stocks, and then separates out financially sound firms by looking at a host of improving financial criteria.
VSE CORPORATION ( VSEC ) is a small-cap value stock in the Business Services industry. The rating according to our strategy based on Joseph Piotroski changed from 0% to 90% based on the firm's underlying fundamentals and the stock's valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: VSE Corporation is a services and supply chain management company. The Company's segments include Supply Chain Management Group, Aviation Group and Federal Services Group. The Company provides logistics and distribution services for legacy systems and equipment and professional and technical services to the United States Government, including the United States Department of Defense (DoD), the United States Postal Service ( USPS ), federal civilian agencies, and commercial and other customers. The Company's service offerings include supply chain and inventory management services; vehicle fleet sustainment programs; vehicle fleet parts supply and distribution; maintenance, repair, and operations ( MRO ) of aircraft engines and engine components; aircraft engine parts supply and distribution; engineering support for military vehicles; military equipment refurbishment and modification, and ship MRO and follow-on technical support.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
|BOOK/MARKET RATIO: ||PASS |
|RETURN ON ASSETS: ||PASS |
|CHANGE IN RETURN ON ASSETS: ||PASS |
|CASH FLOW FROM OPERATIONS: ||PASS |
|CASH COMPARED TO NET INCOME: ||PASS |
|CHANGE IN LONG TERM DEBT/ASSETS ||PASS |
|CHANGE IN CURRENT RATIO: ||PASS |
|CHANGE IN SHARES OUTSTANDING: ||PASS |
|CHANGE IN GROSS MARGIN: ||FAIL |
|CHANGE IN ASSET TURNOVER: ||PASS |
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
Since its inception, Validea's strategy based on Joseph Piotroski has returned 166.13% vs. 155.51% for the S&P 500. For more details on this strategy, click here
About Joseph Piotroski : Piotroski isn't your typical Wall Street big shot. In fact, he's not even a professional investor. He's a good old numbers-crunching accountant and college professor. But in 2000, shortly after he started teaching at the University of Chicago's Graduate School of Business, Piotroski published a groundbreaking paper in the Journal of Accounting Research entitled "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers". In it, Piotroski laid out an accounting-based stock-selection/shorting method that produced a 23 percent average annual back-tested return from 1976 through 1996 -- more than double the S&P 500's gain during that time. Piotroski's findings were reported in major financial publiations like SmartMoney. Today, he teaches accounting at Stanford University's Graduate School of Business.
About Validea : Validea is an investment research service that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here