Versar Inc. (NYSEMKT:VSR) is Well Positioned For Budget Promises

Versar Inc. (NYSEMKT:VSR)

Versar Inc. (NYSEMKT:VSR) could be the single best positioned company in the world to benefit from the expected infrastructure spending bills that President Trump’s administration has been pushing. Based just outside of Washington D.C., in Springfield, VA, Versar is a global project management company that provides support to local, state, and federal infrastructure projects. Versar Inc. (NYSEMKT:VSR), formed in 1969, has 22 offices that span the globe.

On March 14, 2017 it was announced that the Environmental Protection Agency (EPS) has awarded Versar Inc. (NYSEMKT:VSR) a $1.4 million contract to provide technical support to a program that studies human exposure to pesticides. The contract is for a single year but provides for five option years.

Announced today was the awarding of a U.S. Air Force contract, potentially worth $950 million, to a joint venture formed between Johnson Controls (JCI) and Versar Inc. (NYSEMKT:VSR). The contract includes the full range of construction, engineering and design-build for new facilities, and repair, renovation, and/or restoration for existing facilities and infrastructure.

Versar Inc. (NYSEMKT:VSR) shares are up 13% for the month. VSR shares have a 52-week low of $0.90 and a 52-week high of $3.25. Reports have the consensus analyst’s price target set at $5.50 – at the time of this writing VSAR was trading around $1.50. There was a VSR EPS loss of -$0.05 in 2014 but that rebounded to a positive EPS figure of $0.14 in 2015. Similarly, sales improved for the past three years. In 2013 Versar Inc. (NYSEMKT:VSR) posted a figure of $$102.6 million and that figure trended up and was posted at $159.90 million in 2015. Versar Inc. (NYSEMKT:VSR) dilution has not been a problem for shareholders. In 2011 there were 9.26 million shares of VSR outstanding and that number increased to just 9.77 million for 2015.

Ticker Symbol VSR
Last Price a/o 12:56 PM EST  $                      1.53
Average Volume                      58,230
Market Cap (mlns)  $                    11.20
Sales (mlns) $185.10
Shares Outstanding (mlns) 9.91
Share Float (mlns) 8.8
Shortable Yes
Optionable No
Inside Ownership 11.16%
Short Float 0.53%
Short Interest Ratio 0.8
Quarterly Return -21.53%
YTD Return -17.52%
Year Return -48.64%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.