2.63 USD
+0.03 (+1.15%)
VNCE gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 45 industry peers in the Textiles, Apparel & Luxury Goods industry. VNCE has a bad profitability rating. Also its financial health evaluation is rather negative. VNCE may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
- In the past year VNCE was profitable.
- In the past year VNCE had a positive cash flow from operations.
- VNCE had negative earnings in 4 of the past 5 years.
- In multiple years VNCE reported negative operating cash flow during the last 5 years.
1.2 Ratios
- VNCE has a Return On Assets of -7.00%. This is in the lower half of the industry: VNCE underperforms 75.56% of its industry peers.
- With a Return On Equity value of -33.96%, VNCE is not doing good in the industry: 82.22% of the companies in the same industry are doing better.
- VNCE has a Return On Invested Capital of 4.28%. This is in the lower half of the industry: VNCE underperforms 62.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7% | ||
| ROE | -33.96% | ||
| ROIC | 4.28% |
ROA(3y)-3.29%
ROA(5y)-6.67%
ROE(3y)-60.11%
ROE(5y)-60.43%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- The Operating Margin of VNCE (3.15%) is worse than 62.22% of its industry peers.
- In the last couple of years the Operating Margin of VNCE has grown nicely.
- VNCE has a Gross Margin (50.20%) which is comparable to the rest of the industry.
- In the last couple of years the Gross Margin of VNCE has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.15% | ||
| PM (TTM) | N/A | ||
| GM | 50.2% |
OM growth 3Y150.69%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.88%
GM growth 5Y0.8%
2. Health
2.1 Basic Checks
- VNCE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for VNCE has been increased compared to 1 year ago.
- VNCE has more shares outstanding than it did 5 years ago.
- VNCE has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of -4.83, we must say that VNCE is in the distress zone and has some risk of bankruptcy.
- VNCE's Altman-Z score of -4.83 is on the low side compared to the rest of the industry. VNCE is outperformed by 86.67% of its industry peers.
- VNCE has a debt to FCF ratio of 2.05. This is a good value and a sign of high solvency as VNCE would need 2.05 years to pay back of all of its debts.
- VNCE has a better Debt to FCF ratio (2.05) than 82.22% of its industry peers.
- VNCE has a Debt/Equity ratio of 0.63. This is a neutral value indicating VNCE is somewhat dependend on debt financing.
- The Debt to Equity ratio of VNCE (0.63) is worse than 68.89% of its industry peers.
- Although VNCE does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 2.05 | ||
| Altman-Z | -4.83 |
ROIC/WACC0.41
WACC10.33%
2.3 Liquidity
- A Current Ratio of 1.61 indicates that VNCE should not have too much problems paying its short term obligations.
- The Current ratio of VNCE (1.61) is worse than 64.44% of its industry peers.
- VNCE has a Quick Ratio of 1.61. This is a bad value and indicates that VNCE is not financially healthy enough and could expect problems in meeting its short term obligations.
- VNCE's Quick ratio of 0.51 is on the low side compared to the rest of the industry. VNCE is outperformed by 95.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
- VNCE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 47.37%, which is quite impressive.
- Measured over the past years, VNCE shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.75% on average per year.
- VNCE shows a small growth in Revenue. In the last year, the Revenue has grown by 0.19%.
- The Revenue has been decreasing by -4.80% on average over the past years.
EPS 1Y (TTM)47.37%
EPS 3YN/A
EPS 5Y-3.75%
EPS Q2Q%-38.24%
Revenue 1Y (TTM)0.19%
Revenue growth 3Y-3.12%
Revenue growth 5Y-4.8%
Sales Q2Q%6.19%
3.2 Future
- Based on estimates for the next years, VNCE will show a very strong growth in Earnings Per Share. The EPS will grow by 31.07% on average per year.
- Based on estimates for the next years, VNCE will show a small growth in Revenue. The Revenue will grow by 4.25% on average per year.
EPS Next Y28.84%
EPS Next 2Y31.07%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.6%
Revenue Next 2Y4.25%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- VNCE is valuated reasonably with a Price/Earnings ratio of 9.39.
- 86.67% of the companies in the same industry are more expensive than VNCE, based on the Price/Earnings ratio.
- VNCE is valuated cheaply when we compare the Price/Earnings ratio to 28.82, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 8.06, the valuation of VNCE can be described as very reasonable.
- Based on the Price/Forward Earnings ratio, VNCE is valued cheaply inside the industry as 93.33% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.95. VNCE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.39 | ||
| Fwd PE | 8.06 |
4.2 Price Multiples
- VNCE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VNCE is cheaper than 91.11% of the companies in the same industry.
- VNCE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. VNCE is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.25 | ||
| EV/EBITDA | 5.06 |
4.3 Compensation for Growth
- VNCE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- VNCE's earnings are expected to grow with 31.07% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.33
PEG (5Y)N/A
EPS Next 2Y31.07%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- No dividends for VNCE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
VINCE HOLDING CORP / VNCE FAQ
What is the ChartMill fundamental rating of VINCE HOLDING CORP (VNCE) stock?
ChartMill assigns a fundamental rating of 4 / 10 to VNCE.
What is the valuation status of VINCE HOLDING CORP (VNCE) stock?
ChartMill assigns a valuation rating of 9 / 10 to VINCE HOLDING CORP (VNCE). This can be considered as Undervalued.
Can you provide the profitability details for VINCE HOLDING CORP?
VINCE HOLDING CORP (VNCE) has a profitability rating of 2 / 10.
Can you provide the expected EPS growth for VNCE stock?
The Earnings per Share (EPS) of VINCE HOLDING CORP (VNCE) is expected to grow by 28.84% in the next year.