VICTORIA'S SECRET & CO (VSCO) Stock Fundamental Analysis
NYSE:VSCO - US9264001028 - Common Stock
22.78 USD
+0.79 (+3.59%)
22.9 USD
+0.12 (+0.53%)
Overall VSCO gets a fundamental rating of 4 out of 10. We evaluated VSCO against 123 industry peers in the Specialty Retail industry. There are concerns on the financial health of VSCO while its profitability can be described as average. VSCO scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year VSCO was profitable.
VSCO had a positive operating cash flow in the past year.
VSCO had positive earnings in 4 of the past 5 years.
Each year in the past 5 years VSCO had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.65%, VSCO is in the better half of the industry, outperforming 63.41% of the companies in the same industry.
The Return On Equity of VSCO (25.89%) is better than 83.74% of its industry peers.
The Return On Invested Capital of VSCO (6.64%) is better than 64.23% of its industry peers.
VSCO had an Average Return On Invested Capital over the past 3 years of 9.17%. This is below the industry average of 11.94%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.65% | ||
| ROE | 25.89% | ||
| ROIC | 6.64% |
ROA(3y)4.47%
ROA(5y)5.31%
ROE(3y)47.59%
ROE(5y)77.21%
ROIC(3y)9.17%
ROIC(5y)N/A
1.3 Margins
VSCO has a better Profit Margin (2.68%) than 66.67% of its industry peers.
In the last couple of years the Profit Margin of VSCO has declined.
VSCO has a better Operating Margin (4.56%) than 66.67% of its industry peers.
In the last couple of years the Operating Margin of VSCO has declined.
With a Gross Margin value of 35.95%, VSCO perfoms like the industry average, outperforming 49.59% of the companies in the same industry.
VSCO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.56% | ||
| PM (TTM) | 2.68% | ||
| GM | 35.95% |
OM growth 3Y-28.61%
OM growth 5YN/A
PM growth 3Y-34.72%
PM growth 5YN/A
GM growth 3Y-3.67%
GM growth 5Y5.76%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VSCO is destroying value.
VSCO has more shares outstanding than it did 1 year ago.
VSCO has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, VSCO has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.99 indicates that VSCO is not a great score, but indicates only limited risk for bankruptcy at the moment.
VSCO's Altman-Z score of 1.99 is in line compared to the rest of the industry. VSCO outperforms 44.72% of its industry peers.
The Debt to FCF ratio of VSCO is 5.18, which is a neutral value as it means it would take VSCO, 5.18 years of fcf income to pay off all of its debts.
VSCO has a Debt to FCF ratio of 5.18. This is in the better half of the industry: VSCO outperforms 65.04% of its industry peers.
VSCO has a Debt/Equity ratio of 1.67. This is a high value indicating a heavy dependency on external financing.
VSCO has a worse Debt to Equity ratio (1.67) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.67 | ||
| Debt/FCF | 5.18 | ||
| Altman-Z | 1.99 |
ROIC/WACC0.69
WACC9.58%
2.3 Liquidity
A Current Ratio of 1.16 indicates that VSCO should not have too much problems paying its short term obligations.
VSCO has a worse Current ratio (1.16) than 63.41% of its industry peers.
VSCO has a Quick Ratio of 1.16. This is a bad value and indicates that VSCO is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.33, VSCO is doing worse than 65.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.33 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.52% over the past year.
The earnings per share for VSCO have been decreasing by -25.48% on average. This is quite bad
VSCO shows a small growth in Revenue. In the last year, the Revenue has grown by 1.45%.
Measured over the past years, VSCO shows a decrease in Revenue. The Revenue has been decreasing by -3.67% on average per year.
EPS 1Y (TTM)24.52%
EPS 3Y-25.48%
EPS 5YN/A
EPS Q2Q%-25%
Revenue 1Y (TTM)1.45%
Revenue growth 3Y-2.8%
Revenue growth 5Y-3.67%
Sales Q2Q%-0.48%
3.2 Future
Based on estimates for the next years, VSCO will show a decrease in Earnings Per Share. The EPS will decrease by -1.16% on average per year.
VSCO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.65% yearly.
EPS Next Y-25.84%
EPS Next 2Y-9.84%
EPS Next 3Y-1.16%
EPS Next 5YN/A
Revenue Next Year0.74%
Revenue Next 2Y1.4%
Revenue Next 3Y1.65%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 8.80, which indicates a very decent valuation of VSCO.
Based on the Price/Earnings ratio, VSCO is valued cheaply inside the industry as 92.68% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.14, VSCO is valued rather cheaply.
VSCO is valuated reasonably with a Price/Forward Earnings ratio of 10.70.
VSCO's Price/Forward Earnings ratio is rather cheap when compared to the industry. VSCO is cheaper than 82.93% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.80. VSCO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.8 | ||
| Fwd PE | 10.7 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VSCO is valued cheaply inside the industry as 88.62% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, VSCO is valued cheaper than 90.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.7 | ||
| EV/EBITDA | 5.01 |
4.3 Compensation for Growth
VSCO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-9.84%
EPS Next 3Y-1.16%
5. Dividend
5.1 Amount
No dividends for VSCO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
22.78
+0.79 (+3.59%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners92.84%
Inst Owner Change-0.94%
Ins Owners1.03%
Ins Owner Change0.35%
Market Cap1.82B
Analysts53.33
Price Target21.08 (-7.46%)
Short Float %16.49%
Short Ratio3.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)58.09%
Min EPS beat(2)10.98%
Max EPS beat(2)105.2%
EPS beat(4)4
Avg EPS beat(4)36.45%
Min EPS beat(4)7.57%
Max EPS beat(4)105.2%
EPS beat(8)6
Avg EPS beat(8)20.92%
EPS beat(12)9
Avg EPS beat(12)13.21%
EPS beat(16)13
Avg EPS beat(16)12.91%
Revenue beat(2)1
Avg Revenue beat(2)-0.52%
Min Revenue beat(2)-1.1%
Max Revenue beat(2)0.07%
Revenue beat(4)2
Avg Revenue beat(4)-0.05%
Min Revenue beat(4)-1.24%
Max Revenue beat(4)2.08%
Revenue beat(8)2
Avg Revenue beat(8)-1.17%
Revenue beat(12)2
Avg Revenue beat(12)-1.76%
Revenue beat(16)2
Avg Revenue beat(16)-2.15%
PT rev (1m)-8.86%
PT rev (3m)-20.21%
EPS NQ rev (1m)-1.08%
EPS NQ rev (3m)-65.62%
EPS NY rev (1m)-5.69%
EPS NY rev (3m)-12.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.9%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.8 | ||
| Fwd PE | 10.7 | ||
| P/S | 0.29 | ||
| P/FCF | 8.7 | ||
| P/OCF | 4.65 | ||
| P/B | 2.82 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.01 |
EPS(TTM)2.59
EY11.37%
EPS(NY)2.13
Fwd EY9.35%
FCF(TTM)2.62
FCFY11.49%
OCF(TTM)4.9
OCFY21.5%
SpS77.93
BVpS8.08
TBVpS-1.14
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.65% | ||
| ROE | 25.89% | ||
| ROCE | 8.54% | ||
| ROIC | 6.64% | ||
| ROICexc | 6.93% | ||
| ROICexgc | 9.01% | ||
| OM | 4.56% | ||
| PM (TTM) | 2.68% | ||
| GM | 35.95% | ||
| FCFM | 3.36% |
ROA(3y)4.47%
ROA(5y)5.31%
ROE(3y)47.59%
ROE(5y)77.21%
ROIC(3y)9.17%
ROIC(5y)N/A
ROICexc(3y)10.27%
ROICexc(5y)N/A
ROICexgc(3y)14.27%
ROICexgc(5y)N/A
ROCE(3y)11.81%
ROCE(5y)N/A
ROICexcg growth 3Y-33.67%
ROICexcg growth 5YN/A
ROICexc growth 3Y-37.36%
ROICexc growth 5YN/A
OM growth 3Y-28.61%
OM growth 5YN/A
PM growth 3Y-34.72%
PM growth 5YN/A
GM growth 3Y-3.67%
GM growth 5Y5.76%
F-Score6
Asset Turnover1.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.67 | ||
| Debt/FCF | 5.18 | ||
| Debt/EBITDA | 2 | ||
| Cap/Depr | 71.37% | ||
| Cap/Sales | 2.92% | ||
| Interest Coverage | 3.89 | ||
| Cash Conversion | 72.54% | ||
| Profit Quality | 125.15% | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.33 | ||
| Altman-Z | 1.99 |
F-Score6
WACC9.58%
ROIC/WACC0.69
Cap/Depr(3y)73%
Cap/Depr(5y)62.74%
Cap/Sales(3y)3.19%
Cap/Sales(5y)2.88%
Profit Quality(3y)116.72%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)24.52%
EPS 3Y-25.48%
EPS 5YN/A
EPS Q2Q%-25%
EPS Next Y-25.84%
EPS Next 2Y-9.84%
EPS Next 3Y-1.16%
EPS Next 5YN/A
Revenue 1Y (TTM)1.45%
Revenue growth 3Y-2.8%
Revenue growth 5Y-3.67%
Sales Q2Q%-0.48%
Revenue Next Year0.74%
Revenue Next 2Y1.4%
Revenue Next 3Y1.65%
Revenue Next 5YN/A
EBIT growth 1Y-5.02%
EBIT growth 3Y-30.61%
EBIT growth 5YN/A
EBIT Next Year50.28%
EBIT Next 3Y16.87%
EBIT Next 5YN/A
FCF growth 1Y-24.55%
FCF growth 3Y-28.72%
FCF growth 5Y22.37%
OCF growth 1Y-17.68%
OCF growth 3Y-20.66%
OCF growth 5Y6.17%