VICTORIA'S SECRET & CO (VSCO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VSCO - US9264001028 - Common Stock
53.36 USD
-0.81 (-1.5%)
54.3 USD
+0.94 (+1.76%)
VSCO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 122 industry peers in the Specialty Retail industry. While VSCO is still in line with the averages on profitability rating, there are concerns on its financial health. VSCO has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year VSCO was profitable.
In the past year VSCO had a positive cash flow from operations.
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
VSCO has a better Return On Assets (3.31%) than 60.66% of its industry peers.
VSCO's Return On Equity of 26.03% is amongst the best of the industry. VSCO outperforms 84.43% of its industry peers.
VSCO has a better Return On Invested Capital (6.85%) than 64.75% 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 12.14%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.31% | ||
| ROE | 26.03% | ||
| ROIC | 6.85% |
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's Profit Margin of 2.66% is fine compared to the rest of the industry. VSCO outperforms 67.21% of its industry peers.
In the last couple of years the Profit Margin of VSCO has declined.
VSCO has a better Operating Margin (5.02%) than 66.39% of its industry peers.
VSCO's Operating Margin has declined in the last couple of years.
VSCO has a Gross Margin of 36.40%. This is comparable to the rest of the industry: VSCO outperforms 49.18% of its industry peers.
VSCO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.02% | ||
| PM (TTM) | 2.66% | ||
| GM | 36.4% |
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.
The number of shares outstanding for VSCO has been increased compared to 1 year ago.
The number of shares outstanding for VSCO has been reduced compared to 5 years ago.
VSCO has a better debt/assets ratio than last year.
2.2 Solvency
VSCO has an Altman-Z score of 2.22. This is not the best score and indicates that VSCO is in the grey zone with still only limited risk for bankruptcy at the moment.
VSCO's Altman-Z score of 2.22 is in line compared to the rest of the industry. VSCO outperforms 50.00% of its industry peers.
The Debt to FCF ratio of VSCO is 4.37, which is a neutral value as it means it would take VSCO, 4.37 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.37, VSCO is in the better half of the industry, outperforming 68.03% of the companies in the same industry.
VSCO has a Debt/Equity ratio of 2.06. This is a high value indicating a heavy dependency on external financing.
VSCO has a Debt to Equity ratio of 2.06. This is in the lower half of the industry: VSCO underperforms 68.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.06 | ||
| Debt/FCF | 4.37 | ||
| Altman-Z | 2.22 |
ROIC/WACC0.7
WACC9.74%
2.3 Liquidity
VSCO has a Current Ratio of 1.30. This is a normal value and indicates that VSCO is financially healthy and should not expect problems in meeting its short term obligations.
VSCO has a Current ratio (1.30) which is comparable to the rest of the industry.
A Quick Ratio of 0.38 indicates that VSCO may have some problems paying its short term obligations.
The Quick ratio of VSCO (0.38) is worse than 61.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.38 |
3. Growth
3.1 Past
VSCO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.77%.
Measured over the past years, VSCO shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -25.48% on average per year.
VSCO shows a small growth in Revenue. In the last year, the Revenue has grown by 2.96%.
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)5.77%
EPS 3Y-25.48%
EPS 5YN/A
EPS Q2Q%46%
Revenue 1Y (TTM)2.96%
Revenue growth 3Y-2.8%
Revenue growth 5Y-3.67%
Sales Q2Q%9.21%
3.2 Future
Based on estimates for the next years, VSCO will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.06% on average per year.
The Revenue is expected to grow by 3.91% on average over the next years.
EPS Next Y3.22%
EPS Next 2Y6.52%
EPS Next 3Y11.06%
EPS Next 5YN/A
Revenue Next Year4.86%
Revenue Next 2Y4.08%
Revenue Next 3Y3.91%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
VSCO is valuated rather expensively with a Price/Earnings ratio of 19.40.
Compared to the rest of the industry, the Price/Earnings ratio of VSCO indicates a somewhat cheap valuation: VSCO is cheaper than 75.41% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of VSCO to the average of the S&P500 Index (26.60), we can say VSCO is valued slightly cheaper.
The Price/Forward Earnings ratio is 17.95, which indicates a rather expensive current valuation of VSCO.
VSCO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. VSCO is cheaper than 64.75% of the companies in the same industry.
VSCO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.4 | ||
| Fwd PE | 17.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VSCO is valued a bit cheaper than the industry average as 63.11% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, VSCO is valued a bit cheaper than 77.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.84 | ||
| EV/EBITDA | 9.4 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of VSCO may justify a higher PE ratio.
PEG (NY)6.03
PEG (5Y)N/A
EPS Next 2Y6.52%
EPS Next 3Y11.06%
5. Dividend
5.1 Amount
No dividends for VSCO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
53.36
-0.81 (-1.5%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners90.84%
Inst Owner Change0%
Ins Owners0.91%
Ins Owner Change-0.03%
Market Cap4.28B
Revenue(TTM)6.39B
Net Income(TTM)170.00M
Analysts71.25
Price Target55.42 (3.86%)
Short Float %11.83%
Short Ratio3.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)119.19%
Min EPS beat(2)54.83%
Max EPS beat(2)183.55%
EPS beat(4)4
Avg EPS beat(4)88.64%
Min EPS beat(4)10.98%
Max EPS beat(4)183.55%
EPS beat(8)8
Avg EPS beat(8)52.95%
EPS beat(12)9
Avg EPS beat(12)30.03%
EPS beat(16)13
Avg EPS beat(16)26.7%
Revenue beat(2)2
Avg Revenue beat(2)2.01%
Min Revenue beat(2)1.68%
Max Revenue beat(2)2.33%
Revenue beat(4)3
Avg Revenue beat(4)0.74%
Min Revenue beat(4)-1.1%
Max Revenue beat(4)2.33%
Revenue beat(8)4
Avg Revenue beat(8)-0.03%
Revenue beat(12)4
Avg Revenue beat(12)-0.85%
Revenue beat(16)4
Avg Revenue beat(16)-1.19%
PT rev (1m)74.15%
PT rev (3m)131.75%
EPS NQ rev (1m)8.87%
EPS NQ rev (3m)9.82%
EPS NY rev (1m)25.94%
EPS NY rev (3m)29.46%
Revenue NQ rev (1m)1.22%
Revenue NQ rev (3m)2%
Revenue NY rev (1m)1.89%
Revenue NY rev (3m)1.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.4 | ||
| Fwd PE | 17.95 | ||
| P/S | 0.67 | ||
| P/FCF | 13.84 | ||
| P/OCF | 8.55 | ||
| P/B | 6.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.4 |
EPS(TTM)2.75
EY5.15%
EPS(NY)2.97
Fwd EY5.57%
FCF(TTM)3.85
FCFY7.22%
OCF(TTM)6.24
OCFY11.69%
SpS79.72
BVpS8.15
TBVpS-0.89
PEG (NY)6.03
PEG (5Y)N/A
Graham Number22.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.31% | ||
| ROE | 26.03% | ||
| ROCE | 8.81% | ||
| ROIC | 6.85% | ||
| ROICexc | 7.35% | ||
| ROICexgc | 9.34% | ||
| OM | 5.02% | ||
| PM (TTM) | 2.66% | ||
| GM | 36.4% | ||
| FCFM | 4.84% |
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
ROICexgc growth 3Y-33.67%
ROICexgc 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 Turnover1.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.06 | ||
| Debt/FCF | 4.37 | ||
| Debt/EBITDA | 2.35 | ||
| Cap/Depr | 76.1% | ||
| Cap/Sales | 2.99% | ||
| Interest Coverage | 4.72 | ||
| Cash Conversion | 87.41% | ||
| Profit Quality | 181.77% | ||
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.38 | ||
| Altman-Z | 2.22 |
F-Score6
WACC9.74%
ROIC/WACC0.7
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)5.77%
EPS 3Y-25.48%
EPS 5YN/A
EPS Q2Q%46%
EPS Next Y3.22%
EPS Next 2Y6.52%
EPS Next 3Y11.06%
EPS Next 5YN/A
Revenue 1Y (TTM)2.96%
Revenue growth 3Y-2.8%
Revenue growth 5Y-3.67%
Sales Q2Q%9.21%
Revenue Next Year4.86%
Revenue Next 2Y4.08%
Revenue Next 3Y3.91%
Revenue Next 5YN/A
EBIT growth 1Y0.94%
EBIT growth 3Y-30.61%
EBIT growth 5YN/A
EBIT Next Year78.38%
EBIT Next 3Y25.45%
EBIT Next 5YN/A
FCF growth 1Y22.13%
FCF growth 3Y-28.72%
FCF growth 5Y22.37%
OCF growth 1Y-3.1%
OCF growth 3Y-20.66%
OCF growth 5Y6.17%
VICTORIA'S SECRET & CO / VSCO FAQ
Can you provide the ChartMill fundamental rating for VICTORIA'S SECRET & CO?
ChartMill assigns a fundamental rating of 4 / 10 to VSCO.
What is the valuation status for VSCO stock?
ChartMill assigns a valuation rating of 4 / 10 to VICTORIA'S SECRET & CO (VSCO). This can be considered as Fairly Valued.
How profitable is VICTORIA'S SECRET & CO (VSCO) stock?
VICTORIA'S SECRET & CO (VSCO) has a profitability rating of 6 / 10.
How financially healthy is VICTORIA'S SECRET & CO?
The financial health rating of VICTORIA'S SECRET & CO (VSCO) is 3 / 10.
Can you provide the expected EPS growth for VSCO stock?
The Earnings per Share (EPS) of VICTORIA'S SECRET & CO (VSCO) is expected to grow by 3.22% in the next year.