VICTORIA'S SECRET & CO (VSCO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VSCO - US9264001028 - Common Stock
53.81 USD
-0.46 (-0.85%)
53.74 USD
-0.07 (-0.13%)
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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
VSCO had positive earnings in the past year.
In the past year VSCO had a positive cash flow from operations.
Of the past 5 years VSCO 4 years were profitable.
Each year in the past 5 years VSCO had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 3.31%, VSCO is doing good in the industry, outperforming 60.98% of the companies in the same industry.
Looking at the Return On Equity, with a value of 26.03%, VSCO belongs to the top of the industry, outperforming 84.55% of the companies in the same industry.
The Return On Invested Capital of VSCO (6.85%) is better than 65.04% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VSCO 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
With a decent Profit Margin value of 2.66%, VSCO is doing good in the industry, outperforming 67.48% of the companies in the same industry.
VSCO's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 5.02%, VSCO is doing good in the industry, outperforming 66.67% of the companies in the same industry.
VSCO's Operating Margin has declined in the last couple of years.
The Gross Margin of VSCO (36.40%) is comparable to the rest of the industry.
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.
Compared to 5 years ago, VSCO has less shares outstanding
The debt/assets ratio for VSCO has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.22 indicates that VSCO is not a great score, but indicates only limited risk for bankruptcy at the moment.
VSCO has a Altman-Z score (2.22) which is comparable to the rest of the industry.
VSCO has a debt to FCF ratio of 4.37. This is a neutral value as VSCO would need 4.37 years to pay back of all of its debts.
VSCO's Debt to FCF ratio of 4.37 is fine compared to the rest of the industry. VSCO outperforms 68.29% of its industry peers.
A Debt/Equity ratio of 2.06 is on the high side and indicates that VSCO has dependencies on debt financing.
The Debt to Equity ratio of VSCO (2.06) is worse than 69.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.06 | ||
| Debt/FCF | 4.37 | ||
| Altman-Z | 2.22 |
ROIC/WACC0.71
WACC9.68%
2.3 Liquidity
A Current Ratio of 1.30 indicates that VSCO should not have too much problems paying its short term obligations.
VSCO's Current ratio of 1.30 is in line compared to the rest of the industry. VSCO outperforms 48.78% of its industry peers.
VSCO has a Quick Ratio of 1.30. This is a bad value and indicates that VSCO is not financially healthy enough and could expect problems in meeting its short term obligations.
VSCO has a worse Quick ratio (0.38) than 62.60% 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%.
The Revenue has been decreasing by -3.67% on average over the past years.
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
The Earnings Per Share is expected to grow by 11.06% on average over the next years. This is quite good.
Based on estimates for the next years, VSCO will show a small growth in Revenue. The Revenue will grow by 3.91% on average per year.
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
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
VSCO is valuated rather expensively with a Price/Earnings ratio of 19.57.
VSCO's Price/Earnings ratio is a bit cheaper when compared to the industry. VSCO is cheaper than 75.61% of the companies in the same industry.
VSCO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.92.
Based on the Price/Forward Earnings ratio of 18.10, the valuation of VSCO can be described as rather expensive.
Based on the Price/Forward Earnings ratio, VSCO is valued a bit cheaper than 65.85% of the companies in the same industry.
VSCO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.57 | ||
| Fwd PE | 18.1 |
4.2 Price Multiples
VSCO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. VSCO is cheaper than 63.41% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VSCO indicates a somewhat cheap valuation: VSCO is cheaper than 79.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.96 | ||
| EV/EBITDA | 9.47 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates VSCO does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of VSCO may justify a higher PE ratio.
PEG (NY)6.08
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% |
53.81
-0.46 (-0.85%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners90.82%
Inst Owner Change-0.34%
Ins Owners0.91%
Ins Owner Change-0.03%
Market Cap4.31B
Revenue(TTM)6.39B
Net Income(TTM)170.00M
Analysts71.25
Price Target55.42 (2.99%)
Short Float %15.57%
Short Ratio4.08
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)9.52%
EPS NQ rev (3m)9.92%
EPS NY rev (1m)26.91%
EPS NY rev (3m)29.46%
Revenue NQ rev (1m)1.22%
Revenue NQ rev (3m)2.33%
Revenue NY rev (1m)2.04%
Revenue NY rev (3m)2.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.57 | ||
| Fwd PE | 18.1 | ||
| P/S | 0.68 | ||
| P/FCF | 13.96 | ||
| P/OCF | 8.63 | ||
| P/B | 6.61 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.47 |
EPS(TTM)2.75
EY5.11%
EPS(NY)2.97
Fwd EY5.52%
FCF(TTM)3.85
FCFY7.16%
OCF(TTM)6.24
OCFY11.59%
SpS79.72
BVpS8.15
TBVpS-0.89
PEG (NY)6.08
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
WACC9.68%
ROIC/WACC0.71
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 of VICTORIA'S SECRET & CO (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.
Can you provide the financial health for VSCO stock?
The financial health rating of VICTORIA'S SECRET & CO (VSCO) is 3 / 10.
What is the expected EPS growth for VICTORIA'S SECRET & CO (VSCO) stock?
The Earnings per Share (EPS) of VICTORIA'S SECRET & CO (VSCO) is expected to grow by 3.22% in the next year.