VICTORIA'S SECRET & CO (VSCO) Stock Fundamental Analysis
USA - NYSE:VSCO - US9264001028 - Common Stock
36.32 USD
-1.11 (-2.97%)
36.11 USD
-0.21 (-0.58%)
Overall VSCO gets a fundamental rating of 4 out of 10. We evaluated VSCO against 121 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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
Of the past 5 years VSCO 4 years were profitable.
In the past 5 years VSCO always reported a positive cash flow from operatings.
1.2 Ratios
VSCO has a Return On Assets of 3.18%. This is in the better half of the industry: VSCO outperforms 60.33% of its industry peers.
VSCO has a Return On Equity of 22.21%. This is amongst the best in the industry. VSCO outperforms 81.82% of its industry peers.
VSCO has a better Return On Invested Capital (6.31%) than 62.81% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VSCO is below the industry average of 11.82%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.18% | ||
| ROE | 22.21% | ||
| ROIC | 6.31% |
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 Profit Margin of 2.41%. This is in the better half of the industry: VSCO outperforms 65.29% of its industry peers.
VSCO's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 4.42%, VSCO is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
In the last couple of years the Operating Margin of VSCO has declined.
VSCO has a Gross Margin of 35.99%. This is comparable to the rest of the industry: VSCO outperforms 49.59% of its industry peers.
VSCO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.42% | ||
| PM (TTM) | 2.41% | ||
| GM | 35.99% |
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.
Compared to 1 year ago, VSCO has more shares outstanding
The number of shares outstanding for VSCO has been reduced compared to 5 years ago.
The debt/assets ratio for VSCO has been reduced compared to a year ago.
2.2 Solvency
VSCO has an Altman-Z score of 2.11. 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 has a Altman-Z score (2.11) which is comparable to the rest of the industry.
The Debt to FCF ratio of VSCO is 4.35, which is a neutral value as it means it would take VSCO, 4.35 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 4.35, VSCO is doing good in the industry, outperforming 67.77% of the companies in the same industry.
A Debt/Equity ratio of 1.54 is on the high side and indicates that VSCO has dependencies on debt financing.
VSCO has a Debt to Equity ratio of 1.54. This is in the lower half of the industry: VSCO underperforms 66.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | 4.35 | ||
| Altman-Z | 2.11 |
ROIC/WACC0.67
WACC9.44%
2.3 Liquidity
VSCO has a Current Ratio of 1.14. This is a normal value and indicates that VSCO is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.14, VSCO is doing worse than 66.12% of the companies in the same industry.
A Quick Ratio of 0.36 indicates that VSCO may have some problems paying its short term obligations.
With a Quick ratio value of 0.36, VSCO is not doing good in the industry: 66.12% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.36 |
3. Growth
3.1 Past
VSCO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.50%, which is quite good.
VSCO shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -25.48% yearly.
VSCO shows a small growth in Revenue. In the last year, the Revenue has grown by 2.30%.
The Revenue has been decreasing by -3.67% on average over the past years.
EPS 1Y (TTM)12.5%
EPS 3Y-25.48%
EPS 5YN/A
EPS Q2Q%-17.5%
Revenue 1Y (TTM)2.3%
Revenue growth 3Y-2.8%
Revenue growth 5Y-3.67%
Sales Q2Q%2.96%
3.2 Future
VSCO is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.92% yearly.
Based on estimates for the next years, VSCO will show a small growth in Revenue. The Revenue will grow by 2.38% on average per year.
EPS Next Y-20.14%
EPS Next 2Y-7.77%
EPS Next 3Y-0.92%
EPS Next 5YN/A
Revenue Next Year3.02%
Revenue Next 2Y2.84%
Revenue Next 3Y2.38%
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 correctly with a Price/Earnings ratio of 14.41.
Based on the Price/Earnings ratio, VSCO is valued a bit cheaper than the industry average as 76.03% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.67, VSCO is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 16.30, the valuation of VSCO can be described as correct.
VSCO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. VSCO is cheaper than 64.46% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 31.86, VSCO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.41 | ||
| Fwd PE | 16.3 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VSCO indicates a somewhat cheap valuation: VSCO is cheaper than 71.07% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, VSCO is valued cheaper than 82.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.03 | ||
| EV/EBITDA | 7.28 |
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-7.77%
EPS Next 3Y-0.92%
5. Dividend
5.1 Amount
No dividends for VSCO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
36.32
-1.11 (-2.97%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners92.02%
Inst Owner Change-0.88%
Ins Owners0.96%
Ins Owner Change0.08%
Market Cap2.91B
Revenue(TTM)6.26B
Net Income(TTM)151.00M
Analysts53.33
Price Target27.44 (-24.45%)
Short Float %17.22%
Short Ratio4.57
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)144.37%
Min EPS beat(2)105.2%
Max EPS beat(2)183.55%
EPS beat(4)4
Avg EPS beat(4)80.45%
Min EPS beat(4)10.98%
Max EPS beat(4)183.55%
EPS beat(8)7
Avg EPS beat(8)45.13%
EPS beat(12)9
Avg EPS beat(12)27.51%
EPS beat(16)13
Avg EPS beat(16)24.04%
Revenue beat(2)2
Avg Revenue beat(2)0.87%
Min Revenue beat(2)0.07%
Max Revenue beat(2)1.68%
Revenue beat(4)3
Avg Revenue beat(4)0.68%
Min Revenue beat(4)-1.1%
Max Revenue beat(4)2.08%
Revenue beat(8)3
Avg Revenue beat(8)-0.62%
Revenue beat(12)3
Avg Revenue beat(12)-1.25%
Revenue beat(16)3
Avg Revenue beat(16)-1.55%
PT rev (1m)14.74%
PT rev (3m)18.63%
EPS NQ rev (1m)1.44%
EPS NQ rev (3m)-10.81%
EPS NY rev (1m)0.16%
EPS NY rev (3m)1.55%
Revenue NQ rev (1m)0.56%
Revenue NQ rev (3m)3.46%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)2.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.41 | ||
| Fwd PE | 16.3 | ||
| P/S | 0.46 | ||
| P/FCF | 12.03 | ||
| P/OCF | 6.74 | ||
| P/B | 4.28 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.28 |
EPS(TTM)2.52
EY6.94%
EPS(NY)2.23
Fwd EY6.14%
FCF(TTM)3.02
FCFY8.31%
OCF(TTM)5.39
OCFY14.84%
SpS78.16
BVpS8.48
TBVpS-0.62
PEG (NY)N/A
PEG (5Y)N/A
Graham Number21.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.18% | ||
| ROE | 22.21% | ||
| ROCE | 8.12% | ||
| ROIC | 6.31% | ||
| ROICexc | 6.68% | ||
| ROICexgc | 8.64% | ||
| OM | 4.42% | ||
| PM (TTM) | 2.41% | ||
| GM | 35.99% | ||
| FCFM | 3.86% |
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 Turnover1.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | 4.35 | ||
| Debt/EBITDA | 1.97 | ||
| Cap/Depr | 74.8% | ||
| Cap/Sales | 3.03% | ||
| Interest Coverage | 3.96 | ||
| Cash Conversion | 81.36% | ||
| Profit Quality | 160.26% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.36 | ||
| Altman-Z | 2.11 |
F-Score6
WACC9.44%
ROIC/WACC0.67
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)12.5%
EPS 3Y-25.48%
EPS 5YN/A
EPS Q2Q%-17.5%
EPS Next Y-20.14%
EPS Next 2Y-7.77%
EPS Next 3Y-0.92%
EPS Next 5YN/A
Revenue 1Y (TTM)2.3%
Revenue growth 3Y-2.8%
Revenue growth 5Y-3.67%
Sales Q2Q%2.96%
Revenue Next Year3.02%
Revenue Next 2Y2.84%
Revenue Next 3Y2.38%
Revenue Next 5YN/A
EBIT growth 1Y-11.22%
EBIT growth 3Y-30.61%
EBIT growth 5YN/A
EBIT Next Year54.85%
EBIT Next 3Y17.89%
EBIT Next 5YN/A
FCF growth 1Y10.5%
FCF growth 3Y-28.72%
FCF growth 5Y22.37%
OCF growth 1Y-7.89%
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 5 / 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 decline by -20.14% in the next year.