VICTORIA'S SECRET & CO (VSCO) Stock Fundamental Analysis
USA - NYSE:VSCO - US9264001028 - Common Stock
28.47 USD
-0.73 (-2.5%)
28.2448 USD
-0.23 (-0.79%)
Taking everything into account, VSCO scores 4 out of 10 in our fundamental rating. VSCO was compared to 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 valuation in line with the averages, but on the other hand it scores bad on growth.
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.
VSCO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 3.18%, VSCO is doing good in the industry, outperforming 62.30% of the companies in the same industry.
VSCO has a Return On Equity of 22.21%. This is amongst the best in the industry. VSCO outperforms 82.79% of its industry peers.
With a decent Return On Invested Capital value of 6.31%, VSCO is doing good in the industry, outperforming 65.57% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for VSCO is below the industry average of 11.64%.
| 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
Looking at the Profit Margin, with a value of 2.41%, VSCO is in the better half of the industry, outperforming 65.57% of the companies in the same industry.
In the last couple of years the Profit Margin of VSCO has declined.
VSCO has a better Operating Margin (4.42%) than 64.75% of its industry peers.
VSCO's Operating Margin has declined in the last couple of years.
VSCO's Gross Margin of 35.99% is in line compared to the rest of the industry. VSCO outperforms 49.18% of its industry peers.
In the last couple of years the Gross Margin of VSCO has grown nicely.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
Compared to 1 year ago, VSCO has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.01 indicates that VSCO is not a great score, but indicates only limited risk for bankruptcy at the moment.
VSCO has a Altman-Z score (2.01) which is in line with its industry peers.
VSCO has a debt to FCF ratio of 4.35. This is a neutral value as VSCO would need 4.35 years to pay back of all of its debts.
VSCO has a Debt to FCF ratio of 4.35. This is in the better half of the industry: VSCO outperforms 65.57% of its industry peers.
A Debt/Equity ratio of 1.54 is on the high side and indicates that VSCO has dependencies on debt financing.
VSCO's Debt to Equity ratio of 1.54 is on the low side compared to the rest of the industry. VSCO is outperformed by 67.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | 4.35 | ||
| Altman-Z | 2.01 |
ROIC/WACC0.66
WACC9.61%
2.3 Liquidity
A Current Ratio of 1.14 indicates that VSCO should not have too much problems paying its short term obligations.
VSCO has a Current ratio of 1.14. This is in the lower half of the industry: VSCO underperforms 65.57% of its industry peers.
A Quick Ratio of 0.36 indicates that VSCO may have some problems paying its short term obligations.
The Quick ratio of VSCO (0.36) is worse than 65.57% of its industry peers.
| 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.
The earnings per share for VSCO have been decreasing by -25.48% on average. This is quite bad
The Revenue has been growing slightly by 2.30% in the past year.
VSCO shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.67% yearly.
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
The Earnings Per Share is expected to decrease by -0.10% on average over the next years.
The Revenue is expected to grow by 2.65% on average over the next years.
EPS Next Y-20.27%
EPS Next 2Y-8%
EPS Next 3Y-0.1%
EPS Next 5YN/A
Revenue Next Year2.98%
Revenue Next 2Y2.83%
Revenue Next 3Y2.65%
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
A Price/Earnings ratio of 11.30 indicates a reasonable valuation of VSCO.
Compared to the rest of the industry, the Price/Earnings ratio of VSCO indicates a rather cheap valuation: VSCO is cheaper than 82.79% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.76. VSCO is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 12.84, VSCO is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VSCO indicates a somewhat cheap valuation: VSCO is cheaper than 74.59% of the companies listed in the same industry.
VSCO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.3 | ||
| Fwd PE | 12.84 |
4.2 Price Multiples
81.15% of the companies in the same industry are more expensive than VSCO, based on the Enterprise Value to EBITDA ratio.
88.52% of the companies in the same industry are more expensive than VSCO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.43 | ||
| EV/EBITDA | 6.04 |
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-8%
EPS Next 3Y-0.1%
5. Dividend
5.1 Amount
No dividends for VSCO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
28.47
-0.73 (-2.5%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners92.02%
Inst Owner Change0%
Ins Owners0.96%
Ins Owner Change0.12%
Market Cap2.28B
Analysts53.33
Price Target23.91 (-16.02%)
Short Float %17.96%
Short Ratio4.09
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)5.5%
PT rev (3m)3.39%
EPS NQ rev (1m)-1.3%
EPS NQ rev (3m)-15.17%
EPS NY rev (1m)7.5%
EPS NY rev (3m)0.72%
Revenue NQ rev (1m)0.35%
Revenue NQ rev (3m)2.96%
Revenue NY rev (1m)2.23%
Revenue NY rev (3m)2.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.3 | ||
| Fwd PE | 12.84 | ||
| P/S | 0.36 | ||
| P/FCF | 9.43 | ||
| P/OCF | 5.28 | ||
| P/B | 3.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.04 |
EPS(TTM)2.52
EY8.85%
EPS(NY)2.22
Fwd EY7.79%
FCF(TTM)3.02
FCFY10.6%
OCF(TTM)5.39
OCFY18.93%
SpS78.16
BVpS8.48
TBVpS-0.62
PEG (NY)N/A
PEG (5Y)N/A
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
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 Turnover1.32
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 | 2.01 |
F-Score6
WACC9.61%
ROIC/WACC0.66
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-20.27%
EPS Next 2Y-8%
EPS Next 3Y-0.1%
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 Year2.98%
Revenue Next 2Y2.83%
Revenue Next 3Y2.65%
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%