VICTORIA'S SECRET & CO (VSCO) Stock Fundamental Analysis
USA - NYSE:VSCO - US9264001028 - Common Stock
26.29 USD
-1.41 (-5.09%)
26.33 USD
+0.04 (+0.15%)
VSCO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 121 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 is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
VSCO had positive earnings in the past year.
VSCO had a positive operating cash flow in the past year.
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
The Return On Assets of VSCO (3.18%) is better than 61.16% of its industry peers.
With an excellent Return On Equity value of 22.21%, VSCO belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
With a decent Return On Invested Capital value of 6.31%, VSCO is doing good in the industry, outperforming 64.46% of the companies in the same industry.
VSCO had an Average Return On Invested Capital over the past 3 years of 9.17%. This is below the industry average of 12.11%.
| 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's Profit Margin of 2.41% is fine compared to the rest of the industry. VSCO outperforms 65.29% of its industry peers.
In the last couple of years the Profit Margin of VSCO has declined.
VSCO has a better Operating Margin (4.42%) than 65.29% of its industry peers.
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
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
VSCO has an Altman-Z score of 1.97. 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 (1.97) which is comparable to the rest of the industry.
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 better Debt to FCF ratio (4.35) than 67.77% 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 has a worse Debt to Equity ratio (1.54) than 67.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | 4.35 | ||
| Altman-Z | 1.97 |
ROIC/WACC0.65
WACC9.75%
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 worse Current ratio (1.14) than 66.12% of its industry peers.
VSCO has a Quick Ratio of 1.14. 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 (0.36) than 66.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.36 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.50% over the past year.
VSCO shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -25.48% yearly.
The Revenue has been growing slightly by 2.30% in the past year.
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)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
Based on estimates for the next years, VSCO will show a decrease in Earnings Per Share. The EPS will decrease by -0.48% on average per year.
The Revenue is expected to grow by 2.25% on average over the next years.
EPS Next Y-25.84%
EPS Next 2Y-9.84%
EPS Next 3Y-0.48%
EPS Next 5YN/A
Revenue Next Year2.16%
Revenue Next 2Y2.3%
Revenue Next 3Y2.25%
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
A Price/Earnings ratio of 10.43 indicates a reasonable valuation of VSCO.
Based on the Price/Earnings ratio, VSCO is valued cheaply inside the industry as 85.12% of the companies are valued more expensively.
VSCO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.20.
Based on the Price/Forward Earnings ratio of 12.34, the valuation of VSCO can be described as correct.
VSCO's Price/Forward Earnings ratio is rather cheap when compared to the industry. VSCO is cheaper than 80.17% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of VSCO to the average of the S&P500 Index (22.71), we can say VSCO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.43 | ||
| Fwd PE | 12.34 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VSCO is valued cheaper than 86.78% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VSCO is valued cheaper than 90.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.71 | ||
| EV/EBITDA | 5.6 |
4.3 Compensation for Growth
The decent profitability rating of VSCO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-9.84%
EPS Next 3Y-0.48%
5. Dividend
5.1 Amount
No dividends for VSCO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
26.29
-1.41 (-5.09%)
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 Change0.36%
Market Cap2.11B
Analysts53.33
Price Target23.91 (-9.05%)
Short Float %16.84%
Short Ratio3.63
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)7.83%
PT rev (3m)-6.03%
EPS NQ rev (1m)-10.22%
EPS NQ rev (3m)-13.95%
EPS NY rev (1m)-5.69%
EPS NY rev (3m)-12.5%
Revenue NQ rev (1m)2.53%
Revenue NQ rev (3m)2.3%
Revenue NY rev (1m)1.52%
Revenue NY rev (3m)1.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.43 | ||
| Fwd PE | 12.34 | ||
| P/S | 0.34 | ||
| P/FCF | 8.71 | ||
| P/OCF | 4.88 | ||
| P/B | 3.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.6 |
EPS(TTM)2.52
EY9.59%
EPS(NY)2.13
Fwd EY8.1%
FCF(TTM)3.02
FCFY11.48%
OCF(TTM)5.39
OCFY20.5%
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 | 1.97 |
F-Score6
WACC9.75%
ROIC/WACC0.65
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-25.84%
EPS Next 2Y-9.84%
EPS Next 3Y-0.48%
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 Year2.16%
Revenue Next 2Y2.3%
Revenue Next 3Y2.25%
Revenue Next 5YN/A
EBIT growth 1Y-11.22%
EBIT growth 3Y-30.61%
EBIT growth 5YN/A
EBIT Next Year50.28%
EBIT Next 3Y17.61%
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%