VICTORIA'S SECRET & CO (VSCO) Stock Fundamental Analysis
USA - NYSE:VSCO - US9264001028 - Common Stock
36.01 USD
+0.76 (+2.16%)
35.8 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. VSCO has a medium profitability rating, but doesn't score so well on its financial health evaluation. VSCO has a valuation in line with the averages, 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.
VSCO had positive earnings in 4 of the past 5 years.
In the past 5 years VSCO always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of VSCO (3.18%) is better than 60.33% of its industry peers.
VSCO's Return On Equity of 22.21% is amongst the best of the industry. VSCO outperforms 81.82% of its industry peers.
VSCO's Return On Invested Capital of 6.31% is fine compared to the rest of the industry. VSCO outperforms 62.81% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital 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 better Profit Margin (2.41%) than 65.29% of its industry peers.
In the last couple of years the Profit Margin of VSCO has declined.
The Operating Margin of VSCO (4.42%) is better than 63.64% of its industry peers.
VSCO's Operating Margin has declined in the last couple of years.
VSCO has a Gross Margin (35.99%) which 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 | 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.
VSCO has more shares outstanding than it did 1 year ago.
VSCO has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, VSCO has an improved debt to assets ratio.
2.2 Solvency
VSCO has an Altman-Z score of 2.08. 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 of 2.08. This is comparable to the rest of the industry: VSCO outperforms 47.11% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 4.35, VSCO is in the better half of the industry, outperforming 66.94% of the companies in the same industry.
VSCO has a Debt/Equity ratio of 1.54. This is a high value indicating a heavy dependency on external 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 66.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | 4.35 | ||
| Altman-Z | 2.08 |
ROIC/WACC0.67
WACC9.36%
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.
The Current ratio of VSCO (1.14) is worse than 65.29% of its industry peers.
A Quick Ratio of 0.36 indicates that VSCO may have some problems paying its short term obligations.
VSCO has a Quick ratio of 0.36. This is in the lower half of the industry: VSCO underperforms 66.12% 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.
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 2.30%.
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
The Earnings Per Share is expected to decrease by -0.92% on average over the next years.
The Revenue is expected to grow by 2.38% on average over the next years.
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.
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 14.29 indicates a correct valuation of VSCO.
Based on the Price/Earnings ratio, VSCO is valued a bit cheaper than 76.86% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.51. VSCO is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 16.16 indicates a correct valuation of VSCO.
Based on the Price/Forward Earnings ratio, VSCO is valued a bit cheaper than 65.29% 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 22.53.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.29 | ||
| Fwd PE | 16.16 |
4.2 Price Multiples
72.73% of the companies in the same industry are more expensive than VSCO, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VSCO indicates a rather cheap valuation: VSCO is cheaper than 82.64% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.93 | ||
| EV/EBITDA | 6.95 |
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 |
36.01
+0.76 (+2.16%)
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 Cap2.89B
Revenue(TTM)6.26B
Net Income(TTM)151.00M
Analysts53.33
Price Target27.44 (-23.8%)
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 | 14.29 | ||
| Fwd PE | 16.16 | ||
| P/S | 0.46 | ||
| P/FCF | 11.93 | ||
| P/OCF | 6.68 | ||
| P/B | 4.24 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.95 |
EPS(TTM)2.52
EY7%
EPS(NY)2.23
Fwd EY6.19%
FCF(TTM)3.02
FCFY8.38%
OCF(TTM)5.39
OCFY14.97%
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 | 2.08 |
F-Score6
WACC9.36%
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.