VICTORIA'S SECRET & CO (VSCO)
US9264001028 - Common Stock
Taking everything into account, VSCO scores 4 out of 10 in our fundamental rating. VSCO was compared to 126 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.
In multiple years VSCO reported negative net income over the last 5 years.
Each year in the past 5 years VSCO had a positive operating cash flow.
1.2 Ratios
VSCO has a Return On Assets of 2.39%. This is comparable to the rest of the industry: VSCO outperforms 57.94% of its industry peers.
Looking at the Return On Equity, with a value of 26.38%, VSCO belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
The Return On Invested Capital of VSCO (8.44%) is better than 65.87% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VSCO is in line with the industry average of 14.01%.
The 3 year average ROIC (15.85%) for VSCO is well above the current ROIC(8.44%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.39% | ||
| ROE | 26.38% | ||
| ROIC | 8.44% |
ROA(3y)8.21%
ROA(5y)1.18%
ROE(3y)122.79%
ROE(5y)58.38%
ROIC(3y)15.85%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 1.78%, VSCO is in line with its industry, outperforming 57.94% of the companies in the same industry.
In the last couple of years the Profit Margin of VSCO has declined.
VSCO has a Operating Margin of 5.10%. This is in the better half of the industry: VSCO outperforms 62.70% of its industry peers.
In the last couple of years the Operating Margin of VSCO has remained more or less at the same level.
VSCO's Gross Margin of 36.80% is in line compared to the rest of the industry. VSCO outperforms 51.59% of its industry peers.
In the last couple of years the Gross Margin of VSCO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.1% | ||
| PM (TTM) | 1.78% | ||
| GM | 36.8% |
OM growth 3YN/A
OM growth 5Y-0.21%
PM growth 3YN/A
PM growth 5Y-10.66%
GM growth 3Y8.22%
GM growth 5Y2.08%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so VSCO is still creating some value.
The number of shares outstanding for VSCO has been reduced compared to 1 year 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 1.80. This is a bad value and indicates that VSCO is not financially healthy and even has some risk of bankruptcy.
VSCO has a Altman-Z score of 1.80. This is in the lower half of the industry: VSCO underperforms 68.25% of its industry peers.
The Debt to FCF ratio of VSCO is 8.45, which is on the high side as it means it would take VSCO, 8.45 years of fcf income to pay off all of its debts.
VSCO's Debt to FCF ratio of 8.45 is in line compared to the rest of the industry. VSCO outperforms 53.17% of its industry peers.
A Debt/Equity ratio of 2.69 is on the high side and indicates that VSCO has dependencies on debt financing.
The Debt to Equity ratio of VSCO (2.69) is worse than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.69 | ||
| Debt/FCF | 8.45 | ||
| Altman-Z | 1.8 |
ROIC/WACC0.92
WACC9.2%
2.3 Liquidity
VSCO has a Current Ratio of 0.95. This is a bad value and indicates that VSCO is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.95, VSCO is doing worse than 84.92% of the companies in the same industry.
A Quick Ratio of 0.34 indicates that VSCO may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.34, VSCO is doing worse than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.34 |
3. Growth
3.1 Past
The earnings per share for VSCO have decreased strongly by -54.84% in the last year.
Measured over the past years, VSCO shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -12.63% on average per year.
Looking at the last year, VSCO shows a decrease in Revenue. The Revenue has decreased by -2.55% in the last year.
VSCO shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -5.27% yearly.
EPS 1Y (TTM)-54.84%
EPS 3YN/A
EPS 5Y-12.63%
EPS growth Q2Q4.45%
Revenue 1Y (TTM)-2.55%
Revenue growth 3Y4.53%
Revenue growth 5Y-5.27%
Revenue growth Q2Q3.07%
3.2 Future
VSCO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.36% yearly.
VSCO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.95% yearly.
EPS Next Y-25.53%
EPS Next 2Y-3.16%
EPS Next 3Y7.36%
EPS Next 5YN/A
Revenue Next Year-3.4%
Revenue Next 2Y-0.71%
Revenue Next 3Y0.95%
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
The Price/Earnings ratio is 7.80, which indicates a rather cheap 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 93.65% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.55, VSCO is valued rather cheaply.
A Price/Forward Earnings ratio of 10.47 indicates a reasonable valuation of VSCO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VSCO indicates a rather cheap valuation: VSCO is cheaper than 80.95% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.92, VSCO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.8 | ||
| Fwd PE | 10.47 |
4.2 Price Multiples
95.24% 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 80.16% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.19 | ||
| EV/EBITDA | 3.71 |
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-3.16%
EPS Next 3Y7.36%
5. Dividend
5.1 Amount
No dividends for VSCO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
VICTORIA'S SECRET & CO
NYSE:VSCO (5/1/2024, 7:04:00 PM)
After market: 17.51 +0.04 (+0.23%)17.47
-0.15 (-0.85%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
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Market Cap1.36B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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EPS beat(2)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.8 | ||
| Fwd PE | 10.47 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
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EPS(NY)
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SpS
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PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.39% | ||
| ROE | 26.38% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.1% | ||
| PM (TTM) | 1.78% | ||
| GM | 36.8% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
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ROCE(5y)
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ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.69 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.34 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-54.84%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-25.53%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.55%
Revenue growth 3Y4.53%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
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Revenue Next 3Y
Revenue Next 5Y
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