VICTORIA'S SECRET & CO (VSCO) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:VSCO • US9264001028
56.46 USD
+1.95 (+3.58%)
Last: Feb 2, 2026, 01:55 PM
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 correct valuation and a medium growth rate.
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.
- In the past 5 years VSCO always reported a positive cash flow from operatings.
1.2 Ratios
- VSCO's Return On Assets of 3.31% is fine compared to the rest of the industry. VSCO outperforms 60.33% of its industry peers.
- VSCO's Return On Equity of 26.03% is amongst the best of the industry. VSCO outperforms 84.30% of its industry peers.
- The Return On Invested Capital of VSCO (6.85%) is better than 64.46% of its industry peers.
- VSCO had an Average Return On Invested Capital over the past 3 years of 9.17%. This is below the industry average of 12.28%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.31% | ||
| ROE | 26.03% | ||
| ROIC | 6.85% |
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 (2.66%) than 66.94% of its industry peers.
- In the last couple of years the Profit Margin of VSCO has declined.
- VSCO has a better Operating Margin (5.02%) than 66.12% of its industry peers.
- VSCO's Operating Margin has declined in the last couple of years.
- VSCO has a Gross Margin of 36.40%. This is comparable to the rest of the industry: VSCO outperforms 49.59% of its industry peers.
- In the last couple of years the Gross Margin of VSCO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.02% | ||
| PM (TTM) | 2.66% | ||
| GM | 36.4% |
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
- VSCO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for VSCO has been increased compared to 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
- An Altman-Z score of 2.23 indicates that VSCO is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With a Altman-Z score value of 2.23, VSCO perfoms like the industry average, outperforming 48.76% of the companies in the same industry.
- VSCO has a debt to FCF ratio of 4.37. This is a neutral value as VSCO would need 4.37 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 4.37, VSCO is in the better half of the industry, outperforming 67.77% of the companies in the same industry.
- A Debt/Equity ratio of 2.06 is on the high side and indicates that VSCO has dependencies on debt financing.
- VSCO's Debt to Equity ratio of 2.06 is on the low side compared to the rest of the industry. VSCO is outperformed by 67.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.06 | ||
| Debt/FCF | 4.37 | ||
| Altman-Z | 2.23 |
ROIC/WACC0.7
WACC9.81%
2.3 Liquidity
- VSCO has a Current Ratio of 1.30. This is a normal value and indicates that VSCO is financially healthy and should not expect problems in meeting its short term obligations.
- VSCO has a Current ratio (1.30) which is comparable to the rest of the industry.
- A Quick Ratio of 0.38 indicates that VSCO may have some problems paying its short term obligations.
- With a Quick ratio value of 0.38, VSCO is not doing good in the industry: 61.16% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.38 |
3. Growth
3.1 Past
- VSCO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.77%.
- The earnings per share for VSCO have been decreasing by -25.48% on average. This is quite bad
- VSCO shows a small growth in Revenue. In the last year, the Revenue has grown by 2.96%.
- 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)5.77%
EPS 3Y-25.48%
EPS 5YN/A
EPS Q2Q%46%
Revenue 1Y (TTM)2.96%
Revenue growth 3Y-2.8%
Revenue growth 5Y-3.67%
Sales Q2Q%9.21%
3.2 Future
- Based on estimates for the next years, VSCO will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.81% on average per year.
- VSCO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.09% yearly.
EPS Next Y5.11%
EPS Next 2Y10%
EPS Next 3Y11.81%
EPS Next 5YN/A
Revenue Next Year5.7%
Revenue Next 2Y4.77%
Revenue Next 3Y4.09%
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
- The Price/Earnings ratio is 20.53, which indicates a rather expensive current valuation of VSCO.
- Compared to the rest of the industry, the Price/Earnings ratio of VSCO indicates a somewhat cheap valuation: VSCO is cheaper than 74.38% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.32, VSCO is valued a bit cheaper.
- The Price/Forward Earnings ratio is 17.81, which indicates a rather expensive current valuation of VSCO.
- VSCO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. VSCO is cheaper than 67.77% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of VSCO to the average of the S&P500 Index (25.57), we can say VSCO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.53 | ||
| Fwd PE | 17.81 |
4.2 Price Multiples
- VSCO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. VSCO is cheaper than 63.64% of the companies in the same industry.
- 76.03% 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 | 14.65 | ||
| EV/EBITDA | 9.57 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates VSCO does not grow enough to justify the current Price/Earnings ratio.
- VSCO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.01
PEG (5Y)N/A
EPS Next 2Y10%
EPS Next 3Y11.81%
5. Dividend
5.1 Amount
- VSCO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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 for VSCO stock?
ChartMill assigns a valuation rating of 4 / 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.
How financially healthy is VICTORIA'S SECRET & CO?
The financial health rating of VICTORIA'S SECRET & CO (VSCO) is 3 / 10.
Can you provide the expected EPS growth for VSCO stock?
The Earnings per Share (EPS) of VICTORIA'S SECRET & CO (VSCO) is expected to grow by 5.11% in the next year.