VISTA OUTDOOR INC (VSTO)
US9283771007 - Common Stock
We assign a fundamental rating of 5 out of 10 to VSTO. VSTO was compared to 32 industry peers in the Leisure Products industry. VSTO has an average financial health and profitability rating. VSTO is valued quite cheap, but it does not seem to be growing. These ratings would make VSTO suitable for value investing!
1. Profitability
1.1 Basic Checks
VSTO had positive earnings in the past year.
In the past year VSTO had a positive cash flow from operations.
In multiple years VSTO reported negative net income over the last 5 years.
VSTO had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -13.86%, VSTO is doing worse than 62.50% of the companies in the same industry.
VSTO's Return On Equity of -31.40% is on the low side compared to the rest of the industry. VSTO is outperformed by 65.63% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.89%, VSTO is in the better half of the industry, outperforming 78.13% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for VSTO is significantly above the industry average of 10.50%.
The last Return On Invested Capital (10.89%) for VSTO is well below the 3 year average (18.76%), which needs to be investigated, but indicates that VSTO had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -13.86% | ||
| ROE | -31.4% | ||
| ROIC | 10.89% |
ROA(3y)11.49%
ROA(5y)-2.8%
ROE(3y)25.77%
ROE(5y)-12.84%
ROIC(3y)18.76%
ROIC(5y)11.84%
1.3 Margins
VSTO has a Operating Margin of 9.94%. This is in the better half of the industry: VSTO outperforms 78.13% of its industry peers.
VSTO's Operating Margin has improved in the last couple of years.
The Gross Margin of VSTO (31.30%) is comparable to the rest of the industry.
VSTO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.94% | ||
| PM (TTM) | N/A | ||
| GM | 31.3% |
OM growth 3Y98.21%
OM growth 5Y38.13%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y17.88%
GM growth 5Y8.2%
2. Health
2.1 Basic Checks
VSTO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
There is no outstanding debt for VSTO. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
VSTO has an Altman-Z score of 2.58. This is not the best score and indicates that VSTO is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of VSTO (2.58) is comparable to the rest of the industry.
VSTO has a debt to FCF ratio of 2.15. This is a good value and a sign of high solvency as VSTO would need 2.15 years to pay back of all of its debts.
VSTO's Debt to FCF ratio of 2.15 is fine compared to the rest of the industry. VSTO outperforms 62.50% of its industry peers.
VSTO has a Debt/Equity ratio of 0.71. This is a neutral value indicating VSTO is somewhat dependend on debt financing.
VSTO has a worse Debt to Equity ratio (0.71) than 62.50% of its industry peers.
Although VSTO does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 2.15 | ||
| Altman-Z | 2.58 |
ROIC/WACC1.42
WACC7.67%
2.3 Liquidity
VSTO has a Current Ratio of 2.58. This indicates that VSTO is financially healthy and has no problem in meeting its short term obligations.
VSTO has a Current ratio (2.58) which is comparable to the rest of the industry.
A Quick Ratio of 1.09 indicates that VSTO should not have too much problems paying its short term obligations.
The Quick ratio of VSTO (1.09) is worse than 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.58 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
VSTO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -39.06%.
The Earnings Per Share has been growing by 91.86% on average over the past years. This is a very strong growth
EPS 1Y (TTM)-39.06%
EPS 3Y2.14%
EPS 5Y91.86%
EPS growth Q2Q-5.56%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Revenue growth Q2Q-6.35%
3.2 Future
Based on estimates for the next years, VSTO will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.97% on average per year.
Based on estimates for the next years, VSTO will show a small growth in Revenue. The Revenue will grow by 2.79% on average per year.
EPS Next Y16.91%
EPS Next 2Y12.97%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.6%
Revenue Next 2Y2.79%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.86, the valuation of VSTO can be described as very reasonable.
VSTO's Price/Earnings ratio is rather cheap when compared to the industry. VSTO is cheaper than 84.38% of the companies in the same industry.
VSTO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.15.
A Price/Forward Earnings ratio of 7.58 indicates a rather cheap valuation of VSTO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VSTO indicates a rather cheap valuation: VSTO is cheaper than 87.50% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.20. VSTO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.86 | ||
| Fwd PE | 7.58 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VSTO is valued cheaper than 81.25% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VSTO is valued cheaply inside the industry as 90.63% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.21 | ||
| EV/EBITDA | 7.38 |
4.3 Compensation for Growth
VSTO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as VSTO's earnings are expected to grow with 12.97% in the coming years.
PEG (NY)0.52
PEG (5Y)0.1
EPS Next 2Y12.97%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for VSTO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
VISTA OUTDOOR INC
NYSE:VSTO (5/17/2024, 7:04:00 PM)
After market: 34.54 0 (0%)34.54
-0.05 (-0.14%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.01B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.86 | ||
| Fwd PE | 7.58 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.52
PEG (5Y)0.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -13.86% | ||
| ROE | -31.4% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.94% | ||
| PM (TTM) | N/A | ||
| GM | 31.3% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
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 Turnover1.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.58 | ||
| Quick Ratio | 1.09 | ||
| 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)-39.06%
EPS 3Y2.14%
EPS 5Y
EPS growth Q2Q
EPS Next Y16.91%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y