In a market where value is scarce, NYSE:VSTO offers a refreshing opportunity with its solid fundamentals.

Last update: Dec 2, 2024

Our stock screening tool has identified Vista Outdoor Inc (NYSE:VSTO) as an undervalued gem with strong fundamentals. NYSE:VSTO boasts decent financial health and profitability while maintaining an attractive price point. We'll break it down further.

Unpacking NYSE:VSTO's Valuation Rating

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:VSTO scores a 8 out of 10:

A Price/Earnings ratio of 11.56 indicates a reasonable valuation of VSTO.
Based on the Price/Earnings ratio, VSTO is valued cheaper than 90.32% of the companies in the same industry.
VSTO is valuated cheaply when we compare the Price/Earnings ratio to 29.78, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 9.06, the valuation of VSTO can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VSTO indicates a rather cheap valuation: VSTO is cheaper than 90.32% of the companies listed in the same industry.
VSTO is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.23, which is the current average of the S&P500 Index.
VSTO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. VSTO is cheaper than 77.42% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VSTO is valued cheaply inside the industry as 93.55% of the companies are valued more expensively.
VSTO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of VSTO may justify a higher PE ratio.

Profitability Examination for NYSE:VSTO

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:VSTO was assigned a score of 6 for profitability:

VSTO's Return On Invested Capital of 9.38% is fine compared to the rest of the industry. VSTO outperforms 77.42% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VSTO is significantly above the industry average of 8.23%.
The last Return On Invested Capital (9.38%) for VSTO is well below the 3 year average (17.20%), which needs to be investigated, but indicates that VSTO had better years and this may not be a problem.
VSTO has a Operating Margin of 8.75%. This is in the better half of the industry: VSTO outperforms 77.42% of its industry peers.
In the last couple of years the Operating Margin of VSTO has grown nicely.
In the last couple of years the Gross Margin of VSTO has grown nicely.

Analyzing Health Metrics

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:VSTO scores a 7 out of 10:

An Altman-Z score of 3.15 indicates that VSTO is not in any danger for bankruptcy at the moment.
VSTO has a better Altman-Z score (3.15) than 61.29% of its industry peers.
VSTO has a debt to FCF ratio of 1.70. This is a very positive value and a sign of high solvency as it would only need 1.70 years to pay back of all of its debts.
VSTO has a better Debt to FCF ratio (1.70) than 74.19% of its industry peers.
A Debt/Equity ratio of 0.48 indicates that VSTO is not too dependend on debt financing.
VSTO has a Current Ratio of 2.90. This indicates that VSTO is financially healthy and has no problem in meeting its short term obligations.
VSTO's Current ratio of 2.90 is fine compared to the rest of the industry. VSTO outperforms 61.29% of its industry peers.

Understanding NYSE:VSTO's Growth Score

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:VSTO boasts a 4 out of 10:

VSTO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 91.86% yearly.
The Earnings Per Share is expected to grow by 11.99% on average over the next years. This is quite good.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of VSTO

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.