Overall VNCE gets a fundamental rating of 4 out of 10. We evaluated VNCE against 45 industry peers in the Textiles, Apparel & Luxury Goods industry. VNCE may be in some trouble as it scores bad on both profitability and health. VNCE scores decently on growth, while it is valued quite cheap. This could make an interesting combination.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

VNCE had positive earnings in the past year.
In the past year VNCE had a positive cash flow from operations.
In the past 5 years VNCE reported 4 times negative net income.
In multiple years VNCE reported negative operating cash flow during the last 5 years.

1.2 Ratios

Looking at the Return On Assets, with a value of -7.00%, VNCE is doing worse than 75.56% of the companies in the same industry.
VNCE's Return On Equity of -33.96% is on the low side compared to the rest of the industry. VNCE is outperformed by 82.22% of its industry peers.
VNCE has a Return On Invested Capital of 4.28%. This is in the lower half of the industry: VNCE underperforms 62.22% of its industry peers.

		Industry Rank	Sector Rank
ROA	-7%
ROE	-33.96%
ROIC	4.28%

ROA(3y)-3.29%

ROA(5y)-6.67%

ROE(3y)-60.11%

ROE(5y)-60.43%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

Looking at the Operating Margin, with a value of 3.15%, VNCE is doing worse than 62.22% of the companies in the same industry.
VNCE's Operating Margin has improved in the last couple of years.
VNCE's Gross Margin of 50.20% is in line compared to the rest of the industry. VNCE outperforms 55.56% of its industry peers.
In the last couple of years the Gross Margin of VNCE has remained more or less at the same level.

		Industry Rank	Sector Rank
OM	3.15%
PM (TTM)	N/A
GM	50.2%

OM growth 3Y150.69%

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y2.88%

GM growth 5Y0.8%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VNCE is destroying value.
The number of shares outstanding for VNCE has been increased compared to 1 year ago.
VNCE has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, VNCE has an improved debt to assets ratio.

2.2 Solvency

VNCE has an Altman-Z score of -4.83. This is a bad value and indicates that VNCE is not financially healthy and even has some risk of bankruptcy.
VNCE's Altman-Z score of -4.83 is on the low side compared to the rest of the industry. VNCE is outperformed by 86.67% of its industry peers.
The Debt to FCF ratio of VNCE is 2.05, which is a good value as it means it would take VNCE, 2.05 years of fcf income to pay off all of its debts.
VNCE has a Debt to FCF ratio of 2.05. This is amongst the best in the industry. VNCE outperforms 82.22% of its industry peers.
A Debt/Equity ratio of 0.63 indicates that VNCE is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.63, VNCE is not doing good in the industry: 68.89% of the companies in the same industry are doing better.
Even though the debt/equity ratio score it not favorable for VNCE, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.

		Industry Rank	Sector Rank
Debt/Equity	0.63
Debt/FCF	2.05
Altman-Z	-4.83

ROIC/WACC0.41

WACC10.37%

2.3 Liquidity

A Current Ratio of 1.61 indicates that VNCE should not have too much problems paying its short term obligations.
The Current ratio of VNCE (1.61) is worse than 64.44% of its industry peers.
VNCE has a Quick Ratio of 1.61. This is a bad value and indicates that VNCE is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.51, VNCE is doing worse than 95.56% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.61
Quick Ratio	0.51

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 47.37% over the past year.
Measured over the past years, VNCE shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.75% on average per year.
Looking at the last year, VNCE shows a small growth in Revenue. The Revenue has grown by 0.19% in the last year.
Measured over the past years, VNCE shows a decrease in Revenue. The Revenue has been decreasing by -4.80% on average per year.

EPS 1Y (TTM)47.37%

EPS 3YN/A

EPS 5Y-3.75%

EPS Q2Q%-38.24%

Revenue 1Y (TTM)0.19%

Revenue growth 3Y-3.12%

Revenue growth 5Y-4.8%

Sales Q2Q%6.19%

3.2 Future

The Earnings Per Share is expected to grow by 31.07% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 4.25% on average over the next years.

EPS Next Y28.84%

EPS Next 2Y31.07%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next Year4.6%

Revenue Next 2Y4.25%

Revenue Next 3YN/A

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.
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.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 9.29, which indicates a very decent valuation of VNCE.
VNCE's Price/Earnings ratio is rather cheap when compared to the industry. VNCE is cheaper than 86.67% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.25. VNCE is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 7.97, the valuation of VNCE can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VNCE indicates a rather cheap valuation: VNCE is cheaper than 93.33% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of VNCE to the average of the S&P500 Index (25.98), we can say VNCE is valued rather cheaply.

		Industry Rank	Sector Rank
PE	9.29
Fwd PE	7.97

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, VNCE is valued cheaply inside the industry as 91.11% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, VNCE is valued cheaper than 100.00% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	2.22
EV/EBITDA	5.09

4.3 Compensation for Growth

The 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 VNCE's earnings are expected to grow with 31.07% in the coming years.