VINCE HOLDING CORP (VNCE) Stock Fundamental Analysis
USA - NYSE:VNCE - US92719W2070 - Common Stock
2.66 USD
-0.2 (-6.99%)
2.67 USD
+0.01 (+0.38%)
We assign a fundamental rating of 3 out of 10 to VNCE. VNCE was compared to 48 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.
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.
The reported operating cash flow has been mixed in the past 5 years: VNCE reported negative operating cash flow in multiple years.
1.2 Ratios
VNCE has a Return On Assets of -7.00%. This is in the lower half of the industry: VNCE underperforms 75.00% of its industry peers.
With a Return On Equity value of -33.96%, VNCE is not doing good in the industry: 81.25% of the companies in the same industry are doing better.
VNCE's Return On Invested Capital of 4.28% is on the low side compared to the rest of the industry. VNCE is outperformed by 68.75% 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
VNCE has a Operating Margin of 3.15%. This is in the lower half of the industry: VNCE underperforms 64.58% of its industry peers.
In the last couple of years the Operating Margin of VNCE has grown nicely.
The Gross Margin of VNCE (50.20%) is comparable to the rest of the industry.
VNCE's Gross Margin has been stable in the last couple of years.
| 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%
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.
Compared to 5 years ago, VNCE has more shares outstanding
The debt/assets ratio for VNCE has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -4.82, we must say that VNCE is in the distress zone and has some risk of bankruptcy.
VNCE has a worse Altman-Z score (-4.82) than 87.50% of its industry peers.
VNCE has a debt to FCF ratio of 2.05. This is a good value and a sign of high solvency as VNCE would need 2.05 years to pay back of all of its debts.
VNCE's Debt to FCF ratio of 2.05 is amongst the best of the industry. VNCE outperforms 83.33% 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: 64.58% of the companies in the same industry are doing better.
Although VNCE 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 | 0.63 | ||
| Debt/FCF | 2.05 | ||
| Altman-Z | -4.82 |
ROIC/WACC0.44
WACC9.72%
2.3 Liquidity
A Current Ratio of 1.61 indicates that VNCE should not have too much problems paying its short term obligations.
With a Current ratio value of 1.61, VNCE is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
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.
With a Quick ratio value of 0.51, VNCE is not doing good in the industry: 95.83% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 115.79% 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 decrease in Revenue. The Revenue has decreased by -0.49% 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)115.79%
EPS 3YN/A
EPS 5Y-3.75%
EPS Q2Q%660%
Revenue 1Y (TTM)-0.49%
Revenue growth 3Y-3.12%
Revenue growth 5Y-4.8%
Sales Q2Q%-1.25%
3.2 Future
Based on estimates for the next years, VNCE will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.14% on average per year.
VNCE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.40% yearly.
EPS Next Y-94.63%
EPS Next 2Y18.14%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.91%
Revenue Next 2Y3.4%
Revenue Next 3YN/A
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.
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
With a Price/Earnings ratio of 6.49, the valuation of VNCE can be described as very cheap.
VNCE's Price/Earnings ratio is rather cheap when compared to the industry. VNCE is cheaper than 87.50% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.35, VNCE is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.03, the valuation of VNCE can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VNCE indicates a rather cheap valuation: VNCE is cheaper than 83.33% of the companies listed in the same industry.
VNCE is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.49 | ||
| Fwd PE | 10.03 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VNCE is valued cheaply inside the industry as 85.42% of the companies are valued more expensively.
100.00% of the companies in the same industry are more expensive than VNCE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.27 | ||
| EV/EBITDA | 5.32 |
4.3 Compensation for Growth
A more expensive valuation may be justified as VNCE's earnings are expected to grow with 18.14% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y18.14%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for VNCE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
2.66
-0.2 (-6.99%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners6.94%
Inst Owner Change0%
Ins Owners3.06%
Ins Owner Change-0.1%
Market Cap34.50M
Analysts82.5
Price Target4.34 (63.16%)
Short Float %18.8%
Short Ratio0.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)243.09%
Min EPS beat(2)13.63%
Max EPS beat(2)472.55%
EPS beat(4)4
Avg EPS beat(4)163.07%
Min EPS beat(4)4.17%
Max EPS beat(4)472.55%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-0.13%
Min Revenue beat(2)-1.48%
Max Revenue beat(2)1.21%
Revenue beat(4)2
Avg Revenue beat(4)0.67%
Min Revenue beat(4)-4.1%
Max Revenue beat(4)7.04%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)30.77%
PT rev (3m)30.77%
EPS NQ rev (1m)-31.58%
EPS NQ rev (3m)-31.58%
EPS NY rev (1m)102.5%
EPS NY rev (3m)102.5%
Revenue NQ rev (1m)-1.29%
Revenue NQ rev (3m)-1.29%
Revenue NY rev (1m)-0.44%
Revenue NY rev (3m)-0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.49 | ||
| Fwd PE | 10.03 | ||
| P/S | 0.12 | ||
| P/FCF | 2.27 | ||
| P/OCF | 1.6 | ||
| P/B | 0.7 | ||
| P/tB | 0.7 | ||
| EV/EBITDA | 5.32 |
EPS(TTM)0.41
EY15.41%
EPS(NY)0.27
Fwd EY9.97%
FCF(TTM)1.17
FCFY43.99%
OCF(TTM)1.66
OCFY62.37%
SpS22.46
BVpS3.8
TBVpS3.8
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7% | ||
| ROE | -33.96% | ||
| ROCE | 5.41% | ||
| ROIC | 4.28% | ||
| ROICexc | 4.3% | ||
| ROICexgc | 4.3% | ||
| OM | 3.15% | ||
| PM (TTM) | N/A | ||
| GM | 50.2% | ||
| FCFM | 5.21% |
ROA(3y)-3.29%
ROA(5y)-6.67%
ROE(3y)-60.11%
ROE(5y)-60.43%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y136.27%
ROICexcg growth 5YN/A
ROICexc growth 3Y186.77%
ROICexc growth 5YN/A
OM growth 3Y150.69%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.88%
GM growth 5Y0.8%
F-Score5
Asset Turnover1.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 2.05 | ||
| Debt/EBITDA | 2.45 | ||
| Cap/Depr | 180.91% | ||
| Cap/Sales | 2.18% | ||
| Interest Coverage | 4.84 | ||
| Cash Conversion | 169.85% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.61 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z | -4.82 |
F-Score5
WACC9.72%
ROIC/WACC0.44
Cap/Depr(3y)56.19%
Cap/Depr(5y)59.43%
Cap/Sales(3y)0.91%
Cap/Sales(5y)1.18%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)115.79%
EPS 3YN/A
EPS 5Y-3.75%
EPS Q2Q%660%
EPS Next Y-94.63%
EPS Next 2Y18.14%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-0.49%
Revenue growth 3Y-3.12%
Revenue growth 5Y-4.8%
Sales Q2Q%-1.25%
Revenue Next Year1.91%
Revenue Next 2Y3.4%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y3565.2%
EBIT growth 3Y142.87%
EBIT growth 5YN/A
EBIT Next Year-36.98%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y174.9%
FCF growth 3YN/A
FCF growth 5Y7.7%
OCF growth 1Y210.57%
OCF growth 3YN/A
OCF growth 5Y5.57%