VICTORIA'S SECRET & CO (VSCO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VSCO - US9264001028 - Common Stock
52.31 USD
+1.66 (+3.28%)
52.65 USD
+0.34 (+0.65%)
Overall VSCO gets a fundamental rating of 4 out of 10. We evaluated VSCO against 121 industry peers in the Specialty Retail industry. While VSCO is still in line with the averages on profitability rating, there are concerns on its financial health. VSCO has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
VSCO had positive earnings in the past year.
In the past year VSCO had a positive cash flow from operations.
Of the past 5 years VSCO 4 years were profitable.
Each year in the past 5 years VSCO had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 3.31%, VSCO is doing good in the industry, outperforming 61.16% of the companies in the same industry.
VSCO has a Return On Equity of 26.03%. This is amongst the best in the industry. VSCO outperforms 85.12% of its industry peers.
VSCO's Return On Invested Capital of 6.85% is fine compared to the rest of the industry. VSCO outperforms 64.46% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VSCO is below the industry average of 12.26%.
| 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
Looking at the Profit Margin, with a value of 2.66%, VSCO is in the better half of the industry, outperforming 67.77% of the companies in the same industry.
VSCO's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 5.02%, VSCO is in the better half of the industry, outperforming 66.12% of the companies in the same industry.
VSCO's Operating Margin has declined in the last couple of years.
The Gross Margin of VSCO (36.40%) is comparable to the rest of the industry.
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.
The number of shares outstanding for VSCO has been reduced compared to 5 years ago.
Compared to 1 year ago, VSCO has an improved debt to assets ratio.
2.2 Solvency
VSCO has an Altman-Z score of 2.19. This is not the best score and indicates that VSCO is in the grey zone with still only limited risk for bankruptcy at the moment.
VSCO has a Altman-Z score of 2.19. This is comparable to the rest of the industry: VSCO outperforms 51.24% of its industry peers.
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.
With a decent Debt to FCF ratio value of 4.37, VSCO is doing good in the industry, outperforming 68.59% of the companies in the same industry.
VSCO has a Debt/Equity ratio of 2.06. This is a high value indicating a heavy dependency on external financing.
VSCO has a Debt to Equity ratio of 2.06. This is in the lower half of the industry: VSCO underperforms 67.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.06 | ||
| Debt/FCF | 4.37 | ||
| Altman-Z | 2.19 |
ROIC/WACC0.71
WACC9.68%
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.
VSCO has a Quick Ratio of 1.30. This is a bad value and indicates that VSCO is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of VSCO (0.38) is worse than 61.98% of its industry peers.
| 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%.
The Revenue has been decreasing by -3.67% on average over the past years.
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
The Earnings Per Share is expected to grow by 2.72% on average over the next years.
Based on estimates for the next years, VSCO will show a small growth in Revenue. The Revenue will grow by 2.94% on average per year.
EPS Next Y-18.05%
EPS Next 2Y-7.68%
EPS Next 3Y2.72%
EPS Next 5YN/A
Revenue Next Year2.92%
Revenue Next 2Y2.91%
Revenue Next 3Y2.94%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 19.02, the valuation of VSCO can be described as rather expensive.
Based on the Price/Earnings ratio, VSCO is valued a bit cheaper than the industry average as 74.38% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of VSCO to the average of the S&P500 Index (26.28), we can say VSCO is valued slightly cheaper.
With a Price/Forward Earnings ratio of 23.43, VSCO is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VSCO is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 23.52. VSCO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.02 | ||
| Fwd PE | 23.43 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VSCO is valued a bit cheaper than 63.64% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VSCO indicates a rather cheap valuation: VSCO is cheaper than 80.99% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.57 | ||
| EV/EBITDA | 9.02 |
4.3 Compensation for Growth
VSCO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-7.68%
EPS Next 3Y2.72%
5. Dividend
5.1 Amount
VSCO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
52.31
+1.66 (+3.28%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners90.82%
Inst Owner Change-0.34%
Ins Owners0.91%
Ins Owner Change0.04%
Market Cap4.19B
Revenue(TTM)6.39B
Net Income(TTM)170.00M
Analysts71.25
Price Target37.06 (-29.15%)
Short Float %15.9%
Short Ratio5.06
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)119.19%
Min EPS beat(2)54.83%
Max EPS beat(2)183.55%
EPS beat(4)4
Avg EPS beat(4)88.64%
Min EPS beat(4)10.98%
Max EPS beat(4)183.55%
EPS beat(8)8
Avg EPS beat(8)52.95%
EPS beat(12)9
Avg EPS beat(12)30.03%
EPS beat(16)13
Avg EPS beat(16)26.7%
Revenue beat(2)2
Avg Revenue beat(2)2.01%
Min Revenue beat(2)1.68%
Max Revenue beat(2)2.33%
Revenue beat(4)3
Avg Revenue beat(4)0.74%
Min Revenue beat(4)-1.1%
Max Revenue beat(4)2.33%
Revenue beat(8)4
Avg Revenue beat(8)-0.03%
Revenue beat(12)4
Avg Revenue beat(12)-0.85%
Revenue beat(16)4
Avg Revenue beat(16)-1.19%
PT rev (1m)35.07%
PT rev (3m)63.5%
EPS NQ rev (1m)3.12%
EPS NQ rev (3m)4.85%
EPS NY rev (1m)0.77%
EPS NY rev (3m)10.5%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)1.2%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)2.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.02 | ||
| Fwd PE | 23.43 | ||
| P/S | 0.66 | ||
| P/FCF | 13.57 | ||
| P/OCF | 8.39 | ||
| P/B | 6.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.02 |
EPS(TTM)2.75
EY5.26%
EPS(NY)2.23
Fwd EY4.27%
FCF(TTM)3.85
FCFY7.37%
OCF(TTM)6.24
OCFY11.92%
SpS79.72
BVpS8.15
TBVpS-0.89
PEG (NY)N/A
PEG (5Y)N/A
Graham Number22.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.31% | ||
| ROE | 26.03% | ||
| ROCE | 8.81% | ||
| ROIC | 6.85% | ||
| ROICexc | 7.35% | ||
| ROICexgc | 9.34% | ||
| OM | 5.02% | ||
| PM (TTM) | 2.66% | ||
| GM | 36.4% | ||
| FCFM | 4.84% |
ROA(3y)4.47%
ROA(5y)5.31%
ROE(3y)47.59%
ROE(5y)77.21%
ROIC(3y)9.17%
ROIC(5y)N/A
ROICexc(3y)10.27%
ROICexc(5y)N/A
ROICexgc(3y)14.27%
ROICexgc(5y)N/A
ROCE(3y)11.81%
ROCE(5y)N/A
ROICexgc growth 3Y-33.67%
ROICexgc growth 5YN/A
ROICexc growth 3Y-37.36%
ROICexc growth 5YN/A
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%
F-Score6
Asset Turnover1.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.06 | ||
| Debt/FCF | 4.37 | ||
| Debt/EBITDA | 2.35 | ||
| Cap/Depr | 76.1% | ||
| Cap/Sales | 2.99% | ||
| Interest Coverage | 4.72 | ||
| Cash Conversion | 87.41% | ||
| Profit Quality | 181.77% | ||
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.38 | ||
| Altman-Z | 2.19 |
F-Score6
WACC9.68%
ROIC/WACC0.71
Cap/Depr(3y)73%
Cap/Depr(5y)62.74%
Cap/Sales(3y)3.19%
Cap/Sales(5y)2.88%
Profit Quality(3y)116.72%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)5.77%
EPS 3Y-25.48%
EPS 5YN/A
EPS Q2Q%46%
EPS Next Y-18.05%
EPS Next 2Y-7.68%
EPS Next 3Y2.72%
EPS Next 5YN/A
Revenue 1Y (TTM)2.96%
Revenue growth 3Y-2.8%
Revenue growth 5Y-3.67%
Sales Q2Q%9.21%
Revenue Next Year2.92%
Revenue Next 2Y2.91%
Revenue Next 3Y2.94%
Revenue Next 5YN/A
EBIT growth 1Y0.94%
EBIT growth 3Y-30.61%
EBIT growth 5YN/A
EBIT Next Year56.78%
EBIT Next 3Y19.81%
EBIT Next 5YN/A
FCF growth 1Y22.13%
FCF growth 3Y-28.72%
FCF growth 5Y22.37%
OCF growth 1Y-3.1%
OCF growth 3Y-20.66%
OCF growth 5Y6.17%
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 of VICTORIA'S SECRET & CO (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.
Can you provide the financial health for VSCO stock?
The financial health rating of VICTORIA'S SECRET & CO (VSCO) is 3 / 10.
What is the expected EPS growth for VICTORIA'S SECRET & CO (VSCO) stock?
The Earnings per Share (EPS) of VICTORIA'S SECRET & CO (VSCO) is expected to decline by -18.05% in the next year.