VICTORIA'S SECRET & CO (VSCO)
US9264001028 - Common Stock
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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year VSCO was profitable.
In the past year VSCO had a positive cash flow from operations.
In multiple years VSCO reported negative net income over the last 5 years.
Each year in the past 5 years VSCO had a positive operating cash flow.
1.2 Ratios
VSCO's Return On Assets of 3.11% is in line compared to the rest of the industry. VSCO outperforms 60.00% of its industry peers.
The Return On Equity of VSCO (35.66%) is better than 85.83% of its industry peers.
The Return On Invested Capital of VSCO (7.49%) is better than 65.83% of its industry peers.
VSCO had an Average Return On Invested Capital over the past 3 years of 15.85%. This is above the industry average of 12.29%.
The 3 year average ROIC (15.85%) for VSCO is well above the current ROIC(7.49%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.11% | ||
| ROE | 35.66% | ||
| ROIC | 7.49% |
ROA(3y)8.21%
ROA(5y)1.18%
ROE(3y)122.79%
ROE(5y)58.38%
ROIC(3y)15.85%
ROIC(5y)N/A
1.3 Margins
VSCO has a Profit Margin of 2.47%. This is in the better half of the industry: VSCO outperforms 62.50% of its industry peers.
In the last couple of years the Profit Margin of VSCO has declined.
The Operating Margin of VSCO (5.12%) is better than 67.50% of its industry peers.
In the last couple of years the Operating Margin of VSCO has remained more or less at the same level.
VSCO's Gross Margin of 37.11% is in line compared to the rest of the industry. VSCO outperforms 53.33% of its industry peers.
VSCO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.12% | ||
| PM (TTM) | 2.47% | ||
| GM | 37.11% |
OM growth 3YN/A
OM growth 5Y-0.21%
PM growth 3YN/A
PM growth 5Y-10.66%
GM growth 3Y8.22%
GM growth 5Y2.08%
2. Health
2.1 Basic Checks
VSCO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for VSCO has been reduced compared to 1 year ago.
The debt/assets ratio for VSCO has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.02 indicates that VSCO is not a great score, but indicates only limited risk for bankruptcy at the moment.
VSCO has a Altman-Z score (2.02) which is in line with its industry peers.
VSCO has a debt to FCF ratio of 8.97. This is a slightly negative value and a sign of low solvency as VSCO would need 8.97 years to pay back of all of its debts.
VSCO has a Debt to FCF ratio of 8.97. This is comparable to the rest of the industry: VSCO outperforms 54.17% of its industry peers.
A Debt/Equity ratio of 3.30 is on the high side and indicates that VSCO has dependencies on debt financing.
VSCO has a worse Debt to Equity ratio (3.30) than 75.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.3 | ||
| Debt/FCF | 8.97 | ||
| Altman-Z | 2.02 |
ROIC/WACC0.73
WACC10.24%
2.3 Liquidity
A Current Ratio of 1.17 indicates that VSCO should not have too much problems paying its short term obligations.
VSCO's Current ratio of 1.17 is on the low side compared to the rest of the industry. VSCO is outperformed by 64.17% of its industry peers.
A Quick Ratio of 0.33 indicates that VSCO may have some problems paying its short term obligations.
VSCO has a Quick ratio of 0.33. This is in the lower half of the industry: VSCO underperforms 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.33 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 22.07% over the past year.
VSCO shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -12.63% yearly.
Looking at the last year, VSCO shows a small growth in Revenue. The Revenue has grown by 1.41% in the last year.
Measured over the past years, VSCO shows a decrease in Revenue. The Revenue has been decreasing by -5.27% on average per year.
EPS 1Y (TTM)22.07%
EPS 3YN/A
EPS 5Y-12.63%
EPS Q2Q%41.86%
Revenue 1Y (TTM)1.41%
Revenue growth 3Y4.53%
Revenue growth 5Y-5.27%
Sales Q2Q%6.51%
3.2 Future
The Earnings Per Share is expected to grow by 11.40% on average over the next years. This is quite good.
The Revenue is expected to grow by 1.42% on average over the next years.
EPS Next Y6.61%
EPS Next 2Y10.17%
EPS Next 3Y11.4%
EPS Next 5YN/A
Revenue Next Year0.38%
Revenue Next 2Y1.09%
Revenue Next 3Y1.42%
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
The Price/Earnings ratio is 16.02, which indicates a correct valuation of VSCO.
Compared to the rest of the industry, the Price/Earnings ratio of VSCO indicates a somewhat cheap valuation: VSCO is cheaper than 72.50% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.54. VSCO is valued slightly cheaper when compared to this.
VSCO is valuated correctly with a Price/Forward Earnings ratio of 15.32.
Based on the Price/Forward Earnings ratio, VSCO is valued a bit cheaper than the industry average as 70.83% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.99. VSCO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.02 | ||
| Fwd PE | 15.32 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VSCO indicates a somewhat cheap valuation: VSCO is cheaper than 75.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, VSCO is valued a bit cheaper than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.72 | ||
| EV/EBITDA | 7.84 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates VSCO does not grow enough to justify the current Price/Earnings ratio.
VSCO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.42
PEG (5Y)N/A
EPS Next 2Y10.17%
EPS Next 3Y11.4%
5. Dividend
5.1 Amount
No dividends for VSCO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
VICTORIA'S SECRET & CO
NYSE:VSCO (12/24/2024, 7:44:44 PM)
Premarket: 41.65 +0.01 (+0.02%)41.64
-0.54 (-1.28%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners86.93%
Inst Owner Change8.03%
Ins Owners0.82%
Ins Owner Change0.24%
Market Cap3.27B
Analysts55.29
Price Target29.96 (-28.05%)
Short Float %10.9%
Short Ratio3.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)15.22%
Min EPS beat(2)7.57%
Max EPS beat(2)22.87%
EPS beat(4)4
Avg EPS beat(4)17.47%
Min EPS beat(4)2.36%
Max EPS beat(4)37.07%
EPS beat(8)5
Avg EPS beat(8)0.82%
EPS beat(12)9
Avg EPS beat(12)6.12%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.5%
Min Revenue beat(2)-1.24%
Max Revenue beat(2)2.23%
Revenue beat(4)1
Avg Revenue beat(4)-0.77%
Min Revenue beat(4)-2.14%
Max Revenue beat(4)2.23%
Revenue beat(8)1
Avg Revenue beat(8)-1.62%
Revenue beat(12)1
Avg Revenue beat(12)-1.82%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)18.89%
PT rev (3m)36.37%
EPS NQ rev (1m)-1.09%
EPS NQ rev (3m)-1.09%
EPS NY rev (1m)19.89%
EPS NY rev (3m)18.02%
Revenue NQ rev (1m)1.43%
Revenue NQ rev (3m)1.43%
Revenue NY rev (1m)2.42%
Revenue NY rev (3m)2.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.02 | ||
| Fwd PE | 15.32 | ||
| P/S | 0.53 | ||
| P/FCF | 20.72 | ||
| P/OCF | 9.63 | ||
| P/B | 7.63 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.84 |
EPS(TTM)2.6
EY6.24%
EPS(NY)2.72
Fwd EY6.53%
FCF(TTM)2.01
FCFY4.83%
OCF(TTM)4.32
OCFY10.39%
SpS78.94
BVpS5.46
TBVpS-4.06
PEG (NY)2.42
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.11% | ||
| ROE | 35.66% | ||
| ROCE | 9.37% | ||
| ROIC | 7.49% | ||
| ROICexc | 7.86% | ||
| ROICexgc | 10.23% | ||
| OM | 5.12% | ||
| PM (TTM) | 2.47% | ||
| GM | 37.11% | ||
| FCFM | 2.55% |
ROA(3y)8.21%
ROA(5y)1.18%
ROE(3y)122.79%
ROE(5y)58.38%
ROIC(3y)15.85%
ROIC(5y)N/A
ROICexc(3y)18.81%
ROICexc(5y)N/A
ROICexgc(3y)23.42%
ROICexgc(5y)N/A
ROCE(3y)19.82%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5Y-0.21%
PM growth 3YN/A
PM growth 5Y-10.66%
GM growth 3Y8.22%
GM growth 5Y2.08%
F-Score6
Asset Turnover1.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.3 | ||
| Debt/FCF | 8.97 | ||
| Debt/EBITDA | 2.45 | ||
| Cap/Depr | 70% | ||
| Cap/Sales | 2.93% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 58.82% | ||
| Profit Quality | 103.27% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.33 | ||
| Altman-Z | 2.02 |
F-Score6
WACC10.24%
ROIC/WACC0.73
Cap/Depr(3y)68.59%
Cap/Depr(5y)59.89%
Cap/Sales(3y)3.07%
Cap/Sales(5y)2.91%
Profit Quality(3y)102.01%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)22.07%
EPS 3YN/A
EPS 5Y-12.63%
EPS Q2Q%41.86%
EPS Next Y6.61%
EPS Next 2Y10.17%
EPS Next 3Y11.4%
EPS Next 5YN/A
Revenue 1Y (TTM)1.41%
Revenue growth 3Y4.53%
Revenue growth 5Y-5.27%
Sales Q2Q%6.51%
Revenue Next Year0.38%
Revenue Next 2Y1.09%
Revenue Next 3Y1.42%
Revenue Next 5YN/A
EBIT growth 1Y15.64%
EBIT growth 3YN/A
EBIT growth 5Y-5.47%
EBIT Next Year73.31%
EBIT Next 3Y22.51%
EBIT Next 5YN/A
FCF growth 1Y829.41%
FCF growth 3Y-37.59%
FCF growth 5Y-17.92%
OCF growth 1Y75.26%
OCF growth 3Y-16.74%
OCF growth 5Y-11.04%