VICTORIA'S SECRET & CO (VSCO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VSCO - US9264001028 - Common Stock
62.19 USD
+2.33 (+3.89%)
62.32 USD
+0.13 (+0.21%)
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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year VSCO was profitable.
- VSCO had a positive operating cash flow in the past year.
- 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
- VSCO's Return On Assets of 3.31% is fine compared to the rest of the industry. VSCO outperforms 60.33% of its industry peers.
- With an excellent Return On Equity value of 26.03%, VSCO belongs to the best of the industry, outperforming 84.30% of the companies in the same industry.
- The Return On Invested Capital of VSCO (6.85%) is better than 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 12.37%.
| 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 66.94% 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.
- In the last couple of years the Operating Margin of VSCO has declined.
- VSCO has a Gross Margin of 36.40%. This is comparable to the rest of the industry: VSCO outperforms 49.59% of its industry peers.
- VSCO's Gross Margin has improved in the last couple of years.
| 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VSCO is destroying value.
- VSCO has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, VSCO has less shares outstanding
- VSCO has a better debt/assets ratio than last year.
2.2 Solvency
- VSCO has an Altman-Z score of 2.29. 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's Altman-Z score of 2.29 is in line compared to the rest of the industry. VSCO outperforms 50.41% of its industry peers.
- The Debt to FCF ratio of VSCO is 4.37, which is a neutral value as it means it would take VSCO, 4.37 years of fcf income to pay off 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.
- A Debt/Equity ratio of 2.06 is on the high side and indicates that VSCO has dependencies on debt financing.
- VSCO's Debt to Equity ratio of 2.06 is on the low side compared to the rest of the industry. VSCO is outperformed by 67.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.06 | ||
| Debt/FCF | 4.37 | ||
| Altman-Z | 2.29 |
ROIC/WACC0.7
WACC9.79%
2.3 Liquidity
- A Current Ratio of 1.30 indicates that VSCO should not have too much problems paying its short term obligations.
- VSCO has a Current ratio (1.30) which is in line with its industry peers.
- A Quick Ratio of 0.38 indicates that VSCO may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.38, VSCO is doing worse than 61.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.38 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 5.77% 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 -25.48% yearly.
- Looking at the last year, VSCO shows a small growth in Revenue. The Revenue has grown by 2.96% in the last year.
- Measured over the past years, VSCO shows a decrease in Revenue. The Revenue has been decreasing by -3.67% on average per year.
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
- VSCO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.06% yearly.
- The Revenue is expected to grow by 4.01% on average over the next years.
EPS Next Y3.22%
EPS Next 2Y6.52%
EPS Next 3Y11.06%
EPS Next 5YN/A
Revenue Next Year5.99%
Revenue Next 2Y4.65%
Revenue Next 3Y4.01%
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
- VSCO is valuated rather expensively with a Price/Earnings ratio of 22.61.
- Based on the Price/Earnings ratio, VSCO is valued a bit cheaper than 73.55% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 26.94. VSCO is around the same levels.
- Based on the Price/Forward Earnings ratio of 20.92, the valuation of VSCO can be described as rather expensive.
- 65.29% of the companies in the same industry are more expensive than VSCO, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 23.94, VSCO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.61 | ||
| Fwd PE | 20.92 |
4.2 Price Multiples
- VSCO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. VSCO is cheaper than 63.64% of the companies in the same industry.
- 75.21% of the companies in the same industry are more expensive than VSCO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.13 | ||
| EV/EBITDA | 10.32 |
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.
- The decent profitability rating of VSCO may justify a higher PE ratio.
PEG (NY)7.03
PEG (5Y)N/A
EPS Next 2Y6.52%
EPS Next 3Y11.06%
5. Dividend
5.1 Amount
- VSCO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
62.19
+2.33 (+3.89%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)12-05 2025-12-05/bmo
Earnings (Next)06-09 2026-06-09
Inst Owners90.84%
Inst Owner Change0.3%
Ins Owners0.91%
Ins Owner Change-0.03%
Market Cap4.99B
Revenue(TTM)6.39B
Net Income(TTM)170.00M
Analysts77.33
Price Target59.67 (-4.05%)
Short Float %11.74%
Short Ratio3.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)61.01%
PT rev (3m)149.53%
EPS NQ rev (1m)1.48%
EPS NQ rev (3m)9.91%
EPS NY rev (1m)25.94%
EPS NY rev (3m)29.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2%
Revenue NY rev (1m)2.98%
Revenue NY rev (3m)2.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.61 | ||
| Fwd PE | 20.92 | ||
| P/S | 0.78 | ||
| P/FCF | 16.13 | ||
| P/OCF | 9.97 | ||
| P/B | 7.63 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.32 |
EPS(TTM)2.75
EY4.42%
EPS(NY)2.97
Fwd EY4.78%
FCF(TTM)3.85
FCFY6.2%
OCF(TTM)6.24
OCFY10.03%
SpS79.72
BVpS8.15
TBVpS-0.89
PEG (NY)7.03
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 | 2.29 |
F-Score6
WACC9.79%
ROIC/WACC0.7
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 Y3.22%
EPS Next 2Y6.52%
EPS Next 3Y11.06%
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 Year5.99%
Revenue Next 2Y4.65%
Revenue Next 3Y4.01%
Revenue Next 5YN/A
EBIT growth 1Y0.94%
EBIT growth 3Y-30.61%
EBIT growth 5YN/A
EBIT Next Year78.38%
EBIT Next 3Y25.45%
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 for 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.
How financially healthy is VICTORIA'S SECRET & CO?
The financial health rating of VICTORIA'S SECRET & CO (VSCO) is 3 / 10.
Can you provide the expected EPS growth for VSCO stock?
The Earnings per Share (EPS) of VICTORIA'S SECRET & CO (VSCO) is expected to grow by 3.22% in the next year.