VICTORIA'S SECRET & CO (VSCO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VSCO - US9264001028 - Common Stock
56.05 USD
+2.24 (+4.16%)
56.037 USD
-0.01 (-0.02%)
Overall VSCO gets a fundamental rating of 4 out of 10. We evaluated VSCO against 123 industry peers in the Specialty Retail industry. VSCO has a medium profitability rating, but doesn't score so well on its financial health evaluation. VSCO has a decent growth rate and is not valued too expensively.
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.
VSCO had positive earnings in 4 of the past 5 years.
In the past 5 years VSCO always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 3.31%, VSCO is doing good in the industry, outperforming 60.98% of the companies in the same industry.
VSCO has a better Return On Equity (26.03%) than 84.55% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.85%, VSCO is in the better half of the industry, outperforming 65.04% of the companies in the same industry.
VSCO had an Average Return On Invested Capital over the past 3 years of 9.17%. This is below the industry average of 12.14%.
| 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
VSCO has a better Profit Margin (2.66%) than 67.48% of its industry peers.
In the last couple of years the Profit Margin of VSCO has declined.
The Operating Margin of VSCO (5.02%) is better than 66.67% of its industry peers.
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 48.78% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VSCO is destroying value.
Compared to 1 year ago, VSCO has more shares outstanding
The number of shares outstanding for VSCO has been reduced compared to 5 years ago.
The debt/assets ratio for VSCO has been reduced compared to a year ago.
2.2 Solvency
VSCO has an Altman-Z score of 2.25. 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 (2.25) which is comparable to the rest of the industry.
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.
Looking at the Debt to FCF ratio, with a value of 4.37, VSCO is in the better half of the industry, outperforming 68.29% 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 69.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.06 | ||
| Debt/FCF | 4.37 | ||
| Altman-Z | 2.25 |
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's Current ratio of 1.30 is in line compared to the rest of the industry. VSCO outperforms 48.78% of its industry peers.
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.
VSCO has a worse Quick ratio (0.38) than 62.60% 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%.
VSCO shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -25.48% yearly.
VSCO shows a small growth in Revenue. In the last year, the Revenue has grown by 2.96%.
VSCO shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.67% yearly.
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 11.06% on average over the next years. This is quite good.
VSCO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.91% yearly.
EPS Next Y3.22%
EPS Next 2Y6.52%
EPS Next 3Y11.06%
EPS Next 5YN/A
Revenue Next Year4.86%
Revenue Next 2Y4.08%
Revenue Next 3Y3.91%
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 20.38, the valuation of VSCO can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of VSCO indicates a somewhat cheap valuation: VSCO is cheaper than 74.80% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.84, VSCO is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 18.85, the valuation of VSCO can be described as rather expensive.
VSCO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. VSCO is cheaper than 65.04% of the companies in the same industry.
VSCO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.38 | ||
| Fwd PE | 18.85 |
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 61.79% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, VSCO is valued a bit cheaper than 77.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.54 | ||
| EV/EBITDA | 9.78 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of VSCO may justify a higher PE ratio.
PEG (NY)6.34
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% |
56.05
+2.24 (+4.16%)
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 Change-0.03%
Market Cap4.49B
Revenue(TTM)6.39B
Net Income(TTM)170.00M
Analysts71.25
Price Target55.42 (-1.12%)
Short Float %15.57%
Short Ratio4.08
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)74.15%
PT rev (3m)131.75%
EPS NQ rev (1m)9.52%
EPS NQ rev (3m)9.92%
EPS NY rev (1m)26.91%
EPS NY rev (3m)29.46%
Revenue NQ rev (1m)1.22%
Revenue NQ rev (3m)2.33%
Revenue NY rev (1m)2.04%
Revenue NY rev (3m)2.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.38 | ||
| Fwd PE | 18.85 | ||
| P/S | 0.7 | ||
| P/FCF | 14.54 | ||
| P/OCF | 8.99 | ||
| P/B | 6.88 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.78 |
EPS(TTM)2.75
EY4.91%
EPS(NY)2.97
Fwd EY5.3%
FCF(TTM)3.85
FCFY6.88%
OCF(TTM)6.24
OCFY11.13%
SpS79.72
BVpS8.15
TBVpS-0.89
PEG (NY)6.34
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 | 2.25 |
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 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 Year4.86%
Revenue Next 2Y4.08%
Revenue Next 3Y3.91%
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 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 grow by 3.22% in the next year.