VICTORIA'S SECRET & CO (VSCO) Stock Fundamental Analysis
USA - NYSE:VSCO - US9264001028 - Common Stock
35.07 USD
-1.25 (-3.44%)
35.03 USD
-0.04 (-0.11%)
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 it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year VSCO was profitable.
VSCO had a positive operating cash flow in the past year.
VSCO had positive earnings in 4 of the past 5 years.
VSCO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of VSCO (3.18%) is better than 60.33% of its industry peers.
VSCO has a Return On Equity of 22.21%. This is amongst the best in the industry. VSCO outperforms 81.82% of its industry peers.
VSCO has a better Return On Invested Capital (6.31%) than 62.81% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VSCO is below the industry average of 11.82%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.18% | ||
| ROE | 22.21% | ||
| ROIC | 6.31% |
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
With a decent Profit Margin value of 2.41%, VSCO is doing good in the industry, outperforming 65.29% of the companies in the same industry.
VSCO's Profit Margin has declined in the last couple of years.
VSCO's Operating Margin of 4.42% is fine compared to the rest of the industry. VSCO outperforms 63.64% of its industry peers.
In the last couple of years the Operating Margin of VSCO has declined.
The Gross Margin of VSCO (35.99%) 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 | 4.42% | ||
| PM (TTM) | 2.41% | ||
| GM | 35.99% |
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.
VSCO has more shares outstanding than it did 1 year ago.
The number of shares outstanding for VSCO has been reduced compared to 5 years ago.
VSCO has a better debt/assets ratio than last year.
2.2 Solvency
VSCO has an Altman-Z score of 2.09. 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.
With a Altman-Z score value of 2.09, VSCO perfoms like the industry average, outperforming 47.93% of the companies in the same industry.
The Debt to FCF ratio of VSCO is 4.35, which is a neutral value as it means it would take VSCO, 4.35 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 4.35, VSCO is doing good in the industry, outperforming 67.77% of the companies in the same industry.
A Debt/Equity ratio of 1.54 is on the high side and indicates that VSCO has dependencies on debt financing.
The Debt to Equity ratio of VSCO (1.54) is worse than 66.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | 4.35 | ||
| Altman-Z | 2.09 |
ROIC/WACC0.67
WACC9.37%
2.3 Liquidity
A Current Ratio of 1.14 indicates that VSCO should not have too much problems paying its short term obligations.
VSCO has a worse Current ratio (1.14) than 66.12% of its industry peers.
A Quick Ratio of 0.36 indicates that VSCO may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.36, VSCO is doing worse than 66.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.36 |
3. Growth
3.1 Past
VSCO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.50%, which is quite good.
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 2.30%.
VSCO shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.67% yearly.
EPS 1Y (TTM)12.5%
EPS 3Y-25.48%
EPS 5YN/A
EPS Q2Q%-17.5%
Revenue 1Y (TTM)2.3%
Revenue growth 3Y-2.8%
Revenue growth 5Y-3.67%
Sales Q2Q%2.96%
3.2 Future
The Earnings Per Share is expected to decrease by -0.92% on average over the next years.
The Revenue is expected to grow by 2.38% on average over the next years.
EPS Next Y-20.14%
EPS Next 2Y-7.77%
EPS Next 3Y-0.92%
EPS Next 5YN/A
Revenue Next Year3.02%
Revenue Next 2Y2.84%
Revenue Next 3Y2.38%
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
A Price/Earnings ratio of 13.92 indicates a correct valuation of VSCO.
Based on the Price/Earnings ratio, VSCO is valued a bit cheaper than the industry average as 76.03% of the companies are valued more expensively.
VSCO is valuated rather cheaply when we compare the Price/Earnings ratio to 25.83, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 15.74, which indicates a correct valuation of VSCO.
Based on the Price/Forward Earnings ratio, VSCO is valued a bit cheaper than 64.46% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 32.68, VSCO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.92 | ||
| Fwd PE | 15.74 |
4.2 Price Multiples
71.07% of the companies in the same industry are more expensive than VSCO, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, VSCO is valued cheaply inside the industry as 82.64% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.62 | ||
| EV/EBITDA | 7.11 |
4.3 Compensation for Growth
The decent profitability rating of VSCO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-7.77%
EPS Next 3Y-0.92%
5. Dividend
5.1 Amount
VSCO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
35.07
-1.25 (-3.44%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners92.02%
Inst Owner Change-0.88%
Ins Owners0.96%
Ins Owner Change0.08%
Market Cap2.81B
Revenue(TTM)6.26B
Net Income(TTM)151.00M
Analysts71.25
Price Target27.44 (-21.76%)
Short Float %17.22%
Short Ratio4.57
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)144.37%
Min EPS beat(2)105.2%
Max EPS beat(2)183.55%
EPS beat(4)4
Avg EPS beat(4)80.45%
Min EPS beat(4)10.98%
Max EPS beat(4)183.55%
EPS beat(8)7
Avg EPS beat(8)45.13%
EPS beat(12)9
Avg EPS beat(12)27.51%
EPS beat(16)13
Avg EPS beat(16)24.04%
Revenue beat(2)2
Avg Revenue beat(2)0.87%
Min Revenue beat(2)0.07%
Max Revenue beat(2)1.68%
Revenue beat(4)3
Avg Revenue beat(4)0.68%
Min Revenue beat(4)-1.1%
Max Revenue beat(4)2.08%
Revenue beat(8)3
Avg Revenue beat(8)-0.62%
Revenue beat(12)3
Avg Revenue beat(12)-1.25%
Revenue beat(16)3
Avg Revenue beat(16)-1.55%
PT rev (1m)14.74%
PT rev (3m)18.63%
EPS NQ rev (1m)1.44%
EPS NQ rev (3m)-10.81%
EPS NY rev (1m)0.16%
EPS NY rev (3m)1.55%
Revenue NQ rev (1m)0.56%
Revenue NQ rev (3m)3.46%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)2.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.92 | ||
| Fwd PE | 15.74 | ||
| P/S | 0.45 | ||
| P/FCF | 11.62 | ||
| P/OCF | 6.51 | ||
| P/B | 4.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.11 |
EPS(TTM)2.52
EY7.19%
EPS(NY)2.23
Fwd EY6.36%
FCF(TTM)3.02
FCFY8.61%
OCF(TTM)5.39
OCFY15.37%
SpS78.16
BVpS8.48
TBVpS-0.62
PEG (NY)N/A
PEG (5Y)N/A
Graham Number21.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.18% | ||
| ROE | 22.21% | ||
| ROCE | 8.12% | ||
| ROIC | 6.31% | ||
| ROICexc | 6.68% | ||
| ROICexgc | 8.64% | ||
| OM | 4.42% | ||
| PM (TTM) | 2.41% | ||
| GM | 35.99% | ||
| FCFM | 3.86% |
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 Turnover1.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | 4.35 | ||
| Debt/EBITDA | 1.97 | ||
| Cap/Depr | 74.8% | ||
| Cap/Sales | 3.03% | ||
| Interest Coverage | 3.96 | ||
| Cash Conversion | 81.36% | ||
| Profit Quality | 160.26% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.36 | ||
| Altman-Z | 2.09 |
F-Score6
WACC9.37%
ROIC/WACC0.67
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)12.5%
EPS 3Y-25.48%
EPS 5YN/A
EPS Q2Q%-17.5%
EPS Next Y-20.14%
EPS Next 2Y-7.77%
EPS Next 3Y-0.92%
EPS Next 5YN/A
Revenue 1Y (TTM)2.3%
Revenue growth 3Y-2.8%
Revenue growth 5Y-3.67%
Sales Q2Q%2.96%
Revenue Next Year3.02%
Revenue Next 2Y2.84%
Revenue Next 3Y2.38%
Revenue Next 5YN/A
EBIT growth 1Y-11.22%
EBIT growth 3Y-30.61%
EBIT growth 5YN/A
EBIT Next Year54.85%
EBIT Next 3Y17.89%
EBIT Next 5YN/A
FCF growth 1Y10.5%
FCF growth 3Y-28.72%
FCF growth 5Y22.37%
OCF growth 1Y-7.89%
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 6 / 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 -20.14% in the next year.