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VICTORIA'S SECRET & CO (VSCO) Stock Fundamental Analysis

NYSE:VSCO - New York Stock Exchange, Inc. - US9264001028 - Common Stock - Currency: USD

36.5  +0.34 (+0.94%)

Fundamental Rating

4

Overall VSCO gets a fundamental rating of 4 out of 10. We evaluated VSCO against 119 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 decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

In the past year VSCO was profitable.
VSCO had a positive operating cash flow in the past year.
In multiple years VSCO reported negative net income over the last 5 years.
In the past 5 years VSCO always reported a positive cash flow from operatings.
VSCO Yearly Net Income VS EBIT VS OCF VS FCFVSCO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 2023 2024 0 500M -500M

1.2 Ratios

VSCO's Return On Assets of 3.11% is in line compared to the rest of the industry. VSCO outperforms 59.48% of its industry peers.
VSCO has a better Return On Equity (35.66%) than 85.34% of its industry peers.
VSCO has a Return On Invested Capital of 7.49%. This is in the better half of the industry: VSCO outperforms 64.66% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VSCO is above the industry average of 12.39%.
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 RankSector 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
VSCO Yearly ROA, ROE, ROICVSCO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 2024 0 100 200

1.3 Margins

With a decent Profit Margin value of 2.47%, VSCO is doing good in the industry, outperforming 62.07% of the companies in the same industry.
In the last couple of years the Profit Margin of VSCO has declined.
VSCO has a Operating Margin of 5.12%. This is in the better half of the industry: VSCO outperforms 67.24% 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 has a Gross Margin (37.11%) which is comparable to the rest of the industry.
VSCO's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
VSCO Yearly Profit, Operating, Gross MarginsVSCO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 2024 0 10 -10 20 30 40

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3

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.
VSCO Yearly Shares OutstandingVSCO Yearly Shares OutstandingYearly Shares Outstanding 2020 2021 2022 2023 2024 20M 40M 60M 80M
VSCO Yearly Total Debt VS Total AssetsVSCO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

2.2 Solvency

VSCO has an Altman-Z score of 1.96. 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.
The Altman-Z score of VSCO (1.96) is comparable to the rest of the industry.
The Debt to FCF ratio of VSCO is 8.97, which is on the high side as it means it would take VSCO, 8.97 years of fcf income to pay off all of its debts.
VSCO has a Debt to FCF ratio (8.97) which is comparable to the rest of the industry.
VSCO has a Debt/Equity ratio of 3.30. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 3.30, VSCO is doing worse than 75.86% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 3.3
Debt/FCF 8.97
Altman-Z 1.96
ROIC/WACC0.73
WACC10.22%
VSCO Yearly LT Debt VS Equity VS FCFVSCO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

2.3 Liquidity

VSCO has a Current Ratio of 1.17. 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 worse Current ratio (1.17) than 65.52% of its industry peers.
VSCO has a Quick Ratio of 1.17. 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's Quick ratio of 0.33 is on the low side compared to the rest of the industry. VSCO is outperformed by 68.10% of its industry peers.
Industry RankSector Rank
Current Ratio 1.17
Quick Ratio 0.33
VSCO Yearly Current Assets VS Current LiabilitesVSCO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2020 2021 2022 2023 2024 500M 1B 1.5B

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4

3. Growth

3.1 Past

VSCO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.07%, which is quite impressive.
VSCO shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -12.63% yearly.
VSCO shows a small growth in Revenue. In the last year, the Revenue has grown by 1.41%.
VSCO shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -5.27% yearly.
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.
Based on estimates for the next years, VSCO will show a small growth in Revenue. The Revenue will grow by 1.43% on average per year.
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 3Y1.43%
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.
VSCO Yearly Revenue VS EstimatesVSCO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2B 4B 6B 8B
VSCO Yearly EPS VS EstimatesVSCO Yearly EPS VS EstimatesYearly EPS VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2 4 6

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6

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 14.04, the valuation of VSCO can be described as correct.
77.59% of the companies in the same industry are more expensive than VSCO, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of VSCO to the average of the S&P500 Index (28.28), we can say VSCO is valued rather cheaply.
A Price/Forward Earnings ratio of 13.43 indicates a correct valuation of VSCO.
Based on the Price/Forward Earnings ratio, VSCO is valued a bit cheaper than the industry average as 73.28% of the companies are valued more expensively.
VSCO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 91.29.
Industry RankSector Rank
PE 14.04
Fwd PE 13.43
VSCO Price Earnings VS Forward Price EarningsVSCO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 100 200 300

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VSCO indicates a rather cheap valuation: VSCO is cheaper than 80.17% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, VSCO is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 18.16
EV/EBITDA 7.09
VSCO Per share dataVSCO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

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)2.12
PEG (5Y)N/A
EPS Next 2Y10.17%
EPS Next 3Y11.4%

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0

5. Dividend

5.1 Amount

No dividends for VSCO!.
Industry RankSector Rank
Dividend Yield N/A

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VICTORIA'S SECRET & CO

NYSE:VSCO (1/30/2025, 9:30:00 AM)

36.5

+0.34 (+0.94%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)12-05 2024-12-05/amc
Earnings (Next)N/A N/A
Inst Owners86.93%
Inst Owner Change0.1%
Ins Owners0.82%
Ins Owner Change0.24%
Market Cap2.87B
Analysts70
Price Target45.6 (24.93%)
Short Float %8.7%
Short Ratio2.92
Dividend
Industry RankSector 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)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)52.21%
PT rev (3m)80.96%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.09%
EPS NY rev (1m)0%
EPS NY rev (3m)18.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.43%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.35%
Valuation
Industry RankSector Rank
PE 14.04
Fwd PE 13.43
P/S 0.46
P/FCF 18.16
P/OCF 8.44
P/B 6.69
P/tB N/A
EV/EBITDA 7.09
EPS(TTM)2.6
EY7.12%
EPS(NY)2.72
Fwd EY7.45%
FCF(TTM)2.01
FCFY5.51%
OCF(TTM)4.32
OCFY11.85%
SpS78.94
BVpS5.46
TBVpS-4.06
PEG (NY)2.12
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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 1.96
F-Score6
WACC10.22%
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 3Y1.43%
Revenue Next 5YN/A
EBIT growth 1Y15.64%
EBIT growth 3YN/A
EBIT growth 5Y-5.47%
EBIT Next Year82.17%
EBIT Next 3Y25.84%
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%