VICTORIA'S SECRET & CO (VSCO) Stock Fundamental Analysis
NYSE:VSCO - New York Stock Exchange, Inc. - US9264001028 - Common Stock - Currency: USD
VSCO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 122 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 valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
VSCO had positive earnings in the past year.
VSCO had a positive operating cash flow in the past year.
Of the past 5 years VSCO 4 years were profitable.
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 3.65%, VSCO is doing good in the industry, outperforming 62.30% of the companies in the same industry.
VSCO's Return On Equity of 25.89% is amongst the best of the industry. VSCO outperforms 81.97% of its industry peers.
VSCO has a better Return On Invested Capital (6.64%) than 64.75% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VSCO is below the industry average of 12.95%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.65% | ||
| ROE | 25.89% | ||
| ROIC | 6.64% |
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's Profit Margin of 2.68% is fine compared to the rest of the industry. VSCO outperforms 65.57% of its industry peers.
In the last couple of years the Profit Margin of VSCO has declined.
VSCO has a better Operating Margin (4.56%) than 66.39% of its industry peers.
VSCO's Operating Margin has declined in the last couple of years.
VSCO has a Gross Margin (35.95%) which 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 | 4.56% | ||
| PM (TTM) | 2.68% | ||
| GM | 35.95% |
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.
Compared to 1 year ago, VSCO has more shares outstanding
VSCO has less shares outstanding than it did 5 years ago.
The debt/assets ratio for VSCO has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.94 indicates that VSCO is not a great score, but indicates only limited risk for bankruptcy at the moment.
VSCO's Altman-Z score of 1.94 is in line compared to the rest of the industry. VSCO outperforms 45.08% of its industry peers.
The Debt to FCF ratio of VSCO is 5.18, which is a neutral value as it means it would take VSCO, 5.18 years of fcf income to pay off all of its debts.
VSCO has a Debt to FCF ratio of 5.18. This is in the better half of the industry: VSCO outperforms 65.57% of its industry peers.
VSCO has a Debt/Equity ratio of 1.67. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.67, VSCO is doing worse than 67.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.67 | ||
| Debt/FCF | 5.18 | ||
| Altman-Z | 1.94 |
ROIC/WACC0.69
WACC9.66%
2.3 Liquidity
A Current Ratio of 1.16 indicates that VSCO should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.16, VSCO is doing worse than 64.75% of the companies in the same industry.
A Quick Ratio of 0.33 indicates that VSCO may have some problems paying 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 67.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.33 |
3. Growth
3.1 Past
VSCO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.52%, which is quite impressive.
Measured over the past years, VSCO shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -25.48% on average per year.
The Revenue has been growing slightly by 1.45% in the past year.
VSCO shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.67% yearly.
EPS 1Y (TTM)24.52%
EPS 3Y-25.48%
EPS 5YN/A
EPS Q2Q%-25%
Revenue 1Y (TTM)1.45%
Revenue growth 3Y-2.8%
Revenue growth 5Y-3.67%
Sales Q2Q%-0.48%
3.2 Future
The Earnings Per Share is expected to grow by 0.56% on average over the next years.
The Revenue is expected to grow by 1.46% on average over the next years.
EPS Next Y-21.36%
EPS Next 2Y-7.32%
EPS Next 3Y0.56%
EPS Next 5YN/A
Revenue Next Year0.44%
Revenue Next 2Y1.13%
Revenue Next 3Y1.46%
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.
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
With a Price/Earnings ratio of 6.83, the valuation of VSCO can be described as very cheap.
Based on the Price/Earnings ratio, VSCO is valued cheaper than 92.62% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. VSCO is valued rather cheaply when compared to this.
VSCO is valuated cheaply with a Price/Forward Earnings ratio of 7.86.
Based on the Price/Forward Earnings ratio, VSCO is valued cheaper than 89.34% of the companies in the same industry.
VSCO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.06.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.83 | ||
| Fwd PE | 7.86 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VSCO is valued cheaply inside the industry as 86.07% of the companies are valued more expensively.
92.62% 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 | 6.76 | ||
| EV/EBITDA | 4.46 |
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-7.32%
EPS Next 3Y0.56%
5. Dividend
5.1 Amount
No dividends for VSCO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
17.7
-0.57 (-3.12%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners92.23%
Inst Owner Change0%
Ins Owners0.94%
Ins Owner Change0.38%
Market Cap1.41B
Analysts55
Price Target23.13 (30.68%)
Short Float %15.42%
Short Ratio3.19
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)58.09%
Min EPS beat(2)10.98%
Max EPS beat(2)105.2%
EPS beat(4)4
Avg EPS beat(4)36.45%
Min EPS beat(4)7.57%
Max EPS beat(4)105.2%
EPS beat(8)6
Avg EPS beat(8)20.92%
EPS beat(12)9
Avg EPS beat(12)13.21%
EPS beat(16)13
Avg EPS beat(16)12.91%
Revenue beat(2)1
Avg Revenue beat(2)-0.52%
Min Revenue beat(2)-1.1%
Max Revenue beat(2)0.07%
Revenue beat(4)2
Avg Revenue beat(4)-0.05%
Min Revenue beat(4)-1.24%
Max Revenue beat(4)2.08%
Revenue beat(8)2
Avg Revenue beat(8)-1.17%
Revenue beat(12)2
Avg Revenue beat(12)-1.76%
Revenue beat(16)2
Avg Revenue beat(16)-2.15%
PT rev (1m)-9.11%
PT rev (3m)-20.29%
EPS NQ rev (1m)-62.72%
EPS NQ rev (3m)-64.66%
EPS NY rev (1m)-7.22%
EPS NY rev (3m)-12.41%
Revenue NQ rev (1m)-0.9%
Revenue NQ rev (3m)-0.9%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.83 | ||
| Fwd PE | 7.86 | ||
| P/S | 0.23 | ||
| P/FCF | 6.76 | ||
| P/OCF | 3.61 | ||
| P/B | 2.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.46 |
EPS(TTM)2.59
EY14.63%
EPS(NY)2.25
Fwd EY12.71%
FCF(TTM)2.62
FCFY14.79%
OCF(TTM)4.9
OCFY27.66%
SpS77.93
BVpS8.08
TBVpS-1.14
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.65% | ||
| ROE | 25.89% | ||
| ROCE | 8.54% | ||
| ROIC | 6.64% | ||
| ROICexc | 6.93% | ||
| ROICexgc | 9.01% | ||
| OM | 4.56% | ||
| PM (TTM) | 2.68% | ||
| GM | 35.95% | ||
| FCFM | 3.36% |
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
ROICexcg growth 3Y-33.67%
ROICexcg 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 Turnover1.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.67 | ||
| Debt/FCF | 5.18 | ||
| Debt/EBITDA | 2 | ||
| Cap/Depr | 71.37% | ||
| Cap/Sales | 2.92% | ||
| Interest Coverage | 3.89 | ||
| Cash Conversion | 72.54% | ||
| Profit Quality | 125.15% | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.33 | ||
| Altman-Z | 1.94 |
F-Score6
WACC9.66%
ROIC/WACC0.69
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)24.52%
EPS 3Y-25.48%
EPS 5YN/A
EPS Q2Q%-25%
EPS Next Y-21.36%
EPS Next 2Y-7.32%
EPS Next 3Y0.56%
EPS Next 5YN/A
Revenue 1Y (TTM)1.45%
Revenue growth 3Y-2.8%
Revenue growth 5Y-3.67%
Sales Q2Q%-0.48%
Revenue Next Year0.44%
Revenue Next 2Y1.13%
Revenue Next 3Y1.46%
Revenue Next 5YN/A
EBIT growth 1Y-5.02%
EBIT growth 3Y-30.61%
EBIT growth 5YN/A
EBIT Next Year64.47%
EBIT Next 3Y17.7%
EBIT Next 5YN/A
FCF growth 1Y-24.55%
FCF growth 3Y-28.72%
FCF growth 5Y22.37%
OCF growth 1Y-17.68%
OCF growth 3Y-20.66%
OCF growth 5Y6.17%