We assign a fundamental rating of 6 out of 10 to VSTO. VSTO was compared to 31 industry peers in the Leisure Products industry. While VSTO has a great health rating, its profitability is only average at the moment. VSTO is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings could make VSTO a good candidate for value investing.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year VSTO was profitable.
In the past year VSTO had a positive cash flow from operations.
In multiple years VSTO reported negative net income over the last 5 years.
Each year in the past 5 years VSTO had a positive operating cash flow.

1.2 Ratios

VSTO has a Return On Assets of -0.39%. This is comparable to the rest of the industry: VSTO outperforms 54.84% of its industry peers.
With a Return On Equity value of -0.74%, VSTO perfoms like the industry average, outperforming 54.84% of the companies in the same industry.
VSTO has a better Return On Invested Capital (9.38%) than 77.42% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VSTO is significantly above the industry average of 7.35%.
The last Return On Invested Capital (9.38%) for VSTO is well below the 3 year average (17.20%), which needs to be investigated, but indicates that VSTO had better years and this may not be a problem.

		Industry Rank	Sector Rank
ROA	-0.39%
ROE	-0.74%
ROIC	9.38%

ROA(3y)6.39%

ROA(5y)4.62%

ROE(3y)13.58%

ROE(5y)8.36%

ROIC(3y)17.2%

ROIC(5y)13.87%

1.3 Margins

With a decent Operating Margin value of 8.75%, VSTO is doing good in the industry, outperforming 77.42% of the companies in the same industry.
VSTO's Operating Margin has improved in the last couple of years.
VSTO has a Gross Margin (31.49%) which is in line with its industry peers.
In the last couple of years the Gross Margin of VSTO has grown nicely.

		Industry Rank	Sector Rank
OM	8.75%
PM (TTM)	N/A
GM	31.49%

OM growth 3Y-6.53%

OM growth 5Y80.05%

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y3.22%

GM growth 5Y9.15%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), VSTO is creating value.
The number of shares outstanding for VSTO has been increased compared to 1 year ago.
VSTO has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, VSTO has an improved debt to assets ratio.

2.2 Solvency

VSTO has an Altman-Z score of 3.15. This indicates that VSTO is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.15, VSTO is in the better half of the industry, outperforming 64.52% of the companies in the same industry.
The Debt to FCF ratio of VSTO is 1.70, which is an excellent value as it means it would take VSTO, only 1.70 years of fcf income to pay off all of its debts.
VSTO has a better Debt to FCF ratio (1.70) than 74.19% of its industry peers.
VSTO has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
VSTO's Debt to Equity ratio of 0.48 is in line compared to the rest of the industry. VSTO outperforms 41.94% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.48
Debt/FCF	1.7
Altman-Z	3.15

ROIC/WACC1.15

WACC8.19%

2.3 Liquidity

A Current Ratio of 2.90 indicates that VSTO has no problem at all paying its short term obligations.
VSTO has a better Current ratio (2.90) than 64.52% of its industry peers.
VSTO has a Quick Ratio of 1.26. This is a normal value and indicates that VSTO is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.26, VSTO is in line with its industry, outperforming 45.16% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	2.9
Quick Ratio	1.26

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

VSTO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.45%.
The Earnings Per Share has been growing by 91.86% on average over the past years. This is a very strong growth
VSTO shows a decrease in Revenue. In the last year, the revenue decreased by -6.27%.
The Revenue has been growing slightly by 5.93% on average over the past years.

EPS 1Y (TTM)-13.45%

EPS 3Y2.14%

EPS 5Y91.86%

EPS Q2Q%7.29%

Revenue 1Y (TTM)-6.27%

Revenue growth 3Y7.26%

Revenue growth 5Y5.93%

Sales Q2Q%-1.61%

3.2 Future

The Earnings Per Share is expected to grow by 11.99% on average over the next years. This is quite good.
Based on estimates for the next years, VSTO will show a small growth in Revenue. The Revenue will grow by 0.38% on average per year.

EPS Next Y11.68%

EPS Next 2Y12.39%

EPS Next 3Y11.99%

EPS Next 5YN/A

Revenue Next Year-1.5%

Revenue Next 2Y0.32%

Revenue Next 3Y0.38%

Revenue Next 5YN/A

3.3 Evolution

The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

VSTO is valuated reasonably with a Price/Earnings ratio of 11.56.
Based on the Price/Earnings ratio, VSTO is valued cheaper than 93.55% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.21. VSTO is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 9.06, the valuation of VSTO can be described as very reasonable.
Based on the Price/Forward Earnings ratio, VSTO is valued cheaply inside the industry as 87.10% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, VSTO is valued rather cheaply.

		Industry Rank	Sector Rank
PE	11.56
Fwd PE	9.06

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VSTO indicates a somewhat cheap valuation: VSTO is cheaper than 77.42% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, VSTO is valued cheaply inside the industry as 93.55% of the companies are valued more expensively.

		Industry Rank	Sector Rank
P/FCF	7.53
EV/EBITDA	9.54

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of VSTO may justify a higher PE ratio.