Vista Outdoor Inc (VSTO) Stock Fundamental Analysis
NYSE:VSTO - New York Stock Exchange, Inc. - US9283771007 - Common Stock - Currency: USD
Taking everything into account, VSTO scores 6 out of 10 in our fundamental rating. VSTO was compared to 30 industry peers in the Leisure Products industry. VSTO has an excellent financial health rating, but there are some minor concerns on its profitability. VSTO is valued quite cheap, while showing a decent growth score. This is a good combination! This makes VSTO very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year VSTO was profitable.
VSTO had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: VSTO reported negative net income in multiple 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.
VSTO has a Return On Equity of -0.74%. This is comparable to the rest of the industry: VSTO outperforms 54.84% of its industry peers.
With a decent Return On Invested Capital value of 9.38%, VSTO is doing good in the industry, outperforming 77.42% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for VSTO is significantly above the industry average of 7.91%.
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
VSTO has a Operating Margin of 8.75%. This is in the better half of the industry: VSTO outperforms 77.42% of its industry peers.
In the last couple of years the Operating Margin of VSTO has grown nicely.
VSTO has a Gross Margin (31.49%) which is comparable to the rest of the industry.
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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so VSTO is creating value.
The number of shares outstanding for VSTO has been increased compared to 1 year ago.
Compared to 5 years ago, VSTO has more shares outstanding
The debt/assets ratio for VSTO has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.15 indicates that VSTO is not in any danger for bankruptcy at the moment.
The Altman-Z score of VSTO (3.15) is better than 64.52% of its industry peers.
VSTO has a debt to FCF ratio of 1.70. This is a very positive value and a sign of high solvency as it would only need 1.70 years to pay back of all of its debts.
VSTO's Debt to FCF ratio of 1.70 is fine compared to the rest of the industry. VSTO outperforms 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 has a Debt to Equity ratio (0.48) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 1.7 | ||
| Altman-Z | 3.15 |
ROIC/WACC1.15
WACC8.19%
2.3 Liquidity
VSTO has a Current Ratio of 2.90. This indicates that VSTO is financially healthy and has no problem in meeting its short term obligations.
VSTO's Current ratio of 2.90 is fine compared to the rest of the industry. VSTO outperforms 64.52% of its industry peers.
A Quick Ratio of 1.26 indicates that VSTO should not have too much problems paying its short term obligations.
VSTO's Quick ratio of 1.26 is in line compared to the rest of the industry. VSTO outperforms 45.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.9 | ||
| Quick Ratio | 1.26 |
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
Looking at the last year, VSTO shows a decrease in Revenue. The Revenue has decreased by -6.27% in the last year.
VSTO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.93% yearly.
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
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.56, the valuation of VSTO can be described as very reasonable.
VSTO's Price/Earnings ratio is rather cheap when compared to the industry. VSTO is cheaper than 93.55% of the companies in the same industry.
VSTO is valuated cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 9.06, which indicates a very decent valuation of VSTO.
87.10% of the companies in the same industry are more expensive than VSTO, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 35.19. VSTO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.56 | ||
| Fwd PE | 9.06 |
4.2 Price Multiples
77.42% of the companies in the same industry are more expensive than VSTO, based on the Enterprise Value to EBITDA ratio.
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.
PEG (NY)0.99
PEG (5Y)0.13
EPS Next 2Y12.39%
EPS Next 3Y11.99%
5. Dividend
5.1 Amount
VSTO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
44.63
+0.24 (+0.54%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners90.38%
Inst Owner Change0%
Ins Owners2.74%
Ins Owner Change0%
Market Cap2.61B
Analysts73.33
Price Target43.67 (-2.15%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.79%
Min EPS beat(2)3.5%
Max EPS beat(2)6.07%
EPS beat(4)3
Avg EPS beat(4)3.07%
Min EPS beat(4)-3.41%
Max EPS beat(4)6.1%
EPS beat(8)6
Avg EPS beat(8)5.25%
EPS beat(12)9
Avg EPS beat(12)6.65%
EPS beat(16)13
Avg EPS beat(16)19.37%
Revenue beat(2)0
Avg Revenue beat(2)-3.01%
Min Revenue beat(2)-3.96%
Max Revenue beat(2)-2.06%
Revenue beat(4)0
Avg Revenue beat(4)-2.89%
Min Revenue beat(4)-3.96%
Max Revenue beat(4)-2.06%
Revenue beat(8)0
Avg Revenue beat(8)-2.73%
Revenue beat(12)3
Avg Revenue beat(12)-1.11%
Revenue beat(16)7
Avg Revenue beat(16)0.98%
PT rev (1m)0.71%
PT rev (3m)2.32%
EPS NQ rev (1m)2.05%
EPS NQ rev (3m)-3.69%
EPS NY rev (1m)2.2%
EPS NY rev (3m)3.45%
Revenue NQ rev (1m)0.2%
Revenue NQ rev (3m)-0.12%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.56 | ||
| Fwd PE | 9.06 | ||
| P/S | 0.97 | ||
| P/FCF | 7.53 | ||
| P/OCF | 6.97 | ||
| P/B | 2.12 | ||
| P/tB | 8.34 | ||
| EV/EBITDA | 9.54 |
EPS(TTM)3.86
EY8.65%
EPS(NY)4.93
Fwd EY11.04%
FCF(TTM)5.93
FCFY13.29%
OCF(TTM)6.4
OCFY14.34%
SpS45.97
BVpS21.08
TBVpS5.35
PEG (NY)0.99
PEG (5Y)0.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.39% | ||
| ROE | -0.74% | ||
| ROCE | 11.87% | ||
| ROIC | 9.38% | ||
| ROICexc | 9.56% | ||
| ROICexgc | 18.13% | ||
| OM | 8.75% | ||
| PM (TTM) | N/A | ||
| GM | 31.49% | ||
| FCFM | 12.9% |
ROA(3y)6.39%
ROA(5y)4.62%
ROE(3y)13.58%
ROE(5y)8.36%
ROIC(3y)17.2%
ROIC(5y)13.87%
ROICexc(3y)17.6%
ROICexc(5y)14.78%
ROICexgc(3y)34.86%
ROICexgc(5y)27.4%
ROCE(3y)21.77%
ROCE(5y)17.56%
ROICexcg growth 3Y-9.25%
ROICexcg growth 5Y83.53%
ROICexc growth 3Y-16%
ROICexc growth 5Y78.35%
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%
F-Score6
Asset Turnover1.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 1.7 | ||
| Debt/EBITDA | 1.77 | ||
| Cap/Depr | 28.55% | ||
| Cap/Sales | 1.02% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 112.92% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.9 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z | 3.15 |
F-Score6
WACC8.19%
ROIC/WACC1.15
Cap/Depr(3y)44.03%
Cap/Depr(5y)42.7%
Cap/Sales(3y)1.26%
Cap/Sales(5y)1.3%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-13.45%
EPS 3Y2.14%
EPS 5Y91.86%
EPS Q2Q%7.29%
EPS Next Y11.68%
EPS Next 2Y12.39%
EPS Next 3Y11.99%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.27%
Revenue growth 3Y7.26%
Revenue growth 5Y5.93%
Sales Q2Q%-1.61%
Revenue Next Year-1.5%
Revenue Next 2Y0.32%
Revenue Next 3Y0.38%
Revenue Next 5YN/A
EBIT growth 1Y-28.88%
EBIT growth 3Y0.26%
EBIT growth 5Y90.73%
EBIT Next Year31.39%
EBIT Next 3Y16.84%
EBIT Next 5YN/A
FCF growth 1Y-5.09%
FCF growth 3Y5.52%
FCF growth 5Y46.28%
OCF growth 1Y-8.01%
OCF growth 3Y5.09%
OCF growth 5Y32.68%