NYSE:VSTO

Stock Analysis Report

Executive Summary

Vista Outdoor Inc. designs, manufactures, and markets consumer products for outdoor sports and recreation markets in the United States and internationally.

Rewards

Trading at 62.8% below its fair value

Earnings are forecast to grow 104.27% per year

Risk Analysis

Highly volatile share price over past 3 months



Snowflake Analysis

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

How has Vista Outdoor's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: VSTO's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.5%

VSTO

0.8%

US Leisure

0.06%

US Market


1 Year Return

2.8%

VSTO

10.2%

US Leisure

19.4%

US Market

Return vs Industry: VSTO underperformed the US Leisure industry which returned 10.2% over the past year.

Return vs Market: VSTO underperformed the US Market which returned 19.4% over the past year.


Shareholder returns

VSTOIndustryMarket
7 Day-0.5%0.8%0.06%
30 Day28.5%-0.9%1.1%
90 Day11.4%3.4%8.9%
1 Year2.8%2.8%12.0%10.2%21.9%19.4%
3 Year-53.6%-53.6%-1.4%-6.3%48.9%39.3%
5 Year-78.5%-78.5%1.3%-8.3%71.9%53.1%

Price Volatility Vs. Market

How volatile is Vista Outdoor's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Vista Outdoor undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VSTO ($9.56) is trading below our estimate of fair value ($25.67)

Significantly Below Fair Value: VSTO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: VSTO is unprofitable, so we can't compare its PE Ratio to the Leisure industry average.

PE vs Market: VSTO is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate VSTO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: VSTO is good value based on its PB Ratio (0.9x) compared to the US Leisure industry average (2.4x).


Next Steps

Future Growth

How is Vista Outdoor forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

104.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VSTO is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: VSTO is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: VSTO's is expected to become profitable in the next 3 years.

Revenue vs Market: VSTO's revenue (0.7% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: VSTO's revenue (0.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if VSTO's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Vista Outdoor performed over the past 5 years?

-55.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VSTO is currently unprofitable.

Growing Profit Margin: VSTO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: VSTO is unprofitable, and losses have increased over the past 5 years at a rate of -55.2% per year.

Accelerating Growth: Unable to compare VSTO's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: VSTO is unprofitable, making it difficult to compare its past year earnings growth to the Leisure industry (-3.4%).


Return on Equity

High ROE: VSTO has a negative Return on Equity (-10.33%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Vista Outdoor's financial position?


Financial Position Analysis

Short Term Liabilities: VSTO's short term assets ($705.4M) exceed its short term liabilities ($243.5M).

Long Term Liabilities: VSTO's short term assets ($705.4M) exceed its long term liabilities ($700.5M).


Debt to Equity History and Analysis

Debt Level: VSTO's debt to equity ratio (86.6%) is considered high.

Reducing Debt: VSTO's debt to equity ratio has reduced from 107.1% to 86.6% over the past 5 years.


Balance Sheet

Inventory Level: VSTO has a high level of physical assets or inventory.

Debt Coverage by Assets: VSTO's debt is covered by short term assets (assets are 1.3x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable VSTO has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: VSTO is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -12% per year.


Next Steps

Dividend

What is Vista Outdoor's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate VSTO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate VSTO's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if VSTO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if VSTO's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of VSTO's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.1yrs

Average management tenure


CEO

Chris Metz (54yo)

2.3yrs

Tenure

US$6,124,441

Compensation

Mr. Christopher T. Metz, also known as Chris, has been Chief Executive Officer and Director of Vista Outdoor Inc. since October 09, 2017. Mr. Metz is responsible for day-to-day operations of Vista Outdoor  ...


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD6.12M) is above average for companies of similar size in the US market ($USD1.68M).

Compensation vs Earnings: Chris's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Christopher Metz
CEO & Director2.3yrsUS$6.12m0.21% $1.2m
Miguel Lopez
Senior VP & CFO1.8yrsUS$2.75m0.12% $673.6k
Anneliese Rodrigues
Vice President of Financial Planning & Analysis0yrsUS$387.83k0.0048% $26.4k
Mark Kowalski
Chief Accounting Officer & Controller0.3yrsno data0.042% $234.3k
Kelly Reisdorf
VP, Chief Communications & Investor Relations Officer1.4yrsno data0.016% $87.4k
Dylan Ramsey
General Counsel0.3yrsno data0.018% $98.4k
Bradford Crandell
Chief Human Resources Officer & VP0.3yrsno data0.016% $88.7k
Jason Vanderbrink
President of Ammunition2.3yrsno data0.058% $319.5k
Bob Steelhammer
Chief Digital Officer1.1yrsno datano data
Chris Sword
President of Bell + Giro0.3yrsno datano data

1.1yrs

Average Tenure

48.5yo

Average Age

Experienced Management: VSTO's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Christopher Metz
CEO & Director2.3yrsUS$6.12m0.21% $1.2m
Tig Krekel
Independent Director5.1yrsUS$209.99k0.017% $92.6k
Robert Tarola
Independent Director5yrsUS$204.99k0.041% $229.5k
Gary McArthur
Independent Director5yrsUS$212.49k0.036% $198.5k
April Foley
Lead Independent Director0yrsUS$198.74k0.031% $172.8k
Michael Callahan
Independent Chairman of the Board2.6yrsUS$272.49k0.034% $185.4k
Mark Gottfredson
Independent Director5yrsUS$204.99k0.038% $207.6k
Michael Robinson
Independent Director1.2yrsUS$235.49kno data

5.0yrs

Average Tenure

63yo

Average Age

Experienced Board: VSTO's board of directors are considered experienced (5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Vista Outdoor Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Vista Outdoor Inc.
  • Ticker: VSTO
  • Exchange: NYSE
  • Founded: 2014
  • Industry: Leisure Products
  • Sector: Consumer Durables
  • Market Cap: US$553.302m
  • Shares outstanding: 57.88m
  • Website: https://www.vistaoutdoor.com

Number of Employees


Location

  • Vista Outdoor Inc.
  • 1 Vista Way
  • Anoka
  • Minnesota
  • 55303
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VSTONYSE (New York Stock Exchange)YesCommon SharesUSUSDJan 2015
5VODB (Deutsche Boerse AG)YesCommon SharesDEEURJan 2015

Biography

Vista Outdoor Inc. designs, manufactures, and markets consumer products for outdoor sports and recreation markets in the United States and internationally. The company operates through Outdoor Products and Shooting Sports segments. The Outdoor Products segment offer sports products for action sports, including helmets, goggles, and accessories for cycling, snow, action, and power sports; archery/hunting accessories, such as hunting arrows, game calls, hunting blinds, game cameras, and waterfowl decoys; outdoor cooking solutions; golf products, such as laser rangefinders; hydration products comprising hydration packs and water bottles; optical products, such as binoculars, riflescopes, and telescopes; shooting accessories, including reloading equipment, clay targets, and premium gun care products; and tactical products, such as holsters, duty gear, bags, and packs. The Shooting Sports segment designs, develops, produces, and sources ammunition and firearms for the hunting and sport shooting enthusiast markets, as well as ammunition for local law enforcement, the United States government, and international markets. This segment’s product line includes centerfire ammunition, rimfire ammunition, shotshell ammunition, reloading components, and firearms. The company sells its products to outdoor enthusiasts, hunters and recreational shooters, athletes, and law enforcement and military professionals through various mass, specialty, and independent retailers and distributors. Vista Outdoor Inc. was incorporated in 2014 and is headquartered in Anoka, Minnesota. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 01:39
End of Day Share Price2020/02/18 00:00
Earnings2019/12/29
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.