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VSCO

Victoria's SecretNYSE:VSCO Stock Report

Market Cap

US$4.8b

7D

-2.8%

1Y

n/a

Updated

27 Nov, 2021

Data

Company Financials +
VSCO fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance3/6
Financial Health3/6
Dividends0/6

VSCO Stock Overview

Victoria's Secret & Co. operates as a specialty retailer of women’s intimate, personal care, and beauty products worldwide.

Victoria's Secret Competitors

Gap

NYSE:GPS

US$6.5b

American Eagle Outfitters

NYSE:AEO

US$4.5b

Amazon.com

NasdaqGS:AMZN

US$1.8t

Walmart

NYSE:WMT

US$404.1b

Price History & Performance

Summary of all time highs, changes and price drops for Victoria's Secret
Historical stock prices
Current Share PriceUS$53.88
52 Week HighUS$76.00
52 Week LowUS$39.79
Beta0
1 Month Change5.48%
3 Month Change-21.50%
1 Year Changen/a
3 Year Changen/a
5 Year Changen/a
Change since IPO26.78%

Recent News & Updates

Oct 29

Spin-Off Companies Outperforms The Market The Case For Victoria's Secret

Victoria's Secret is a spin-off from L Brands. The company is trading for an extremely attractive valuation. Spin-off companies tend to outperform the market.

Oct 18

Victoria's Secret: Intimate With Huge Upside Potential

Victoria's Secret is trading at a growing TAM worth $450 billion by the end of 2025. Has demonstrated operational efficiency that brings improved bottom line and all-time record ROE. Its loyal customer base continues to grow, which will support future revenue growth. Relatively cheap compared to its peer and trading cheaply at 6.17x P/E ratio.

Aug 20

Victoria's Secret: Secrets Revealed

Victoria's Secret has seen a solid second quarter after being spun off from its former parent L Brands. I am furthermore pleased with a slightly smaller share count and debt assumption than I previously thought. This good news is offset by a cautious guidance for the third quarter, and lack of guidance thereafter, but I still see real value here.

Shareholder Returns

VSCOUS Specialty RetailUS Market
7D-2.8%-3.5%-2.7%
1Yn/a29.4%21.3%

Return vs Industry: Insufficient data to determine how VSCO performed against the US Specialty Retail industry.

Return vs Market: Insufficient data to determine how VSCO performed against the US Market.

Price Volatility

Is VSCO's price volatile compared to industry and market?
VSCO volatility
VSCO Average Weekly Movement7.3%
Specialty Retail Industry Average Movement6.8%
Market Average Movement6.0%
10% most volatile stocks in US Market15.0%
10% least volatile stocks in US Market2.3%

Stable Share Price: VSCO is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: Insufficient data to determine VSCO's volatility change over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/a19,450Martin Watershttps://www.victoriassecretandco.com

Victoria's Secret & Co. operates as a specialty retailer of women’s intimate, personal care, and beauty products worldwide. The company offers bras, panties, lingerie, casual sleepwear and athleisure, loungewear, swimwear, and activewear, as well as fragrances and body care products, and accessories under the Victoria’s Secret and PINK brands. It operates approximately 1,400 retail stores.

Victoria's Secret Fundamentals Summary

How do Victoria's Secret's earnings and revenue compare to its market cap?
VSCO fundamental statistics
Market CapUS$4.76b
Earnings (TTM)US$683.02m
Revenue (TTM)US$6.71b

7.0x

P/E Ratio

0.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
VSCO income statement (TTM)
RevenueUS$6.71b
Cost of RevenueUS$3.89b
Gross ProfitUS$2.82b
ExpensesUS$2.14b
EarningsUS$683.02m

Last Reported Earnings

Oct 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)7.73
Gross Margin42.07%
Net Profit Margin10.18%
Debt/Equity Ratio280.3%

How did VSCO perform over the long term?

See historical performance and comparison

Valuation

Is Victoria's Secret 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: VSCO ($53.88) is trading below our estimate of fair value ($164.66)

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


Price To Earnings Ratio

PE vs Industry: VSCO is good value based on its PE Ratio (7x) compared to the US Specialty Retail industry average (9.7x).

PE vs Market: VSCO is good value based on its PE Ratio (7x) compared to the US market (17.2x).


Price to Earnings Growth Ratio

PEG Ratio: VSCO is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: VSCO is overvalued based on its PB Ratio (5.4x) compared to the US Specialty Retail industry average (3.1x).


Future Growth

How is Victoria's Secret forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

2.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VSCO's forecast earnings growth (2.7% per year) is above the savings rate (2%).

Earnings vs Market: VSCO's earnings (2.7% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: VSCO's earnings are forecast to grow, but not significantly.

Revenue vs Market: VSCO's revenue (5.3% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: VSCO's revenue (5.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VSCO's Return on Equity is forecast to be very high in 3 years time (43.7%).


Past Performance

How has Victoria's Secret performed over the past 5 years?

12.9%

Last years revenue growth


Earnings and Revenue History

Quality Earnings: VSCO has high quality earnings.

Growing Profit Margin: VSCO became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if VSCO's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: VSCO has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: VSCO has become profitable in the last year, making it difficult to compare its past year earnings growth to the Specialty Retail industry (144.8%).


Return on Equity

High ROE: VSCO's Return on Equity (77.3%) is considered outstanding.


Financial Health

How is Victoria's Secret's financial position?


Financial Position Analysis

Short Term Liabilities: VSCO's short term assets ($1.8B) exceed its short term liabilities ($1.4B).

Long Term Liabilities: VSCO's short term assets ($1.8B) do not cover its long term liabilities ($2.3B).


Debt to Equity History and Analysis

Debt Level: VSCO's net debt to equity ratio (247.2%) is considered high.

Reducing Debt: Insufficient data to determine if VSCO's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: VSCO's debt is well covered by operating cash flow (47.3%).

Interest Coverage: VSCO's interest payments on its debt are well covered by EBIT (54.7x coverage).


Balance Sheet


Dividend

What is Victoria's Secret current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if VSCO'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 VSCO'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?

1.8yrs

Average management tenure


CEO

Martin Waters (55 yo)

0.75

Tenure

Mr. Martin P. Waters serves as the Chief Executive Officer of Victoria's Secret & Co. since February 4, 2021. He serves as a Director of Victoria's Secret & Co. He served as the President of L Brands Inter...


Leadership Team

Experienced Management: VSCO's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Ownership

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


Insider Trading Volume

Insider Buying: VSCO insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: VSCO only recently listed within the past 12 months.


Top Shareholders

Company Information

Victoria's Secret & Co.'s employee growth, exchange listings and data sources


Key Information

  • Name: Victoria's Secret & Co.
  • Ticker: VSCO
  • Exchange: NYSE
  • Founded: NaN
  • Industry: Apparel Retail
  • Sector: Retail
  • Market Cap: US$4.761b
  • Shares outstanding: 88.36m
  • Website: https://www.victoriassecretandco.com

Number of Employees


Location

  • Victoria's Secret & Co.
  • 4 Limited Parkway East
  • Reynoldsburg
  • Ohio
  • 43068
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/27 23:29
End of Day Share Price2021/11/26 00:00
Earnings2021/10/30
Annual Earnings2021/01/30


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.