Victorias Secret & Co. Common Stock (VSCO)

FairStock Score: 39/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for a durable business bought at a sensible price, and Victoria's Secret is a mixed picture. It sells intimate apparel, beauty, and casual wear under Victoria's Secret, PINK, and Adore Me. The brands are known, but retail apparel is fashion-dependent and competitive, so the moat is not obvious. In fiscal Q2 2026, revenue was $1.6B and net income was $48.0M, a 3.08% margin—profitable, but thin. Trailing free cash flow is $312.0M, a 7.5% FCF yield, which is a genuine positive. The balance sheet is the worry: debt-to-equity is 3.13, Altman Z-Score is 1.20, and Piotroski F-Score is 4/9. FairStock calculates return on equity at 24.01%, but ROCE is only 5.03%, so leverage is flattering equity returns. At the 2026-07-17 close of $81.45, FairStock's P/E is 42.20, P/B is 7.61, EV/EBITDA is 11.47, and the Graham Number is $21.52, implying a -278.49% margin of safety. FairStock Score is 39/100. The Lynch category is none because only 0 years of filed results exist versus the 3 required. Beta is 2.25. Growth may be improving, but the supplied profit-growth figure is extreme and needs a longer filing record. I would want more margin, less debt, and a price closer to intrinsic value.

In plain English: Victoria's Secret sells bras, lingerie, beauty products, and apparel through stores and websites. In fiscal Q2 2026 it reported $1.6B in sales and $48.0M in profit, so it is profitable but operates on thin margins. At $81.45, the stock looks expensive relative to its earnings and asset value, and the company carries heavy debt.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-07-17 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer