Vista Outdoor Inc.
Vista Outdoor Inc. Fundamental Analysis
Vista Outdoor Inc. (VSTO) shows weak financial fundamentals with a PE ratio of -469.78, profit margin of -0.20%, and ROE of -0.49%. The company generates $2.8B in annual revenue with weak year-over-year growth of -10.84%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 20.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze VSTO's fundamental strength across five key dimensions:
Efficiency Score
WeakVSTO struggles to generate sufficient returns from assets.
Valuation Score
ModerateVSTO shows balanced valuation metrics.
Growth Score
ModerateVSTO shows steady but slowing expansion.
Financial Health Score
ExcellentVSTO maintains a strong and stable balance sheet.
Profitability Score
WeakVSTO struggles to sustain strong margins.
Key Financial Metrics
Is VSTO Expensive or Cheap?
P/E Ratio
VSTO trades at -469.78 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, VSTO's PEG of 10.34 indicates potential overvaluation.
Price to Book
The market values Vista Outdoor Inc. at 2.30 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 12.34 times EBITDA. This signals the market has high growth expectations.
How Well Does VSTO Make Money?
Net Profit Margin
For every $100 in sales, Vista Outdoor Inc. keeps $-0.20 as profit after all expenses.
Operating Margin
Core operations generate 10.35 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-0.49 in profit for every $100 of shareholder equity.
ROA
Vista Outdoor Inc. generates $-0.23 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Vista Outdoor Inc. produces operating cash flow of $404.22M, showing steady but balanced cash generation.
Free Cash Flow
Vista Outdoor Inc. generates strong free cash flow of $373.43M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $6.39 in free cash annually.
FCF Yield
VSTO converts 14.20% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-469.78
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
10.34
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.30
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.95
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.74
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.79
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.00
vs 25 benchmark
ROA
Return on assets percentage
-0.00
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How VSTO Stacks Against Its Sector Peers
| Metric | VSTO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -469.78 | 25.25 | Better (Cheaper) |
| ROE | -0.49% | 1170.00% | Weak |
| Net Margin | -0.20% | 742.00% | Weak |
| Debt/Equity | 0.74 | 0.77 | Neutral |
| Current Ratio | 2.79 | 9.19 | Strong Liquidity |
| ROA | -0.23% | -6467.00% (disorted) | Weak |
VSTO outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Vista Outdoor Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
32.46%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
99.16%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
308.37%
Industry Style: Cyclical, Growth, Discretionary
High Growth