VF CORP (1VFC.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1VFC - US9182041080 - Common Stock
15.794 EUR
-0.67 (-4.05%)
We assign a fundamental rating of 2 out of 10 to 1VFC. 1VFC was compared to 52 industry peers in the Textiles, Apparel & Luxury Goods industry. 1VFC may be in some trouble as it scores bad on both profitability and health. While showing a medium growth rate, 1VFC is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- In the past year 1VFC was profitable.
- 1VFC had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: 1VFC reported negative net income in multiple years.
- 1VFC had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- 1VFC has a worse Return On Assets (0.85%) than 77.08% of its industry peers.
- 1VFC's Return On Equity of 6.11% is on the low side compared to the rest of the industry. 1VFC is outperformed by 60.42% of its industry peers.
- The Return On Invested Capital of 1VFC (5.39%) is worse than 60.42% of its industry peers.
- 1VFC had an Average Return On Invested Capital over the past 3 years of 5.81%. This is significantly below the industry average of 11.64%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.85% | ||
| ROE | 6.11% | ||
| ROIC | 5.39% |
ROA(3y)-3.17%
ROA(5y)0.77%
ROE(3y)-22.37%
ROE(5y)-2.89%
ROIC(3y)5.81%
ROIC(5y)6.87%
1.3 Margins
- The Profit Margin of 1VFC (0.95%) is worse than 75.00% of its industry peers.
- 1VFC's Operating Margin of 5.56% is on the low side compared to the rest of the industry. 1VFC is outperformed by 64.58% of its industry peers.
- 1VFC's Operating Margin has declined in the last couple of years.
- 1VFC has a worse Gross Margin (54.03%) than 68.75% of its industry peers.
- 1VFC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.56% | ||
| PM (TTM) | 0.95% | ||
| GM | 54.03% |
OM growth 3Y-29.38%
OM growth 5Y-16.66%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.63%
GM growth 5Y-0.71%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 1VFC is destroying value.
- Compared to 1 year ago, 1VFC has more shares outstanding
- The number of shares outstanding for 1VFC remains at a similar level compared to 5 years ago.
- Compared to 1 year ago, 1VFC has an improved debt to assets ratio.
2.2 Solvency
- 1VFC has an Altman-Z score of 1.54. This is a bad value and indicates that 1VFC is not financially healthy and even has some risk of bankruptcy.
- 1VFC has a Altman-Z score of 1.54. This is in the lower half of the industry: 1VFC underperforms 79.17% of its industry peers.
- 1VFC has a debt to FCF ratio of 19.32. This is a negative value and a sign of low solvency as 1VFC would need 19.32 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 19.32, 1VFC is doing worse than 79.17% of the companies in the same industry.
- 1VFC has a Debt/Equity ratio of 2.74. This is a high value indicating a heavy dependency on external financing.
- 1VFC has a worse Debt to Equity ratio (2.74) than 89.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.74 | ||
| Debt/FCF | 19.32 | ||
| Altman-Z | 1.54 |
ROIC/WACC0.55
WACC9.71%
2.3 Liquidity
- A Current Ratio of 1.36 indicates that 1VFC should not have too much problems paying its short term obligations.
- The Current ratio of 1VFC (1.36) is worse than 60.42% of its industry peers.
- A Quick Ratio of 0.87 indicates that 1VFC may have some problems paying its short term obligations.
- 1VFC has a Quick ratio (0.87) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 48.08% over the past year.
- The earnings per share for 1VFC have been decreasing by -23.44% on average. This is quite bad
- Looking at the last year, 1VFC shows a decrease in Revenue. The Revenue has decreased by -3.25% in the last year.
- 1VFC shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.95% yearly.
EPS 1Y (TTM)48.08%
EPS 3Y-38.01%
EPS 5Y-23.44%
EPS Q2Q%-13.33%
Revenue 1Y (TTM)-3.25%
Revenue growth 3Y-7.07%
Revenue growth 5Y-1.95%
Sales Q2Q%1.62%
3.2 Future
- 1VFC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.52% yearly.
- Based on estimates for the next years, 1VFC will show a small growth in Revenue. The Revenue will grow by 2.54% on average per year.
EPS Next Y-5.41%
EPS Next 2Y15.36%
EPS Next 3Y19.11%
EPS Next 5Y18.52%
Revenue Next Year-0.79%
Revenue Next 2Y0.08%
Revenue Next 3Y1.14%
Revenue Next 5Y2.54%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 23.93, which indicates a rather expensive current valuation of 1VFC.
- 66.67% of the companies in the same industry are more expensive than 1VFC, based on the Price/Earnings ratio.
- 1VFC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.60.
- 1VFC is valuated rather expensively with a Price/Forward Earnings ratio of 18.29.
- Based on the Price/Forward Earnings ratio, 1VFC is valued a bit cheaper than 68.75% of the companies in the same industry.
- 1VFC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.93 | ||
| Fwd PE | 18.29 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 1VFC is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
- 62.50% of the companies in the same industry are cheaper than 1VFC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.16 | ||
| EV/EBITDA | 13.71 |
4.3 Compensation for Growth
- A more expensive valuation may be justified as 1VFC's earnings are expected to grow with 19.11% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y15.36%
EPS Next 3Y19.11%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.96%, 1VFC has a reasonable but not impressive dividend return.
- 1VFC's Dividend Yield is comparable with the industry average which is at 1.99.
- Compared to an average S&P500 Dividend Yield of 1.82, 1VFC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
5.2 History
- The dividend of 1VFC decreases each year by -28.58%.
Dividend Growth(5Y)-28.58%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 155.43% of the earnings are spent on dividend by 1VFC. This is not a sustainable payout ratio.
DP155.43%
EPS Next 2Y15.36%
EPS Next 3Y19.11%
VF CORP / 1VFC.MI FAQ
What is the ChartMill fundamental rating of VF CORP (1VFC.MI) stock?
ChartMill assigns a fundamental rating of 2 / 10 to 1VFC.MI.
What is the valuation status of VF CORP (1VFC.MI) stock?
ChartMill assigns a valuation rating of 2 / 10 to VF CORP (1VFC.MI). This can be considered as Overvalued.
How profitable is VF CORP (1VFC.MI) stock?
VF CORP (1VFC.MI) has a profitability rating of 2 / 10.
What is the earnings growth outlook for VF CORP?
The Earnings per Share (EPS) of VF CORP (1VFC.MI) is expected to decline by -5.41% in the next year.
How sustainable is the dividend of VF CORP (1VFC.MI) stock?
The dividend rating of VF CORP (1VFC.MI) is 2 / 10 and the dividend payout ratio is 155.43%.