VF CORP (VFC) Stock Fundamental Analysis
NYSE:VFC - US9182041080 - Common Stock
13.7 USD
+0.67 (+5.14%)
13.8 USD
+0.1 (+0.73%)
Taking everything into account, VFC scores 3 out of 10 in our fundamental rating. VFC was compared to 50 industry peers in the Textiles, Apparel & Luxury Goods industry. Both the profitability and financial health of VFC have multiple concerns. VFC is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year VFC was profitable.
In the past year VFC had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: VFC reported negative net income in multiple years.
VFC had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.47%, VFC is in line with its industry, outperforming 42.00% of the companies in the same industry.
VFC has a worse Return On Equity (-3.66%) than 60.00% of its industry peers.
With a Return On Invested Capital value of 5.55%, VFC perfoms like the industry average, outperforming 42.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for VFC is below the industry average of 11.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.47% | ||
| ROE | -3.66% | ||
| ROIC | 5.55% |
ROA(3y)-3.17%
ROA(5y)0.77%
ROE(3y)-22.37%
ROE(5y)-2.89%
ROIC(3y)6.12%
ROIC(5y)7.24%
1.3 Margins
VFC has a Operating Margin (5.25%) which is in line with its industry peers.
In the last couple of years the Operating Margin of VFC has declined.
VFC has a better Gross Margin (54.05%) than 62.00% of its industry peers.
In the last couple of years the Gross Margin of VFC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.25% | ||
| PM (TTM) | N/A | ||
| GM | 54.05% |
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 VFC is destroying value.
The number of shares outstanding for VFC has been increased compared to 1 year ago.
The number of shares outstanding for VFC remains at a similar level compared to 5 years ago.
VFC has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.37, we must say that VFC is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.37, VFC is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
VFC has a debt to FCF ratio of 26.73. This is a negative value and a sign of low solvency as VFC would need 26.73 years to pay back of all of its debts.
The Debt to FCF ratio of VFC (26.73) is worse than 64.00% of its industry peers.
A Debt/Equity ratio of 3.06 is on the high side and indicates that VFC has dependencies on debt financing.
The Debt to Equity ratio of VFC (3.06) is worse than 86.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.06 | ||
| Debt/FCF | 26.73 | ||
| Altman-Z | 1.37 |
ROIC/WACC0.71
WACC7.86%
2.3 Liquidity
VFC has a Current Ratio of 1.27. This is a normal value and indicates that VFC is financially healthy and should not expect problems in meeting its short term obligations.
VFC's Current ratio of 1.27 is on the low side compared to the rest of the industry. VFC is outperformed by 82.00% of its industry peers.
A Quick Ratio of 0.65 indicates that VFC may have some problems paying its short term obligations.
The Quick ratio of VFC (0.65) is worse than 82.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 54.55% over the past year.
VFC shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -23.44% yearly.
VFC shows a decrease in Revenue. In the last year, the revenue decreased by -6.32%.
VFC shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.95% yearly.
EPS 1Y (TTM)54.55%
EPS 3Y-38.01%
EPS 5Y-23.44%
EPS Q2Q%27.27%
Revenue 1Y (TTM)-6.32%
Revenue growth 3Y-7.07%
Revenue growth 5Y-1.95%
Sales Q2Q%-7.69%
3.2 Future
VFC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.16% yearly.
The Revenue is expected to grow by 3.38% on average over the next years.
EPS Next Y11.7%
EPS Next 2Y20.71%
EPS Next 3Y21.89%
EPS Next 5Y24.16%
Revenue Next Year-0.36%
Revenue Next 2Y1.45%
Revenue Next 3Y1.94%
Revenue Next 5Y3.38%
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 16.12, which indicates a correct valuation of VFC.
70.00% of the companies in the same industry are more expensive than VFC, based on the Price/Earnings ratio.
VFC is valuated rather cheaply when we compare the Price/Earnings ratio to 27.24, which is the current average of the S&P500 Index.
VFC is valuated correctly with a Price/Forward Earnings ratio of 12.37.
Based on the Price/Forward Earnings ratio, VFC is valued a bit cheaper than 74.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of VFC to the average of the S&P500 Index (35.82), we can say VFC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.12 | ||
| Fwd PE | 12.37 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as VFC.
The rest of the industry has a similar Price/Free Cash Flow ratio as VFC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.44 | ||
| EV/EBITDA | 11.37 |
4.3 Compensation for Growth
VFC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as VFC's earnings are expected to grow with 21.89% in the coming years.
PEG (NY)1.38
PEG (5Y)N/A
EPS Next 2Y20.71%
EPS Next 3Y21.89%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.78%, VFC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.63, VFC pays a better dividend. On top of this VFC pays more dividend than 84.00% of the companies listed in the same industry.
VFC's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
5.2 History
The dividend of VFC decreases each year by -28.58%.
VFC has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-28.58%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
VFC has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-297.01%
EPS Next 2Y20.71%
EPS Next 3Y21.89%
13.7
+0.67 (+5.14%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners96.11%
Inst Owner Change-1.37%
Ins Owners0.92%
Ins Owner Change1.89%
Market Cap5.34B
Analysts66.67
Price Target13.79 (0.66%)
Short Float %9.21%
Short Ratio4.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
Yearly Dividend0.36
Dividend Growth(5Y)-28.58%
DP-297.01%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.95%
Min EPS beat(2)8.39%
Max EPS beat(2)29.51%
EPS beat(4)4
Avg EPS beat(4)44.51%
Min EPS beat(4)8.39%
Max EPS beat(4)81.17%
EPS beat(8)5
Avg EPS beat(8)-358.14%
EPS beat(12)7
Avg EPS beat(12)-238.6%
EPS beat(16)8
Avg EPS beat(16)-180.68%
Revenue beat(2)1
Avg Revenue beat(2)-0.05%
Min Revenue beat(2)-2.47%
Max Revenue beat(2)2.36%
Revenue beat(4)3
Avg Revenue beat(4)0.75%
Min Revenue beat(4)-2.47%
Max Revenue beat(4)2.36%
Revenue beat(8)5
Avg Revenue beat(8)-0.83%
Revenue beat(12)6
Avg Revenue beat(12)-0.67%
Revenue beat(16)7
Avg Revenue beat(16)-1.21%
PT rev (1m)2.2%
PT rev (3m)-31.37%
EPS NQ rev (1m)-20.52%
EPS NQ rev (3m)-33.35%
EPS NY rev (1m)0%
EPS NY rev (3m)-14.59%
Revenue NQ rev (1m)0.51%
Revenue NQ rev (3m)-1.88%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)-1.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.12 | ||
| Fwd PE | 12.37 | ||
| P/S | 0.56 | ||
| P/FCF | 31.44 | ||
| P/OCF | 17.8 | ||
| P/B | 4.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.37 |
EPS(TTM)0.85
EY6.2%
EPS(NY)1.11
Fwd EY8.08%
FCF(TTM)0.44
FCFY3.18%
OCF(TTM)0.77
OCFY5.62%
SpS24.36
BVpS3.32
TBVpS-2.7
PEG (NY)1.38
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.47% | ||
| ROE | -3.66% | ||
| ROCE | 7.43% | ||
| ROIC | 5.55% | ||
| ROICexc | 6.1% | ||
| ROICexgc | 9.57% | ||
| OM | 5.25% | ||
| PM (TTM) | N/A | ||
| GM | 54.05% | ||
| FCFM | 1.79% |
ROA(3y)-3.17%
ROA(5y)0.77%
ROE(3y)-22.37%
ROE(5y)-2.89%
ROIC(3y)6.12%
ROIC(5y)7.24%
ROICexc(3y)6.61%
ROICexc(5y)8.04%
ROICexgc(3y)13.43%
ROICexgc(5y)18.64%
ROCE(3y)7.82%
ROCE(5y)9.32%
ROICexcg growth 3Y-36.33%
ROICexcg growth 5Y-14.02%
ROICexc growth 3Y-25.7%
ROICexc growth 5Y-14.25%
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%
F-Score7
Asset Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.06 | ||
| Debt/FCF | 26.73 | ||
| Debt/EBITDA | 5.24 | ||
| Cap/Depr | 50.79% | ||
| Cap/Sales | 1.37% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 39.73% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 1.37 |
F-Score7
WACC7.86%
ROIC/WACC0.71
Cap/Depr(3y)71.41%
Cap/Depr(5y)87.82%
Cap/Sales(3y)1.94%
Cap/Sales(5y)2.31%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)54.55%
EPS 3Y-38.01%
EPS 5Y-23.44%
EPS Q2Q%27.27%
EPS Next Y11.7%
EPS Next 2Y20.71%
EPS Next 3Y21.89%
EPS Next 5Y24.16%
Revenue 1Y (TTM)-6.32%
Revenue growth 3Y-7.07%
Revenue growth 5Y-1.95%
Sales Q2Q%-7.69%
Revenue Next Year-0.36%
Revenue Next 2Y1.45%
Revenue Next 3Y1.94%
Revenue Next 5Y3.38%
EBIT growth 1Y3.17%
EBIT growth 3Y-34.37%
EBIT growth 5Y-18.29%
EBIT Next Year63.81%
EBIT Next 3Y25.02%
EBIT Next 5Y19.19%
FCF growth 1Y142.44%
FCF growth 3Y-14.14%
FCF growth 5Y-8.9%
OCF growth 1Y324.01%
OCF growth 3Y-18.65%
OCF growth 5Y-11.86%