VF CORP (VFC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VFC - US9182041080 - Common Stock
18.26 USD
+0.09 (+0.5%)
18.18 USD
-0.08 (-0.44%)
Taking everything into account, VFC scores 3 out of 10 in our fundamental rating. VFC was compared to 45 industry peers in the Textiles, Apparel & Luxury Goods industry. Both the profitability and financial health of VFC have multiple concerns. While showing a medium growth rate, VFC is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
VFC had positive earnings in the past year.
VFC had a positive operating cash flow in the past year.
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
VFC has a worse Return On Assets (0.85%) than 60.00% of its industry peers.
The Return On Equity of VFC (6.11%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 5.67%, VFC is in line with its industry, outperforming 44.44% of the companies in the same industry.
VFC had an Average Return On Invested Capital over the past 3 years of 6.12%. This is significantly below the industry average of 11.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.85% | ||
| ROE | 6.11% | ||
| ROIC | 5.67% |
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
With a Profit Margin value of 0.95%, VFC is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
Looking at the Operating Margin, with a value of 5.56%, VFC is in line with its industry, outperforming 53.33% of the companies in the same industry.
VFC's Operating Margin has declined in the last couple of years.
The Gross Margin of VFC (54.03%) is better than 62.22% of its industry peers.
VFC'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
VFC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for VFC has been increased compared to 1 year ago.
VFC has about the same amout of shares outstanding than it did 5 years ago.
VFC has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.53, we must say that VFC is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.53, VFC is not doing good in the industry: 82.22% of the companies in the same industry are doing better.
The Debt to FCF ratio of VFC is 19.32, which is on the high side as it means it would take VFC, 19.32 years of fcf income to pay off all of its debts.
VFC's Debt to FCF ratio of 19.32 is on the low side compared to the rest of the industry. VFC is outperformed by 62.22% of its industry peers.
VFC has a Debt/Equity ratio of 2.74. This is a high value indicating a heavy dependency on external financing.
VFC's Debt to Equity ratio of 2.74 is on the low side compared to the rest of the industry. VFC is outperformed by 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.74 | ||
| Debt/FCF | 19.32 | ||
| Altman-Z | 1.53 |
ROIC/WACC0.56
WACC10.08%
2.3 Liquidity
A Current Ratio of 1.36 indicates that VFC should not have too much problems paying its short term obligations.
The Current ratio of VFC (1.36) is worse than 82.22% of its industry peers.
VFC has a Quick Ratio of 1.36. This is a bad value and indicates that VFC is not financially healthy enough and could expect problems in meeting its short term obligations.
VFC has a worse Quick ratio (0.87) than 64.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
VFC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 48.08%, which is quite impressive.
Measured over the past years, VFC shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -23.44% on average per year.
VFC shows a decrease in Revenue. In the last year, the revenue decreased by -3.25%.
Measured over the past years, VFC shows a decrease in Revenue. The Revenue has been decreasing by -1.95% on average per year.
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
VFC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.52% yearly.
VFC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.54% yearly.
EPS Next Y-4.82%
EPS Next 2Y15.53%
EPS Next 3Y18.54%
EPS Next 5Y18.52%
Revenue Next Year-0.72%
Revenue Next 2Y-0.07%
Revenue Next 3Y1.09%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 23.71, which indicates a rather expensive current valuation of VFC.
The rest of the industry has a similar Price/Earnings ratio as VFC.
VFC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.77.
The Price/Forward Earnings ratio is 18.00, which indicates a rather expensive current valuation of VFC.
The rest of the industry has a similar Price/Forward Earnings ratio as VFC.
VFC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.71 | ||
| Fwd PE | 18 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VFC is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as VFC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.78 | ||
| EV/EBITDA | 13.55 |
4.3 Compensation for Growth
A more expensive valuation may be justified as VFC's earnings are expected to grow with 18.54% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y15.53%
EPS Next 3Y18.54%
5. Dividend
5.1 Amount
VFC has a Yearly Dividend Yield of 1.96%.
Compared to an average industry Dividend Yield of 1.52, VFC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.00, VFC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
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
155.43% of the earnings are spent on dividend by VFC. This is not a sustainable payout ratio.
DP155.43%
EPS Next 2Y15.53%
EPS Next 3Y18.54%
18.26
+0.09 (+0.5%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners91.48%
Inst Owner Change-3.09%
Ins Owners0.9%
Ins Owner Change-0.08%
Market Cap7.13B
Revenue(TTM)9.54B
Net Income(TTM)90.35M
Analysts67.14
Price Target16.2 (-11.28%)
Short Float %5.12%
Short Ratio3.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
Yearly Dividend0.36
Dividend Growth(5Y)-28.58%
DP155.43%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)24.67%
Min EPS beat(2)19.82%
Max EPS beat(2)29.51%
EPS beat(4)4
Avg EPS beat(4)34.72%
Min EPS beat(4)8.39%
Max EPS beat(4)81.17%
EPS beat(8)6
Avg EPS beat(8)-355.23%
EPS beat(12)8
Avg EPS beat(12)-236.83%
EPS beat(16)9
Avg EPS beat(16)-179.18%
Revenue beat(2)2
Avg Revenue beat(2)1.88%
Min Revenue beat(2)1.4%
Max Revenue beat(2)2.36%
Revenue beat(4)3
Avg Revenue beat(4)0.87%
Min Revenue beat(4)-2.47%
Max Revenue beat(4)2.36%
Revenue beat(8)5
Avg Revenue beat(8)-0.66%
Revenue beat(12)7
Avg Revenue beat(12)-0.43%
Revenue beat(16)8
Avg Revenue beat(16)-0.53%
PT rev (1m)6.16%
PT rev (3m)12.08%
EPS NQ rev (1m)1.04%
EPS NQ rev (3m)-20.34%
EPS NY rev (1m)0.3%
EPS NY rev (3m)-5.24%
Revenue NQ rev (1m)-0.25%
Revenue NQ rev (3m)-2.41%
Revenue NY rev (1m)-0.31%
Revenue NY rev (3m)-0.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.71 | ||
| Fwd PE | 18 | ||
| P/S | 0.75 | ||
| P/FCF | 29.78 | ||
| P/OCF | 19.05 | ||
| P/B | 4.83 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.55 |
EPS(TTM)0.77
EY4.22%
EPS(NY)1.01
Fwd EY5.56%
FCF(TTM)0.61
FCFY3.36%
OCF(TTM)0.96
OCFY5.25%
SpS24.42
BVpS3.78
TBVpS-1.58
PEG (NY)N/A
PEG (5Y)N/A
Graham Number8.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.85% | ||
| ROE | 6.11% | ||
| ROCE | 7.7% | ||
| ROIC | 5.67% | ||
| ROICexc | 6.01% | ||
| ROICexgc | 8.6% | ||
| OM | 5.56% | ||
| PM (TTM) | 0.95% | ||
| GM | 54.03% | ||
| FCFM | 2.51% |
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%
ROICexgc growth 3Y-36.33%
ROICexgc 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-Score8
Asset Turnover0.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.74 | ||
| Debt/FCF | 19.32 | ||
| Debt/EBITDA | 5.07 | ||
| Cap/Depr | 50.47% | ||
| Cap/Sales | 1.41% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 46.94% | ||
| Profit Quality | 265.2% | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 1.53 |
F-Score8
WACC10.08%
ROIC/WACC0.56
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)48.08%
EPS 3Y-38.01%
EPS 5Y-23.44%
EPS Q2Q%-13.33%
EPS Next Y-4.82%
EPS Next 2Y15.53%
EPS Next 3Y18.54%
EPS Next 5Y18.52%
Revenue 1Y (TTM)-3.25%
Revenue growth 3Y-7.07%
Revenue growth 5Y-1.95%
Sales Q2Q%1.62%
Revenue Next Year-0.72%
Revenue Next 2Y-0.07%
Revenue Next 3Y1.09%
Revenue Next 5Y2.54%
EBIT growth 1Y30.66%
EBIT growth 3Y-34.37%
EBIT growth 5Y-18.29%
EBIT Next Year66.28%
EBIT Next 3Y25.62%
EBIT Next 5Y20.15%
FCF growth 1Y1120.71%
FCF growth 3Y-14.14%
FCF growth 5Y-8.9%
OCF growth 1Y56.78%
OCF growth 3Y-18.65%
OCF growth 5Y-11.86%
VF CORP / VFC FAQ
What is the fundamental rating for VFC stock?
ChartMill assigns a fundamental rating of 3 / 10 to VFC.
Can you provide the valuation status for VF CORP?
ChartMill assigns a valuation rating of 2 / 10 to VF CORP (VFC). This can be considered as Overvalued.
Can you provide the profitability details for VF CORP?
VF CORP (VFC) has a profitability rating of 3 / 10.
What are the PE and PB ratios of VF CORP (VFC) stock?
The Price/Earnings (PE) ratio for VF CORP (VFC) is 23.71 and the Price/Book (PB) ratio is 4.83.
Can you provide the dividend sustainability for VFC stock?
The dividend rating of VF CORP (VFC) is 3 / 10 and the dividend payout ratio is 155.43%.