VF CORP (VFC) Stock Fundamental Analysis
USA - NYSE:VFC - US9182041080 - Common Stock
15.19 USD
-0.2 (-1.3%)
15.28 USD
+0.09 (+0.59%)
Overall VFC gets a fundamental rating of 3 out of 10. We evaluated VFC against 48 industry peers in the Textiles, Apparel & Luxury Goods industry. VFC may be in some trouble as it scores bad on both profitability and health. VFC has a correct valuation and a medium growth rate.
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.
In multiple years VFC reported negative net income over the last 5 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 doing worse than 68.75% of the companies in the same industry.
VFC has a Return On Equity of -3.66%. This is in the lower half of the industry: VFC underperforms 68.75% of its industry peers.
With a Return On Invested Capital value of 5.55%, VFC is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
VFC had an Average Return On Invested Capital over the past 3 years of 6.12%. This is significantly below the industry average of 12.19%.
| 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
With a Operating Margin value of 5.25%, VFC perfoms like the industry average, outperforming 47.92% of the companies in the same industry.
VFC's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 54.05%, VFC is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VFC is destroying value.
Compared to 1 year ago, VFC has more shares outstanding
Compared to 5 years ago, VFC has about the same amount of shares outstanding.
VFC has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.44, we must say that VFC is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.44, VFC is doing worse than 83.33% of the companies in the same industry.
The Debt to FCF ratio of VFC is 26.73, which is on the high side as it means it would take VFC, 26.73 years of fcf income to pay off all of its debts.
VFC's Debt to FCF ratio of 26.73 is on the low side compared to the rest of the industry. VFC is outperformed by 60.42% 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 89.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.06 | ||
| Debt/FCF | 26.73 | ||
| Altman-Z | 1.44 |
ROIC/WACC0.6
WACC9.2%
2.3 Liquidity
A Current Ratio of 1.27 indicates that VFC should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.27, VFC is doing worse than 81.25% of the companies in the same industry.
A Quick Ratio of 0.65 indicates that VFC may have some problems paying its short term obligations.
With a Quick ratio value of 0.65, VFC is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
VFC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 54.55%, 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 -6.32%.
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)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
The Earnings Per Share is expected to grow by 24.16% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 3.38% on average over the next years.
EPS Next Y0.44%
EPS Next 2Y17.66%
EPS Next 3Y23.52%
EPS Next 5Y24.16%
Revenue Next Year0.2%
Revenue Next 2Y1.52%
Revenue Next 3Y2.12%
Revenue Next 5Y3.38%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
VFC is valuated rather expensively with a Price/Earnings ratio of 17.87.
Based on the Price/Earnings ratio, VFC is valued a bit cheaper than the industry average as 60.42% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of VFC to the average of the S&P500 Index (27.86), we can say VFC is valued slightly cheaper.
The Price/Forward Earnings ratio is 14.44, which indicates a correct valuation of VFC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VFC indicates a somewhat cheap valuation: VFC is cheaper than 62.50% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.32. VFC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.87 | ||
| Fwd PE | 14.44 |
4.2 Price Multiples
VFC's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as VFC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.94 | ||
| EV/EBITDA | 12.6 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
VFC's earnings are expected to grow with 23.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)40.69
PEG (5Y)N/A
EPS Next 2Y17.66%
EPS Next 3Y23.52%
5. Dividend
5.1 Amount
VFC has a Yearly Dividend Yield of 2.34%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.17, VFC pays a better dividend. On top of this VFC pays more dividend than 83.33% of the companies listed in the same industry.
VFC's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
5.2 History
The dividend of VFC decreases each year by -28.58%.
VFC has paid a dividend for at least 10 years, which is 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 2Y17.66%
EPS Next 3Y23.52%
15.19
-0.2 (-1.3%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners93.7%
Inst Owner Change-1.4%
Ins Owners0.92%
Ins Owner Change1.9%
Market Cap5.93B
Analysts67.14
Price Target14.51 (-4.48%)
Short Float %8.51%
Short Ratio3.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
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)4.67%
PT rev (3m)7.08%
EPS NQ rev (1m)0.59%
EPS NQ rev (3m)-20.12%
EPS NY rev (1m)1.21%
EPS NY rev (3m)-10.37%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)0.55%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.87 | ||
| Fwd PE | 14.44 | ||
| P/S | 0.62 | ||
| P/FCF | 34.94 | ||
| P/OCF | 19.78 | ||
| P/B | 4.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.6 |
EPS(TTM)0.85
EY5.6%
EPS(NY)1.05
Fwd EY6.93%
FCF(TTM)0.43
FCFY2.86%
OCF(TTM)0.77
OCFY5.06%
SpS24.31
BVpS3.31
TBVpS-2.69
PEG (NY)40.69
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 | 1.44 |
F-Score7
WACC9.2%
ROIC/WACC0.6
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 Y0.44%
EPS Next 2Y17.66%
EPS Next 3Y23.52%
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 Year0.2%
Revenue Next 2Y1.52%
Revenue Next 3Y2.12%
Revenue Next 5Y3.38%
EBIT growth 1Y3.17%
EBIT growth 3Y-34.37%
EBIT growth 5Y-18.29%
EBIT Next Year64.1%
EBIT Next 3Y26.14%
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%