VF CORP (VFC) Stock Fundamental Analysis
NYSE:VFC - New York Stock Exchange, Inc. - US9182041080 - Common Stock - Currency: USD
VFC gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 49 industry peers in the Textiles, Apparel & Luxury Goods industry. VFC has a bad profitability rating. Also its financial health evaluation is rather negative. VFC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
VFC had positive earnings in the past year.
In the past year VFC had a positive cash flow from operations.
Of the past 5 years VFC 4 years were profitable.
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 -4.33%, VFC is doing worse than 67.35% of the companies in the same industry.
VFC has a Return On Equity of -27.21%. This is in the lower half of the industry: VFC underperforms 73.47% of its industry peers.
The Return On Invested Capital of VFC (4.57%) is worse than 61.22% of its industry peers.
VFC had an Average Return On Invested Capital over the past 3 years of 9.01%. This is below the industry average of 13.58%.
The 3 year average ROIC (9.01%) for VFC is well above the current ROIC(4.57%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.33% | ||
| ROE | -27.21% | ||
| ROIC | 4.57% |
ROA(3y)0.97%
ROA(5y)2.39%
ROE(3y)-5.02%
ROE(5y)3.7%
ROIC(3y)9.01%
ROIC(5y)8.62%
1.3 Margins
VFC has a Operating Margin (4.36%) which is comparable to the rest of the industry.
VFC's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 52.29%, VFC perfoms like the industry average, outperforming 57.14% 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 | 4.36% | ||
| PM (TTM) | N/A | ||
| GM | 52.29% |
OM growth 3Y-10.24%
OM growth 5Y-13.52%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.7%
GM growth 5Y-1.02%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so VFC is still creating some value.
Compared to 1 year ago, VFC has about the same amount of shares outstanding.
Compared to 5 years ago, VFC has less shares outstanding
VFC has a worse 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 83.67% of the companies in the same industry.
VFC has a debt to FCF ratio of 11.25. This is a negative value and a sign of low solvency as VFC would need 11.25 years to pay back of all of its debts.
With a Debt to FCF ratio value of 11.25, VFC is not doing good in the industry: 63.27% of the companies in the same industry are doing better.
VFC has a Debt/Equity ratio of 2.32. This is a high value indicating a heavy dependency on external financing.
VFC has a Debt to Equity ratio of 2.32. This is amonst the worse of the industry: VFC underperforms 89.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.32 | ||
| Debt/FCF | 11.25 | ||
| Altman-Z | 1.44 |
ROIC/WACC0.55
WACC8.3%
2.3 Liquidity
VFC has a Current Ratio of 1.56. This is a normal value and indicates that VFC is financially healthy and should not expect problems in meeting its short term obligations.
VFC has a Current ratio of 1.56. This is in the lower half of the industry: VFC underperforms 65.31% of its industry peers.
VFC has a Quick Ratio of 1.00. This is a normal value and indicates that VFC is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.00, VFC is in line with its industry, outperforming 42.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
The earnings per share for VFC have decreased strongly by -53.28% in the last year.
Measured over the past years, VFC shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -27.99% on average per year.
VFC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.03%.
The Revenue has been growing slightly by 0.36% on average over the past years.
EPS 1Y (TTM)-53.28%
EPS 3Y-17.5%
EPS 5Y-27.99%
EPS Q2Q%8.77%
Revenue 1Y (TTM)-10.03%
Revenue growth 3Y4.21%
Revenue growth 5Y0.36%
Sales Q2Q%-4.27%
3.2 Future
VFC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.37% yearly.
VFC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.15% yearly.
EPS Next Y1.62%
EPS Next 2Y17.98%
EPS Next 3Y22.39%
EPS Next 5Y28.37%
Revenue Next Year-9.07%
Revenue Next 2Y-4.08%
Revenue Next 3Y-1.5%
Revenue Next 5Y1.15%
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
A Price/Earnings ratio of 20.84 indicates a rather expensive valuation of VFC.
Compared to the rest of the industry, the Price/Earnings ratio of VFC indicates a slightly more expensive valuation: VFC is more expensive than 61.22% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of VFC to the average of the S&P500 Index (28.88), we can say VFC is valued slightly cheaper.
The Price/Forward Earnings ratio is 11.69, which indicates a very decent valuation of VFC.
Based on the Price/Forward Earnings ratio, VFC is valued a bit cheaper than 67.35% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.20. VFC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.84 | ||
| Fwd PE | 11.69 |
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.
Based on the Price/Free Cash Flow ratio, VFC is valued a bit cheaper than the industry average as 65.31% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.2 | ||
| EV/EBITDA | 11.3 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates VFC does not grow enough to justify the current Price/Earnings ratio.
VFC's earnings are expected to grow with 22.39% in the coming years. This may justify a more expensive valuation.
PEG (NY)12.89
PEG (5Y)N/A
EPS Next 2Y17.98%
EPS Next 3Y22.39%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.12%, VFC has a reasonable but not impressive dividend return.
The stock price of VFC dropped by -54.25% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
VFC's Dividend Yield is a higher than the industry average which is at 4.09.
VFC's Dividend Yield is a higher than the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.12% |
5.2 History
The dividend of VFC decreases each year by -16.36%.
VFC has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-16.36%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The earnings of VFC are negative and hence is the payout ratio. VFC will probably not be able to sustain this dividend level.
DP-30.64%
EPS Next 2Y17.98%
EPS Next 3Y22.39%
11.88
+0.18 (+1.54%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners98.37%
Inst Owner Change0.19%
Ins Owners0.31%
Ins Owner Change-0.02%
Market Cap4.63B
Analysts66.43
Price Target20.42 (71.89%)
Short Float %6.98%
Short Ratio2.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.12% |
Yearly Dividend0.78
Dividend Growth(5Y)-16.36%
DP-30.64%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)70.07%
Min EPS beat(2)58.97%
Max EPS beat(2)81.17%
EPS beat(4)3
Avg EPS beat(4)-718.17%
Min EPS beat(4)-3025.5%
Max EPS beat(4)81.17%
EPS beat(8)4
Avg EPS beat(8)-364.04%
EPS beat(12)5
Avg EPS beat(12)-244.63%
EPS beat(16)7
Avg EPS beat(16)-175.01%
Revenue beat(2)2
Avg Revenue beat(2)1.55%
Min Revenue beat(2)0.91%
Max Revenue beat(2)2.2%
Revenue beat(4)3
Avg Revenue beat(4)0.74%
Min Revenue beat(4)-2.43%
Max Revenue beat(4)2.27%
Revenue beat(8)4
Avg Revenue beat(8)-0.88%
Revenue beat(12)6
Avg Revenue beat(12)-0.78%
Revenue beat(16)8
Avg Revenue beat(16)-1.02%
PT rev (1m)-22.27%
PT rev (3m)-5.6%
EPS NQ rev (1m)1.53%
EPS NQ rev (3m)-9.75%
EPS NY rev (1m)0.17%
EPS NY rev (3m)61.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.77%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.84 | ||
| Fwd PE | 11.69 | ||
| P/S | 0.48 | ||
| P/FCF | 11.2 | ||
| P/OCF | 8.49 | ||
| P/B | 2.75 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.3 |
EPS(TTM)0.57
EY4.8%
EPS(NY)1.02
Fwd EY8.55%
FCF(TTM)1.06
FCFY8.93%
OCF(TTM)1.4
OCFY11.78%
SpS24.99
BVpS4.31
TBVpS-1.7
PEG (NY)12.89
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.33% | ||
| ROE | -27.21% | ||
| ROCE | 5.79% | ||
| ROIC | 4.57% | ||
| ROICexc | 5.61% | ||
| ROICexgc | 9.23% | ||
| OM | 4.36% | ||
| PM (TTM) | N/A | ||
| GM | 52.29% | ||
| FCFM | 4.24% |
ROA(3y)0.97%
ROA(5y)2.39%
ROE(3y)-5.02%
ROE(5y)3.7%
ROIC(3y)9.01%
ROIC(5y)8.62%
ROICexc(3y)10.01%
ROICexc(5y)9.74%
ROICexgc(3y)24.39%
ROICexgc(5y)21.68%
ROCE(3y)11.66%
ROCE(5y)11.49%
ROICexcg growth 3Y2.55%
ROICexcg growth 5Y-8.62%
ROICexc growth 3Y2.33%
ROICexc growth 5Y-12.75%
OM growth 3Y-10.24%
OM growth 5Y-13.52%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.7%
GM growth 5Y-1.02%
F-Score8
Asset Turnover0.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.32 | ||
| Debt/FCF | 11.25 | ||
| Debt/EBITDA | 5.58 | ||
| Cap/Depr | 48.13% | ||
| Cap/Sales | 1.36% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 78.06% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.56 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 1.44 |
F-Score8
WACC8.3%
ROIC/WACC0.55
Cap/Depr(3y)96.23%
Cap/Depr(5y)103.06%
Cap/Sales(3y)2.35%
Cap/Sales(5y)2.64%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-53.28%
EPS 3Y-17.5%
EPS 5Y-27.99%
EPS Q2Q%8.77%
EPS Next Y1.62%
EPS Next 2Y17.98%
EPS Next 3Y22.39%
EPS Next 5Y28.37%
Revenue 1Y (TTM)-10.03%
Revenue growth 3Y4.21%
Revenue growth 5Y0.36%
Sales Q2Q%-4.27%
Revenue Next Year-9.07%
Revenue Next 2Y-4.08%
Revenue Next 3Y-1.5%
Revenue Next 5Y1.15%
EBIT growth 1Y-45.79%
EBIT growth 3Y-6.46%
EBIT growth 5Y-13.2%
EBIT Next Year13.99%
EBIT Next 3Y15.84%
EBIT Next 5Y15.51%
FCF growth 1Y140.4%
FCF growth 3Y-8.21%
FCF growth 5Y-9.95%
OCF growth 1Y171.11%
OCF growth 3Y-8.24%
OCF growth 5Y-9.42%