VF CORP (VFC) Stock Fundamental Analysis
NYSE:VFC - New York Stock Exchange, Inc. - US9182041080 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to VFC. VFC was compared to 48 industry peers in the Textiles, Apparel & Luxury Goods industry. Both the profitability and financial health of VFC have multiple concerns. 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.
The reported net income has been mixed in the past 5 years: VFC reported negative net income in multiple years.
Of the past 5 years VFC 4 years had a positive operating cash flow.
1.2 Ratios
VFC has a Return On Assets of -2.02%. This is in the lower half of the industry: VFC underperforms 62.50% of its industry peers.
With a Return On Equity value of -12.76%, VFC is not doing good in the industry: 70.83% of the companies in the same industry are doing better.
VFC has a worse Return On Invested Capital (5.41%) than 60.42% of its industry peers.
VFC had an Average Return On Invested Capital over the past 3 years of 6.12%. This is significantly below the industry average of 11.45%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.02% | ||
| ROE | -12.76% | ||
| ROIC | 5.41% |
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 (4.82%) which is in line with its industry peers.
In the last couple of years the Operating Margin of VFC has declined.
VFC has a Gross Margin (53.51%) which is comparable to the rest of the industry.
VFC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.82% | ||
| PM (TTM) | N/A | ||
| GM | 53.51% |
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.
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 1.51, we must say that VFC is in the distress zone and has some risk of bankruptcy.
VFC has a worse Altman-Z score (1.51) than 83.33% of its industry peers.
VFC has a debt to FCF ratio of 11.73. This is a negative value and a sign of low solvency as VFC would need 11.73 years to pay back of all of its debts.
The Debt to FCF ratio of VFC (11.73) is worse than 62.50% of its industry peers.
A Debt/Equity ratio of 2.31 is on the high side and indicates that VFC has dependencies on debt financing.
VFC has a worse Debt to Equity ratio (2.31) than 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.31 | ||
| Debt/FCF | 11.73 | ||
| Altman-Z | 1.51 |
ROIC/WACC0.76
WACC7.15%
2.3 Liquidity
A Current Ratio of 1.40 indicates that VFC should not have too much problems paying its short term obligations.
VFC has a worse Current ratio (1.40) than 81.25% of its industry peers.
A Quick Ratio of 0.80 indicates that VFC may have some problems paying its short term obligations.
VFC has a Quick ratio of 0.80. This is in the lower half of the industry: VFC underperforms 70.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.11% over the past year.
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 -9.09%.
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)4.11%
EPS 3Y-38.01%
EPS 5Y-23.44%
EPS Q2Q%59.38%
Revenue 1Y (TTM)-9.09%
Revenue growth 3Y-7.07%
Revenue growth 5Y-1.95%
Sales Q2Q%-9.69%
3.2 Future
Based on estimates for the next years, VFC will show a very strong growth in Earnings Per Share. The EPS will grow by 23.54% on average per year.
The Revenue is expected to grow by 3.38% on average over the next years.
EPS Next Y12.06%
EPS Next 2Y20.87%
EPS Next 3Y28.86%
EPS Next 5Y23.54%
Revenue Next Year-0.53%
Revenue Next 2Y1.41%
Revenue Next 3Y2.08%
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.
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
VFC is valuated correctly with a Price/Earnings ratio of 16.55.
Compared to the rest of the industry, the Price/Earnings ratio of VFC indicates a somewhat cheap valuation: VFC is cheaper than 68.75% of the companies listed in the same industry.
VFC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.45.
VFC is valuated correctly with a Price/Forward Earnings ratio of 14.77.
The rest of the industry has a similar Price/Forward Earnings ratio as VFC.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, VFC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.55 | ||
| Fwd PE | 14.77 |
4.2 Price Multiples
VFC's Enterprise Value to EBITDA is on the same level as the industry average.
VFC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. VFC is cheaper than 70.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.45 | ||
| EV/EBITDA | 11.75 |
4.3 Compensation for Growth
VFC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
VFC's earnings are expected to grow with 28.86% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.37
PEG (5Y)N/A
EPS Next 2Y20.87%
EPS Next 3Y28.86%
5. Dividend
5.1 Amount
VFC has a Yearly Dividend Yield of 3.10%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.84, 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 a higher than the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.1% |
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
The earnings of VFC are negative and hence is the payout ratio. VFC will probably not be able to sustain this dividend level.
DP-73.88%
EPS Next 2Y20.87%
EPS Next 3Y28.86%
12.58
+0.1 (+0.8%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners96.28%
Inst Owner Change-1.39%
Ins Owners0.93%
Ins Owner Change1.9%
Market Cap4.90B
Analysts65.71
Price Target13.5 (7.31%)
Short Float %7.88%
Short Ratio3.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.1% |
Yearly Dividend0.36
Dividend Growth(5Y)-28.58%
DP-73.88%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)44.78%
Min EPS beat(2)8.39%
Max EPS beat(2)81.17%
EPS beat(4)4
Avg EPS beat(4)40.3%
Min EPS beat(4)8.39%
Max EPS beat(4)81.17%
EPS beat(8)4
Avg EPS beat(8)-365.5%
EPS beat(12)6
Avg EPS beat(12)-243.73%
EPS beat(16)8
Avg EPS beat(16)-174.03%
Revenue beat(2)1
Avg Revenue beat(2)-0.14%
Min Revenue beat(2)-2.47%
Max Revenue beat(2)2.2%
Revenue beat(4)3
Avg Revenue beat(4)0.73%
Min Revenue beat(4)-2.47%
Max Revenue beat(4)2.27%
Revenue beat(8)4
Avg Revenue beat(8)-1.13%
Revenue beat(12)6
Avg Revenue beat(12)-0.86%
Revenue beat(16)7
Avg Revenue beat(16)-1.31%
PT rev (1m)-32.84%
PT rev (3m)-48.2%
EPS NQ rev (1m)-1.07%
EPS NQ rev (3m)-47.26%
EPS NY rev (1m)-14.31%
EPS NY rev (3m)-22.16%
Revenue NQ rev (1m)-0.46%
Revenue NQ rev (3m)-3.15%
Revenue NY rev (1m)-1.63%
Revenue NY rev (3m)-2.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.55 | ||
| Fwd PE | 14.77 | ||
| P/S | 0.52 | ||
| P/FCF | 14.45 | ||
| P/OCF | 10.54 | ||
| P/B | 3.3 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.75 |
EPS(TTM)0.76
EY6.04%
EPS(NY)0.85
Fwd EY6.77%
FCF(TTM)0.87
FCFY6.92%
OCF(TTM)1.19
OCFY9.49%
SpS24.39
BVpS3.82
TBVpS-2.12
PEG (NY)1.37
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.02% | ||
| ROE | -12.76% | ||
| ROCE | 6.86% | ||
| ROIC | 5.41% | ||
| ROICexc | 5.78% | ||
| ROICexgc | 9.17% | ||
| OM | 4.82% | ||
| PM (TTM) | N/A | ||
| GM | 53.51% | ||
| FCFM | 3.57% |
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-Score8
Asset Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.31 | ||
| Debt/FCF | 11.73 | ||
| Debt/EBITDA | 4.79 | ||
| Cap/Depr | 48.54% | ||
| Cap/Sales | 1.33% | ||
| Interest Coverage | 2.81 | ||
| Cash Conversion | 64.79% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 1.51 |
F-Score8
WACC7.15%
ROIC/WACC0.76
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)4.11%
EPS 3Y-38.01%
EPS 5Y-23.44%
EPS Q2Q%59.38%
EPS Next Y12.06%
EPS Next 2Y20.87%
EPS Next 3Y28.86%
EPS Next 5Y23.54%
Revenue 1Y (TTM)-9.09%
Revenue growth 3Y-7.07%
Revenue growth 5Y-1.95%
Sales Q2Q%-9.69%
Revenue Next Year-0.53%
Revenue Next 2Y1.41%
Revenue Next 3Y2.08%
Revenue Next 5Y3.38%
EBIT growth 1Y-21.52%
EBIT growth 3Y-34.37%
EBIT growth 5Y-18.29%
EBIT Next Year65.73%
EBIT Next 3Y29.28%
EBIT Next 5Y15.64%
FCF growth 1Y-57.79%
FCF growth 3Y-14.14%
FCF growth 5Y-8.9%
OCF growth 1Y-54.14%
OCF growth 3Y-18.65%
OCF growth 5Y-11.86%