VF CORP (VFC)
US9182041080 - Common Stock
We assign a fundamental rating of 3 out of 10 to VFC. VFC was compared to 51 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
In the past year VFC was profitable.
VFC had a positive operating cash flow in the past year.
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
VFC's Return On Assets of -10.14% is on the low side compared to the rest of the industry. VFC is outperformed by 78.00% of its industry peers.
VFC's Return On Equity of -84.32% is on the low side compared to the rest of the industry. VFC is outperformed by 82.00% of its industry peers.
VFC has a Return On Invested Capital of 5.46%. This is comparable to the rest of the industry: VFC outperforms 48.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VFC is below the industry average of 12.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.14% | ||
| ROE | -84.32% | ||
| ROIC | 5.46% |
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
The Operating Margin of VFC (4.98%) is comparable to the rest of the industry.
VFC's Operating Margin has declined in the last couple of years.
VFC has a Gross Margin (51.90%) 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 | 4.98% | ||
| PM (TTM) | N/A | ||
| GM | 51.9% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), VFC is creating some value.
The number of shares outstanding for VFC remains at a similar level compared to 1 year ago.
Compared to 5 years ago, VFC has less shares outstanding
The debt/assets ratio for VFC is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.31, 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 1.31, VFC is doing worse than 82.00% of the companies in the same industry.
The Debt to FCF ratio of VFC is 8.47, which is on the high side as it means it would take VFC, 8.47 years of fcf income to pay off all of its debts.
VFC's Debt to FCF ratio of 8.47 is on the low side compared to the rest of the industry. VFC is outperformed by 64.00% of its industry peers.
A Debt/Equity ratio of 3.03 is on the high side and indicates that VFC has dependencies on debt financing.
VFC's Debt to Equity ratio of 3.03 is on the low side compared to the rest of the industry. VFC is outperformed by 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.03 | ||
| Debt/FCF | 8.47 | ||
| Altman-Z | 1.31 |
ROIC/WACC0.79
WACC6.92%
2.3 Liquidity
A Current Ratio of 0.99 indicates that VFC may have some problems paying its short term obligations.
VFC has a Current ratio of 0.99. This is amonst the worse of the industry: VFC underperforms 88.00% of its industry peers.
VFC has a Quick Ratio of 0.99. This is a bad value and indicates that VFC is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.51, VFC is not doing good in the industry: 94.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
VFC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -70.59%.
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.
Looking at the last year, VFC shows a very negative growth in Revenue. The Revenue has decreased by -10.16% in the last year.
The Revenue has been growing slightly by 0.36% on average over the past years.
EPS 1Y (TTM)-70.59%
EPS 3Y-17.5%
EPS 5Y-27.99%
EPS Q2Q%-120%
Revenue 1Y (TTM)-10.16%
Revenue growth 3Y4.21%
Revenue growth 5Y0.36%
Sales Q2Q%-8.58%
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 26.59% on average per year.
The Revenue is expected to grow by 3.49% on average over the next years.
EPS Next Y-13.21%
EPS Next 2Y19.11%
EPS Next 3Y20.31%
EPS Next 5Y26.59%
Revenue Next Year-4.85%
Revenue Next 2Y-1.26%
Revenue Next 3Y0.5%
Revenue Next 5Y3.49%
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 34.00, which means the current valuation is very expensive for 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 60.00% of the companies listed in the same industry.
VFC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 30.52.
The Price/Forward Earnings ratio is 18.06, which indicates a rather expensive current valuation of VFC.
VFC's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.99, VFC is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34 | ||
| Fwd PE | 18.06 |
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 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.35 | ||
| EV/EBITDA | 14.83 |
4.3 Compensation for Growth
VFC's earnings are expected to grow with 20.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y19.11%
EPS Next 3Y20.31%
5. Dividend
5.1 Amount
VFC has a Yearly Dividend Yield of 2.09%.
VFC's Dividend Yield is a higher than the industry average which is at 2.97.
Compared to an average S&P500 Dividend Yield of 2.26, VFC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.09% |
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
VFC has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-18.93%
EPS Next 2Y19.11%
EPS Next 3Y20.31%
VF CORP
NYSE:VFC (9/13/2024, 8:04:00 PM)
After market: 18.5 -0.2 (-1.07%)18.7
+1.46 (+8.47%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap7.28B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.09% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34 | ||
| Fwd PE | 18.06 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.14% | ||
| ROE | -84.32% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.98% | ||
| PM (TTM) | N/A | ||
| GM | 51.9% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.03 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-70.59%
EPS 3Y-17.5%
EPS 5Y
EPS Q2Q%
EPS Next Y-13.21%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-10.16%
Revenue growth 3Y4.21%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y