VF CORP (VFC)

US9182041080 - Common Stock

15.34  +0.25 (+1.66%)

After market: 15.36 +0.02 (+0.13%)

Fundamental Rating

3

VFC gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 50 industry peers in the Textiles, Apparel & Luxury Goods industry. Both the profitability and financial health of VFC have multiple concerns. VFC is valued correctly, but it does not seem to be growing.



3

1. Profitability

1.1 Basic Checks

In the past year VFC was profitable.
VFC had a positive operating cash flow in the past year.
Each year in the past 5 years VFC has been profitable.
VFC had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

VFC has a worse Return On Assets (-6.07%) than 70.00% of its industry peers.
The Return On Equity of VFC (-36.29%) is worse than 76.00% of its industry peers.
VFC has a Return On Invested Capital of 5.81%. This is comparable to the rest of the industry: VFC outperforms 46.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VFC is below the industry average of 10.10%.
Industry RankSector Rank
ROA -6.07%
ROE -36.29%
ROIC 5.81%
ROA(3y)4.74%
ROA(5y)6.49%
ROE(3y)18.9%
ROE(5y)21.25%
ROIC(3y)7.49%
ROIC(5y)8.39%

1.3 Margins

In the last couple of years the Profit Margin of VFC has declined.
VFC has a Operating Margin (7.23%) which is comparable to the rest of the industry.
VFC's Operating Margin has declined in the last couple of years.
VFC has a better Gross Margin (52.23%) than 66.00% of its industry peers.
VFC's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 7.23%
PM (TTM) N/A
GM 52.23%
OM growth 3Y-7.49%
OM growth 5Y-2.34%
PM growth 3Y-45.97%
PM growth 5Y-32.57%
GM growth 3Y-1.78%
GM growth 5Y-0.62%

2

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.
VFC has about the same amout of shares outstanding than it did 1 year ago.
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 1.43, we must say that VFC is in the distress zone and has some risk of bankruptcy.
VFC has a Altman-Z score of 1.43. This is in the lower half of the industry: VFC underperforms 78.00% of its industry peers.
VFC has a debt to FCF ratio of 5.88. This is a neutral value as VFC would need 5.88 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.88, VFC is in line with its industry, outperforming 48.00% of the companies in the same industry.
A Debt/Equity ratio of 2.47 is on the high side and indicates that VFC has dependencies on debt financing.
VFC has a worse Debt to Equity ratio (2.47) than 88.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.47
Debt/FCF 5.88
Altman-Z 1.43
ROIC/WACC0.82
WACC7.04%

2.3 Liquidity

VFC has a Current Ratio of 1.23. This is a normal value and indicates that VFC is financially healthy and should not expect problems in meeting its short term obligations.
VFC's Current ratio of 1.23 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 Quick Ratio of 1.23. 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 Quick ratio of 0.70. This is amonst the worse of the industry: VFC underperforms 82.00% of its industry peers.
Industry RankSector Rank
Current Ratio 1.23
Quick Ratio 0.7

3

3. Growth

3.1 Past

The earnings per share for VFC have decreased strongly by -48.95% in the last year.
The earnings per share for VFC have been decreasing by -11.29% on average. This is quite bad
Looking at the last year, VFC shows a decrease in Revenue. The Revenue has decreased by -7.50% in the last year.
Measured over the past years, VFC shows a small growth in Revenue. The Revenue has been growing by 6.70% on average per year.
EPS 1Y (TTM)-48.95%
EPS 3Y-9.95%
EPS 5Y-11.29%
EPS growth Q2Q-49.11%
Revenue 1Y (TTM)-7.5%
Revenue growth 3Y3.45%
Revenue growth 5Y6.7%
Revenue growth Q2Q-16.16%

3.2 Future

Based on estimates for the next years, VFC will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.53% on average per year.
Based on estimates for the next years, VFC will show a small growth in Revenue. The Revenue will grow by 3.21% on average per year.
EPS Next Y-47.91%
EPS Next 2Y-19.29%
EPS Next 3Y-4.65%
EPS Next 5Y12.53%
Revenue Next Year-9.35%
Revenue Next 2Y-4.59%
Revenue Next 3Y-1.46%
Revenue Next 5Y3.21%

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 decreasing.

6

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 12.57, VFC is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of VFC indicates a somewhat cheap valuation: VFC is cheaper than 78.00% of the companies listed in the same industry.
VFC is valuated cheaply when we compare the Price/Earnings ratio to 26.48, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.16 indicates a reasonable valuation of VFC.
88.00% of the companies in the same industry are more expensive than VFC, based on the Price/Forward Earnings ratio.
VFC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.79.
Industry RankSector Rank
PE 12.57
Fwd PE 11.16

4.2 Price Multiples

VFC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. VFC is cheaper than 64.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VFC indicates a rather cheap valuation: VFC is cheaper than 84.00% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 5.65
EV/EBITDA 9.9

4.3 Compensation for Growth

A cheap valuation may be justified as VFC's earnings are expected to decrease with -4.65% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-19.29%
EPS Next 3Y-4.65%

3

5. Dividend

5.1 Amount

VFC has a Yearly Dividend Yield of 2.48%.
VFC's Dividend Yield is rather good when compared to the industry average which is at 2.76. VFC pays more dividend than 82.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, VFC has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.48%

5.2 History

The dividend of VFC decreases each year by -1.38%.
VFC has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-1.38%
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-50.25%
EPS Next 2Y-19.29%
EPS Next 3Y-4.65%

VF CORP

NYSE:VFC (3/28/2024, 8:04:00 PM)

After market: 15.36 +0.02 (+0.13%)

15.34

+0.25 (+1.66%)

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 Cap5.96B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 2.48%
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)
Max EPS beat(2)
EPS beat(4)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
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 RankSector Rank
PE 12.57
Fwd PE 11.16
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 RankSector Rank
ROA -6.07%
ROE -36.29%
ROCE
ROIC
ROICexc
ROICexgc
OM 7.23%
PM (TTM) N/A
GM 52.23%
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 Turnover0.86
Health
Industry RankSector Rank
Debt/Equity 2.47
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.23
Quick Ratio 0.7
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)
Growth
EPS 1Y (TTM)-48.95%
EPS 3Y-9.95%
EPS 5Y
EPS growth Q2Q
EPS Next Y-47.91%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-7.5%
Revenue growth 3Y3.45%
Revenue growth 5Y
Revenue growth 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