VF CORP (VFC) Stock Fundamental Analysis
NYSE:VFC - New York Stock Exchange, Inc. - US9182041080 - Common Stock - Currency: USD
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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year VFC was profitable.
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.
VFC's Return On Equity of -12.76% is on the low side compared to the rest of the industry. VFC is outperformed by 72.92% of its industry peers.
The Return On Invested Capital of VFC (5.41%) is worse than 60.42% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VFC is significantly below the industry average of 11.61%.
| 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.
VFC's Operating Margin has declined in the last couple of years.
VFC's Gross Margin of 53.51% is in line compared to the rest of the industry. VFC outperforms 58.33% of its industry peers.
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 | 4.82% | ||
| 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
VFC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for VFC has been increased compared to 1 year ago.
Compared to 5 years ago, VFC has about the same amount of shares outstanding.
Compared to 1 year ago, VFC has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.52, we must say that VFC is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.52, VFC is not doing good in the industry: 85.42% of the companies in the same industry are doing better.
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.
VFC has a Debt/Equity ratio of 2.31. This is a high value indicating a heavy dependency on external 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 | 1.52 |
ROIC/WACC0.61
WACC8.84%
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 79.17% of its industry peers.
A Quick Ratio of 0.80 indicates that VFC may have some problems paying its short term obligations.
VFC's Quick ratio of 0.80 is on the low side compared to the rest of the industry. VFC is outperformed by 72.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
VFC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.11%.
VFC shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -23.44% yearly.
Looking at the last year, VFC shows a decrease in Revenue. The Revenue has decreased by -9.09% in the last year.
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 24.77% on average per year.
The Revenue is expected to grow by 2.71% on average over the next years.
EPS Next Y30.77%
EPS Next 2Y31.95%
EPS Next 3Y30.85%
EPS Next 5Y24.77%
Revenue Next Year-0.54%
Revenue Next 2Y1.41%
Revenue Next 3Y2.25%
Revenue Next 5Y2.71%
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
Based on the Price/Earnings ratio of 16.84, the valuation of VFC can be described as correct.
VFC's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.55, VFC is valued a bit cheaper.
VFC is valuated correctly with a Price/Forward Earnings ratio of 12.88.
Based on the Price/Forward Earnings ratio, VFC is valued a bit cheaper than 66.67% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of VFC to the average of the S&P500 Index (22.40), we can say VFC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.84 | ||
| Fwd PE | 12.88 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as VFC.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VFC indicates a somewhat cheap valuation: VFC is cheaper than 64.58% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.71 | ||
| EV/EBITDA | 11.87 |
4.3 Compensation for Growth
VFC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as VFC's earnings are expected to grow with 30.85% in the coming years.
PEG (NY)0.55
PEG (5Y)N/A
EPS Next 2Y31.95%
EPS Next 3Y30.85%
5. Dividend
5.1 Amount
VFC has a Yearly Dividend Yield of 2.86%.
In the last 3 months the price of VFC has falen by -22.98%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
VFC's Dividend Yield is rather good when compared to the industry average which is at 3.68. VFC pays more dividend than 81.25% of the companies in the same industry.
VFC's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
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-73.88%
EPS Next 2Y31.95%
EPS Next 3Y30.85%
12.8
-0.18 (-1.39%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners98.37%
Inst Owner Change-1.39%
Ins Owners0.31%
Ins Owner Change1.94%
Market Cap4.99B
Analysts65.71
Price Target14.08 (10%)
Short Float %6.36%
Short Ratio2.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
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)-31.02%
PT rev (3m)-46.39%
EPS NQ rev (1m)-47.51%
EPS NQ rev (3m)-60.78%
EPS NY rev (1m)-2.2%
EPS NY rev (3m)-10.66%
Revenue NQ rev (1m)-3.15%
Revenue NQ rev (3m)-4.18%
Revenue NY rev (1m)-1.42%
Revenue NY rev (3m)-2.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.84 | ||
| Fwd PE | 12.88 | ||
| P/S | 0.52 | ||
| P/FCF | 14.71 | ||
| P/OCF | 10.72 | ||
| P/B | 3.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.87 |
EPS(TTM)0.76
EY5.94%
EPS(NY)0.99
Fwd EY7.76%
FCF(TTM)0.87
FCFY6.8%
OCF(TTM)1.19
OCFY9.33%
SpS24.39
BVpS3.82
TBVpS-2.12
PEG (NY)0.55
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 | 1.52 |
F-Score8
WACC8.84%
ROIC/WACC0.61
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 Y30.77%
EPS Next 2Y31.95%
EPS Next 3Y30.85%
EPS Next 5Y24.77%
Revenue 1Y (TTM)-9.09%
Revenue growth 3Y-7.07%
Revenue growth 5Y-1.95%
Sales Q2Q%-9.69%
Revenue Next Year-0.54%
Revenue Next 2Y1.41%
Revenue Next 3Y2.25%
Revenue Next 5Y2.71%
EBIT growth 1Y-21.52%
EBIT growth 3Y-34.37%
EBIT growth 5Y-18.29%
EBIT Next Year65.73%
EBIT Next 3Y29.32%
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%