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. Both the profitability and financial health of VFC have multiple concerns. VFC has a decent growth rate and is not valued too expensively.
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.
VFC had positive earnings in 4 of the past 5 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 -4.33%. This is in the lower half of the industry: VFC underperforms 68.75% of its industry peers.
The Return On Equity of VFC (-27.21%) is worse than 75.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.57%, VFC is doing worse than 62.50% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for VFC is below the industry average of 13.46%.
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
With a Operating Margin value of 4.36%, VFC perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
VFC's Operating Margin has declined in the last couple of years.
VFC has a Gross Margin (52.29%) which is in line with 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 | 4.36% | ||
| 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.
VFC has about the same amout of shares outstanding than it did 1 year ago.
VFC has less shares outstanding than it did 5 years ago.
The debt/assets ratio for VFC is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.50, we must say that VFC is in the distress zone and has some risk of bankruptcy.
VFC's Altman-Z score of 1.50 is on the low side compared to the rest of the industry. VFC is outperformed by 85.42% of its industry peers.
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.
VFC has a Debt to FCF ratio of 11.25. This is in the lower half of the industry: VFC underperforms 64.58% of its industry peers.
A Debt/Equity ratio of 2.32 is on the high side and indicates that VFC has dependencies on debt financing.
VFC has a worse Debt to Equity ratio (2.32) than 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.32 | ||
| Debt/FCF | 11.25 | ||
| Altman-Z | 1.5 |
ROIC/WACC0.53
WACC8.57%
2.3 Liquidity
A Current Ratio of 1.56 indicates that VFC should not have too much problems paying its short term obligations.
The Current ratio of VFC (1.56) is worse than 66.67% 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.
With a Quick ratio value of 1.00, VFC is not doing good in the industry: 60.42% of the companies in the same industry are doing better.
| 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.
Looking at the last year, VFC shows a very negative growth in Revenue. The Revenue has decreased by -10.03% in the last year.
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
The Earnings Per Share is expected to grow by 28.37% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 1.15% on average over the next years.
EPS Next Y1.94%
EPS Next 2Y16.68%
EPS Next 3Y21.93%
EPS Next 5Y28.37%
Revenue Next Year-9.01%
Revenue Next 2Y-4.09%
Revenue Next 3Y-1.44%
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.
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 21.32, which indicates a rather expensive current valuation of VFC.
Based on the Price/Earnings ratio, VFC is valued a bit more expensive than the industry average as 64.58% of the companies are valued more cheaply.
VFC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.03.
Based on the Price/Forward Earnings ratio of 12.23, the valuation of VFC can be described as correct.
Based on the Price/Forward Earnings ratio, VFC is valued a bit cheaper than the industry average as 64.58% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.94. VFC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.32 | ||
| Fwd PE | 12.23 |
4.2 Price Multiples
VFC's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, VFC is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.46 | ||
| EV/EBITDA | 12.73 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
VFC's earnings are expected to grow with 21.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)11.01
PEG (5Y)N/A
EPS Next 2Y16.68%
EPS Next 3Y21.93%
5. Dividend
5.1 Amount
VFC has a Yearly Dividend Yield of 2.42%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of VFC has falen by -52.37%. 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 a higher than the industry average which is at 3.56.
VFC's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
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 2Y16.68%
EPS Next 3Y21.93%
12.15
-2.28 (-15.8%)
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-1.4%
Ins Owners0.31%
Ins Owner Change-0.02%
Market Cap4.73B
Analysts65.71
Price Target20.1 (65.43%)
Short Float %7.43%
Short Ratio2.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
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)-21.71%
PT rev (3m)-10.03%
EPS NQ rev (1m)0.49%
EPS NQ rev (3m)-2.4%
EPS NY rev (1m)0.31%
EPS NY rev (3m)2.26%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)0.18%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.32 | ||
| Fwd PE | 12.23 | ||
| P/S | 0.49 | ||
| P/FCF | 11.46 | ||
| P/OCF | 8.68 | ||
| P/B | 2.82 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.73 |
EPS(TTM)0.57
EY4.69%
EPS(NY)0.99
Fwd EY8.18%
FCF(TTM)1.06
FCFY8.73%
OCF(TTM)1.4
OCFY11.52%
SpS24.99
BVpS4.31
TBVpS-1.7
PEG (NY)11.01
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 | 1.5 |
F-Score8
WACC8.57%
ROIC/WACC0.53
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 Y1.94%
EPS Next 2Y16.68%
EPS Next 3Y21.93%
EPS Next 5Y28.37%
Revenue 1Y (TTM)-10.03%
Revenue growth 3Y4.21%
Revenue growth 5Y0.36%
Sales Q2Q%-4.27%
Revenue Next Year-9.01%
Revenue Next 2Y-4.09%
Revenue Next 3Y-1.44%
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%