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. 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
VFC had positive earnings in the past year.
In the past year VFC had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: VFC reported negative net income in multiple years.
VFC had a positive operating cash flow in 4 of the past 5 years.
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.
Looking at the Return On Equity, with a value of -12.76%, VFC is doing worse than 70.83% of the companies in the same industry.
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 11.45%.
| 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
Looking at the Operating Margin, with a value of 4.82%, VFC is in line with its industry, 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 of 53.51%. This is comparable 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VFC 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
VFC has an Altman-Z score of 1.49. This is a bad value and indicates that VFC is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of VFC (1.49) is worse than 85.42% 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.
VFC's Debt to FCF ratio of 11.73 is on the low side compared to the rest of the industry. VFC is outperformed by 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.
Looking at the Debt to Equity ratio, with a value of 2.31, VFC is doing worse than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.31 | ||
| Debt/FCF | 11.73 | ||
| Altman-Z | 1.49 |
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 Current ratio of 1.40. This is amonst the worse of the industry: VFC underperforms 81.25% of its industry peers.
VFC has a Quick Ratio of 1.40. 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 0.80. 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.
The earnings per share for VFC have been decreasing by -23.44% on average. This is quite bad
VFC shows a decrease in Revenue. In the last year, the revenue decreased by -9.09%.
VFC shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.95% yearly.
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
The Earnings Per Share is expected to grow by 23.54% on average over the next years. This is a very strong growth
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.
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
With a Price/Earnings ratio of 15.46, VFC is valued correctly.
Based on the Price/Earnings ratio, VFC is valued a bit cheaper than 70.83% of the companies in the same industry.
VFC is valuated rather cheaply when we compare the Price/Earnings ratio to 27.15, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 13.80, VFC is valued correctly.
VFC's Price/Forward Earnings ratio is in line with the industry average.
VFC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.60, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.46 | ||
| Fwd PE | 13.8 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as VFC.
70.83% of the companies in the same industry are more expensive than VFC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.5 | ||
| EV/EBITDA | 11.3 |
4.3 Compensation for Growth
VFC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as VFC's earnings are expected to grow with 28.86% in the coming years.
PEG (NY)1.28
PEG (5Y)N/A
EPS Next 2Y20.87%
EPS Next 3Y28.86%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.10%, VFC has a reasonable but not impressive dividend return.
VFC's Dividend Yield is rather good when compared to the industry average which is at 3.86. VFC pays more dividend than 83.33% of the companies 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 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 2Y20.87%
EPS Next 3Y28.86%
11.75
-0.09 (-0.76%)
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 Cap4.58B
Analysts65.71
Price Target13.5 (14.89%)
Short Float %7.41%
Short Ratio2.8
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 | 15.46 | ||
| Fwd PE | 13.8 | ||
| P/S | 0.48 | ||
| P/FCF | 13.5 | ||
| P/OCF | 9.84 | ||
| P/B | 3.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.3 |
EPS(TTM)0.76
EY6.47%
EPS(NY)0.85
Fwd EY7.25%
FCF(TTM)0.87
FCFY7.41%
OCF(TTM)1.19
OCFY10.16%
SpS24.39
BVpS3.82
TBVpS-2.12
PEG (NY)1.28
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 | 1.49 |
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%