VF CORP (VFC) Stock Fundamental Analysis
NYSE:VFC - New York Stock Exchange, Inc. - US9182041080 - Common Stock - Currency: USD
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. 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.
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
With a Return On Assets value of -4.33%, VFC is not doing good in the industry: 66.00% of the companies in the same industry are doing better.
VFC's Return On Equity of -27.21% is on the low side compared to the rest of the industry. VFC is outperformed by 72.00% of its industry peers.
With a Return On Invested Capital value of 4.57%, VFC is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
VFC had an Average Return On Invested Capital over the past 3 years of 9.01%. This is below the industry average of 13.61%.
The last Return On Invested Capital (4.57%) for VFC is well below the 3 year average (9.01%), which needs to be investigated, but indicates that VFC had better years and this may not be a problem.
| 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
VFC has a Operating Margin of 4.36%. This is comparable to the rest of the industry: VFC outperforms 44.00% of its industry peers.
VFC's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 52.29%, VFC is in line with its industry, outperforming 58.00% of the companies in the same industry.
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
VFC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for VFC remains at a similar level compared to 1 year ago.
The number of shares outstanding for VFC has been reduced compared to 5 years ago.
VFC has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.40, we must say that VFC is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of VFC (1.40) is worse than 82.00% 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.
The Debt to FCF ratio of VFC (11.25) is worse than 64.00% of its industry peers.
VFC has a Debt/Equity ratio of 2.32. This is a high value indicating a heavy dependency on external financing.
VFC's Debt to Equity ratio of 2.32 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 | 2.32 | ||
| Debt/FCF | 11.25 | ||
| Altman-Z | 1.4 |
ROIC/WACC0.57
WACC8.04%
2.3 Liquidity
VFC has a Current Ratio of 1.56. This is a normal value and indicates that VFC is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of VFC (1.56) is worse than 66.00% 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.
Looking at the Quick ratio, with a value of 1.00, VFC is in line with its industry, outperforming 42.00% of the companies in the same industry.
| 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.
VFC shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -27.99% yearly.
The Revenue for VFC has decreased by -10.03% in the past year. This is quite bad
Measured over the past years, VFC shows a small growth in Revenue. The Revenue has been growing by 0.36% on average per year.
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
Based on estimates for the next years, VFC will show a very strong growth in Earnings Per Share. The EPS will grow by 28.37% on average per year.
Based on estimates for the next years, VFC will show a small growth in Revenue. The Revenue will grow by 1.15% on average per year.
EPS Next Y1.62%
EPS Next 2Y17.98%
EPS Next 3Y22.39%
EPS Next 5Y28.37%
Revenue Next Year-9.07%
Revenue Next 2Y-4.02%
Revenue Next 3Y-1.32%
Revenue Next 5Y1.15%
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.
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
The Price/Earnings ratio is 18.33, which indicates a rather expensive current valuation of VFC.
Compared to the rest of the industry, the Price/Earnings ratio of VFC is on the same level as its industry peers.
VFC is valuated rather cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 10.28, the valuation of VFC can be described as very reasonable.
Based on the Price/Forward Earnings ratio, VFC is valued a bit cheaper than the industry average as 74.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.32, VFC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.33 | ||
| Fwd PE | 10.28 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VFC is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, VFC is valued a bit cheaper than the industry average as 68.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.85 | ||
| EV/EBITDA | 10.51 |
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 22.39% in the coming years. This may justify a more expensive valuation.
PEG (NY)11.34
PEG (5Y)N/A
EPS Next 2Y17.98%
EPS Next 3Y22.39%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.44%, VFC has a reasonable but not impressive dividend return.
The stock price of VFC dropped by -55.85% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
VFC's Dividend Yield is a higher than the industry average which is at 4.29.
Compared to an average S&P500 Dividend Yield of 2.51, VFC pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
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 2Y17.98%
EPS Next 3Y22.39%
10.45
+0.14 (+1.36%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners98.37%
Inst Owner Change0.08%
Ins Owners0.31%
Ins Owner Change-0.02%
Market Cap4.07B
Analysts66.43
Price Target25.67 (145.65%)
Short Float %5.87%
Short Ratio3.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
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)-2.28%
PT rev (3m)18.68%
EPS NQ rev (1m)1.53%
EPS NQ rev (3m)-9.75%
EPS NY rev (1m)-0.26%
EPS NY rev (3m)61.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.77%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.33 | ||
| Fwd PE | 10.28 | ||
| P/S | 0.42 | ||
| P/FCF | 9.85 | ||
| P/OCF | 7.47 | ||
| P/B | 2.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.51 |
EPS(TTM)0.57
EY5.45%
EPS(NY)1.02
Fwd EY9.72%
FCF(TTM)1.06
FCFY10.15%
OCF(TTM)1.4
OCFY13.39%
SpS24.99
BVpS4.31
TBVpS-1.7
PEG (NY)11.34
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 | 1.4 |
F-Score8
WACC8.04%
ROIC/WACC0.57
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 Y1.62%
EPS Next 2Y17.98%
EPS Next 3Y22.39%
EPS Next 5Y28.37%
Revenue 1Y (TTM)-10.03%
Revenue growth 3Y4.21%
Revenue growth 5Y0.36%
Sales Q2Q%-4.27%
Revenue Next Year-9.07%
Revenue Next 2Y-4.02%
Revenue Next 3Y-1.32%
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%