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 50 industry peers in the Textiles, Apparel & Luxury Goods industry. VFC has a bad profitability rating. Also its financial health evaluation is rather negative. VFC is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year VFC was profitable.
In the past year VFC had a positive cash flow from operations.
Of the past 5 years VFC 4 years were 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 (-4.33%) than 67.35% of its industry peers.
The Return On Equity of VFC (-27.21%) is worse than 73.47% of its industry peers.
VFC has a Return On Invested Capital of 4.57%. This is comparable to the rest of the industry: VFC outperforms 40.82% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VFC is below the industry average of 11.63%.
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 44.90% of its industry peers.
VFC's Operating Margin has declined in the last couple of years.
VFC has a better Gross Margin (52.29%) than 61.22% of its industry peers.
VFC's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), VFC is creating some value.
Compared to 1 year ago, VFC has about the same amount of shares outstanding.
Compared to 5 years ago, VFC has less shares outstanding
Compared to 1 year ago, VFC has a worse debt to assets ratio.
2.2 Solvency
VFC has an Altman-Z score of 1.79. 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 (1.79) is worse than 75.51% of its industry peers.
The Debt to FCF ratio of VFC is 11.25, which is on the high side as it means it would take VFC, 11.25 years of fcf income to pay off all of its debts.
VFC's Debt to FCF ratio of 11.25 is on the low side compared to the rest of the industry. VFC is outperformed by 65.31% 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.
With a Debt to Equity ratio value of 2.32, VFC is not doing good in the industry: 91.84% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.32 | ||
| Debt/FCF | 11.25 | ||
| Altman-Z | 1.79 |
ROIC/WACC0.51
WACC8.98%
2.3 Liquidity
A Current Ratio of 1.56 indicates that VFC should not have too much problems paying its short term obligations.
VFC has a Current ratio of 1.56. This is in the lower half of the industry: VFC underperforms 73.47% of its industry peers.
A Quick Ratio of 1.00 indicates that VFC should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.00, VFC is not doing good in the industry: 61.22% 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.
VFC shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -27.99% yearly.
VFC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.03%.
VFC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.36% yearly.
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 28.22% on average per year.
Based on estimates for the next years, VFC will show a small growth in Revenue. The Revenue will grow by 1.21% on average per year.
EPS Next Y1.89%
EPS Next 2Y23.45%
EPS Next 3Y26.51%
EPS Next 5Y28.22%
Revenue Next Year-9.1%
Revenue Next 2Y-3.86%
Revenue Next 3Y-1.18%
Revenue Next 5Y1.21%
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
A Price/Earnings ratio of 44.46 indicates a quite expensive valuation of VFC.
Based on the Price/Earnings ratio, VFC is valued a bit more expensive than the industry average as 63.27% of the companies are valued more cheaply.
VFC is valuated expensively when we compare the Price/Earnings ratio to 29.36, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 22.78 indicates a rather expensive valuation of VFC.
VFC's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. VFC is more expensive than 61.22% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.65. VFC is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.46 | ||
| Fwd PE | 22.78 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VFC is valued a bit more expensive than the industry average as 63.27% of the companies are valued more cheaply.
VFC's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.89 | ||
| EV/EBITDA | 18.81 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as VFC's earnings are expected to grow with 26.51% in the coming years.
PEG (NY)23.56
PEG (5Y)N/A
EPS Next 2Y23.45%
EPS Next 3Y26.51%
5. Dividend
5.1 Amount
VFC has a Yearly Dividend Yield of 1.36%.
VFC's Dividend Yield is a higher than the industry average which is at 2.87.
With a Dividend Yield of 1.36, VFC pays less dividend than the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
5.2 History
The dividend of VFC decreases each year by -16.36%.
VFC has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-16.36%
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-30.64%
EPS Next 2Y23.45%
EPS Next 3Y26.51%
25.34
+0.08 (+0.32%)
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-93.41%
Ins Owners0.31%
Ins Owner Change0%
Market Cap9.87B
Analysts66.67
Price Target26.59 (4.93%)
Short Float %5.58%
Short Ratio3.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
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)22.92%
PT rev (3m)23.17%
EPS NQ rev (1m)-6.65%
EPS NQ rev (3m)-261.32%
EPS NY rev (1m)61.92%
EPS NY rev (3m)62.58%
Revenue NQ rev (1m)-3.9%
Revenue NQ rev (3m)-10.27%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.46 | ||
| Fwd PE | 22.78 | ||
| P/S | 1.01 | ||
| P/FCF | 23.89 | ||
| P/OCF | 18.11 | ||
| P/B | 5.88 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.81 |
EPS(TTM)0.57
EY2.25%
EPS(NY)1.11
Fwd EY4.39%
FCF(TTM)1.06
FCFY4.19%
OCF(TTM)1.4
OCFY5.52%
SpS24.99
BVpS4.31
TBVpS-1.7
PEG (NY)23.56
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 | 1.79 |
F-Score8
WACC8.98%
ROIC/WACC0.51
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 Y1.89%
EPS Next 2Y23.45%
EPS Next 3Y26.51%
EPS Next 5Y28.22%
Revenue 1Y (TTM)-10.03%
Revenue growth 3Y4.21%
Revenue growth 5Y0.36%
Sales Q2Q%-4.27%
Revenue Next Year-9.1%
Revenue Next 2Y-3.86%
Revenue Next 3Y-1.18%
Revenue Next 5Y1.21%
EBIT growth 1Y-45.79%
EBIT growth 3Y-6.46%
EBIT growth 5Y-13.2%
EBIT Next Year11.8%
EBIT Next 3Y17.46%
EBIT Next 5Y15.19%
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%