VF CORP (VFC) Stock Fundamental Analysis
USA - NYSE:VFC - US9182041080 - Common Stock
14.28 USD
+0.11 (+0.78%)
14.35 USD
+0.07 (+0.49%)
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 correct valuation and a medium growth rate.
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.
In multiple years VFC reported negative net income over the last 5 years.
VFC had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
VFC has a worse Return On Assets (-0.47%) than 68.75% of its industry peers.
The Return On Equity of VFC (-3.66%) is worse than 68.75% of its industry peers.
VFC has a worse Return On Invested Capital (5.55%) than 60.42% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VFC is significantly below the industry average of 12.15%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.47% | ||
| ROE | -3.66% | ||
| ROIC | 5.55% |
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 of 5.25%. This is comparable to the rest of the industry: VFC outperforms 47.92% of its industry peers.
In the last couple of years the Operating Margin of VFC has declined.
VFC has a Gross Margin of 54.05%. This is in the better half of the industry: VFC outperforms 62.50% 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 | 5.25% | ||
| PM (TTM) | N/A | ||
| GM | 54.05% |
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.
VFC has about the same amout of shares outstanding than it did 5 years ago.
Compared to 1 year ago, VFC has an improved debt to assets ratio.
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.
VFC's Altman-Z score of 1.40 is on the low side compared to the rest of the industry. VFC is outperformed by 81.25% of its industry peers.
The Debt to FCF ratio of VFC is 26.73, which is on the high side as it means it would take VFC, 26.73 years of fcf income to pay off all of its debts.
VFC has a Debt to FCF ratio of 26.73. This is in the lower half of the industry: VFC underperforms 60.42% of its industry peers.
VFC has a Debt/Equity ratio of 3.06. This is a high value indicating a heavy dependency on external financing.
VFC's Debt to Equity ratio of 3.06 is on the low side compared to the rest of the industry. VFC is outperformed by 89.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.06 | ||
| Debt/FCF | 26.73 | ||
| Altman-Z | 1.4 |
ROIC/WACC0.63
WACC8.87%
2.3 Liquidity
VFC has a Current Ratio of 1.27. This is a normal value and indicates that VFC is financially healthy and should not expect problems in meeting its short term obligations.
VFC has a worse Current ratio (1.27) than 83.33% of its industry peers.
A Quick Ratio of 0.65 indicates that VFC may have some problems paying its short term obligations.
VFC has a worse Quick ratio (0.65) than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 54.55% over the past year.
VFC shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -23.44% yearly.
The Revenue has decreased by -6.32% in the past year.
The Revenue has been decreasing by -1.95% on average over the past years.
EPS 1Y (TTM)54.55%
EPS 3Y-38.01%
EPS 5Y-23.44%
EPS Q2Q%27.27%
Revenue 1Y (TTM)-6.32%
Revenue growth 3Y-7.07%
Revenue growth 5Y-1.95%
Sales Q2Q%-7.69%
3.2 Future
VFC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.48% yearly.
The Revenue is expected to grow by 2.69% on average over the next years.
EPS Next Y0.44%
EPS Next 2Y17.66%
EPS Next 3Y21.52%
EPS Next 5Y23.48%
Revenue Next Year0.16%
Revenue Next 2Y1.38%
Revenue Next 3Y1.69%
Revenue Next 5Y2.69%
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
With a Price/Earnings ratio of 16.80, VFC is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of VFC indicates a somewhat cheap valuation: VFC is cheaper than 60.42% of the companies listed in the same industry.
VFC is valuated rather cheaply when we compare the Price/Earnings ratio to 27.40, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 13.57, VFC is valued correctly.
Based on the Price/Forward Earnings ratio, VFC is valued a bit cheaper than 68.75% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.94. VFC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.8 | ||
| Fwd PE | 13.57 |
4.2 Price Multiples
VFC's Enterprise Value to EBITDA is on the same level as the industry average.
VFC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.85 | ||
| EV/EBITDA | 11.97 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates VFC does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as VFC's earnings are expected to grow with 21.52% in the coming years.
PEG (NY)38.25
PEG (5Y)N/A
EPS Next 2Y17.66%
EPS Next 3Y21.52%
5. Dividend
5.1 Amount
VFC has a Yearly Dividend Yield of 2.54%.
VFC's Dividend Yield is rather good when compared to the industry average which is at 3.29. VFC pays more dividend than 85.42% of the companies in the same industry.
VFC's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.54% |
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
The earnings of VFC are negative and hence is the payout ratio. VFC will probably not be able to sustain this dividend level.
DP-297.01%
EPS Next 2Y17.66%
EPS Next 3Y21.52%
14.28
+0.11 (+0.78%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners93.7%
Inst Owner Change0.02%
Ins Owners0.92%
Ins Owner Change1.9%
Market Cap5.58B
Analysts67.14
Price Target14.51 (1.61%)
Short Float %8.51%
Short Ratio3.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.54% |
Yearly Dividend0.36
Dividend Growth(5Y)-28.58%
DP-297.01%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.95%
Min EPS beat(2)8.39%
Max EPS beat(2)29.51%
EPS beat(4)4
Avg EPS beat(4)44.51%
Min EPS beat(4)8.39%
Max EPS beat(4)81.17%
EPS beat(8)5
Avg EPS beat(8)-358.14%
EPS beat(12)7
Avg EPS beat(12)-238.6%
EPS beat(16)8
Avg EPS beat(16)-180.68%
Revenue beat(2)1
Avg Revenue beat(2)-0.05%
Min Revenue beat(2)-2.47%
Max Revenue beat(2)2.36%
Revenue beat(4)3
Avg Revenue beat(4)0.75%
Min Revenue beat(4)-2.47%
Max Revenue beat(4)2.36%
Revenue beat(8)5
Avg Revenue beat(8)-0.83%
Revenue beat(12)6
Avg Revenue beat(12)-0.67%
Revenue beat(16)7
Avg Revenue beat(16)-1.21%
PT rev (1m)2.66%
PT rev (3m)7.48%
EPS NQ rev (1m)-3.39%
EPS NQ rev (3m)-22.76%
EPS NY rev (1m)1.21%
EPS NY rev (3m)-10.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.55%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.8 | ||
| Fwd PE | 13.57 | ||
| P/S | 0.59 | ||
| P/FCF | 32.85 | ||
| P/OCF | 18.6 | ||
| P/B | 4.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.97 |
EPS(TTM)0.85
EY5.95%
EPS(NY)1.05
Fwd EY7.37%
FCF(TTM)0.43
FCFY3.04%
OCF(TTM)0.77
OCFY5.38%
SpS24.31
BVpS3.31
TBVpS-2.69
PEG (NY)38.25
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.47% | ||
| ROE | -3.66% | ||
| ROCE | 7.43% | ||
| ROIC | 5.55% | ||
| ROICexc | 6.1% | ||
| ROICexgc | 9.57% | ||
| OM | 5.25% | ||
| PM (TTM) | N/A | ||
| GM | 54.05% | ||
| FCFM | 1.79% |
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-Score7
Asset Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.06 | ||
| Debt/FCF | 26.73 | ||
| Debt/EBITDA | 5.24 | ||
| Cap/Depr | 50.79% | ||
| Cap/Sales | 1.37% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 39.73% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 1.4 |
F-Score7
WACC8.87%
ROIC/WACC0.63
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)54.55%
EPS 3Y-38.01%
EPS 5Y-23.44%
EPS Q2Q%27.27%
EPS Next Y0.44%
EPS Next 2Y17.66%
EPS Next 3Y21.52%
EPS Next 5Y23.48%
Revenue 1Y (TTM)-6.32%
Revenue growth 3Y-7.07%
Revenue growth 5Y-1.95%
Sales Q2Q%-7.69%
Revenue Next Year0.16%
Revenue Next 2Y1.38%
Revenue Next 3Y1.69%
Revenue Next 5Y2.69%
EBIT growth 1Y3.17%
EBIT growth 3Y-34.37%
EBIT growth 5Y-18.29%
EBIT Next Year64.1%
EBIT Next 3Y25.02%
EBIT Next 5Y19.19%
FCF growth 1Y142.44%
FCF growth 3Y-14.14%
FCF growth 5Y-8.9%
OCF growth 1Y324.01%
OCF growth 3Y-18.65%
OCF growth 5Y-11.86%