VF CORP (VFC)
US9182041080 - Common Stock
Taking everything into account, VFC scores 3 out of 10 in our fundamental rating. 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 quite expensive at the moment. 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.
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
Looking at the Return On Assets, with a value of -5.46%, VFC is doing worse than 74.00% of the companies in the same industry.
VFC has a Return On Equity of -47.46%. This is in the lower half of the industry: VFC underperforms 76.00% of its industry peers.
VFC's Return On Invested Capital of 4.17% is on the low side compared to the rest of the industry. VFC is outperformed by 60.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VFC is below the industry average of 11.54%.
The 3 year average ROIC (9.01%) for VFC is well above the current ROIC(4.17%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.46% | ||
| ROE | -47.46% | ||
| ROIC | 4.17% |
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 4.12%, VFC perfoms like the industry average, outperforming 42.00% of the companies in the same industry.
VFC's Operating Margin has declined in the last couple of years.
The Gross Margin of VFC (52.04%) is comparable to the rest of the industry.
VFC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.12% | ||
| PM (TTM) | N/A | ||
| GM | 52.04% |
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.
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
VFC has an Altman-Z score of 1.33. This is a bad value and indicates that VFC is not financially healthy and even has some risk of bankruptcy.
VFC's Altman-Z score of 1.33 is on the low side compared to the rest of the industry. VFC is outperformed by 80.00% of its industry peers.
The Debt to FCF ratio of VFC is 10.26, which is on the high side as it means it would take VFC, 10.26 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 10.26, VFC is not doing good in the industry: 66.00% of the companies in the same industry are doing better.
VFC has a Debt/Equity ratio of 3.19. This is a high value indicating a heavy dependency on external financing.
VFC's Debt to Equity ratio of 3.19 is on the low side compared to the rest of the industry. VFC is outperformed by 92.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.19 | ||
| Debt/FCF | 10.26 | ||
| Altman-Z | 1.33 |
ROIC/WACC0.56
WACC7.43%
2.3 Liquidity
VFC has a Current Ratio of 1.30. This is a normal value and indicates that VFC is financially healthy and should not expect problems in meeting its short term obligations.
VFC's Current ratio of 1.30 is on the low side compared to the rest of the industry. VFC is outperformed by 84.00% of its industry peers.
A Quick Ratio of 0.88 indicates that VFC may have some problems paying its short term obligations.
With a Quick ratio value of 0.88, VFC is not doing good in the industry: 72.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
VFC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -70.62%.
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 -13.43%.
VFC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.36% yearly.
EPS 1Y (TTM)-70.62%
EPS 3Y-17.5%
EPS 5Y-27.99%
EPS Q2Q%-4.76%
Revenue 1Y (TTM)-13.43%
Revenue growth 3Y4.21%
Revenue growth 5Y0.36%
Sales Q2Q%-9.11%
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 26.59% on average per year.
VFC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.49% yearly.
EPS Next Y-37.33%
EPS Next 2Y12.98%
EPS Next 3Y21.12%
EPS Next 5Y26.59%
Revenue Next Year-9.05%
Revenue Next 2Y-3.26%
Revenue Next 3Y-0.72%
Revenue Next 5Y3.49%
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
Based on the Price/Earnings ratio of 37.96, the valuation of VFC can be described as expensive.
Based on the Price/Earnings ratio, VFC is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 28.96, VFC is valued a bit more expensive.
Based on the Price/Forward Earnings ratio of 21.19, the valuation of VFC can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VFC is on the same level as its industry peers.
VFC is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.96 | ||
| Fwd PE | 21.19 |
4.2 Price Multiples
60.00% of the companies in the same industry are cheaper than VFC, based on the Enterprise Value to EBITDA ratio.
VFC's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.63 | ||
| EV/EBITDA | 17.78 |
4.3 Compensation for Growth
VFC's earnings are expected to grow with 21.12% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y12.98%
EPS Next 3Y21.12%
5. Dividend
5.1 Amount
VFC has a Yearly Dividend Yield of 1.78%. Purely for dividend investing, there may be better candidates out there.
VFC's Dividend Yield is a higher than the industry average which is at 2.92.
Compared to the average S&P500 Dividend Yield of 2.23, VFC is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
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-20.98%
EPS Next 2Y12.98%
EPS Next 3Y21.12%
VF CORP
NYSE:VFC (11/22/2024, 4:03:16 PM)
After market: 19.738 0 (-0.01%)19.74
+0.95 (+5.06%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
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Market Cap7.69B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
Dividend Growth(5Y)
DP
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.96 | ||
| Fwd PE | 21.19 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.46% | ||
| ROE | -47.46% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.12% | ||
| PM (TTM) | N/A | ||
| GM | 52.04% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
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ROCE(5y)
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ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.19 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-70.62%
EPS 3Y-17.5%
EPS 5Y
EPS Q2Q%
EPS Next Y-37.33%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-13.43%
Revenue growth 3Y4.21%
Revenue growth 5Y
Sales Q2Q%
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Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
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EBIT growth 3Y
EBIT growth 5Y
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