VF CORP (VFC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VFC - US9182041080 - Common Stock
18.43 USD
-0.22 (-1.18%)
18.45 USD
+0.02 (+0.11%)
We assign a fundamental rating of 3 out of 10 to VFC. VFC was compared to 45 industry peers in the Textiles, Apparel & Luxury Goods industry. Both the profitability and financial health of VFC have multiple concerns. While showing a medium growth rate, VFC is valued expensive at the moment.
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.
In multiple years VFC reported negative net income over the last 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 0.85%, VFC is doing worse than 62.22% of the companies in the same industry.
VFC has a Return On Equity (6.11%) which is comparable to the rest of the industry.
VFC's Return On Invested Capital of 5.67% is in line compared to the rest of the industry. VFC outperforms 42.22% 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 11.70%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.85% | ||
| ROE | 6.11% | ||
| ROIC | 5.67% |
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
With a Profit Margin value of 0.95%, VFC is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
With a Operating Margin value of 5.56%, VFC perfoms like the industry average, outperforming 51.11% 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 54.03%. This is in the better half of the industry: VFC outperforms 62.22% 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 | 5.56% | ||
| PM (TTM) | 0.95% | ||
| GM | 54.03% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
The debt/assets ratio for VFC has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.54, we must say that VFC is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of VFC (1.54) is worse than 82.22% of its industry peers.
VFC has a debt to FCF ratio of 19.32. This is a negative value and a sign of low solvency as VFC would need 19.32 years to pay back of all of its debts.
With a Debt to FCF ratio value of 19.32, VFC is not doing good in the industry: 62.22% of the companies in the same industry are doing better.
A Debt/Equity ratio of 2.74 is on the high side and indicates that VFC has dependencies on debt financing.
VFC has a worse Debt to Equity ratio (2.74) than 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.74 | ||
| Debt/FCF | 19.32 | ||
| Altman-Z | 1.54 |
ROIC/WACC0.56
WACC10.1%
2.3 Liquidity
VFC has a Current Ratio of 1.36. 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 (1.36) than 82.22% of its industry peers.
VFC has a Quick Ratio of 1.36. This is a bad value and indicates that VFC is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of VFC (0.87) is worse than 64.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
VFC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 48.08%, which is quite impressive.
Measured over the past years, VFC shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -23.44% on average per year.
VFC shows a decrease in Revenue. In the last year, the revenue decreased by -3.25%.
VFC shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.95% yearly.
EPS 1Y (TTM)48.08%
EPS 3Y-38.01%
EPS 5Y-23.44%
EPS Q2Q%-13.33%
Revenue 1Y (TTM)-3.25%
Revenue growth 3Y-7.07%
Revenue growth 5Y-1.95%
Sales Q2Q%1.62%
3.2 Future
The Earnings Per Share is expected to grow by 18.52% on average over the next years. This is quite good.
VFC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.54% yearly.
EPS Next Y-5.41%
EPS Next 2Y15.36%
EPS Next 3Y19.11%
EPS Next 5Y18.52%
Revenue Next Year-0.79%
Revenue Next 2Y0.08%
Revenue Next 3Y1.14%
Revenue Next 5Y2.54%
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 23.94 indicates a rather expensive valuation of VFC.
VFC's Price/Earnings ratio is in line with the industry average.
VFC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.50, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 18.22, 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.
When comparing the Price/Forward Earnings ratio of VFC to the average of the S&P500 Index (23.93), we can say VFC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.94 | ||
| Fwd PE | 18.22 |
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.
VFC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.05 | ||
| EV/EBITDA | 13.67 |
4.3 Compensation for Growth
A more expensive valuation may be justified as VFC's earnings are expected to grow with 19.11% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y15.36%
EPS Next 3Y19.11%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.96%, VFC has a reasonable but not impressive dividend return.
VFC's Dividend Yield is a higher than the industry average which is at 1.50.
Compared to an average S&P500 Dividend Yield of 1.87, VFC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
5.2 History
The dividend of VFC decreases each year by -28.58%.
VFC has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-28.58%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
155.43% of the earnings are spent on dividend by VFC. This is not a sustainable payout ratio.
DP155.43%
EPS Next 2Y15.36%
EPS Next 3Y19.11%
18.43
-0.22 (-1.18%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners91.48%
Inst Owner Change-3.09%
Ins Owners0.9%
Ins Owner Change-0.08%
Market Cap7.20B
Revenue(TTM)9.54B
Net Income(TTM)90.35M
Analysts67.14
Price TargetN/A
Short Float %6.53%
Short Ratio3.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
Yearly Dividend0.36
Dividend Growth(5Y)-28.58%
DP155.43%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)24.67%
Min EPS beat(2)19.82%
Max EPS beat(2)29.51%
EPS beat(4)4
Avg EPS beat(4)34.72%
Min EPS beat(4)8.39%
Max EPS beat(4)81.17%
EPS beat(8)6
Avg EPS beat(8)-355.23%
EPS beat(12)8
Avg EPS beat(12)-236.83%
EPS beat(16)9
Avg EPS beat(16)-179.18%
Revenue beat(2)2
Avg Revenue beat(2)1.88%
Min Revenue beat(2)1.4%
Max Revenue beat(2)2.36%
Revenue beat(4)3
Avg Revenue beat(4)0.87%
Min Revenue beat(4)-2.47%
Max Revenue beat(4)2.36%
Revenue beat(8)5
Avg Revenue beat(8)-0.66%
Revenue beat(12)7
Avg Revenue beat(12)-0.43%
Revenue beat(16)8
Avg Revenue beat(16)-0.53%
PT rev (1m)1.76%
PT rev (3m)5.93%
EPS NQ rev (1m)0.25%
EPS NQ rev (3m)-20.96%
EPS NY rev (1m)-0.32%
EPS NY rev (3m)-4.69%
Revenue NQ rev (1m)-0.32%
Revenue NQ rev (3m)-2.24%
Revenue NY rev (1m)-0.39%
Revenue NY rev (3m)-0.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.94 | ||
| Fwd PE | 18.22 | ||
| P/S | 0.75 | ||
| P/FCF | 30.05 | ||
| P/OCF | 19.23 | ||
| P/B | 4.87 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.67 |
EPS(TTM)0.77
EY4.18%
EPS(NY)1.01
Fwd EY5.49%
FCF(TTM)0.61
FCFY3.33%
OCF(TTM)0.96
OCFY5.2%
SpS24.42
BVpS3.78
TBVpS-1.58
PEG (NY)N/A
PEG (5Y)N/A
Graham Number8.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.85% | ||
| ROE | 6.11% | ||
| ROCE | 7.7% | ||
| ROIC | 5.67% | ||
| ROICexc | 6.01% | ||
| ROICexgc | 8.6% | ||
| OM | 5.56% | ||
| PM (TTM) | 0.95% | ||
| GM | 54.03% | ||
| FCFM | 2.51% |
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%
ROICexgc growth 3Y-36.33%
ROICexgc 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 Turnover0.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.74 | ||
| Debt/FCF | 19.32 | ||
| Debt/EBITDA | 5.07 | ||
| Cap/Depr | 50.47% | ||
| Cap/Sales | 1.41% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 46.94% | ||
| Profit Quality | 265.2% | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 1.54 |
F-Score8
WACC10.1%
ROIC/WACC0.56
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)48.08%
EPS 3Y-38.01%
EPS 5Y-23.44%
EPS Q2Q%-13.33%
EPS Next Y-5.41%
EPS Next 2Y15.36%
EPS Next 3Y19.11%
EPS Next 5Y18.52%
Revenue 1Y (TTM)-3.25%
Revenue growth 3Y-7.07%
Revenue growth 5Y-1.95%
Sales Q2Q%1.62%
Revenue Next Year-0.79%
Revenue Next 2Y0.08%
Revenue Next 3Y1.14%
Revenue Next 5Y2.54%
EBIT growth 1Y30.66%
EBIT growth 3Y-34.37%
EBIT growth 5Y-18.29%
EBIT Next Year65.36%
EBIT Next 3Y25.38%
EBIT Next 5Y20.15%
FCF growth 1Y1120.71%
FCF growth 3Y-14.14%
FCF growth 5Y-8.9%
OCF growth 1Y56.78%
OCF growth 3Y-18.65%
OCF growth 5Y-11.86%
VF CORP / VFC FAQ
What is the fundamental rating for VFC stock?
ChartMill assigns a fundamental rating of 3 / 10 to VFC.
Can you provide the valuation status for VF CORP?
ChartMill assigns a valuation rating of 2 / 10 to VF CORP (VFC). This can be considered as Overvalued.
Can you provide the profitability details for VF CORP?
VF CORP (VFC) has a profitability rating of 3 / 10.
What are the PE and PB ratios of VF CORP (VFC) stock?
The Price/Earnings (PE) ratio for VF CORP (VFC) is 23.94 and the Price/Book (PB) ratio is 4.87.
Can you provide the dividend sustainability for VFC stock?
The dividend rating of VF CORP (VFC) is 3 / 10 and the dividend payout ratio is 155.43%.