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. VFC has a medium profitability rating, but doesn't score so well on its financial health evaluation. VFC is valied quite expensively at the moment, while it does show a decent growth rate.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
The reported net income has been mixed in the past 5 years: VFC reported negative net income in multiple years.
VFC had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

VFC has a Return On Assets of 2.14%. This is comparable to the rest of the industry: VFC outperforms 46.67% of its industry peers.
VFC has a Return On Equity of 12.52%. This is in the better half of the industry: VFC outperforms 68.89% of its industry peers.
VFC has a Return On Invested Capital (6.08%) which is in line with its industry peers.
VFC had an Average Return On Invested Capital over the past 3 years of 6.12%. This is significantly below the industry average of 11.60%.

		Industry Rank	Sector Rank
ROA	2.14%
ROE	12.52%
ROIC	6.08%

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 Profit Margin (2.33%) which is comparable to the rest of the industry.
VFC's Operating Margin of 5.81% is in line compared to the rest of the industry. VFC outperforms 53.33% of its industry peers.
VFC's Operating Margin has declined in the last couple of years.
The Gross Margin of VFC (54.14%) is better than 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	5.81%
PM (TTM)	2.33%
GM	54.14%

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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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

VFC has a debt to FCF ratio of 13.41. This is a negative value and a sign of low solvency as VFC would need 13.41 years to pay back of all of its debts.
The Debt to FCF ratio of VFC (13.41) is worse than 60.00% of its industry peers.
A Debt/Equity ratio of 2.00 is on the high side and indicates that VFC has dependencies on debt financing.
VFC's Debt to Equity ratio of 2.00 is on the low side compared to the rest of the industry. VFC is outperformed by 86.67% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	2
Debt/FCF	13.41
Altman-Z	N/A

ROIC/WACC0.6

WACC10.17%

2.3 Liquidity

A Current Ratio of 1.55 indicates that VFC should not have too much problems paying its short term obligations.
VFC has a Current ratio of 1.55. This is in the lower half of the industry: VFC underperforms 68.89% of its industry peers.
A Quick Ratio of 1.03 indicates that VFC should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.03, VFC is in line with its industry, outperforming 51.11% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.55
Quick Ratio	1.03

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

VFC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.07%, which is quite impressive.
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 -1.56% in the past year.
VFC shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.95% yearly.

EPS 1Y (TTM)28.07%

EPS 3Y-38.01%

EPS 5Y-23.44%

EPS Q2Q%-6.45%

Revenue 1Y (TTM)-1.56%

Revenue growth 3Y-7.07%

Revenue growth 5Y-1.95%

Sales Q2Q%1.48%

3.2 Future

VFC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.52% yearly.
Based on estimates for the next years, VFC will show a small growth in Revenue. The Revenue will grow by 2.54% on average per year.

EPS Next Y-4.12%

EPS Next 2Y15.74%

EPS Next 3Y17.88%

EPS Next 5Y18.52%

Revenue Next Year-1.83%

Revenue Next 2Y-0.38%

Revenue Next 3Y0.76%

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.
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.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 26.84 indicates a quite expensive valuation of VFC.
VFC's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.30, VFC is valued at the same level.
VFC is valuated rather expensively with a Price/Forward Earnings ratio of 19.24.
The rest of the industry has a similar Price/Forward Earnings ratio as VFC.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, VFC is valued a bit cheaper.

		Industry Rank	Sector Rank
PE	26.84
Fwd PE	19.24

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 is on the same level as the industry average.

		Industry Rank	Sector Rank
P/FCF	24.7
EV/EBITDA	12.26

4.3 Compensation for Growth

VFC's earnings are expected to grow with 17.88% in the coming years. This may justify a more expensive valuation.

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y15.74%

EPS Next 3Y17.88%

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5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.79%, VFC has a reasonable but not impressive dividend return.
VFC's Dividend Yield is a higher than the industry average which is at 1.48.
Compared to an average S&P500 Dividend Yield of 1.83, VFC has a dividend comparable with the average S&P500 company.

		Industry Rank	Sector Rank
Dividend Yield	1.79%

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

VFC pays out 62.92% of its income as dividend. This is not a sustainable payout ratio.

DP62.92%

EPS Next 2Y15.74%

EPS Next 3Y17.88%

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VF CORP / VFC FAQ

What is the fundamental rating for VFC stock?

ChartMill assigns a fundamental rating of 3 / 10 to VFC.

What is the valuation status of VF CORP (VFC) stock?

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 4 / 10.

Can you provide the PE and PB ratios for VFC stock?

The Price/Earnings (PE) ratio for VF CORP (VFC) is 26.84 and the Price/Book (PB) ratio is 4.29.

Is the dividend of VF CORP sustainable?

The dividend rating of VF CORP (VFC) is 3 / 10 and the dividend payout ratio is 62.92%.