VF CORP (VFC) Stock Fundamental Analysis
USA - NYSE:VFC - US9182041080 - Common Stock
14.44 USD
-0.67 (-4.43%)
14.5 USD
+0.06 (+0.42%)
VFC gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 49 industry peers in the Textiles, Apparel & Luxury Goods industry. Both the profitability and financial health of VFC have multiple concerns. VFC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year VFC was profitable.
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 Return On Assets of -0.47%. This is in the lower half of the industry: VFC underperforms 69.39% of its industry peers.
VFC has a Return On Equity of -3.66%. This is in the lower half of the industry: VFC underperforms 69.39% of its industry peers.
VFC has a worse Return On Invested Capital (5.55%) than 63.27% of 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 12.08%.
| 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's Operating Margin of 5.25% is in line compared to the rest of the industry. VFC outperforms 46.94% of its industry peers.
VFC's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 54.05%, VFC is in the better half of the industry, outperforming 63.27% of the companies in the same industry.
VFC's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VFC is destroying value.
VFC has more shares outstanding than it did 1 year ago.
VFC has about the same amout of shares outstanding than it did 5 years ago.
VFC has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.43, we must say that VFC is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of VFC (1.43) is worse than 83.67% 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 61.22% of its industry peers.
A Debt/Equity ratio of 3.06 is on the high side and indicates that VFC has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 3.06, VFC is doing worse than 89.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.06 | ||
| Debt/FCF | 26.73 | ||
| Altman-Z | 1.43 |
ROIC/WACC0.61
WACC9.05%
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's Current ratio of 1.27 is on the low side compared to the rest of the industry. VFC is outperformed by 81.63% of its industry peers.
VFC has a Quick Ratio of 1.27. 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 (0.65) is worse than 83.67% 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.
The earnings per share for VFC have been decreasing by -23.44% on average. This is quite bad
The Revenue has decreased by -6.32% in the past year.
Measured over the past years, VFC shows a decrease in Revenue. The Revenue has been decreasing by -1.95% on average per year.
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
Based on estimates for the next years, VFC will show a very strong growth in Earnings Per Share. The EPS will grow by 24.16% on average per year.
The Revenue is expected to grow by 3.38% on average over the next years.
EPS Next Y-0.76%
EPS Next 2Y18.2%
EPS Next 3Y21.89%
EPS Next 5Y24.16%
Revenue Next Year0.2%
Revenue Next 2Y1.52%
Revenue Next 3Y2.12%
Revenue Next 5Y3.38%
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
A Price/Earnings ratio of 16.99 indicates a correct valuation of VFC.
The rest of the industry has a similar Price/Earnings ratio as VFC.
VFC is valuated rather cheaply when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 13.60 indicates a correct valuation of VFC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VFC indicates a somewhat cheap valuation: VFC is cheaper than 65.31% of the companies listed in the same industry.
VFC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.99 | ||
| Fwd PE | 13.6 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as VFC.
The rest of the industry has a similar Price/Free Cash Flow ratio as VFC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.21 | ||
| EV/EBITDA | 12.46 |
4.3 Compensation for Growth
A more expensive valuation may be justified as VFC's earnings are expected to grow with 21.89% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y18.2%
EPS Next 3Y21.89%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.33%, VFC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.08, VFC pays a better dividend. On top of this VFC pays more dividend than 81.63% of the companies listed 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 | 2.33% |
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
VFC has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-297.01%
EPS Next 2Y18.2%
EPS Next 3Y21.89%
14.44
-0.67 (-4.43%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners96.11%
Inst Owner Change-1.39%
Ins Owners0.92%
Ins Owner Change1.9%
Market Cap5.64B
Analysts68.57
Price Target14.45 (0.07%)
Short Float %9.25%
Short Ratio4.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
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)4.78%
PT rev (3m)2.61%
EPS NQ rev (1m)0.59%
EPS NQ rev (3m)-20.12%
EPS NY rev (1m)-11.15%
EPS NY rev (3m)-24.11%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)0.55%
Revenue NY rev (1m)0.56%
Revenue NY rev (3m)0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.99 | ||
| Fwd PE | 13.6 | ||
| P/S | 0.59 | ||
| P/FCF | 33.21 | ||
| P/OCF | 18.81 | ||
| P/B | 4.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.46 |
EPS(TTM)0.85
EY5.89%
EPS(NY)1.06
Fwd EY7.35%
FCF(TTM)0.43
FCFY3.01%
OCF(TTM)0.77
OCFY5.32%
SpS24.31
BVpS3.31
TBVpS-2.69
PEG (NY)N/A
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 | 1.43 |
F-Score7
WACC9.05%
ROIC/WACC0.61
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 Y-0.76%
EPS Next 2Y18.2%
EPS Next 3Y21.89%
EPS Next 5Y24.16%
Revenue 1Y (TTM)-6.32%
Revenue growth 3Y-7.07%
Revenue growth 5Y-1.95%
Sales Q2Q%-7.69%
Revenue Next Year0.2%
Revenue Next 2Y1.52%
Revenue Next 3Y2.12%
Revenue Next 5Y3.38%
EBIT growth 1Y3.17%
EBIT growth 3Y-34.37%
EBIT growth 5Y-18.29%
EBIT Next Year63.81%
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%