VF CORP (VFC)
US9182041080 - Common Stock
VFC gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 50 industry peers in the Textiles, Apparel & Luxury Goods industry. Both the profitability and financial health of VFC have multiple concerns. 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.
VFC had a positive operating cash flow in the past year.
Of the past 5 years VFC 4 years were profitable.
VFC had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
VFC has a Return On Assets of -5.46%. This is in the lower half of the industry: VFC underperforms 74.00% of its industry peers.
VFC has a worse Return On Equity (-47.46%) than 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.
VFC had an Average Return On Invested Capital over the past 3 years of 9.01%. This is below the industry average of 11.65%.
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
VFC has a Operating Margin (4.12%) which is in line with its industry peers.
VFC's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 52.04%, VFC is in line with its industry, outperforming 58.00% of the companies in the same industry.
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 | 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.
The number of shares outstanding for VFC remains at a similar level compared to 1 year ago.
VFC has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, VFC has a worse debt to assets ratio.
2.2 Solvency
VFC has an Altman-Z score of 1.40. This is a bad value and indicates that VFC is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of VFC (1.40) is worse than 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.
Looking at the Debt to FCF ratio, with a value of 10.26, VFC is doing worse than 64.00% of the companies in the same industry.
VFC has a Debt/Equity ratio of 3.19. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of VFC (3.19) is worse than 92.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.19 | ||
| Debt/FCF | 10.26 | ||
| Altman-Z | 1.4 |
ROIC/WACC0.58
WACC7.13%
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.
The Current ratio of VFC (1.30) is worse than 84.00% of its industry peers.
VFC has a Quick Ratio of 1.30. This is a bad value and indicates that VFC is not financially healthy enough and could expect problems in meeting its short term obligations.
VFC's Quick ratio of 0.88 is on the low side compared to the rest of the industry. VFC is outperformed by 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The earnings per share for VFC have decreased strongly by -70.62% in the last year.
The earnings per share for VFC have been decreasing by -27.99% on average. This is quite bad
VFC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -13.43%.
Measured over the past years, VFC shows a small growth in Revenue. The Revenue has been growing by 0.36% on average per year.
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
VFC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.12% yearly.
Based on estimates for the next years, VFC will show a small growth in Revenue. The Revenue will grow by 1.25% on average per year.
EPS Next Y-37.08%
EPS Next 2Y13.66%
EPS Next 3Y22.86%
EPS Next 5Y28.12%
Revenue Next Year-8.98%
Revenue Next 2Y-3.38%
Revenue Next 3Y-0.82%
Revenue Next 5Y1.25%
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
The Price/Earnings ratio is 42.08, which means the current valuation is very expensive for VFC.
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.
When comparing the Price/Earnings ratio of VFC to the average of the S&P500 Index (27.54), we can say VFC is valued expensively.
VFC is valuated rather expensively with a Price/Forward Earnings ratio of 23.20.
The rest of the industry has a similar Price/Forward Earnings ratio as VFC.
The average S&P500 Price/Forward Earnings ratio is at 23.99. VFC is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.08 | ||
| Fwd PE | 23.2 |
4.2 Price Multiples
VFC's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VFC is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14 | ||
| EV/EBITDA | 19.47 |
4.3 Compensation for Growth
A more expensive valuation may be justified as VFC's earnings are expected to grow with 22.86% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y13.66%
EPS Next 3Y22.86%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.66%, VFC has a reasonable but not impressive dividend return.
VFC's Dividend Yield is a higher than the industry average which is at 2.87.
Compared to the average S&P500 Dividend Yield of 2.36, VFC is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
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
VFC has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-20.98%
EPS Next 2Y13.66%
EPS Next 3Y22.86%
VF CORP
NYSE:VFC (12/24/2024, 7:44:01 PM)
Premarket: 21.87 -0.01 (-0.05%)21.88
-0.15 (-0.68%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners97.48%
Inst Owner Change-0.18%
Ins Owners0.31%
Ins Owner Change0.09%
Market Cap8.52B
Analysts65.93
Price Target21.59 (-1.33%)
Short Float %7.99%
Short Ratio4.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
Dividend Growth(5Y)-16.36%
DP-20.98%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)35.82%
Min EPS beat(2)12.66%
Max EPS beat(2)58.97%
EPS beat(4)2
Avg EPS beat(4)-745.17%
Min EPS beat(4)-3025.5%
Max EPS beat(4)58.97%
EPS beat(8)4
Avg EPS beat(8)-372.61%
EPS beat(12)5
Avg EPS beat(12)-250.49%
EPS beat(16)7
Avg EPS beat(16)-179.93%
Revenue beat(2)2
Avg Revenue beat(2)1.59%
Min Revenue beat(2)0.91%
Max Revenue beat(2)2.27%
Revenue beat(4)2
Avg Revenue beat(4)-2.2%
Min Revenue beat(4)-9.55%
Max Revenue beat(4)2.27%
Revenue beat(8)4
Avg Revenue beat(8)-1.09%
Revenue beat(12)5
Avg Revenue beat(12)-1%
Revenue beat(16)7
Avg Revenue beat(16)-1.28%
PT rev (1m)15.4%
PT rev (3m)21.2%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-44.43%
EPS NY rev (1m)0.41%
EPS NY rev (3m)-27.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.97%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-4.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.08 | ||
| Fwd PE | 23.2 | ||
| P/S | 0.86 | ||
| P/FCF | 14 | ||
| P/OCF | 11.33 | ||
| P/B | 6.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.47 |
EPS(TTM)0.52
EY2.38%
EPS(NY)0.94
Fwd EY4.31%
FCF(TTM)1.56
FCFY7.14%
OCF(TTM)1.93
OCFY8.83%
SpS25.33
BVpS3.61
TBVpS-2.62
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.46% | ||
| ROE | -47.46% | ||
| ROCE | 5.61% | ||
| ROIC | 4.17% | ||
| ROICexc | 4.45% | ||
| ROICexgc | 6.71% | ||
| OM | 4.12% | ||
| PM (TTM) | N/A | ||
| GM | 52.04% | ||
| FCFM | 6.17% |
ROA(3y)0.97%
ROA(5y)2.39%
ROE(3y)-5.02%
ROE(5y)3.7%
ROIC(3y)9.01%
ROIC(5y)8.62%
ROICexc(3y)10.01%
ROICexc(5y)9.74%
ROICexgc(3y)24.39%
ROICexgc(5y)21.68%
ROCE(3y)11.66%
ROCE(5y)11.49%
ROICexcg growth 3Y2.55%
ROICexcg growth 5Y-8.62%
ROICexc growth 3Y2.33%
ROICexc growth 5Y-12.75%
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%
F-Score4
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.19 | ||
| Debt/FCF | 10.26 | ||
| Debt/EBITDA | 6.34 | ||
| Cap/Depr | 47.45% | ||
| Cap/Sales | 1.46% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 106.09% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 1.4 |
F-Score4
WACC7.13%
ROIC/WACC0.58
Cap/Depr(3y)96.23%
Cap/Depr(5y)103.06%
Cap/Sales(3y)2.35%
Cap/Sales(5y)2.64%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-70.62%
EPS 3Y-17.5%
EPS 5Y-27.99%
EPS Q2Q%-4.76%
EPS Next Y-37.08%
EPS Next 2Y13.66%
EPS Next 3Y22.86%
EPS Next 5Y28.12%
Revenue 1Y (TTM)-13.43%
Revenue growth 3Y4.21%
Revenue growth 5Y0.36%
Sales Q2Q%-9.11%
Revenue Next Year-8.98%
Revenue Next 2Y-3.38%
Revenue Next 3Y-0.82%
Revenue Next 5Y1.25%
EBIT growth 1Y-60.73%
EBIT growth 3Y-6.46%
EBIT growth 5Y-13.2%
EBIT Next Year-3.83%
EBIT Next 3Y11.56%
EBIT Next 5Y15.09%
FCF growth 1Y485.11%
FCF growth 3Y-8.21%
FCF growth 5Y-9.95%
OCF growth 1Y519.15%
OCF growth 3Y-8.24%
OCF growth 5Y-9.42%