NYSE:VFC

Stock Analysis Report

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Executive Summary

V.F. Corporation engages in the design, production, procurement, marketing, and distribution of branded lifestyle apparel, footwear, and related products for men, women, and children in the Americas, Europe, and the Asia-Pacific.


Snowflake Analysis

Average dividend payer with adequate balance sheet.


Similar Companies

Share Price & News

How has V.F's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: VFC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

14.2%

VFC

7.0%

US Luxury

2.9%

US Market


1 Year Return

-24.3%

VFC

6.9%

US Luxury

8.9%

US Market

Return vs Industry: VFC underperformed the US Luxury industry which returned 6.9% over the past year.

Return vs Market: VFC underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

VFCIndustryMarket
7 Day14.2%7.0%2.9%
30 Day14.4%21.1%10.6%
90 Day-8.6%10.3%5.1%
1 Year-23.0%-24.3%8.2%6.9%11.4%8.9%
3 Year31.4%15.8%61.8%54.4%34.3%25.4%
5 Year10.6%-7.4%40.6%31.2%60.7%42.7%

Price Volatility Vs. Market

How volatile is V.F's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is V.F undervalued compared to its fair value and its price relative to the market?

40.28x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: VFC ($64.09) is trading above our estimate of fair value ($60.48)

Significantly Below Fair Value: VFC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: VFC is poor value based on its PE Ratio (40.3x) compared to the Luxury industry average (16.7x).

PE vs Market: VFC is poor value based on its PE Ratio (40.3x) compared to the US market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: VFC is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: VFC is overvalued based on its PB Ratio (7.4x) compared to the US Luxury industry average (1x).


Next Steps

Future Growth

How is V.F forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

21.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VFC's forecast earnings growth (21.7% per year) is above the savings rate (2.2%).

Earnings vs Market: VFC's earnings (21.7% per year) are forecast to grow slower than the US market (22.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: VFC's revenue (4.2% per year) is forecast to grow slower than the US market (8.8% per year).

High Growth Revenue: VFC's revenue (4.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VFC's Return on Equity is forecast to be high in 3 years time (35.5%)


Next Steps

Past Performance

How has V.F performed over the past 5 years?

-1.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VFC has a large one-off loss of $429.4M impacting its March 28 2020 financial results.

Growing Profit Margin: VFC's current net profit margins (6%) are lower than last year (8.5%).


Past Earnings Growth Analysis

Earnings Trend: VFC's earnings have declined by -1.5% per year over the past 5 years.

Accelerating Growth: VFC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: VFC had negative earnings growth (-28%) over the past year, making it difficult to compare to the Luxury industry average (-10.8%).


Return on Equity

High ROE: VFC's Return on Equity (18.7%) is considered low.


Next Steps

Financial Health

How is V.F's financial position?


Financial Position Analysis

Short Term Liabilities: VFC's short term assets ($5.0B) exceed its short term liabilities ($3.0B).

Long Term Liabilities: VFC's short term assets ($5.0B) exceed its long term liabilities ($4.8B).


Debt to Equity History and Analysis

Debt Level: VFC's debt to equity ratio (113.6%) is considered high.

Reducing Debt: VFC's debt to equity ratio has increased from 49.3% to 113.6% over the past 5 years.

Debt Coverage: VFC's debt is well covered by operating cash flow (22.9%).

Interest Coverage: VFC's interest payments on its debt are well covered by EBIT (17.8x coverage).


Balance Sheet


Next Steps

Dividend

What is V.F's current dividend yield, its reliability and sustainability?

2.96%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: VFC's dividend (2.96%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: VFC's dividend (2.96%) is low compared to the top 25% of dividend payers in the US market (4.32%).


Stability and Growth of Payments

Stable Dividend: VFC's dividends per share have been stable in the past 10 years.

Growing Dividend: VFC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (119.4%), VFC's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: VFC's dividends in 3 years are forecast to be covered by earnings (79.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.2yrs

Average management tenure


CEO

Steve Rendle (59yo)

3.42yrs

Tenure

US$17,842,521

Compensation

Mr. Steven E. Rendle, also known as Steve, has been an Interim Chief Executive Officer and President of Timberland Co. since September 2011 and its President since November 15, 2017. Mr. Rendle has been th ...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD17.84M) is above average for companies of similar size in the US market ($USD11.52M).

Compensation vs Earnings: Steve's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Steven Rendle
Executive Chairman3.42yrsUS$17.84m0.077% $19.1m
Scott Roe
Executive VP & CFO5.17yrsUS$7.59m0.029% $7.3m
Martino Guerrini
Executive VP & Group President of EMEA11.33yrsUS$2.50m0.033% $8.1m
Kevin Bailey
Executive VP & Group President of APAC11yrsUS$3.04m0.015% $3.6m
Bryan McNeill
VP, Controller & Chief Accounting Officer5.17yrsno data0.0021% $530.8k
Velia Carboni
Executive VP and Chief Digital & Technology Officer1.42yrsno datano data
Joe Alkire
VP of Corporate Development3.42yrsno datano data
Laura Meagher
Executive VP8.08yrsno data0.0086% $2.1m
Anita Graham
Executive VPno datano datano data
Brian Beckstead
Founder & Chief Marketing Officer1.58yrsno datano data

5.2yrs

Average Tenure

57yo

Average Age

Experienced Management: VFC's management team is seasoned and experienced (5.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Steven Rendle
Executive Chairman3.42yrsUS$17.84m0.077% $19.1m
Clarence Otis
Independent Director16.42yrsUS$197.50k0.0046% $1.1m
W. McCollough
Lead Independent Director5.17yrsUS$237.50k0.0046% $1.1m
William McMullen
Independent Director4.33yrsUS$177.50k0.0033% $832.4k
Mark Hoplamazian
Independent Director5.33yrsUS$177.50k0.0021% $510.9k
Laura Lang
Independent Director8.67yrsUS$177.50k0.0032% $785.0k
Matthew Shattock
Independent Director7.33yrsUS$197.50k0.0027% $680.4k
Juliana Chugg
Independent Director11.33yrsUS$177.50k0.017% $4.2m
Richard Carucci
Independent Director10.92yrsUS$197.50k0.017% $4.2m
Carol Roberts
Independent Director3.33yrsUS$177.50k0.0015% $368.8k

6.3yrs

Average Tenure

59yo

Average Age

Experienced Board: VFC's board of directors are considered experienced (6.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

V.F. Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: V.F. Corporation
  • Ticker: VFC
  • Exchange: NYSE
  • Founded: 1899
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: US$24.922b
  • Shares outstanding: 388.85m
  • Website: https://www.vfc.com

Number of Employees


Location

  • V.F. Corporation
  • 8505 East Orchard Road
  • Greenwood Village
  • Colorado
  • 80111
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VFCNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
VFPDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
VFPXTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1968
0R30LSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
VFCSWX (SIX Swiss Exchange)YesCommon StockCHCHFJan 1968
VFPETLX (Eurotlx)YesCommon StockITEURJan 1968
VFCWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1968
VFCO34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REP 0.5 COM NPVBRBRLMay 2019

Biography

V.F. Corporation engages in the design, production, procurement, marketing, and distribution of branded lifestyle apparel, footwear, and related products for men, women, and children in the Americas, Europe, and the Asia-Pacific. It operates through four segments: Outdoor, Active, and Work. The company offers outdoor, merino wool and other natural fibers-based, lifestyle, and casual apparel; equipment; accessories; outdoor lifestyle, performance-based, youth culture/action sports-inspired, and protective work footwear; handbags, luggage, backpacks, totes, and travel accessories; and work and work-inspired lifestyle apparel and footwear. It provides its products under the North Face, Timberland, Icebreaker, Smartwool, Altra, Vans, Kipling, Napapijri, Eastpak, JanSport, Eagle Creek, Dickies, Timberland PRO. The company sells its products primarily to specialty stores, department stores, national chains, and mass merchants, as well as sells through direct-to-consumer operations, including retail stores, concession retail stores, and e-commerce sites, and other digital platforms V.F. Corporation was founded in 1899 and is based in Greenwood Village, Colorado. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/05 03:29
End of Day Share Price2020/06/04 00:00
Earnings2020/03/28
Annual Earnings2020/03/28


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.