Don't Take a Position in V.F. Stocks Without Knowing Its Fundamentals!

Now trading at a price of $29.99, V.F. has moved -2.1% so far today. In contrast, the S&P 500 index moved -0.6%. Read below for a basic value analysis of V.F..

V.F. shares moved -51.2% over the last 52 weeks, with a high of $64.74 and a low of $25.05. During this time, the stock lagged the S&P 500 index by -43.5%. As of January 2022, the company's 50-day average price is $29.56. V.F. Corporation, together with its subsidiaries, engages in the design, 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. The large-cap Consumer Cyclical company has 20,300 full time employees and is based in Denver, CO. V.F. has returned a 6.5% dividend yield over the last 12 months.

The Company Has a Steady Stream of Positive Cash Flows:

2019-03-31 2020-03-31 2021-03-31 2022-03-31
Revenue (MM) $13,849 $10,489 $9,239 $11,842
Revenue Growth n/a -24.26% -11.92% 28.17%
Gross Margins 50.7% 55.3% 52.7% 54.5%
Gross Margins Growth n/a 9.07% -4.7% 3.42%
Operating Margins 12.1% 11.9% 6.8% 13.8%
Operating Margins Growth n/a -1.65% -42.86% 102.94%
Earnings Per Share $3.15 $1.7 $1.04 $3.53
EPS Growth n/a -46.03% -38.82% 239.42%
Free Cash Flow (MM) $1,357 $541 $1,039 $536
FCF Growth n/a -60.17% 92.17% -48.42%
Capital Expenditures (MM) -$307 -$334 -$274 -$328
Net Debt / EBITDA 1.16 1.92 6.02 2.33

V.F. Is Overvalued:

Compared to the Consumer Cyclical sector's average of 24.11, V.F. has a trailing twelve month P/E ratio of 27.8 and, according to its EPS guidance of 2.33, an expected P/E ratio of 12.9. V.F.'s PEG ratio is 0.93 based on its 30.0% annual average growth rate of historical and projected earnings per share. However, we believe that it is more prudent to calculate the PEG ratio using the broader market's 5-year expected EPS growth rate of 13.05%, because the growth rate implied by V.F.'s past and expected EPS is probably not sustainable. This more prudent approach shows a PEG ratio of 2.13, which suggests that the company's shares are actually overvalued.

V.F.'s P/B ratio is 3.8 compared to its sector average of 3.11. The company is likely overvalued in terms of its net asset value. The company's shares are currently trading 46.4% above their fair value as expressed by Benjamin Graham's formula:

√(22.5 * 4-year average EPS * book value per share) = √(22.5 * 2.35 * 7.941) = $20.49

V.F. Is the Subject of Mixed Market Indicators:

20 analysts are following V.F. and have set target prices ranging from $23 to $38 per share. On average, they have given the company a rating of hold. At the current price of $29.99, VFC is trading 0.2% away from its average analyst target price of $29.93 per share, implying an analyst consensus of little upside potential for the stock.

The company has an average amount of shares sold short since 5.5% of the company's shares are tied to short positions. Institutions own 91.5% of V.F.'s shares, while the insider ownership rate stands at 0.34%. The biggest shareholder is PNC Financial Services Group, Inc. with a 20% stake in the company worth approximately $2,322,715,195.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.