What Are the Fundamentals of V.F. (VFC)?

Shares of Large-cap consumer discretionary company V.F. moved -4.1% this afternoon, and are now trading at $20.77 per share. The average analyst target price for the stock is $28.19.

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 company currently returns an annual dividend yield of 9.3% and has moved -55.1% over the last year.

Based on its trailing earning per share of 1.07, V.F. has a trailing 12 month Price to Earnings (P/E) ratio of 19.4 VFC has a forward P/E ratio of 9.5 based on its earnings guidance of None.

The company has a price to earnings growth (PEG) ratio of -1.72. A number between 0 and 1 could mean that the market is undervaluing V.F.'s estimated growth potential

Growing Revenues With a Flat Capital Expenditure Trend

2020-03-31 2021-03-31 2022-03-31
Revenue (MM) $10,489 $9,239 $11,842
Gross Margins 55.3% 52.7% 54.5%
Operating Margins 11.9% 6.8% 13.8%
Net Margins 7.41% 4.41% 11.71%
Net Income (MM) $778 $408 $1,387
Net Interest Income -$72,175 -$126,500 -$131,463
Depreciation & Amort. -$267,619 -$269,081 -$266,935
Earnings Per Share $1.7 $1.04 $1.07
EPS Growth n/a -38.82% 2.88%
Diluted Shares (MM) 400 392 389
Free Cash Flow (MM) $541 $1,039 $536
Capital Expenditures (MM) -$334 -$274 -$328
Net Current Assets (MM) -$2,749 -$5,912 -$5,224
Current Ratio 1.66 2.17 1.38
Long Term Debt (MM) $2,608 $5,709 $4,584
Net Debt / EBITDA 2.03 5.42 1.98

V.F. has slimmer gross margins than its peers, declining EPS growth, and a highly leveraged balance sheet. On the other hand, the company benefits from growing revenues and a flat capital expenditure trend and consistent free cash flow. Furthermore, V.F. has average net margins with a stable trend and just enough current assets to cover current liabilities.

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.