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.
