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VF Corp VFC

Morningstar Rating
$12.78 +0.10 (0.79%)
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Company Report

The Popularity of VF’s Brands Provides Confidence That Its Turnaround Efforts Will Work

VF has built a portfolio of solid brands in multiple apparel categories. We view the three brands that account for about 80% its sales (Vans, Timberland, and The North Face) as supporting its narrow moat based on a brand intangible asset. VF has struggled greatly over the past few quarters, but we believe it will grow faster than most competitors in the long run and maintain its competitive edge.

Price vs Fair Value

VFC is trading at a 76% discount.
Price
$12.67
Fair Value
$77.00
Uncertainty
Very High
1-Star Price
$89.46
5-Star Price
$12.80
Economic Moat
Fmbrp
Capital Allocation
Lmlfncd

Bulls Say, Bears Say

Bulls

CEO Bracken Darrell intends to improve results for Vans under the Reinvent strategic plan. We think Vans can be fixed and that it has growth potential given its small share in the global sports-inspired apparel and footwear market, estimated at $164 billion in 2023 (Euromonitor).

Bears

VF paid over $2 billion for Supreme in 2020, but the brand suffered a drop in sales in fiscal 2023. Supreme is an important part of VF's margin expansion plans.

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News

Trading Information

Previous Close Price
$12.68
Day Range
$12.5712.97
52-Week Range
$11.9123.54
Bid/Ask
$12.77 / $12.78
Market Cap
$4.97 Bil
Volume/Avg
4.7 Mil / 10.3 Mil

Key Statistics

Price/Earnings (Normalized)
10.39
Price/Sales
0.45
Dividend Yield (Trailing)
6.16%
Dividend Yield (Forward)
2.84%
Total Yield
6.21%

Company Profile

VF designs, produces, and distributes branded apparel, footwear, and accessories. Its apparel categories are active, outdoor, and work. Its portfolio of about a dozen brands includes Vans, The North Face, Timberland, Supreme, and Dickies. VF markets its products in the Americas, Europe, and Asia-Pacific through wholesale sales to retailers, e-commerce, and branded stores owned by the company and partners. The company has grown through multiple acquisitions and traces its roots to 1899.
Sector
Consumer Cyclical
Industry
Apparel Manufacturing
Stock Style Box
Small Value
Total Number of Employees
33,000

Competitors

Valuation

Metric
VFC
ADDYY
PVH
Price/Earnings (Normalized)
10.3938.239.90
Price/Book Value
2.347.831.24
Price/Sales
0.451.710.71
Price/Cash Flow
4.3735.137.30
Price/Earnings
VFC
ADDYY
PVH

Financial Strength

Metric
VFC
ADDYY
PVH
Quick Ratio
0.580.530.55
Current Ratio
1.231.221.18
Interest Coverage
0.751.169.35
Quick Ratio
VFC
ADDYY
PVH

Profitability

Metric
VFC
ADDYY
PVH
Return on Assets (Normalized)
−1.06%0.75%6.20%
Return on Equity (Normalized)
−5.45%2.96%13.99%
Return on Invested Capital (Normalized)
0.27%2.15%8.85%
Return on Assets
VFC
ADDYY
PVH
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GIL
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UAA
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