Last Updated: 17 Sep 2024
Executive Summary
VF Corporation (VFC) is a leading global apparel and footwear company with a portfolio of over 30 brands. Despite facing challenges in the current market environment, the company's strong brand portfolio and focus on innovation position it for long-term growth.
Company Overview
VF Corporation was founded in 1899 and is headquartered in Denver, Colorado. The company's brands are organized into three categories: Outdoor, Active, and Work. Key brands include The North Face, Vans, Timberland, and Dickies.
Fundamental Analysis
Revenue and Earnings: VF Corporation's revenue has been declining in recent quarters due to macroeconomic headwinds and supply chain disruptions. The company reported a revenue decline of 8.6% in the latest quarter. Earnings per share (EPS) have also been negative, with a loss of $3.01 reported in the latest quarter.
Margins: VF Corporation's profit margins have been under pressure due to rising costs and supply chain inefficiencies. The company's gross profit margin has declined to -11.4%, while its operating margin has fallen to -5.04%.
Balance Sheet: VF Corporation has a strong balance sheet with ample liquidity. The company has $1.4 billion in cash and equivalents and a debt-to-equity ratio of 0.6.
Valuation: VF Corporation is currently trading at a forward price-to-earnings (PE) ratio of 26.18, which is below its historical average. The company's price-to-sales (PS) ratio is 0.708, indicating that it is undervalued relative to its peers.
Technical Analysis
Trend: VF Corporation's stock price has been trending lower in recent months. The stock is currently trading below its 50-day and 200-day moving averages.
Support and Resistance: The stock has support at $16.51, which is the 50-day moving average. Resistance is at $18.2, which is the current stock price.
Momentum: The stock's momentum is negative, as indicated by the declining moving averages and the relative strength index (RSI) below 50.
Short Term Outlook
In the short term, VF Corporation's stock is likely to remain under pressure due to continued macroeconomic challenges and supply chain disruptions. The company's earnings are expected to remain negative in the upcoming quarters.
Long Term Outlook
VF Corporation has a strong brand portfolio and a focus on innovation. The company is well-positioned to benefit from the recovery in consumer spending and the easing of supply chain constraints. The company's long-term growth prospects remain positive.
Analyst Recommendations
Analysts have a mixed view on VF Corporation's stock. Three analysts have a "Strong Buy" rating, one has a "Buy" rating, 15 have a "Hold" rating, three have a "Sell" rating, and none have a "Strong Sell" rating. The average analyst target price is $17.52.
