VF (VFC) AI Stock Analysis

• Market Cap: $4.84B
• Dividend Yield: 2.9%
• Average Volume (3M): 8.43M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.20
• Revenue Growth: -8.42%
• EPS Growth: 57.91%
• Country: US
• Employees: 18,000
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Apparel - Manufacturers
• EPS (TTM): -0.13
• Shares Outstanding: 389,744,320
• 10 Day Avg. Volume: 7,306,559
• 30 Day Avg. Volume: 8,428,569
• PEG Ratio: 0.06
• Price to Book (P/B): 7.52
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 23.82
• Enterprise Value/Market Cap: 3.28
• Enterprise Value/Revenue: 0.39
• Enterprise Value/Gross Profit: 3.07
• Enterprise Value/Ebitda: 35.18
• 1Y Price Target: $13.21
• Price Target Upside: 11.38% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 20

• Rating: 53 Neutral
• Price Target: ―

VF Corporation's stock score reflects significant challenges in financial performance, with declining revenue and high leverage posing major risks. However, recent earnings improvements and strategic leadership changes offer a positive outlook. Technical indicators suggest bearish momentum, while valuation metrics highlight mixed signals with a negative P/E but attractive dividend yield.

Positive Factors

Debt Management

VFC expects an increase in free cash flow, which should help fund debt repayment.

Financial Performance

Gross margins and SG&A were both better than expected, and EPS beat the consensus estimate by a penny.

Operational Efficiency

Operating margin increased due to better gross margins from Vans initiatives and faster savings from the Reinvent program.

Negative Factors

Brand Performance

Vans revenues were down significantly, with a 20% decline in the fourth quarter, attributed to actions for brand elevation and reduced sales.

Inventory Management

VFC's inventory is approximately $500M above its optimum level, with no clear objectives on inventory turnover.

Revenue Challenges

Revenue was down 4.6% and missed consensus by 1.3%, due to a 20% decrease in Vans revenue.

VF Business Overview & Revenue Model

Company Description

VF Corporation (VFC) is a global leader in branded lifestyle apparel, footwear, and accessories. Operating in sectors such as outdoor, active, and workwear, VF Corporation owns an array of iconic brands including The North Face, Vans, Timberland, and Dickies. The company is committed to delivering innovative products and experiences to its consumers through a diverse portfolio that caters to a wide range of lifestyles and activities.

How the Company Makes Money

VF Corporation generates revenue primarily through the sale of its branded apparel, footwear, and accessories across multiple channels. The company operates through direct-to-consumer sales, including owned retail stores and e-commerce platforms, as well as wholesale distribution to department stores, specialty retailers, and independent dealers. A significant portion of VF's revenue is driven by its strong brand portfolio, which allows the company to leverage brand loyalty and recognition. The company also engages in strategic partnerships and collaborations to enhance brand visibility and expand its market reach. VF Corporation focuses on geographic diversification, targeting both mature and emerging markets to optimize growth opportunities. Additionally, VF invests in innovation and sustainability initiatives to maintain its competitive edge and appeal to environmentally conscious consumers.

VF Financial Statement Overview

Summary

VF's financial performance is under pressure, with declining revenues, profitability issues, and high leverage. While the company maintains some equity stability, the negative cash flow and income trends pose significant risks that need addressing for financial health improvement.

Income Statement

The income statement shows a decline in revenue and profitability over the recent periods. The TTM reveals a net loss, with a negative net profit margin and decreasing EBIT and EBITDA margins, indicating operational challenges and declining efficiency.

Balance Sheet

The balance sheet indicates high leverage with a debt-to-equity ratio of 3.42 (TTM), reflecting risk due to significant debt compared to equity. The return on equity is negative, driven by losses, although equity remains positive, representing some stability.

Cash Flow

The cash flow statement shows negative operating and free cash flows in the TTM, reflecting cash management issues. The free cash flow to net income ratio is negative, indicating challenges in covering net losses through cash flow.

Breakdown
TTM	Mar 2024	Jun 2023	Jun 2022	Jun 2021	Mar 2020
Income Statement		Total Revenue
9.88B	10.45B	11.61B	11.84B	9.24B	10.49B
	Gross Profit
5.18B	5.44B	6.10B	6.46B	4.87B	5.80B
	EBIT
-95.98M	-34.06M	1.80B	1.63B	607.63M	1.63B
	EBITDA
207.40M	334.79M	480.24M	1.93B	861.21M	1.56B
	Net Income Common Stockholders
-457.24M	-968.88M	118.58M	1.39B	407.87M	679.45M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.37B	676.94M	814.89M	1.28B	1.41B	1.37B
	Total Assets
10.55B	11.61B	13.99B	13.34B	13.75B	11.13B
	Total Debt
5.75B	7.43B	7.82B	6.44B	6.96B	4.86B
	Net Debt
4.38B	6.76B	7.00B	5.17B	6.14B	3.49B
	Total Liabilities
8.87B	9.95B	11.08B	9.81B	10.70B	7.78B
	Stockholders Equity
1.68B	1.66B	2.91B	3.53B	3.06B	3.36B
Cash Flow		Free Cash Flow
429.26M	803.60M	-917.05M	535.97M	1.04B	540.69M
	Operating Cash Flow
545.13M	1.01B	-655.79M	864.29M	1.31B	874.53M
	Investing Cash Flow
1.47B	-172.26M	-188.05M	903.74M	-2.90B	-302.05M
	Financing Cash Flow
-1.58B	-959.62M	463.91M	-1.27B	1.05B	309.73M

VF Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.86
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VFC, the sentiment is Negative. The current price of 11.86 is below the 20-day moving average (MA) of 12.57, below the 50-day MA of 12.31, and below the 200-day MA of 18.34, indicating a bearish trend. The MACD of -0.25 indicates Positive momentum. The RSI at 42.48 is Neutral, neither overbought nor oversold. The STOCH value of 25.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VFC.

VF Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RL	76 Outperform	$16.31B	23.29	29.49%	1.22%	6.75%	19.71%
LEVI	74 Outperform	$6.94B	19.74	18.03%	2.96%	4.63%	187.50%
PVH	72 Outperform	$3.13B	9.18	8.31%	0.23%	-3.63%	-37.24%
KTB	71 Outperform	$3.58B	15.77	56.32%	3.23%	1.19%	3.19%
COLM	63 Neutral	$3.38B	15.75	12.34%	1.95%	-1.69%	-4.01%
Sector *	62 Neutral	$6.86B	11.07	2.77%	4.27%	2.66%	-24.95%
VFC	53 Neutral	$4.84B	―	-2.39%	2.90%	-8.42%	57.91%

VF Corporate Events

VF Appoints Abhishek Dalmia as COO in 2025

V.F. Corporation has appointed Abhishek Dalmia as Executive Vice President and Chief Operating Officer, effective April 3, 2025. Mr. Dalmia will oversee corporate strategy, transformation, digital technology, and supply chain operations. His extensive experience includes roles at Boston Consulting Group, lululemon athletica, and Dell Technologies, focusing on digital growth and innovation. This appointment is part of the company’s strategic leadership restructuring, potentially impacting its operational efficiency and market competitiveness.

VF Corporation Announces Board Resignation and Restructuring

On March 26, 2025, V.F. Corporation’s Board of Directors accepted the resignation of W. Rodney McMullen following a significant change in his principal occupation, as mandated by the company’s Corporate Governance Principles. Consequently, the Board’s size was reduced to twelve directors, reflecting a strategic adjustment in its governance structure.