V F Corp (VFC) stock analysis

P/E below its 5-year median

V F's P/E of 22.5 is below its own 5-year median of 24.5.

P/E above the industry

V F's P/E of 22.5 is above the Apparel and Other Finished Products Made from Fabrics and Similar Materials median of 21.3.

EV/EBITDA below its 5-year median

V F's EV/EBITDA of 12.5 is below its 5-year median of 14.2.

P/B above the industry

V F's price-to-book of 4.02 is above the Apparel and Other Finished Products Made from Fabrics and Similar Materials median of 2.23.

Trading above fair value

The share price of $20.74 is above our fair value estimate of $19.33.

Margin of safety under 20%

The price is 7.3% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew -4.7% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 27.3% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 309% over the last twelve months, against a 5-year average of -9.0% a year.

Growing slower than the industry

Revenue grew -1.4% over the last twelve months; the Apparel and Other Finished Products Made from Fabrics and Similar Materials median is 3.9%.

Guidance raised

V F raised its FY'27 Revenue % vs. LY (C$) outlook on Jul 29, 2026.

Gross margin improving

Gross margin was 55.9% over the last twelve months, against 54.0% a year earlier.

Return on equity under 15%

Return on equity was 21.1% over the last twelve months and averaged 1.3% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 9.9%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

V F's return on equity of 21.1% is above the Apparel and Other Finished Products Made from Fabrics and Similar Materials median of 9.5%.

Earnings shrank over 5 years

Net income shrank 9.0% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 3.9% over the last twelve months, against a 5-year average of 0.7%.

Net margin below the industry

V F's net margin of 3.9% is below the Apparel and Other Finished Products Made from Fabrics and Similar Materials median of 3.9%.

High debt

Debt is 174% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 187% five years ago to 174%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 23.4% of total debt.

Interest not well covered

Operating income covers interest expense 4.7 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 1.47 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 1.85; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

V F paid dividends worth 1.7% of the share price over the last twelve months.

Yield below Treasuries

The 1.7% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; V F yields 1.7%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Covered by earnings

Dividends take 38.2% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.