VF Corp (VFC, Financial), a prominent player in the apparel and accessories manufacturing industry, has recently witnessed a notable shift in its stock performance. Over the past week, the stock price has decreased by 0.84%, settling at $18.13. However, looking at a broader timeline, VF Corp has experienced a significant surge of 29.60% over the past three months. This rise in stock price is particularly intriguing when considering the company's current GF Value of $26.38, suggesting that the stock is modestly undervalued compared to its intrinsic value.
Company Overview
VF Corp, with a market capitalization of $7.05 billion, operates in the dynamic field of apparel and accessories. The company's business model involves the design, production, and distribution of branded apparel, footwear, and accessories. Its diverse portfolio includes well-known brands such as Vans, The North Face, Timberland, Altra, and Dickies. VF Corp has a global presence, marketing its products across the Americas, Europe, and Asia-Pacific through various channels including wholesale, e-commerce, and branded stores. The company's historical roots trace back to 1899, evolving through numerous brand acquisitions and dispositions over the years.
Assessing Profitability
VF Corp's financial health is reflected in its Profitability Rank of 7/10, indicating robust profitability within its industry. The company's Operating Margin stands at 4.53%, which is higher than 53.15% of its peers. Despite a challenging ROE of -41.74% and ROA of -7.41%, VF Corp manages to outperform a significant portion of its competitors. Notably, its ROIC of 19.56% is superior to 92.72% of industry peers. Over the past decade, VF Corp has been profitable in 8 out of 10 years, showcasing its financial resilience.
Growth Trajectory
The company's Growth Rank is currently at 2/10, indicating a slower growth pace relative to its industry peers. Despite moderate revenue growth rates of 4.50% over three years and 2.60% over five years, VF Corp has faced challenges with its EPS, witnessing declines of 43.60% and 29.80% respectively in the same periods. However, future prospects appear brighter with an anticipated EPS growth rate of 87.67% over the next 3-5 years, which is better than 95.31% of its competitors.
Major Stakeholders
Dodge & Cox emerges as a major holder with a 10.9% stake, owning 42,404,270 shares. Other notable investors include Jim Simons and Paul Tudor Jones (Trades, Portfolio), holding smaller but significant shares in the company.
Competitive Landscape
VF Corp operates in a competitive landscape with key players like Levi Strauss & Co (LEVI, Financial) with a market cap of $7.09 billion, PVH Corp (PVH, Financial) valued at $5.41 billion, and Columbia Sportswear Co (COLM, Financial) at $4.84 billion. These companies represent the closest market capitalization within the same industry, providing a benchmark for VF Corp's performance and strategic positioning.
Conclusion
In conclusion, VF Corp's recent stock performance and market valuation reflect a complex interplay of undervaluation and growth potential. Despite some financial metrics indicating challenges, the company's strong profitability and promising growth estimates suggest a potentially lucrative future. Investors should consider both the risks and opportunities presented by VF Corp's current market position and future prospects in the apparel and accessories sector.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
