Goldman says that the VFC stock has the potential to surge

14 Apr 2023

The VFC stock seems to be undervalued based on its Price/Sales and Price/Book ratios, and the fact that institutional investors hold a large stake in the company suggests that they have confidence in its future growth prospects. However, the company's poor performance over the past year and high P/E ratio may give investors some pause. It's worth noting that the stock has a relatively high dividend yield, which may be attractive to income-oriented investors.

Financials:
The company has a Market Cap of 8.62B and an Enterprise Value of 15.54B.
Its P/E ratio is 20.72, which is relatively high.
The Forward P/E ratio is 10.17, which indicates that the company is expected to grow in the future.
The PEG ratio of 1.24 suggests that the company is slightly overvalued relative to its growth prospects.
The Price/Sales ratio of 0.74 and the Price/Book ratio of 2.60 both indicate that the stock is currently undervalued.
The Enterprise Value/Revenue and Enterprise Value/EBITDA ratios of 1.33 and 18.44 respectively suggest that the company is slightly undervalued relative to its earnings and revenue.

Trading Information:
The stock's Beta is 1.48, which means it's relatively volatile compared to the market.
The 52-Week Change is -60.83%, which suggests that the stock has been performing poorly over the past year.
The stock's 50-Day Moving Average is $24.13 and its 200-Day Moving Average is $32.76.
The Average Volume over the past 3 months is 8.85M and over the past 10 days is 6.03M.
The Percentage Held by Institutions is 82.71%, which suggests that institutional investors have a high level of confidence in the stock.

Share Statistics:
The company has 388.66M Shares Outstanding and a Float of 386.96M.
The Short Ratio is 1.5, which suggests that there is not a lot of short interest in the stock.
The Percentage Held by Insiders is 0.35%, which indicates that insiders have a very small stake in the company.
The Forward Annual Dividend Yield is 5.56%, which is relatively high.

Financial Highlights:
The company's Profit Margin is 3.54% and its Operating Margin (ttm) is 11.57%.
Its Return on Assets (ttm) is 6.07% and its Return on Equity (ttm) is 11.87%.
The company's Revenue (ttm) is 11.7B and its Gross Profit (ttm) is 6.46B.
The EBITDA is 1.6B and its Net Income Avi to Common (ttm) is 413.92M.
The company's Total Cash (mrq) is 571.35M and its Total Debt (mrq) is 7.5B


Some of the potential risks include:
- Economic risks: VF Corporation's business performance is heavily influenced by the global economy. A downturn in the economy could reduce consumer demand for their products, leading to reduced sales and profitability.
- Dependence on key customers: VF Corporation has a large customer base, but it also relies on some key customers for a significant portion of its revenue. Losing these customers could have a significant impact on the company's financial performance.
- Dependence on key suppliers: VF Corporation also depends on key suppliers to provide raw materials and finished products. If these suppliers fail to meet VF Corporation's quality, delivery, or price requirements, it could affect the company's ability to produce products and meet customer demand.
- Supply chain disruptions: Disruptions in the supply chain can occur due to natural disasters, geopolitical risks, or other factors. These disruptions can lead to production delays, higher costs, and reduced profitability.
- Fashion and trend risks: VF Corporation operates in the fashion industry, which is characterized by rapidly changing consumer preferences and trends. Failure to keep up with these trends could lead to a decline in sales and profitability.

Brand reputation risks: VF Corporation's brands are well-known and highly valued by customers. Any damage to the company's brand reputation could have a negative impact on sales and profitability.