| Price (11:23 AM) | 74.99 |
|---|---|
| Volume (11:23 AM) | 290204 |
| Last Close Price | 74.99 |
| 10 Day Average Volume | 950,118 |
| 13 Week Price Range | 71.04 - 82.11 |
| 52 Week Price Range | 67.77 - 89.23 |
| LTM Revenue | 7.2 Billion |
| Shares Outstanding (12/31/2009) | 110.1 Million |
| Market Capitalization | 8.1 Billion |
| Shares Held By Institutions | 9.3 Million |
| Institutional Holders | 728 |
| % Shares Held By Institutions | 94.73% |
| Earnings Per Share (EPS) | 4.18 |
| P/E Ratio | 14.8148 |
| Book Value Per Share | 33.7822 |
| Gross Margin | 45.33% |
| Annual Dividend | 2.38 |
| Dividend Yield | 3.22% |
| Beta | 0.936549 |
| Fiscal Year Ends | December |
VF Corporationis considered to operate in the Consumer Goods sector. They specifically operate in the Textile - Apparel Clothing business segment contained within the Apparel Manufacturing industry.
V.F. Corporation was organized in 1899, in Pennsylvania. It is an apparel company based in the United States. The Company designs and manufactures or sources from independent contractors a variety of apparel and footwear for all ages. Its businesses are organized mainly into product categories, and by brands within those categories. These groupings of businesses consist of the following: Outdoor and Action Sports, Jeanswear, Imagewear, Sportswear and Contemporary Brands. VF owns a broad portfolio of brands in the jeanswear, outerwear, packs, footwear, sportswear and occupational apparel categories. These products are marketed to consumers shopping in specialty stores, upscale and traditional department stores, national chains and mass merchants. The Company's products are also sold in some countries through licensees and distributors. To provide many types of products across numerous channels of distribution in different geographic areas, it balances efficient and flexible internally-owned manufacturing with sourcing of finished goods from independent contractors. An array of state-of-the-art technologies provide the Company with sophisticated inventory replenishment capabilities that enable it to get consumer-right products, on time, to its customers' shelves. Since 2004, the Company has been implementing a growth plan that is transforming its mix of business to include more lifestyle brands. Lifestyle brands are those brands that connect closely with consumers because they are aspirational and inspirational; they reflect consumers' specific activities and interests. Lifestyle brands generally extend across multiple product categories and have higher than average gross margins. Accordingly, this transformation has included the acquisitions of several growing lifestyle brands, such as The North Face, Vans, Kipling, Napapijri and Eastpak. At the same time, the Company has continued to invest in its other businesses, including extending The North Face brand to new product categories and new markets, enhancing product development and marketing strategy in its Nautica men's sportswear business, and expanding Lee and Wrangler ,The North Face and several other brands into Asian and Eastern European markets. The Company's products are sold through its sales force and independent sales agents and distributors. Its customers are specialty stores, department stores, national chains and mass merchants in the United States and in international markets. The Company's business depends on its ability to stimulate consumer demand for its brands and products. Its domestic Jeanswear and Imagewear businesses operate owned manufacturing facilities located in Mexico and Central America. Its international jeanswear businesses operate manufacturing facilities located in Poland and Turkey. The Company purchases raw materials from numerous domestic and international suppliers to meet scheduled production needs. Raw materials include fabrics made from cotton, synthetics and blends of cotton and synthetic yarn, as well as thread and trim. The Company is well-positioned to compete in the apparel industry by developing consumer-connected and innovative products at competitive prices, producing high quality merchandise, providing high levels of service, ensuring product availability to the retail sales floor and enhancing recognition of its brands. Its ability to maintain the current level of operations in its existing international markets and to capitalize on growth in new international markets is subject to risks associated with international operations. These include the burdens of complying with a variety of foreign laws and regulations, unexpected changes in regulatory requirements, new tariffs or other barriers to some international markets.
Cash earnings is the most important factor in our analysis, but it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company's stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 10 years. For, VFC the high and low end of the Price to Sales per share ratios are 1.22x and 0.78x respectively.
Notice that VFC's current Price to Sales per share ratio is 1.14x, which is somewhat above its historical average. As such, the current Price to Sales ratio suggests a neutral share price forecast. In order for us to become more positive about VFC we would need to see a drop in the Price to Sales ratio of 14% given current sales per share levels in order to return to its historical weighted average.
Looking at VFC specifically in their Cash Earnings capabilities, Ockham views VFC as significantly above their historical average multiples of Cash Earnings, as calculated by our proprietary analysis. It is incredibly important to understand that for VFC, the current level of Cash Earnings compared to its historical levels helps identify where VFC is in relation to what the investing community was willing to pay for this level of Cash Earnings in the past. With a historical high Cash Earnings per share ratio of 15.96 and a historical low Cash Earnings per share ratio of 10.13, an investor can relate where value becomes optimal.
Just recall that when a stock's price, as in the cases of VFC, is significantly elevated to the level of Cash Earnings being generated, the market has already priced in much of that value. For example, the historical average for VFC's Price to Cash Earnings ratio is 21% below the current ratio of 15.91. That is not an insignificant amount, and diminishes our overall outlook on VFC. However, you need to review several areas of a company's potential, and as management would point out, one metric is not the end-all-be-all of any analysis.
When determining a company's future prospects for success, Ockham Research sees analysis of dividend payments as a key additional factor. Even though it isn't imperative for VFC to shell out a dividend in order to receive a positive rating, it can be helpful to further our analysis.
The estimated annual dividend for VFC is 2.38 producing a current dividend yield of 3.16%. Much like our evaluation of Sales and Cash Earnings per share, we review dividend yields from VFC against the historic high and low levels over all available dividend history. Because dividends are a decision made exclusively by management, we view a healthy and rising dividend as a sign of confidence and strength. The highest dividend yield from VFC over previous years was 6.10% while the lowest dividend yield was 1.79%. With that range in mind, VFC’s current dividend yield is a full 19.80% below its median dividend yield historically. This is a negative from our perspective.

