$19.74
arrow_drop_up5.05%Is VFC a Buy or Sell based on AI Analysis?
Fundamental Analysis
VF Corp (VFC) has a strong dividend yield of 2.22%, which indicates that the company is committed to returning value to its shareholders. Additionally, its peg ratio of 0.19 suggests that the stock may be undervalued, as a peg ratio below 1 typically indicates a potentially attractive investment opportunity. The company's price-to-book ratio of 2.99 is also favorable, as it indicates that investors are paying less than 3 times the company's book value for each share, which can be seen as a good value for investors. Moreover, VF Corp has a solid return on assets of 3.56%, which demonstrates the company's efficiency in generating profits relative to its total assets. Lastly, the company's market capitalization of $6.12 billion indicates that it is a mid-sized company in the market, providing investors with a good balance of stability and growth potential. Furthermore, VF Corp has shown resilience in its financial performance, with a historical dividend yield average of 3.65% indicating a consistent track record of dividend payments. The company's earnings growth forecast of 0% may be perceived as a potential concern, suggesting that the company may face challenges in growing its profits in the near future. Moreover, VF Corp's industry ownership score of 89 reflects a high level of confidence from industry players in the company's performance and potential for growth. The company's enterprise value to revenue ratio of 1.17 is also notable, as it indicates that investors are willing to pay $1.17 for every dollar of revenue generated by the company, suggesting that there is optimism surrounding VF Corp's future growth prospects. Overall, VF Corp's fundamental analysis paints a picture of a company with solid fundamentals and a track record of providing value to its shareholders.
Positive Development
VF Corp has been working on its board representation and restructuring, which could lead to more effective management and decision-making. The company has been recognized for its efforts in bridging the gender gap in garment automation, which could enhance its reputation and lead to positive publicity. The company has shown resilience in the face of market volatility, with the stock underperforming competitors on some days but still outperforming on others.
Negative Development
VF Corp's stock price has been on a downward trend in the past weeks, which could be a sign of potential investor sentiment. The company's basic financials, such as negative EBIT per share, negative EPS, and a high debt-to-equity ratio, could indicate financial difficulties. The company has been experiencing losses, which could affect its profitability and potentially lead to a decrease in stock price.
Technical Analysis
VF Corp (VFC) has a neutral technical rating, indicating a balanced market sentiment. The stock has shown a slight decrease in price over the past seven days, with a -0.06% change. However, the one-month, three-month, six-month, and year-to-date price change percentages all show downward trends, ranging from -0.06% to -19.23%. This suggests potential volatility in the stock price in the short to medium term. Additionally, the company's technical indicators show a mix of buy and hold signals. Three out of eight technical indicators signal a buy, including RSI, ATR, and WILLR, while five indicators suggest holding the stock, such as MACD, CCI, ADX, ROC, and STOCHRSI. This combination of signals reflects a cautious approach to VF Corp's stock, indicating a need for further analysis before making investment decisions. Overall, the technical analysis points to a stock with potential price volatility and mixed signals, highlighting the importance of careful monitoring and evaluation.
Conclusion and recommendation
VF Corp (VFC) operates in the consumer cyclical sector and has a market cap of $6.12B. The company's stock price currently stands at $15.73 with a dividend yield of 2.22%. VF Corp has shown consistent growth over the years, with revenue of $11.61B and a gross profit of $6.1B. However, the company has faced challenges in recent times, with a decrease in net income and earnings growth. Based on the data provided, I would recommend cautious investment in VF Corp. While the company has a strong market presence and a solid dividend yield, its declining net income and earnings growth raise concerns about its long-term profitability. Investors may want to monitor VF Corp closely for any improvements in financial performance before making a decision to buy or sell the stock. In conclusion, VF Corp has potential for growth but also carries risks that investors should carefully consider before investing.