Goldman Sachs Upgrades VF Corporation Ahead of Expected Turnaround
April 15, 2023
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V.F. ($NYSE:VFC): VF Corporation (VFC) is a global leader in apparel, footwear and accessories. With a portfolio of iconic brands like The North Face, Vans, Timberland and more, VFC is a highly diversified, multi-billion dollar company. Recently, Goldman Sachs has upgraded VF Corp. to a ‘Buy’ rating from ‘Sell’, in anticipation of a forthcoming inflection point. In the years leading up to the upgrade, VF Corporation has faced a number of challenges, including decreased consumer demand and the impact of the pandemic on the apparel industry.
However, the company has worked hard to address these issues and manage their costs, leading Goldman Sachs to believe that a turnaround is imminent. The Goldman Sachs upgrade is also based on the company’s digital transformation plan, which includes leveraging digital customer data to improve customer engagement and expand their e-commerce capabilities. The upgrade from Goldman Sachs reflects a positive outlook on the company’s future and suggests that investors should take advantage of this opportunity ahead of the expected turnaround.
Share Price
The stock opened at $23.6 and closed at $22.5, up by 3.0% from its previous closing price of $21.8. This was seen as a sign of expected turnaround by investors. Goldman Sachs noted that the company is likely to benefit from the improving consumer sentiment, increasing demand for its products, and cost-saving initiatives. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for V.f. Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 11.7k | 414.32 | 7.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for V.f. Corporation. More…
| Operations | Investing | Financing |
| -766.56 | -256.51 | 407.54 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for V.f. Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 14.31k | 10.99k | 8.54 |
Key Ratios Snapshot
Some of the financial key ratios for V.f. Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -1.6% | -9.5% | 5.0% |
| FCF Margin | ROE | ROA |
| -8.7% | 10.6% | 2.5% |
Analysis
At GoodWhale, we have conducted a thorough analysis on V.F. CORPORATION‘s financials. After carefully examining the company’s financials, we have concluded that V.F. CORPORATION is a medium risk investment in terms of both financial and business aspects. However, during our analysis, we have detected two risk warnings in V.F. CORPORATION’s income sheet and balance sheet. If you wish to know more about these risk warnings and our analysis of V.F. CORPORATION’s financials, please register on goodwhale.com for further information. More…
Peers
VF Corporation is an American multinational apparel and footwear company with more than 30 brands, including Vans, The North Face, Timberland, Kipling, and Wrangler. VF is the largest apparel company in the world and its products are sold in more than 170 countries. Capri Holdings Ltd, Under Armour Inc, and Hanesbrands Inc are all VF’s competitors in the apparel industry.
– Capri Holdings Ltd ($NYSE:CPRI)
As of 2022, Capri Holdings Ltd has a market cap of 6.42B and ROE of 25.1%. The company is a global fashion luxury group, whose brands include Michael Kors, Jimmy Choo, and Versace. It has a strong presence in North America, Europe, and Asia, with over 500 stores in more than 50 countries.
– Under Armour Inc ($NYSE:UAA)
Under Armour Inc is an American sports clothing and footwear company. The company’s products are designed to improve athletic performance. Under Armour was founded in 1996 by Kevin Plank, a former University of Maryland football player. The company is headquartered in Baltimore, Maryland.
– Hanesbrands Inc ($NYSE:HBI)
Hanesbrands is a publicly traded clothing company with a market capitalization of $2.41 billion as of 2022. The company’s return on equity, a measure of profitability, was 54.97% as of the same year. Hanesbrands produces a variety of clothing items, including underwear, socks, t-shirts, and sweatshirts. The company also manufactures and markets a range of other products, such as towels and blankets. Hanesbrands operates in the United States, Canada, Mexico, Europe, Asia, and Australia.
Summary
V.F. Corporation (VFC) is an attractive investment option for investors, due to its strong fundamentals and promising industry outlook. Goldman Sachs recently upgraded their rating on the stock from Sell to Buy, signaling a potential inflection point ahead. Following the upgrade, the stock price moved up, suggesting that the market is bullish on the company’s prospects. Analysts are encouraged by VFC’s strong balance sheet, healthy cash flows, and dividend yield.
The company operates in several sectors and has a well established presence in the outdoor and lifestyle apparel markets. Furthermore, its diversification strategy has allowed VFC to weather economic downturns and remain competitive in the long run. Investors should consider VFC as a potential addition to their portfolio.
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