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V.F. Corporation (NYSE:VFC) Undervalued? Fundamentals Hard To Beat?

V.F. Corporation (NYSE:VFC) shares fell to a low of $77.87 before closing at $79.03. Intraday shares traded counted 1.57 million, which was 45.1% higher than its 30-day average trading volume of 2.86M. VFC’s previous close was $79.28 while the outstanding shares total 390.83M. The firm has a beta of 1.43, a 12-month trailing P/E ratio of 88.01, and a growth ratio of 4.10. The stock’s Relative Strength Index (RSI) is 38.11, with weekly volatility at 1.62% and ATR at 1.96. The VFC stock’s 52-week price range has touched low of $56.70 and a $90.79 high. The stock traded lower over the last trading session, losing -0.32% on 06/04/21.

Investors have identified the Apparel Manufacturing company V.F. Corporation as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $31.09 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

V.F. Corporation (VFC) Fundamentals that are to be considered.

When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For VFC, the company has in raw cash 815.75 million on their books with 12.08 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 4.79 billion total, with 2.21 billion as their total liabilities.

VFC were able to record 1.11 billion as free cash flow during the 07/16/2021 quarter of the year, this saw their quarterly net cash flow reduce by -560.12 million. In cash movements, the company had a total of 1.31 billion as operating cash flow.

Potential earnings growth for V.F. Corporation (VFC)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 07/16/2021 quarter of the year, V.F. Corporation recorded a total of 2.58 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 18.6% coming in sequential stages and their sales for the 07/16/2021 quarter reducing by -15.06%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 1.24 billion trying to sell their products during the last quarter, with the result yielding a gross income of 1.35 billion. This allows shareholders to hold on to 390.83M with the recently reported earning now reading 0.23 cents per share. This is a figure that compared to analyst’s prediction for their 07/16/2021 (0.27 cents a share).

Having a look at the company’s valuation, the company is expected to record 3.60 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on VFC sounds very interesting.

Is the stock of VFC attractive?

In related news, Director, OTIS CLARENCE JR sold 13,449 shares of the company’s stock in a transaction that recorded on Jun 02. The sale was performed at an average price of 79.56, for a total value of 1,069,935. As the sale deal closes, the Director, MCCOLLOUGH W ALAN now sold 15,065 shares of the company’s stock, valued at 1,281,081. Also, EVP & Group Pres. – APAC, BAILEY KEVIN sold 15,650 shares of the company’s stock in a deal that was recorded on Nov 18. The shares were price at an average price of 86.51 per share, with a total market value of 1,353,913. Following this completion of acquisition, the VP, Chief Accounting Officer, McNeill Bryan H now holds 14,199 shares of the company’s stock, valued at 1,219,223. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.20%.

15 out of 25 analysts covering the stock have rated it a Buy, while 5 have maintained a Hold recommendation on V.F. Corporation. 0 analysts has assigned a Sell rating on the VFC stock. The 12-month mean consensus price target for the company’s shares has been set at $94.59.

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