Price movement of VF Corporation
VF Corporation (VFC) has a market cap of $26.0 billion. Its YTD (year-to-date) price movement has been falling quarter-over-quarter in fiscal 2015. VFC fell by 2.2% to close at $60.87 per share as of January 4, 2016. The price movement on a weekly, monthly, and YTD basis is -2.3%, -6.5%, and -2.2%, respectively.
Technically, the stock has broken the support and is trading below all moving day averages. Currently, VFC is trading 3.1% below its 20-day moving average, 5.9% below its 50-day moving average, and 12.8% below its 200-day moving average.
The PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ) invests 3.5% of its holdings in VFC. The ETF tracks an index of US consumer cyclical firms selected and weighted by price momentum.
The PowerShares DWA Momentum ETF (PDP) invests 1.2% of its holdings in VFC. The ETF tracks an index of 100 US-listed large-cap and mid-cap companies selected and weighted by relative stock performance.
The market caps and competitors of VFC are as follows:
Performance of VF Corporation in 3Q15
VFC reported 3Q15 total revenue of $3.6 billion, a rise of 2.6% when compared to net sales of $3.5 billion in 3Q14. The company’s operating income rose by 1.5% in 3Q15 as compared to the prior-year period. Its net income and EPS (earnings per share) fell to $459.9 million and $1.07, respectively, in fiscal 3Q15 as compared to net income and EPS of $470.5 million and $1.08, respectively, in fiscal 3Q14.
Meanwhile, cash and cash equivalents and inventories rose by 14.1% and 11.8%, respectively, in 3Q15 as compared to the prior-year period. Its debt-to-equity ratio rose to 0.99 in 3Q15 as compared to a debt-to-equity ratio of 0.84 in 3Q14.
The company has made the following projections for fiscal 2015:
- revenue to rise 7.5%
- gross margin to rise by 70 basis points
- EPS to rise by 15%
VFC and its peers
Now let’s look at a comparison of VFC against its peers as of January 4, 2016, in terms of some key metrics. First, let’s compare VFC and its peers based on PE (price-to-earnings) ratio:
- VFC: 25.3x
- Kohl’s: 13.2x
- The Gap: 10.5x
- Columbia Sportswear: 21.0x
Now let’s look at PBV (price-to-book value) ratios:
- VFC: 4.8x
- Kohl’s: 1.7x
- The Gap: 4.0x
- Columbia Sportswear: 2.5x
Next, let’s see how VFC compares with its peers based on PS (price-to-sales) ratio:
- VFC: 2.1x
- Kohl’s: 0.49x
- The Gap: 0.64x
- Columbia Sportswear: 1.5x
Thus, VFC has outperformed its peers based on PE, PBV, and PS.
Comparing VFC and its ETFs
Now let’s look at a comparison of VFC and its ETFs:
- The YTD price movements of VFC, PEZ, and PDP are -2.2%, -0.79%, and 1.1%, respectively.
- The PE ratios of VFC, PEZ, and PDP are 25.3x, 22.3x, and 25.4x, respectively.
- The PBV ratios of VFC, PEZ, and PDP are 4.8x, 7.5x, and 5.7x, respectively.
Thus, these ETFs have outperformed VF Corporation based on price movement and PBV.