VF Corporation Stock Buy Recommendation Reiterated (VFC)

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

NEW YORK ( TheStreet) -- VF Corporation (NYSE: VFC) has been reiterated by TheStreet Ratings as a buy with a ratings score of A- . The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, attractive valuation levels and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

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Highlights from the ratings report include:
  • VFC's revenue growth has slightly outpaced the industry average of 4.7%. Since the same quarter one year prior, revenues rose by 14.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • VF CORP has improved earnings per share by 27.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, VF CORP increased its bottom line by earning $7.96 versus $5.17 in the prior year. This year, the market expects an improvement in earnings ($9.60 versus $7.96).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Textiles, Apparel & Luxury Goods industry. The net income increased by 26.8% when compared to the same quarter one year prior, rising from $300.70 million to $381.32 million.
  • 48.20% is the gross profit margin for VF CORP which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 12.11% is above that of the industry average.

V.F. Corporation designs and manufactures, or sources from independent contractors various apparel and footwear products primarily in the United States and Europe. VF has a market cap of $16.78 billion and is part of the consumer goods sector and consumer non-durables industry. The company has a P/E ratio of 16.9, below the S&P 500 P/E ratio of 17.7. Shares are up 0.9% year to date as of the close of trading on Thursday.

You can view the full VF Ratings Report or get investment ideas from our investment research center.

--Written by a member of TheStreet Ratings Staff.

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