This is a step-by-step stock review to answer the question, is VF Corporation (VFC) stock a good buy?
This article will teach you how to use the 4Ms of investing. This will be a detailed walkthrough to show you how the 4Ms work and why they are important. If you are interested, you can log into Tykr to use the 4M Confidence Booster (Powered by OpenAI) which will allow you to complete a 4M Analysis in less than 60 seconds.
What are the 4Ms?
- MOS (Margin of Safety) – The MOS is the math part of investing which includes the Summary, Score, and MOS (Margin of Safety).
- Meaning – The meaning is the business model and how scalable the revenue streams are.
- Moat – The moat is how the business compares to other companies in the same Sector and Industry.
- Management – The management is the track record of the CEO.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
Table of Contents
The following links will direct you to key topics to help answer the question, is VF Corporation (VFC) stock a good buy?
- VF Corporation Company History
- MOS
- Meaning
- Moat
- Management
- 4M Score
- Is VF Corporation (VFC) stock a good buy?
1. VF Corporation Company History
When investing in stocks, it’s important to know the company’s history. This helps us understand the various revenue streams, if they acquired other companies, how they grew through difficult times, and how they separated themselves from the competition.
- Founded in 1899: VF Corporation started as a small hosiery company in Pennsylvania, originally known as Reading Glove and Mitten Manufacturing Company.
- Expansion into Apparel: Transitioned into apparel and became VF Corporation in 1989, focusing on branded lifestyle apparel.
- Brand Portfolio Growth: Acquired iconic brands like Wrangler, Lee, Vans, The North Face, Timberland, and JanSport, enhancing its market presence.
- Global Reach: Expanded internationally, establishing a strong presence in key markets worldwide.
- Sustainability Focus: Committed to sustainability, integrating eco-friendly practices and materials across its brands.
- Innovation and Design: Invested in innovation and technology, driving advancements in performance apparel and footwear.
- Strategic Acquisitions: Continued growth through strategic acquisitions, including the purchase of Icebreaker and Supreme.
- Digital Transformation: Enhanced digital capabilities, boosting online sales and customer engagement through digital platforms.
- Corporate Responsibility: Focused on social responsibility, promoting fair labor practices and community engagement.
VF Corporation is a global leader in branded apparel, committed to innovation, sustainability, and expanding its brand portfolio.
2. MOS (Margin Of Safety)
When investing in a company, the first step is to look at the financials. Fortunately, Tykr does this for us automatically. The higher the score, the stronger the financials and the safer the investment. The higher the MOS, the higher the potential returns you can make.
- Summary: Overpriced
- Score: 34
- MOS: 1%
To see the most up-to-date Summary, Score, and MOS, please log into Tykr.
3. Meaning
When investing in a company, it’s important to know how a company makes money. A mature business model has multiple streams of revenue which allow the company to weather downturns in the economy.
Here is how VF Corporation makes money:
- Apparel Sales: Generates the majority of its revenue from selling a wide range of clothing and footwear under popular brands.
- Brand Licensing: Earns from licensing its brands to third parties for various products, including accessories and extended product lines.
- Retail Operations: Profits from operating branded retail stores and e-commerce platforms for its various brands.
- Wholesale Distribution: Sells products through wholesale channels to department stores, specialty retailers, and other distribution partners.
- International Sales: Gains revenue from selling products in international markets, leveraging global brand presence.
- Product Innovation: Introduces new product lines and seasonal collections to drive sales and meet consumer trends.
- Brand Acquisitions: Acquires and integrates new brands, expanding its product portfolio and market reach, contributing to revenue growth.
- Direct-to-Consumer: Increases revenue through direct-to-consumer sales strategies, including branded stores and online platforms.
- Vans
- The North Face
- Timberland
- Dickies
- Red Kap
4. Moat
When investing in a company, it’s important to understand how a company ranks against other companies in the same sector and industry. Based on the Score, here is how VF Corporation stacks up against other companies.
- Canada Goose Holdings Inc.(GOOS) – 67
- Albany International Corp.(AIN) – 67
- Vince Holding Corp.(VNCE) – 61
- Under Armour, Inc.(UAA) – 61
- FIGS, Inc.(FIGS) – 56
- V.F. Corporation.(VFC) – 34
To see the most up-to-date Summary, Score, and MOS and each stock, please log into Tykr.
5. Management
When investing in a company, it’s important to understand who the CEO is, what they have accomplished in the past, and how they have helped this company grow. Good leaders typically have stronger cultures, less turnover, and better returns in the stock market.
- Brand Expansion:Benno Dorer Strengthened VF Corporation’s portfolio by expanding and enhancing key brands like Vans, The North Face, and Timberland.
- Strategic Acquisitions: Led the acquisition of high-profile brands, including Supreme, boosting VF’s market position and brand diversity.
- Global Growth: Drove international expansion, increasing VF Corporation’s presence in global markets and diversifying revenue sources.
- Sustainability Initiatives: Advanced VF’s sustainability efforts with initiatives focused on reducing environmental impact and promoting ethical practices.
- Digital Transformation: Enhanced VF Corporation’s digital and e-commerce capabilities, improving online sales and customer engagement.
- Operational Efficiency: Implemented strategies to streamline operations and reduce costs, improving overall financial performance.
- Innovation Leadership: Fostered innovation within the company, supporting the development of new products and technologies to meet evolving consumer demands.
6. 4M Score
All of our homework on this company leads up to the 4M Score. A lot of investors only look at the numbers. Yes, it’s important to look at the first M (MOS) which is the math part of investing but it’s also important to look past the numbers and also look at the Meaning, Moat, and Management. If all 4Ms pass, we should have high confidence in buying this stock.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
👉 The 4M Score of VF Corporation (VFC) is 24/100.
To see the most up-to-date 4M Score, please log into Tykr.
7. Is VF Corporation (VFC) stock a good buy?
Some of the top questions investors can have is VF Corporation (VFC) stock a good buy or should I buy VF Corporation (VFC) stock?
VF Corporation is a notable investment due to its strong portfolio of well-known brands, including Vans, The North Face, and Timberland. This brand strength provides a competitive edge in the apparel and footwear market. VF’s focus on direct-to-consumer sales and e-commerce has been a key driver of growth, enabling higher profit margins and greater customer engagement. Additionally, the company’s strategic initiatives in sustainability and innovation support long-term growth and brand loyalty.
However, potential investors should be aware of risks such as economic downturns that can impact consumer spending on discretionary items, and the challenges of managing a diverse brand portfolio. Competition in the global apparel market is fierce, and shifting consumer preferences can affect sales. Despite these challenges, VF Corporation’s strong brand portfolio and growth strategies make it a promising investment opportunity
—
To truly know if VF Corporation is a good stock to buy or sell, we recommend you log into Tykr. Within seconds you can see the Summary, Score, MOS, and 4M Score.
If you found this stock review interesting, you may also like this review on AMD.
The Summary, Score, and MOS of this stock may have changed since the posting of this review. Please login to Tykr to see up-to-date information.