2021 Week 48: VF Corp (NYSE: VFC)

Portfolio Update

The FiveTwenty portfolio received no dividends in the past week.

Past Week Dividend$0
Current Quarter Dividend (Q4 2021)$516.96
LifeTime Dividend$1,618.29
Estimated Annual Dividend$3,476.58
Dividend Scorecard

The capital allocation for the week of 11/28/2021 to 12/04/2021 will be used to add to our position in VF Corp (NYSE: VFC).

VFC – Position Update

Since our last check-in on VFC in week 46 of 2021, there have not been any significant developments for the company. The share price decreased 3.5% from $76.70 to $73.98.

TTMPrev. Update10-year median
Dividend Streak49 years49 years
Yield2.65%2.56%2.28%
Payout Ratio75.96%*75.96%*NA
P/E28.67*29.73*NA
Entry Criteria Scorecard

* computed using adjusted TTM EPS of $2.58 as of Q2 2022

Q2 2022 earnings report

Did VFC’s latest earnings report raise any warning flags?

We have discussed VFC’s financial performance for FY 2022 so far in our previous update. As pointed out before FY 2022 financial performance reflect a sharp recovery from COVID impacted FY 2021. Overall for Q2 2022 revenue grew 22.6%, net income increased 80.8%, and adjusted EPS were 66% higher compared to Q2 2021.

Revenue
(in millions)
Net Income
(in millions)
Adj. EPS
.
Q2 2021$ 2,608$ 256.7$ 0.67
Q2 2022$ 3,198$ 464.1$ 1.11
% Change22.6%80.8%66%

Additional noteworthy developments during the quarter:

  • None

Looking ahead, VFC expects revenues of around $12.0 billion, which would represent growth of around 30%, and adjusted EPS are expected to be around $3.20 per share for full FY 2022.

Thesis

Why are we adding VFC to the FiveTwenty portfolio?

With no significant developments for VFC since our last check in, our investment thesis remains unchanged.

Previous Articles


Photo by KAL VISUALS on Unsplash