VF Beneish M Score

VFC
 Stock
  

USD 28.67  0.30  1.04%   

This module uses fundamental data of VF to approximate the value of its Beneish M Score. VF M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Also, please take a look at VF Piotroski F Score and VF Altman Z Score analysis.
  
The current year Issuance Repayment of Debt Securities is expected to grow to about 1.1 B, whereas Total Debt is forecasted to decline to about 1.5 B. VF Interest Coverage is projected to drop slightly based on the last few years of reporting. The past year's Interest Coverage was at 12.42. The current year PPandE Turnover is expected to grow to 12.77, whereas Long Term Debt to Equity is forecasted to decline to 0.90.
At this time, it appears that VF Corporation is an unlikely manipulator. The earnings manipulation may begin if VF's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by VF executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of VF's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.73
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables0.86Focus
Asset QualityN/AFocus
Expense Coverage0.85Focus
Gross Margin Strengs0.99Focus
Accruals Factor0.85Focus
Depreciation Resistance1.02Focus
Net Sales Growth1.06Focus
Financial Leverage Condition0.86Focus

VF Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if VF's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Selling General and Administrative Expense2.5 B2.8 B
Moderately Down
Decreasing
Slightly volatile
Revenues12.6 B11.8 B
Notably Up
Increasing
Slightly volatile
Trade and Non Trade Receivables914.4 MB
Moderately Down
Decreasing
Slightly volatile
Property Plant and Equipment Net640.5 M663.7 M
Sufficiently Down
Decreasing
Slightly volatile
Operating Income1.6 B1.6 B
Slightly Up
Increasing
Slightly volatile
Net Cash Flow from Operations1.2 B864.3 M
Significantly Up
Decreasing
Stable
Liabilities Non Current2.2 B2.8 B
Significantly Down
Increasing
Slightly volatile
Current Liabilities2.7 B3.3 B
Significantly Down
Increasing
Slightly volatile
Total Liabilities7.7 B9.8 B
Significantly Down
Increasing
Slightly volatile
Gross Margin54.1954.5139
Slightly Down
Increasing
Slightly volatile
Depreciation Amortization and Accretion168 M178.9 M
Notably Down
Decreasing
Slightly volatile
Debt Non Current1.3 B1.6 B
Significantly Down
Increasing
Stable
Debt Current208.6 M256 M
Significantly Down
Decreasing
Slightly volatile
Total Debt1.5 B1.9 B
Significantly Down
Decreasing
Very volatile
Assets Non Current4.6 B5.5 B
Significantly Down
Decreasing
Very volatile
Current Assets4.7 B4.6 B
Fairly Up
Increasing
Slightly volatile
Total Assets12.1 B13.3 B
Significantly Down
Increasing
Slightly volatile

VF Corporation Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between VF's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards VF in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find VF's degree of accounting gimmicks and manipulations.

About VF Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Operating Expenses

2.53 Billion

VF Operating Expenses is projected to decrease significantly based on the last few years of reporting. The past year's Operating Expenses was at 2.78 Billion

About VF Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze VF Corporation's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of VF using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of VF Corporation based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Corporation, together with its subsidiaries, engages in the design, procurement, marketing, and distribution of branded lifestyle apparel, footwear, and related products for men, women, and children in the Americas, Europe, and the Asia-Pacific. Corporation was founded in 1899 and is headquartered in Denver, Colorado. VF Corp operates under Apparel Manufacturing classification in the United States and is traded on New York Stock Exchange. It employs 20300 people.

VF Implied Volatility

    
  53.08  
VF's implied volatility exposes the market's sentiment of VF Corporation stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if VF's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that VF stock will not fluctuate a lot when VF's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards VF in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, VF's short interest history, or implied volatility extrapolated from VF options trading.

Also Currently Popular

Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.
Also, please take a look at VF Piotroski F Score and VF Altman Z Score analysis. Note that the VF Corporation information on this page should be used as a complementary analysis to other VF's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Stock Screener module to find equities using custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

Complementary Tools for VF Stock analysis

When running VF Corporation price analysis, check to measure VF's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy VF is operating at the current time. Most of VF's value examination focuses on studying past and present price action to predict the probability of VF's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move VF's price. Additionally, you may evaluate how the addition of VF to your portfolios can decrease your overall portfolio volatility.
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Is VF's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of VF. If investors know VF will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about VF listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of VF Corporation is measured differently than its book value, which is the value of VF that is recorded on the company's balance sheet. Investors also form their own opinion of VF's value that differs from its market value or its book value, called intrinsic value, which is VF's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because VF's market value can be influenced by many factors that don't directly affect VF's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between VF's value and its price as these two are different measures arrived at by different means. Investors typically determine VF value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, VF's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.