Should I Buy VF Corporation (VFC)? Finance YouTuber Analysis

The analyst recommends VF Corporation as a potential buy if the Supreme Court rules against Trump's tariffs. Apparel and footwear companies were among the hardest hit by tariffs, and a refund would provide a significant boost to their profitability, offering a strong potential return.

“Now, apparel and footwear companies like Lululemon Athletica, ticker LLU, Nike, NK, and VF Corporation, VFC, are going to be some of the best potential returns.”

The analyst advises avoiding VF Corporation despite its attractive 8% dividend yield and recent price drop. He argues that the company has shown no revenue or EBITDA growth for nearly a decade, carries high debt, and its free cash flow is entirely consumed by the dividend, preventing debt reduction or growth investments. This makes the dividend unsustainable and the stock risky.

“I think this stock here has some risk to it. Let's review the five key attributes and talk through number one top line revenue growth no it's not growing number two ebitda earnings is not growing number three strong free cash flow yes I'll check the box because they can currently make their full dividend it's just all of their Cash number four uh low debt no the debt is above our our metric number five is the stock well priced yes I think it's well priced for a very conservative forecast or even a market multiple compression here um but because Revenue growth is not there because earnings are not there because there's a high debt um then and because I think honestly uh the market multiple the stock should be a lot lower it should not be 17. um and I don't I don't think the stock is underpriced so let's give it a review uh I'm gonna go with a bad yeah I know I think the stock has fallen a lot in the price and the the yield of almost eight percent dividend yield is very attractive I think you the the rebound the growth long term I think this is purely a dividend play and that dividend is at risk if they have to pay down debt because interest rates are higher they're gonna have to pay down that debt and that means they're gonna have to cut the dividend or stop the share buyback program which are risks to the stock it's the price itself.”