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Investors should take notice of NYSE:TPR—it offers a great deal for the fundamentals it presents.

By Mill Chart

Last update: Apr 22, 2024

TAPESTRY INC (NYSE:TPR) has caught the attention of our stock screener as a great value stock. NYSE:TPR excels in profitability, solvency, and liquidity, all while being very reasonably priced. Let's delve into the details.

Analyzing Valuation Metrics

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:TPR scores a 8 out of 10:

  • TPR is valuated reasonably with a Price/Earnings ratio of 9.47.
  • Based on the Price/Earnings ratio, TPR is valued cheaper than 96.00% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 24.75. TPR is valued rather cheaply when compared to this.
  • A Price/Forward Earnings ratio of 8.83 indicates a reasonable valuation of TPR.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of TPR indicates a rather cheap valuation: TPR is cheaper than 94.00% of the companies listed in the same industry.
  • TPR is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.23, which is the current average of the S&P500 Index.
  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TPR indicates a somewhat cheap valuation: TPR is cheaper than 80.00% of the companies listed in the same industry.
  • 80.00% of the companies in the same industry are more expensive than TPR, based on the Price/Free Cash Flow ratio.
  • TPR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • TPR has an outstanding profitability rating, which may justify a higher PE ratio.

Evaluating Profitability: NYSE:TPR

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:TPR was assigned a score of 9 for profitability:

  • The Return On Assets of TPR (6.72%) is better than 72.00% of its industry peers.
  • TPR's Return On Equity of 34.89% is amongst the best of the industry. TPR outperforms 90.00% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 7.94%, TPR is in the better half of the industry, outperforming 68.00% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for TPR is significantly above the industry average of 10.04%.
  • The last Return On Invested Capital (7.94%) for TPR is well below the 3 year average (15.58%), which needs to be investigated, but indicates that TPR had better years and this may not be a problem.
  • TPR has a Profit Margin of 13.80%. This is amongst the best in the industry. TPR outperforms 92.00% of its industry peers.
  • In the last couple of years the Profit Margin of TPR has grown nicely.
  • TPR has a better Operating Margin (17.85%) than 92.00% of its industry peers.
  • TPR's Operating Margin has improved in the last couple of years.
  • The Gross Margin of TPR (72.28%) is better than 100.00% of its industry peers.
  • TPR's Gross Margin has improved in the last couple of years.

Understanding NYSE:TPR's Health

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:TPR, the assigned 5 reflects its health status:

  • TPR has a Current Ratio of 6.25. This indicates that TPR is financially healthy and has no problem in meeting its short term obligations.
  • TPR has a better Current ratio (6.25) than 98.00% of its industry peers.
  • TPR has a Quick Ratio of 5.68. This indicates that TPR is financially healthy and has no problem in meeting its short term obligations.
  • TPR's Quick ratio of 5.68 is amongst the best of the industry. TPR outperforms 100.00% of its industry peers.

Growth Examination for NYSE:TPR

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:TPR was assigned a score of 5 for growth:

  • TPR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.71%, which is quite impressive.
  • Measured over the past years, TPR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.09% on average per year.
  • Based on estimates for the next years, TPR will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.58% on average per year.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

More Decent Value stocks can be found in our Decent Value screener.

Our latest full fundamental report of TPR contains the most current fundamental analsysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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TAPESTRY INC

NYSE:TPR (5/17/2024, 7:04:00 PM)

After market: 42.32 0 (0%)

42.32

-0.2 (-0.47%)

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