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When you look at NYSE:TPR, it's hard to ignore the strong fundamentals, especially considering its likely undervaluation.

By Mill Chart

Last update: May 14, 2024

Uncover the hidden value in TAPESTRY INC (NYSE:TPR) as our stock screening tool recommends it as an undervalued choice. NYSE:TPR maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

Valuation Examination for NYSE:TPR

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:TPR has achieved a 8 out of 10:

  • A Price/Earnings ratio of 9.57 indicates a reasonable valuation of TPR.
  • Based on the Price/Earnings ratio, TPR is valued cheaply inside the industry as 94.00% of the companies are valued more expensively.
  • TPR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.32.
  • Based on the Price/Forward Earnings ratio of 8.99, the valuation of TPR can be described as reasonable.
  • 94.00% of the companies in the same industry are more expensive than TPR, based on the Price/Forward Earnings ratio.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 20.24, TPR is valued rather cheaply.
  • 80.00% of the companies in the same industry are more expensive than TPR, based on the Enterprise Value to EBITDA ratio.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of TPR indicates a somewhat cheap valuation: TPR is cheaper than 78.00% of the companies listed in the same industry.
  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • The excellent profitability rating of TPR may justify a higher PE ratio.

Profitability Analysis for NYSE:TPR

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:TPR has achieved a 9:

  • The Return On Assets of TPR (6.42%) is better than 70.00% of its industry peers.
  • TPR has a better Return On Equity (31.74%) than 88.00% of its industry peers.
  • TPR has a Return On Invested Capital of 7.80%. This is in the better half of the industry: TPR outperforms 66.00% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for TPR is significantly above the industry average of 10.06%.
  • The 3 year average ROIC (15.58%) for TPR is well above the current ROIC(7.80%). The reason for the recent decline needs to be investigated.
  • Looking at the Profit Margin, with a value of 13.15%, TPR belongs to the top of the industry, outperforming 92.00% of the companies in the same industry.
  • In the last couple of years the Profit Margin of TPR has grown nicely.
  • TPR's Operating Margin of 17.59% is amongst the best of the industry. TPR outperforms 92.00% of its industry peers.
  • TPR's Operating Margin has improved in the last couple of years.
  • TPR's Gross Margin of 72.71% is amongst the best of the industry. TPR outperforms 100.00% of its industry peers.
  • In the last couple of years the Gross Margin of TPR has grown nicely.

Health Insights: NYSE:TPR

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:TPR has earned a 5 out of 10:

  • TPR has a Current Ratio of 6.59. This indicates that TPR is financially healthy and has no problem in meeting its short term obligations.
  • With an excellent Current ratio value of 6.59, TPR belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
  • A Quick Ratio of 5.98 indicates that TPR has no problem at all paying its short term obligations.
  • TPR has a better Quick ratio (5.98) than 100.00% of its industry peers.

Growth Assessment of NYSE:TPR

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:TPR boasts a 5 out of 10:

  • TPR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.44%, which is quite good.
  • The Earnings Per Share has been growing by 8.09% on average over the past years. This is quite good.
  • TPR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.58% yearly.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Every day, new Decent Value stocks can be found on ChartMill 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 (5/30/2024, 8:49:59 AM)

41.25

-0.27 (-0.65%)

TPR News

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