CAPRI HOLDINGS LTD (CPRI) Stock Fundamental Analysis
NYSE:CPRI - New York Stock Exchange, Inc. - VGG1890L1076 - Common Stock - Currency: USD
Taking everything into account, CPRI scores 3 out of 10 in our fundamental rating. CPRI was compared to 50 industry peers in the Textiles, Apparel & Luxury Goods industry. CPRI may be in some trouble as it scores bad on both profitability and health. CPRI is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
CPRI had positive earnings in the past year.
CPRI had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: CPRI reported negative net income in multiple years.
CPRI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CPRI has a worse Return On Assets (-22.67%) than 84.00% of its industry peers.
CPRI's Return On Equity of -321.20% is on the low side compared to the rest of the industry. CPRI is outperformed by 86.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.06%, CPRI is doing worse than 72.00% of the companies in the same industry.
CPRI had an Average Return On Invested Capital over the past 3 years of 5.93%. This is significantly below the industry average of 11.17%.
The 3 year average ROIC (5.93%) for CPRI is well above the current ROIC(1.06%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -22.67% | ||
| ROE | -321.2% | ||
| ROIC | 1.06% |
ROA(3y)-5.88%
ROA(5y)-1.5%
ROE(3y)-100.73%
ROE(5y)-54.59%
ROIC(3y)5.93%
ROIC(5y)7.29%
1.3 Margins
Looking at the Operating Margin, with a value of 1.17%, CPRI is doing worse than 70.00% of the companies in the same industry.
CPRI's Operating Margin has declined in the last couple of years.
CPRI's Gross Margin of 63.62% is amongst the best of the industry. CPRI outperforms 84.00% of its industry peers.
In the last couple of years the Gross Margin of CPRI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.17% | ||
| PM (TTM) | N/A | ||
| GM | 63.62% |
OM growth 3Y-59.47%
OM growth 5Y-34.95%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.18%
GM growth 5Y1.54%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CPRI is destroying value.
CPRI has more shares outstanding than it did 1 year ago.
The number of shares outstanding for CPRI has been reduced compared to 5 years ago.
The debt/assets ratio for CPRI is higher compared to a year ago.
2.2 Solvency
CPRI has an Altman-Z score of 2.36. This is not the best score and indicates that CPRI is in the grey zone with still only limited risk for bankruptcy at the moment.
CPRI has a Altman-Z score of 2.36. This is in the lower half of the industry: CPRI underperforms 68.00% of its industry peers.
The Debt to FCF ratio of CPRI is 9.80, which is on the high side as it means it would take CPRI, 9.80 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.80, CPRI is in line with its industry, outperforming 46.00% of the companies in the same industry.
A Debt/Equity ratio of 4.01 is on the high side and indicates that CPRI has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 4.01, CPRI is doing worse than 86.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.01 | ||
| Debt/FCF | 9.8 | ||
| Altman-Z | 2.36 |
ROIC/WACC0.12
WACC8.77%
2.3 Liquidity
A Current Ratio of 1.14 indicates that CPRI should not have too much problems paying its short term obligations.
With a Current ratio value of 1.14, CPRI is not doing good in the industry: 84.00% of the companies in the same industry are doing better.
A Quick Ratio of 0.49 indicates that CPRI may have some problems paying its short term obligations.
CPRI has a Quick ratio of 0.49. This is amonst the worse of the industry: CPRI underperforms 92.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
The earnings per share for CPRI have decreased strongly by -75.93% in the last year.
The earnings per share for CPRI have been decreasing by -26.36% on average. This is quite bad
CPRI shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -14.08%.
CPRI shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.36% yearly.
EPS 1Y (TTM)-75.93%
EPS 3Y-48.61%
EPS 5Y-26.36%
EPS Q2Q%-171.43%
Revenue 1Y (TTM)-14.08%
Revenue growth 3Y-7.73%
Revenue growth 5Y-4.36%
Sales Q2Q%-15.37%
3.2 Future
The Earnings Per Share is expected to grow by 47.14% on average over the next years. This is a very strong growth
The Revenue is expected to decrease by -2.79% on average over the next years.
EPS Next Y58.12%
EPS Next 2Y46.16%
EPS Next 3Y33.59%
EPS Next 5Y47.14%
Revenue Next Year-22.09%
Revenue Next 2Y-9.76%
Revenue Next 3Y-4.2%
Revenue Next 5Y-2.79%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
CPRI is valuated rather expensively with a Price/Earnings ratio of 22.92.
CPRI's Price/Earnings is on the same level as the industry average.
CPRI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.41.
CPRI is valuated correctly with a Price/Forward Earnings ratio of 14.49.
Based on the Price/Forward Earnings ratio, CPRI is valued a bit cheaper than 66.00% of the companies in the same industry.
CPRI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.92 | ||
| Fwd PE | 14.49 |
4.2 Price Multiples
62.00% of the companies in the same industry are cheaper than CPRI, based on the Enterprise Value to EBITDA ratio.
68.00% of the companies in the same industry are more expensive than CPRI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.84 | ||
| EV/EBITDA | 14.71 |
4.3 Compensation for Growth
CPRI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as CPRI's earnings are expected to grow with 33.59% in the coming years.
PEG (NY)0.39
PEG (5Y)N/A
EPS Next 2Y46.16%
EPS Next 3Y33.59%
5. Dividend
5.1 Amount
No dividends for CPRI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
19.25
-0.49 (-2.48%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners99.68%
Inst Owner Change-0.16%
Ins Owners2.12%
Ins Owner Change3.62%
Market Cap2.27B
Analysts67.62
Price Target24.49 (27.22%)
Short Float %7.76%
Short Ratio2.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-68.21%
Min EPS beat(2)-102.84%
Max EPS beat(2)-33.59%
EPS beat(4)0
Avg EPS beat(4)-61.26%
Min EPS beat(4)-102.84%
Max EPS beat(4)-15.28%
EPS beat(8)1
Avg EPS beat(8)-42.22%
EPS beat(12)4
Avg EPS beat(12)-27.74%
EPS beat(16)8
Avg EPS beat(16)-9.42%
Revenue beat(2)1
Avg Revenue beat(2)0.62%
Min Revenue beat(2)-1.64%
Max Revenue beat(2)2.88%
Revenue beat(4)1
Avg Revenue beat(4)-4.64%
Min Revenue beat(4)-10.23%
Max Revenue beat(4)2.88%
Revenue beat(8)2
Avg Revenue beat(8)-4.58%
Revenue beat(12)4
Avg Revenue beat(12)-2.95%
Revenue beat(16)8
Avg Revenue beat(16)-0.86%
PT rev (1m)0%
PT rev (3m)-7.43%
EPS NQ rev (1m)1.66%
EPS NQ rev (3m)27.13%
EPS NY rev (1m)26.6%
EPS NY rev (3m)14.43%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)-17.45%
Revenue NY rev (1m)-1.94%
Revenue NY rev (3m)-15.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.92 | ||
| Fwd PE | 14.49 | ||
| P/S | 0.51 | ||
| P/FCF | 14.84 | ||
| P/OCF | 8.08 | ||
| P/B | 6.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.71 |
EPS(TTM)0.84
EY4.36%
EPS(NY)1.33
Fwd EY6.9%
FCF(TTM)1.3
FCFY6.74%
OCF(TTM)2.38
OCFY12.38%
SpS37.67
BVpS3.12
TBVpS-12.18
PEG (NY)0.39
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -22.67% | ||
| ROE | -321.2% | ||
| ROCE | 1.34% | ||
| ROIC | 1.06% | ||
| ROICexc | 1.11% | ||
| ROICexgc | 2.15% | ||
| OM | 1.17% | ||
| PM (TTM) | N/A | ||
| GM | 63.62% | ||
| FCFM | 3.44% |
ROA(3y)-5.88%
ROA(5y)-1.5%
ROE(3y)-100.73%
ROE(5y)-54.59%
ROIC(3y)5.93%
ROIC(5y)7.29%
ROICexc(3y)6.19%
ROICexc(5y)7.57%
ROICexgc(3y)13.19%
ROICexgc(5y)17.21%
ROCE(3y)7.5%
ROCE(5y)9.23%
ROICexcg growth 3Y-59.18%
ROICexcg growth 5Y-34.44%
ROICexc growth 3Y-56.73%
ROICexc growth 5Y-31.62%
OM growth 3Y-59.47%
OM growth 5Y-34.95%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.18%
GM growth 5Y1.54%
F-Score5
Asset Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.01 | ||
| Debt/FCF | 9.8 | ||
| Debt/EBITDA | 6.02 | ||
| Cap/Depr | 66.32% | ||
| Cap/Sales | 2.88% | ||
| Interest Coverage | 0.6 | ||
| Cash Conversion | 114.69% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.49 | ||
| Altman-Z | 2.36 |
F-Score5
WACC8.77%
ROIC/WACC0.12
Cap/Depr(3y)97.7%
Cap/Depr(5y)82.67%
Cap/Sales(3y)3.52%
Cap/Sales(5y)3.12%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-75.93%
EPS 3Y-48.61%
EPS 5Y-26.36%
EPS Q2Q%-171.43%
EPS Next Y58.12%
EPS Next 2Y46.16%
EPS Next 3Y33.59%
EPS Next 5Y47.14%
Revenue 1Y (TTM)-14.08%
Revenue growth 3Y-7.73%
Revenue growth 5Y-4.36%
Sales Q2Q%-15.37%
Revenue Next Year-22.09%
Revenue Next 2Y-9.76%
Revenue Next 3Y-4.2%
Revenue Next 5Y-2.79%
EBIT growth 1Y-85.83%
EBIT growth 3Y-62.6%
EBIT growth 5Y-37.79%
EBIT Next Year218.52%
EBIT Next 3Y60.95%
EBIT Next 5Y49.56%
FCF growth 1Y27.5%
FCF growth 3Y-35.61%
FCF growth 5Y-24.79%
OCF growth 1Y-9.06%
OCF growth 3Y-26.37%
OCF growth 5Y-20.03%