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. Both the profitability and financial health of CPRI have multiple concerns. CPRI has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year CPRI was profitable.
CPRI had a positive operating cash flow in the past year.
In multiple years CPRI reported negative net income over the last 5 years.
In the past 5 years CPRI always reported a positive cash flow from operatings.
1.2 Ratios
CPRI's Return On Assets of -22.67% is on the low side compared to the rest of the industry. CPRI is outperformed by 84.00% of its industry peers.
The Return On Equity of CPRI (-321.20%) is worse than 86.00% of its industry peers.
CPRI has a Return On Invested Capital of 1.06%. This is in the lower half of the industry: CPRI underperforms 72.00% of its industry peers.
CPRI had an Average Return On Invested Capital over the past 3 years of 5.93%. This is below the industry average of 10.79%.
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
CPRI's Operating Margin of 1.17% is on the low side compared to the rest of the industry. CPRI is outperformed by 70.00% of its industry peers.
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
CPRI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for CPRI has been increased compared to 1 year ago.
CPRI has less shares outstanding than it did 5 years ago.
CPRI has a worse debt/assets ratio than last year.
2.2 Solvency
CPRI has an Altman-Z score of 2.39. 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.
The Altman-Z score of CPRI (2.39) is worse than 64.00% 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 88.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.01 | ||
| Debt/FCF | 9.8 | ||
| Altman-Z | 2.39 |
ROIC/WACC0.12
WACC8.82%
2.3 Liquidity
A Current Ratio of 1.14 indicates that CPRI should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.14, CPRI is doing worse than 86.00% of the companies in the same industry.
A Quick Ratio of 0.49 indicates that CPRI may have some problems paying its short term obligations.
CPRI has a worse Quick ratio (0.49) than 92.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
CPRI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -53.41%.
The earnings per share for CPRI have been decreasing by -26.36% on average. This is quite bad
Looking at the last year, CPRI shows a very negative growth in Revenue. The Revenue has decreased by -14.08% in the last year.
CPRI shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.36% yearly.
EPS 1Y (TTM)-53.41%
EPS 3Y-48.61%
EPS 5Y-26.36%
EPS Q2Q%1150%
Revenue 1Y (TTM)-14.08%
Revenue growth 3Y-7.73%
Revenue growth 5Y-4.36%
Sales Q2Q%-25.3%
3.2 Future
CPRI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 47.14% yearly.
CPRI is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.79% yearly.
EPS Next Y58.12%
EPS Next 2Y46.16%
EPS Next 3Y33.59%
EPS Next 5Y47.14%
Revenue Next Year-22.05%
Revenue Next 2Y-9.81%
Revenue Next 3Y-4.54%
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 correctly with a Price/Earnings ratio of 15.98.
Based on the Price/Earnings ratio, CPRI is valued a bit cheaper than 66.00% of the companies in the same industry.
CPRI is valuated rather cheaply when we compare the Price/Earnings ratio to 26.54, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 11.57, the valuation of CPRI can be described as very reasonable.
CPRI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CPRI is cheaper than 74.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.28. CPRI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.98 | ||
| Fwd PE | 11.57 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CPRI indicates a slightly more expensive valuation: CPRI is more expensive than 60.00% of the companies listed in the same industry.
CPRI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CPRI is cheaper than 68.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.01 | ||
| EV/EBITDA | 15.48 |
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)0.27
PEG (5Y)N/A
EPS Next 2Y46.16%
EPS Next 3Y33.59%
5. Dividend
5.1 Amount
CPRI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
20.77
-0.07 (-0.34%)
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-2.81%
Ins Owners2.12%
Ins Owner Change3.62%
Market Cap2.45B
Analysts54.44
Price Target23.88 (14.97%)
Short Float %8.53%
Short Ratio3.23
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)2.86%
EPS NQ rev (1m)-3.97%
EPS NQ rev (3m)22.09%
EPS NY rev (1m)0%
EPS NY rev (3m)20.31%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)-17.27%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-15.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.98 | ||
| Fwd PE | 11.57 | ||
| P/S | 0.55 | ||
| P/FCF | 16.01 | ||
| P/OCF | 8.72 | ||
| P/B | 6.66 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.48 |
EPS(TTM)1.3
EY6.26%
EPS(NY)1.79
Fwd EY8.64%
FCF(TTM)1.3
FCFY6.25%
OCF(TTM)2.38
OCFY11.47%
SpS37.67
BVpS3.12
TBVpS-12.18
PEG (NY)0.27
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 | 2.39 |
F-Score5
WACC8.82%
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)-53.41%
EPS 3Y-48.61%
EPS 5Y-26.36%
EPS Q2Q%1150%
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%-25.3%
Revenue Next Year-22.05%
Revenue Next 2Y-9.81%
Revenue Next 3Y-4.54%
Revenue Next 5Y-2.79%
EBIT growth 1Y-85.83%
EBIT growth 3Y-62.6%
EBIT growth 5Y-37.79%
EBIT Next Year161.09%
EBIT Next 3Y60.39%
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%