TAPESTRY INC (TPR) Stock Fundamental Analysis
NYSE:TPR - New York Stock Exchange, Inc. - US8760301072 - Common Stock - Currency: USD
Taking everything into account, TPR scores 6 out of 10 in our fundamental rating. TPR was compared to 48 industry peers in the Textiles, Apparel & Luxury Goods industry. TPR scores excellent on profitability, but there are some minor concerns on its financial health. TPR is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
TPR had positive earnings in the past year.
TPR had a positive operating cash flow in the past year.
Of the past 5 years TPR 4 years were profitable.
In the past 5 years TPR always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.77%, TPR belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
TPR's Return On Equity of 57.54% is amongst the best of the industry. TPR outperforms 100.00% of its industry peers.
TPR has a Return On Invested Capital of 17.65%. This is amongst the best in the industry. TPR outperforms 85.42% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TPR is above the industry average of 11.49%.
The last Return On Invested Capital (17.65%) for TPR is above the 3 year average (13.78%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.77% | ||
| ROE | 57.54% | ||
| ROIC | 17.65% |
ROA(3y)10.34%
ROA(5y)6.55%
ROE(3y)35.58%
ROE(5y)20.74%
ROIC(3y)13.78%
ROIC(5y)12.02%
1.3 Margins
TPR's Profit Margin of 12.50% is amongst the best of the industry. TPR outperforms 91.67% of its industry peers.
In the last couple of years the Profit Margin of TPR has grown nicely.
TPR has a Operating Margin of 17.93%. This is amongst the best in the industry. TPR outperforms 89.58% of its industry peers.
TPR's Operating Margin has improved in the last couple of years.
TPR's Gross Margin of 75.09% is amongst the best of the industry. TPR outperforms 97.92% of its industry peers.
In the last couple of years the Gross Margin of TPR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.93% | ||
| PM (TTM) | 12.5% | ||
| GM | 75.09% |
OM growth 3Y-4.04%
OM growth 5Y4.12%
PM growth 3Y-5.55%
PM growth 5Y2.76%
GM growth 3Y0.98%
GM growth 5Y1.59%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so TPR is creating value.
The number of shares outstanding for TPR has been increased compared to 1 year ago.
Compared to 5 years ago, TPR has less shares outstanding
The debt/assets ratio for TPR is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.14 indicates that TPR is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.14, TPR is in line with its industry, outperforming 56.25% of the companies in the same industry.
The Debt to FCF ratio of TPR is 3.13, which is a good value as it means it would take TPR, 3.13 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.13, TPR is doing good in the industry, outperforming 62.50% of the companies in the same industry.
A Debt/Equity ratio of 1.59 is on the high side and indicates that TPR has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.59, TPR is doing worse than 81.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.59 | ||
| Debt/FCF | 3.13 | ||
| Altman-Z | 3.14 |
ROIC/WACC2.07
WACC8.51%
2.3 Liquidity
TPR has a Current Ratio of 1.76. This is a normal value and indicates that TPR is financially healthy and should not expect problems in meeting its short term obligations.
TPR has a Current ratio of 1.76. This is in the lower half of the industry: TPR underperforms 62.50% of its industry peers.
TPR has a Quick Ratio of 1.22. This is a normal value and indicates that TPR is financially healthy and should not expect problems in meeting its short term obligations.
TPR has a Quick ratio of 1.22. This is comparable to the rest of the industry: TPR outperforms 43.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.05% over the past year.
Measured over the past years, TPR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.71% on average per year.
Looking at the last year, TPR shows a small growth in Revenue. The Revenue has grown by 2.67% in the last year.
The Revenue has been growing slightly by 2.05% on average over the past years.
EPS 1Y (TTM)15.05%
EPS 3Y12.91%
EPS 5Y10.71%
EPS Q2Q%27.16%
Revenue 1Y (TTM)2.67%
Revenue growth 3Y5.1%
Revenue growth 5Y2.05%
Sales Q2Q%6.89%
3.2 Future
TPR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.21% yearly.
The Revenue is expected to grow by 2.96% on average over the next years.
EPS Next Y19.44%
EPS Next 2Y12.5%
EPS Next 3Y12.43%
EPS Next 5Y9.21%
Revenue Next Year4.61%
Revenue Next 2Y3.34%
Revenue Next 3Y3.57%
Revenue Next 5Y2.96%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
The Price/Earnings ratio is 16.95, which indicates a correct valuation of TPR.
Compared to the rest of the industry, the Price/Earnings ratio of TPR is on the same level as its industry peers.
TPR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.34.
Based on the Price/Forward Earnings ratio of 15.51, the valuation of TPR can be described as correct.
TPR's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of TPR to the average of the S&P500 Index (22.19), we can say TPR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.95 | ||
| Fwd PE | 15.51 |
4.2 Price Multiples
TPR's Enterprise Value to EBITDA ratio is in line with the industry average.
TPR's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.28 | ||
| EV/EBITDA | 13.64 |
4.3 Compensation for Growth
The 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.
TPR's earnings are expected to grow with 12.43% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.87
PEG (5Y)1.58
EPS Next 2Y12.5%
EPS Next 3Y12.43%
5. Dividend
5.1 Amount
TPR has a Yearly Dividend Yield of 1.70%.
Compared to an average industry Dividend Yield of 3.76, TPR pays a bit more dividend than its industry peers.
TPR's Dividend Yield is slightly below the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
5.2 History
The dividend of TPR has a limited annual growth rate of 0.66%.
TPR has been paying a dividend for at least 10 years, so it has a reliable track record.
TPR has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)0.66%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
TPR pays out 35.71% of its income as dividend. This is a sustainable payout ratio.
The dividend of TPR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP35.71%
EPS Next 2Y12.5%
EPS Next 3Y12.43%
84.24
+1.48 (+1.79%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners102.83%
Inst Owner Change-4.45%
Ins Owners0.31%
Ins Owner Change-4.77%
Market Cap17.50B
Analysts80
Price Target90.87 (7.87%)
Short Float %5.95%
Short Ratio2.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
Yearly Dividend1.4
Dividend Growth(5Y)0.66%
DP35.71%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.46%
Min EPS beat(2)13.05%
Max EPS beat(2)15.87%
EPS beat(4)4
Avg EPS beat(4)9.74%
Min EPS beat(4)3.9%
Max EPS beat(4)15.87%
EPS beat(8)7
Avg EPS beat(8)8.57%
EPS beat(12)10
Avg EPS beat(12)9.1%
EPS beat(16)14
Avg EPS beat(16)10.35%
Revenue beat(2)2
Avg Revenue beat(2)2.92%
Min Revenue beat(2)2.76%
Max Revenue beat(2)3.07%
Revenue beat(4)4
Avg Revenue beat(4)1.8%
Min Revenue beat(4)0.07%
Max Revenue beat(4)3.07%
Revenue beat(8)5
Avg Revenue beat(8)0.03%
Revenue beat(12)6
Avg Revenue beat(12)0.02%
Revenue beat(16)10
Avg Revenue beat(16)0.73%
PT rev (1m)6.13%
PT rev (3m)-1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.08%
EPS NY rev (1m)0%
EPS NY rev (3m)2.97%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.44%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)1.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.95 | ||
| Fwd PE | 15.51 | ||
| P/S | 2.54 | ||
| P/FCF | 20.28 | ||
| P/OCF | 17.56 | ||
| P/B | 11.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.64 |
EPS(TTM)4.97
EY5.9%
EPS(NY)5.43
Fwd EY6.45%
FCF(TTM)4.15
FCFY4.93%
OCF(TTM)4.8
OCFY5.7%
SpS33.12
BVpS7.19
TBVpS-5.07
PEG (NY)0.87
PEG (5Y)1.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.77% | ||
| ROE | 57.54% | ||
| ROCE | 21.72% | ||
| ROIC | 17.65% | ||
| ROICexc | 21.69% | ||
| ROICexgc | 48.32% | ||
| OM | 17.93% | ||
| PM (TTM) | 12.5% | ||
| GM | 75.09% | ||
| FCFM | 12.54% |
ROA(3y)10.34%
ROA(5y)6.55%
ROE(3y)35.58%
ROE(5y)20.74%
ROIC(3y)13.78%
ROIC(5y)12.02%
ROICexc(3y)19.95%
ROICexc(5y)17.13%
ROICexgc(3y)43.52%
ROICexgc(5y)37.52%
ROCE(3y)16.96%
ROCE(5y)14.79%
ROICexcg growth 3Y6.58%
ROICexcg growth 5Y1.06%
ROICexc growth 3Y4.19%
ROICexc growth 5Y7.39%
OM growth 3Y-4.04%
OM growth 5Y4.12%
PM growth 3Y-5.55%
PM growth 5Y2.76%
GM growth 3Y0.98%
GM growth 5Y1.59%
F-Score8
Asset Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.59 | ||
| Debt/FCF | 3.13 | ||
| Debt/EBITDA | 1.7 | ||
| Cap/Depr | 79.52% | ||
| Cap/Sales | 1.94% | ||
| Interest Coverage | 2.29 | ||
| Cash Conversion | 71.1% | ||
| Profit Quality | 100.38% | ||
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | 3.14 |
F-Score8
WACC8.51%
ROIC/WACC2.07
Cap/Depr(3y)70.59%
Cap/Depr(5y)69.51%
Cap/Sales(3y)1.93%
Cap/Sales(5y)2.39%
Profit Quality(3y)104.57%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)15.05%
EPS 3Y12.91%
EPS 5Y10.71%
EPS Q2Q%27.16%
EPS Next Y19.44%
EPS Next 2Y12.5%
EPS Next 3Y12.43%
EPS Next 5Y9.21%
Revenue 1Y (TTM)2.67%
Revenue growth 3Y5.1%
Revenue growth 5Y2.05%
Sales Q2Q%6.89%
Revenue Next Year4.61%
Revenue Next 2Y3.34%
Revenue Next 3Y3.57%
Revenue Next 5Y2.96%
EBIT growth 1Y4.65%
EBIT growth 3Y0.85%
EBIT growth 5Y6.25%
EBIT Next Year27.06%
EBIT Next 3Y11.84%
EBIT Next 5Y8.64%
FCF growth 1Y34.16%
FCF growth 3Y-1.71%
FCF growth 5Y17.25%
OCF growth 1Y22.78%
OCF growth 3Y-1.75%
OCF growth 5Y9.66%