TAPESTRY INC (TPR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TPR - US8760301072 - Common Stock
117.73 USD
-0.48 (-0.41%)
118 USD
+0.27 (+0.23%)
We assign a fundamental rating of 6 out of 10 to TPR. TPR was compared to 45 industry peers in the Textiles, Apparel & Luxury Goods industry. While TPR has a great profitability rating, 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
In the past year TPR was profitable.
In the past year TPR had a positive cash flow from operations.
Each year in the past 5 years TPR has been profitable.
Each year in the past 5 years TPR had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 4.27%, TPR is doing good in the industry, outperforming 66.67% of the companies in the same industry.
Looking at the Return On Equity, with a value of 67.93%, TPR belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
TPR has a Return On Invested Capital of 24.67%. This is amongst the best in the industry. TPR outperforms 93.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TPR is above the industry average of 11.82%.
The 3 year average ROIC (15.91%) for TPR is below the current ROIC(24.67%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.27% | ||
| ROE | 67.93% | ||
| ROIC | 24.67% |
ROA(3y)7.34%
ROA(5y)8.75%
ROE(3y)30.21%
ROE(5y)30.74%
ROIC(3y)15.91%
ROIC(5y)15.67%
1.3 Margins
TPR has a Profit Margin (3.77%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of TPR has declined.
TPR has a better Operating Margin (20.21%) than 88.89% of its industry peers.
In the last couple of years the Operating Margin of TPR has grown nicely.
Looking at the Gross Margin, with a value of 75.67%, TPR belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Gross Margin of TPR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.21% | ||
| PM (TTM) | 3.77% | ||
| GM | 75.68% |
OM growth 3Y3.07%
OM growth 5Y17.7%
PM growth 3Y-41.13%
PM growth 5YN/A
GM growth 3Y2.74%
GM growth 5Y2.2%
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.
TPR has less shares outstanding than it did 1 year ago.
The number of shares outstanding for TPR has been reduced compared to 5 years ago.
TPR has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.75 indicates that TPR is not in any danger for bankruptcy at the moment.
TPR's Altman-Z score of 3.75 is fine compared to the rest of the industry. TPR outperforms 71.11% of its industry peers.
The Debt to FCF ratio of TPR is 2.49, which is a good value as it means it would take TPR, 2.49 years of fcf income to pay off all of its debts.
TPR's Debt to FCF ratio of 2.49 is fine compared to the rest of the industry. TPR outperforms 71.11% of its industry peers.
TPR has a Debt/Equity ratio of 6.55. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 6.55, TPR is doing worse than 91.11% of the companies in the same industry.
Although TPR does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.55 | ||
| Debt/FCF | 2.49 | ||
| Altman-Z | 3.75 |
ROIC/WACC2.13
WACC11.57%
2.3 Liquidity
A Current Ratio of 1.52 indicates that TPR should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.52, TPR is doing worse than 68.89% of the companies in the same industry.
TPR has a Quick Ratio of 1.52. This is a bad value and indicates that TPR is not financially healthy enough and could expect problems in meeting its short term obligations.
TPR has a Quick ratio of 0.93. This is comparable to the rest of the industry: TPR outperforms 46.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
TPR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.43%, which is quite impressive.
TPR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 39.03% yearly.
Looking at the last year, TPR shows a quite strong growth in Revenue. The Revenue has grown by 8.14% in the last year.
The Revenue has been growing slightly by 7.16% on average over the past years.
EPS 1Y (TTM)24.43%
EPS 3Y13.95%
EPS 5Y39.03%
EPS Q2Q%35.29%
Revenue 1Y (TTM)8.14%
Revenue growth 3Y1.6%
Revenue growth 5Y7.16%
Sales Q2Q%13.07%
3.2 Future
The Earnings Per Share is expected to grow by 9.32% on average over the next years. This is quite good.
TPR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.30% yearly.
EPS Next Y11.45%
EPS Next 2Y11.28%
EPS Next 3Y11.48%
EPS Next 5Y9.32%
Revenue Next Year5.71%
Revenue Next 2Y5.19%
Revenue Next 3Y4.97%
Revenue Next 5Y3.3%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 21.60, the valuation of TPR can be described as rather expensive.
Based on the Price/Earnings ratio, TPR is valued a bit cheaper than 62.22% of the companies in the same industry.
TPR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.59, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 18.68 indicates a rather expensive valuation of TPR.
TPR's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.80. TPR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.6 | ||
| Fwd PE | 18.68 |
4.2 Price Multiples
62.22% of the companies in the same industry are cheaper than TPR, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, TPR is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.8 | ||
| EV/EBITDA | 15.98 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
TPR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.89
PEG (5Y)0.55
EPS Next 2Y11.28%
EPS Next 3Y11.48%
5. Dividend
5.1 Amount
TPR has a Yearly Dividend Yield of 1.39%.
TPR's Dividend Yield is a higher than the industry average which is at 3.23.
TPR's Dividend Yield is slightly below the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
5.2 History
The dividend of TPR has a limited annual growth rate of 0.22%.
TPR has paid a dividend for at least 10 years, which is a reliable track record.
TPR has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)0.22%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
TPR pays out 110.98% of its income as dividend. This is not a sustainable payout ratio.
The dividend of TPR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP110.98%
EPS Next 2Y11.28%
EPS Next 3Y11.48%
117.73
-0.48 (-0.41%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners98.72%
Inst Owner Change-2.94%
Ins Owners0.32%
Ins Owner Change5.03%
Market Cap24.09B
Revenue(TTM)7.21B
Net Income(TTM)271.40M
Analysts80.8
Price Target124.29 (5.57%)
Short Float %6.85%
Short Ratio4.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
Yearly Dividend1.37
Dividend Growth(5Y)0.22%
DP110.98%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.32%
Min EPS beat(2)0.51%
Max EPS beat(2)8.13%
EPS beat(4)4
Avg EPS beat(4)9.39%
Min EPS beat(4)0.51%
Max EPS beat(4)15.87%
EPS beat(8)8
Avg EPS beat(8)9.7%
EPS beat(12)11
Avg EPS beat(12)9.51%
EPS beat(16)14
Avg EPS beat(16)9.47%
Revenue beat(2)2
Avg Revenue beat(2)2.36%
Min Revenue beat(2)1.66%
Max Revenue beat(2)3.06%
Revenue beat(4)4
Avg Revenue beat(4)2.64%
Min Revenue beat(4)1.66%
Max Revenue beat(4)3.07%
Revenue beat(8)7
Avg Revenue beat(8)1.3%
Revenue beat(12)8
Avg Revenue beat(12)0.62%
Revenue beat(16)10
Avg Revenue beat(16)0.73%
PT rev (1m)1.3%
PT rev (3m)7.75%
EPS NQ rev (1m)-0.16%
EPS NQ rev (3m)0.24%
EPS NY rev (1m)2.47%
EPS NY rev (3m)2.89%
Revenue NQ rev (1m)0.44%
Revenue NQ rev (3m)1.94%
Revenue NY rev (1m)1.82%
Revenue NY rev (3m)2.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.6 | ||
| Fwd PE | 18.68 | ||
| P/S | 3.34 | ||
| P/FCF | 22.8 | ||
| P/OCF | 20.31 | ||
| P/B | 60.31 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.98 |
EPS(TTM)5.45
EY4.63%
EPS(NY)6.3
Fwd EY5.35%
FCF(TTM)5.16
FCFY4.39%
OCF(TTM)5.8
OCFY4.92%
SpS35.22
BVpS1.95
TBVpS-6.33
PEG (NY)1.89
PEG (5Y)0.55
Graham Number15.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.27% | ||
| ROE | 67.93% | ||
| ROCE | 31.37% | ||
| ROIC | 24.67% | ||
| ROICexc | 29.1% | ||
| ROICexgc | 49.24% | ||
| OM | 20.21% | ||
| PM (TTM) | 3.77% | ||
| GM | 75.68% | ||
| FCFM | 14.66% |
ROA(3y)7.34%
ROA(5y)8.75%
ROE(3y)30.21%
ROE(5y)30.74%
ROIC(3y)15.91%
ROIC(5y)15.67%
ROICexc(3y)23.25%
ROICexc(5y)21.83%
ROICexgc(3y)46.8%
ROICexgc(5y)45.19%
ROCE(3y)19.24%
ROCE(5y)18.95%
ROICexgc growth 3Y5.26%
ROICexgc growth 5Y24.56%
ROICexc growth 3Y12.52%
ROICexc growth 5Y31.16%
OM growth 3Y3.07%
OM growth 5Y17.7%
PM growth 3Y-41.13%
PM growth 5YN/A
GM growth 3Y2.74%
GM growth 5Y2.2%
F-Score6
Asset Turnover1.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.55 | ||
| Debt/FCF | 2.49 | ||
| Debt/EBITDA | 1.62 | ||
| Cap/Depr | 81.34% | ||
| Cap/Sales | 1.8% | ||
| Interest Coverage | 3.21 | ||
| Cash Conversion | 73.38% | ||
| Profit Quality | 389.28% | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 0.93 | ||
| Altman-Z | 3.75 |
F-Score6
WACC11.57%
ROIC/WACC2.13
Cap/Depr(3y)79.67%
Cap/Depr(5y)68.03%
Cap/Sales(3y)2.05%
Cap/Sales(5y)1.91%
Profit Quality(3y)269.74%
Profit Quality(5y)208.53%
High Growth Momentum
Growth
EPS 1Y (TTM)24.43%
EPS 3Y13.95%
EPS 5Y39.03%
EPS Q2Q%35.29%
EPS Next Y11.45%
EPS Next 2Y11.28%
EPS Next 3Y11.48%
EPS Next 5Y9.32%
Revenue 1Y (TTM)8.14%
Revenue growth 3Y1.6%
Revenue growth 5Y7.16%
Sales Q2Q%13.07%
Revenue Next Year5.71%
Revenue Next 2Y5.19%
Revenue Next 3Y4.97%
Revenue Next 5Y3.3%
EBIT growth 1Y27.93%
EBIT growth 3Y4.72%
EBIT growth 5Y26.13%
EBIT Next Year21.68%
EBIT Next 3Y12.33%
EBIT Next 5Y7.82%
FCF growth 1Y1.28%
FCF growth 3Y12.12%
FCF growth 5Y39.64%
OCF growth 1Y-2.86%
OCF growth 3Y11.82%
OCF growth 5Y23.99%
TAPESTRY INC / TPR FAQ
What is the ChartMill fundamental rating of TAPESTRY INC (TPR) stock?
ChartMill assigns a fundamental rating of 6 / 10 to TPR.
What is the valuation status of TAPESTRY INC (TPR) stock?
ChartMill assigns a valuation rating of 4 / 10 to TAPESTRY INC (TPR). This can be considered as Fairly Valued.
Can you provide the profitability details for TAPESTRY INC?
TAPESTRY INC (TPR) has a profitability rating of 8 / 10.
What are the PE and PB ratios of TAPESTRY INC (TPR) stock?
The Price/Earnings (PE) ratio for TAPESTRY INC (TPR) is 21.6 and the Price/Book (PB) ratio is 60.31.
How financially healthy is TAPESTRY INC?
The financial health rating of TAPESTRY INC (TPR) is 6 / 10.