TAPESTRY INC (TPR)
US8760301072 - Common Stock
Taking everything into account, TPR scores 7 out of 10 in our fundamental rating. TPR was compared to 50 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 may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make TPR a good candidate for value investing.
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.
TPR had positive earnings in 4 of the past 5 years.
TPR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of TPR (6.72%) is better than 72.00% of its industry peers.
TPR's Return On Equity of 34.89% is amongst the best of the industry. TPR outperforms 90.00% of its industry peers.
TPR has a better Return On Invested Capital (7.94%) than 68.00% of its industry peers.
TPR had an Average Return On Invested Capital over the past 3 years of 15.58%. This is significantly above the industry average of 10.04%.
The 3 year average ROIC (15.58%) for TPR is well above the current ROIC(7.94%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.72% | ||
| ROE | 34.89% | ||
| ROIC | 7.94% |
ROA(3y)11.63%
ROA(5y)7.2%
ROE(3y)34.72%
ROE(5y)18.76%
ROIC(3y)15.58%
ROIC(5y)12.82%
1.3 Margins
TPR has a better Profit Margin (13.80%) than 92.00% of its industry peers.
In the last couple of years the Profit Margin of TPR has grown nicely.
TPR's Operating Margin of 17.85% is amongst the best of the industry. TPR outperforms 92.00% of its industry peers.
In the last couple of years the Operating Margin of TPR has grown nicely.
TPR has a better Gross Margin (72.28%) than 100.00% of its industry peers.
In the last couple of years the Gross Margin of TPR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.85% | ||
| PM (TTM) | 13.8% | ||
| GM | 72.28% |
OM growth 3Y25.82%
OM growth 5Y8.44%
PM growth 3YN/A
PM growth 5Y15.76%
GM growth 3Y1.51%
GM growth 5Y1.55%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TPR is still creating some value.
TPR has less shares outstanding than it did 1 year ago.
TPR has less shares outstanding than it did 5 years ago.
TPR has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.83 indicates that TPR is not a great score, but indicates only limited risk for bankruptcy at the moment.
TPR has a worse Altman-Z score (1.83) than 64.00% of its industry peers.
The Debt to FCF ratio of TPR is 5.97, which is a neutral value as it means it would take TPR, 5.97 years of fcf income to pay off all of its debts.
TPR has a Debt to FCF ratio of 5.97. This is comparable to the rest of the industry: TPR outperforms 42.00% of its industry peers.
TPR has a Debt/Equity ratio of 2.90. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.90, TPR is not doing good in the industry: 90.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.9 | ||
| Debt/FCF | 5.97 | ||
| Altman-Z | 1.83 |
ROIC/WACC0.85
WACC9.35%
2.3 Liquidity
TPR has a Current Ratio of 6.25. This indicates that TPR is financially healthy and has no problem in meeting its short term obligations.
TPR's Current ratio of 6.25 is amongst the best of the industry. TPR outperforms 98.00% of its industry peers.
A Quick Ratio of 5.68 indicates that TPR has no problem at all paying its short term obligations.
TPR has a Quick ratio of 5.68. This is amongst the best in the industry. TPR outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.25 | ||
| Quick Ratio | 5.68 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.71% over the past year.
TPR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.09% yearly.
Looking at the last year, TPR shows a small growth in Revenue. The Revenue has grown by 2.01% in the last year.
The Revenue has been growing slightly by 2.53% on average over the past years.
EPS 1Y (TTM)24.71%
EPS 3Y58.2%
EPS 5Y8.09%
EPS growth Q2Q19.85%
Revenue 1Y (TTM)2.01%
Revenue growth 3Y10.32%
Revenue growth 5Y2.53%
Revenue growth Q2Q2.92%
3.2 Future
The Earnings Per Share is expected to grow by 9.58% 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 3.58% yearly.
EPS Next Y10.16%
EPS Next 2Y8.9%
EPS Next 3Y8.3%
EPS Next 5Y9.58%
Revenue Next Year0.62%
Revenue Next 2Y2.21%
Revenue Next 3Y2.96%
Revenue Next 5Y3.58%
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 stable.
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.34, which indicates a very decent 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.
Compared to an average S&P500 Price/Earnings ratio of 24.92, TPR is valued rather cheaply.
TPR is valuated reasonably with a Price/Forward Earnings ratio of 8.70.
TPR's Price/Forward Earnings ratio is rather cheap when compared to the industry. TPR is cheaper than 96.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.49, TPR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.34 | ||
| Fwd PE | 8.7 |
4.2 Price Multiples
TPR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TPR is cheaper than 82.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TPR is valued a bit cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.09 | ||
| EV/EBITDA | 6.29 |
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.
PEG (NY)0.92
PEG (5Y)1.15
EPS Next 2Y8.9%
EPS Next 3Y8.3%
5. Dividend
5.1 Amount
TPR has a Yearly Dividend Yield of 3.55%. Purely for dividend investing, there may be better candidates out there.
TPR's Dividend Yield is rather good when compared to the industry average which is at 2.90. TPR pays more dividend than 88.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, TPR pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.55% |
5.2 History
The dividend of TPR decreases each year by -2.15%.
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)-2.15%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
TPR pays out 32.27% of its income as dividend. This is a sustainable payout ratio.
DP32.27%
EPS Next 2Y8.9%
EPS Next 3Y8.3%
TAPESTRY INC
NYSE:TPR (4/26/2024, 7:20:19 PM)
After market: 39.4101 -0.64 (-1.6%)40.05
+0.66 (+1.68%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap9.19B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.55% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.34 | ||
| Fwd PE | 8.7 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.92
PEG (5Y)1.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.72% | ||
| ROE | 34.89% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.85% | ||
| PM (TTM) | 13.8% | ||
| GM | 72.28% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.9 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 6.25 | ||
| Quick Ratio | 5.68 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)24.71%
EPS 3Y58.2%
EPS 5Y
EPS growth Q2Q
EPS Next Y10.16%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.01%
Revenue growth 3Y10.32%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y