TAPESTRY INC (TPR) Stock Fundamental Analysis
USA - NYSE:TPR - US8760301072 - Common Stock
101.41 USD
+0.65 (+0.65%)
101.41 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to TPR. TPR was compared to 48 industry peers in the Textiles, Apparel & Luxury Goods industry. TPR has an excellent profitability rating, but there are some minor concerns on its financial health. TPR has a correct valuation and a medium 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.
In the past 5 years TPR has always been profitable.
TPR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.27%, TPR is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
TPR's Return On Equity of 67.93% is amongst the best of the industry. TPR outperforms 100.00% of its industry peers.
TPR has a Return On Invested Capital of 24.67%. This is amongst the best in the industry. TPR outperforms 93.75% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TPR is above the industry average of 12.21%.
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
With a Profit Margin value of 3.77%, TPR perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
TPR's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 20.21%, TPR belongs to the best of the industry, outperforming 89.58% of the companies in the same industry.
TPR's Operating Margin has improved in the last couple of years.
TPR has a better Gross Margin (75.67%) 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 | 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TPR is creating value.
Compared to 1 year ago, TPR has less shares outstanding
The number of shares outstanding for TPR has been reduced compared to 5 years ago.
Compared to 1 year ago, TPR has an improved debt to assets ratio.
2.2 Solvency
TPR has an Altman-Z score of 3.43. This indicates that TPR is financially healthy and has little risk of bankruptcy at the moment.
TPR has a better Altman-Z score (3.43) than 72.92% 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.
Looking at the Debt to FCF ratio, with a value of 2.49, TPR is in the better half of the industry, outperforming 72.92% of the companies in the same industry.
TPR has a Debt/Equity ratio of 6.55. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of TPR (6.55) is worse than 89.58% of its industry peers.
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 | 3.43 |
ROIC/WACC2.22
WACC11.11%
2.3 Liquidity
TPR has a Current Ratio of 1.52. This is a normal value and indicates that TPR is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.52, TPR is not doing good in the industry: 68.75% of the companies in the same industry are doing better.
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.
With a Quick ratio value of 0.93, TPR perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| 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.
TPR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.14%.
Measured over the past years, TPR shows a small growth in Revenue. The Revenue has been growing by 7.16% on average per year.
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
TPR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.32% yearly.
TPR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.30% yearly.
EPS Next Y8.77%
EPS Next 2Y9.99%
EPS Next 3Y10.57%
EPS Next 5Y9.32%
Revenue Next Year3.81%
Revenue Next 2Y4.15%
Revenue Next 3Y4.32%
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
With a Price/Earnings ratio of 18.61, TPR is valued on the expensive side.
Based on the Price/Earnings ratio, TPR is valued a bit cheaper than the industry average as 64.58% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.89, TPR is valued a bit cheaper.
The Price/Forward Earnings ratio is 16.47, which indicates a correct valuation of TPR.
The rest of the industry has a similar Price/Forward Earnings ratio as TPR.
The average S&P500 Price/Forward Earnings ratio is at 34.59. TPR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.61 | ||
| Fwd PE | 16.47 |
4.2 Price Multiples
TPR's Enterprise Value to EBITDA is on the same level as the industry average.
68.75% of the companies in the same industry are more expensive than TPR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.87 | ||
| EV/EBITDA | 14 |
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)2.12
PEG (5Y)0.48
EPS Next 2Y9.99%
EPS Next 3Y10.57%
5. Dividend
5.1 Amount
TPR has a Yearly Dividend Yield of 1.59%.
Compared to an average industry Dividend Yield of 3.34, TPR pays a bit more dividend than its industry peers.
TPR's Dividend Yield is slightly below the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
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
110.98% of the earnings are spent on dividend by TPR. This is not a sustainable payout ratio.
TPR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP110.98%
EPS Next 2Y9.99%
EPS Next 3Y10.57%
101.41
+0.65 (+0.65%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners98.87%
Inst Owner Change-3.02%
Ins Owners0.38%
Ins Owner Change12.17%
Market Cap20.99B
Revenue(TTM)7.21B
Net Income(TTM)271.40M
Analysts80
Price Target122.7 (20.99%)
Short Float %6.77%
Short Ratio4.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
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)3.93%
PT rev (3m)16.54%
EPS NQ rev (1m)0.98%
EPS NQ rev (3m)3.4%
EPS NY rev (1m)0.29%
EPS NY rev (3m)1.55%
Revenue NQ rev (1m)1.55%
Revenue NQ rev (3m)1.5%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)1.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.61 | ||
| Fwd PE | 16.47 | ||
| P/S | 2.91 | ||
| P/FCF | 19.87 | ||
| P/OCF | 17.7 | ||
| P/B | 52.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14 |
EPS(TTM)5.45
EY5.37%
EPS(NY)6.16
Fwd EY6.07%
FCF(TTM)5.1
FCFY5.03%
OCF(TTM)5.73
OCFY5.65%
SpS34.82
BVpS1.93
TBVpS-6.25
PEG (NY)2.12
PEG (5Y)0.48
Graham Number15.38
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 | 3.43 |
F-Score6
WACC11.11%
ROIC/WACC2.22
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 Y8.77%
EPS Next 2Y9.99%
EPS Next 3Y10.57%
EPS Next 5Y9.32%
Revenue 1Y (TTM)8.14%
Revenue growth 3Y1.6%
Revenue growth 5Y7.16%
Sales Q2Q%13.07%
Revenue Next Year3.81%
Revenue Next 2Y4.15%
Revenue Next 3Y4.32%
Revenue Next 5Y3.3%
EBIT growth 1Y27.93%
EBIT growth 3Y4.72%
EBIT growth 5Y26.13%
EBIT Next Year18.62%
EBIT Next 3Y11.2%
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 18.61 and the Price/Book (PB) ratio is 52.55.
How financially healthy is TAPESTRY INC?
The financial health rating of TAPESTRY INC (TPR) is 6 / 10.