TAPESTRY INC (TPR)
US8760301072 - Common Stock
We assign a fundamental rating of 6 out of 10 to TPR. TPR was compared to 50 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. Finally TPR also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
TPR had positive earnings in the past year.
In the past year TPR had a positive cash flow from operations.
Of the past 5 years TPR 4 years were profitable.
TPR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of TPR (6.09%) is better than 70.00% of its industry peers.
Looking at the Return On Equity, with a value of 28.17%, TPR belongs to the top of the industry, outperforming 84.00% of the companies in the same industry.
TPR has a Return On Invested Capital (7.93%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for TPR is in line with the industry average of 11.90%.
The 3 year average ROIC (13.78%) for TPR is well above the current ROIC(7.93%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.09% | ||
| ROE | 28.17% | ||
| ROIC | 7.93% |
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
The Profit Margin of TPR (12.23%) is better than 92.00% of its industry peers.
In the last couple of years the Profit Margin of TPR has grown nicely.
TPR has a better Operating Margin (17.09%) than 92.00% of its industry peers.
TPR's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 73.29%, TPR belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
TPR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.09% | ||
| PM (TTM) | 12.23% | ||
| GM | 73.29% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TPR is creating some value.
TPR has more shares outstanding than it did 1 year ago.
TPR has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, TPR has a worse debt to assets ratio.
2.2 Solvency
TPR has an Altman-Z score of 1.93. This is not the best score and indicates that TPR is in the grey zone with still only limited risk for bankruptcy at the moment.
TPR's Altman-Z score of 1.93 is on the low side compared to the rest of the industry. TPR is outperformed by 72.00% of its industry peers.
TPR has a debt to FCF ratio of 6.31. This is a slightly negative value and a sign of low solvency as TPR would need 6.31 years to pay back of all of its debts.
With a Debt to FCF ratio value of 6.31, TPR is not doing good in the industry: 62.00% of the companies in the same industry are doing better.
TPR has a Debt/Equity ratio of 2.39. This is a high value indicating a heavy dependency on external financing.
TPR has a worse Debt to Equity ratio (2.39) than 88.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.39 | ||
| Debt/FCF | 6.31 | ||
| Altman-Z | 1.93 |
ROIC/WACC0.98
WACC8.06%
2.3 Liquidity
A Current Ratio of 5.14 indicates that TPR has no problem at all paying its short term obligations.
TPR has a Current ratio of 5.14. This is amongst the best in the industry. TPR outperforms 98.00% of its industry peers.
TPR has a Quick Ratio of 4.66. This indicates that TPR is financially healthy and has no problem in meeting its short term obligations.
TPR's Quick ratio of 4.66 is amongst the best of the industry. TPR outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.14 | ||
| Quick Ratio | 4.66 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.57% 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.
TPR shows a small growth in Revenue. In the last year, the Revenue has grown by 0.15%.
The Revenue has been growing slightly by 2.05% on average over the past years.
EPS 1Y (TTM)10.57%
EPS 3Y12.91%
EPS 5Y10.71%
EPS Q2Q%-3.16%
Revenue 1Y (TTM)0.15%
Revenue growth 3Y5.1%
Revenue growth 5Y2.05%
Sales Q2Q%-1.75%
3.2 Future
Based on estimates for the next years, TPR will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.85% on average per year.
The Revenue is expected to grow by 4.20% on average over the next years.
EPS Next Y5.69%
EPS Next 2Y5.3%
EPS Next 3Y5.3%
EPS Next 5Y8.85%
Revenue Next Year0.77%
Revenue Next 2Y2.11%
Revenue Next 3Y2.87%
Revenue Next 5Y4.2%
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
TPR is valuated reasonably with a Price/Earnings ratio of 10.25.
90.00% of the companies in the same industry are more expensive than TPR, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 31.46. TPR is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 9.69, the valuation of TPR can be described as very reasonable.
TPR's Price/Forward Earnings ratio is rather cheap when compared to the industry. TPR is cheaper than 84.00% of the companies in the same industry.
TPR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.63.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.25 | ||
| Fwd PE | 9.69 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TPR indicates a somewhat cheap valuation: TPR is cheaper than 78.00% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TPR indicates a somewhat cheap valuation: TPR is cheaper than 78.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.92 | ||
| EV/EBITDA | 7.1 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
TPR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.8
PEG (5Y)0.96
EPS Next 2Y5.3%
EPS Next 3Y5.3%
5. Dividend
5.1 Amount
TPR has a Yearly Dividend Yield of 3.10%. 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 2.84. TPR pays more dividend than 88.00% of the companies in the same industry.
TPR's Dividend Yield is a higher than the S&P500 average which is at 2.18.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.1% |
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 Years3
Div Non Decr Years3
5.3 Sustainability
TPR pays out 39.39% 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.
DP39.39%
EPS Next 2Y5.3%
EPS Next 3Y5.3%
TAPESTRY INC
NYSE:TPR (10/22/2024, 1:28:40 PM)
43.96
-0.55 (-1.24%)
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 Cap10.23B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.1% |
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(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 | 10.25 | ||
| Fwd PE | 9.69 | ||
| 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)1.8
PEG (5Y)0.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.09% | ||
| ROE | 28.17% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.09% | ||
| PM (TTM) | 12.23% | ||
| GM | 73.29% | ||
| 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 Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.39 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 5.14 | ||
| Quick Ratio | 4.66 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)10.57%
EPS 3Y12.91%
EPS 5Y
EPS Q2Q%
EPS Next Y5.69%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.15%
Revenue growth 3Y5.1%
Revenue growth 5Y
Sales 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