TAPESTRY INC (TPR) Stock Fundamental Analysis
USA - NYSE:TPR - US8760301072 - Common Stock
102.18 USD
-2.23 (-2.14%)
102.3 USD
+0.12 (+0.12%)
Overall TPR gets a fundamental rating of 6 out of 10. We evaluated TPR against 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 decent growth rate and is not valued too expensively.
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.
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
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.
TPR has a Return On Equity of 67.93%. This is amongst the best in the industry. TPR outperforms 100.00% of its industry peers.
TPR's Return On Invested Capital of 24.67% is amongst the best of the industry. TPR outperforms 93.75% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital 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
TPR has a Profit Margin (3.77%) which is comparable to the rest of the industry.
TPR's Profit Margin has declined in the last couple of years.
TPR's Operating Margin of 20.21% is amongst the best of the industry. TPR outperforms 89.58% of its industry peers.
TPR's Operating Margin has improved in the last couple of years.
TPR has a Gross Margin of 75.67%. This is amongst the best in the industry. TPR outperforms 100.00% of its industry peers.
TPR's Gross Margin has improved in the last couple of years.
| 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
TPR has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for TPR has been reduced compared to 1 year ago.
TPR has less shares outstanding than it did 5 years ago.
The debt/assets ratio for TPR has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.49 indicates that TPR is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.49, TPR is doing good in the industry, outperforming 72.92% of the companies in the same industry.
TPR has a debt to FCF ratio of 2.49. This is a good value and a sign of high solvency as TPR would need 2.49 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.49, TPR is doing good in 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.
TPR's Debt to Equity ratio of 6.55 is on the low side compared to the rest of the industry. TPR is outperformed by 89.58% of its industry peers.
Even though the debt/equity ratio score it not favorable for TPR, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.55 | ||
| Debt/FCF | 2.49 | ||
| Altman-Z | 3.49 |
ROIC/WACC2.35
WACC10.52%
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.
TPR's Current ratio of 1.52 is on the low side compared to the rest of the industry. TPR is outperformed by 68.75% of its industry peers.
A Quick Ratio of 0.93 indicates that TPR may have some problems paying 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.
The Earnings Per Share has been growing by 39.03% on average over the past years. This is a very strong growth
TPR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.14%.
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.
The Revenue is expected to grow by 3.30% on average over the next years.
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
A Price/Earnings ratio of 18.75 indicates a rather expensive valuation of TPR.
Based on the Price/Earnings ratio, TPR is valued a bit cheaper than 62.50% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.47. TPR is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 16.59, the valuation of TPR can be described as correct.
TPR's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of TPR to the average of the S&P500 Index (35.42), we can say TPR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.75 | ||
| Fwd PE | 16.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TPR is valued a bit more expensive than 60.42% of the companies in the same industry.
TPR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TPR is cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.02 | ||
| EV/EBITDA | 14.38 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of TPR may justify a higher PE ratio.
PEG (NY)2.14
PEG (5Y)0.48
EPS Next 2Y9.99%
EPS Next 3Y10.57%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.59%, TPR has a reasonable but not impressive dividend return.
TPR's Dividend Yield is a higher than the industry average which is at 3.35.
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 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)0.22%
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%
102.18
-2.23 (-2.14%)
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 Cap21.15B
Revenue(TTM)7.21B
Net Income(TTM)271.40M
Analysts80
Price Target122.7 (20.08%)
Short Float %6.49%
Short Ratio4.39
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 | 18.75 | ||
| Fwd PE | 16.59 | ||
| P/S | 2.93 | ||
| P/FCF | 20.02 | ||
| P/OCF | 17.83 | ||
| P/B | 52.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.38 |
EPS(TTM)5.45
EY5.33%
EPS(NY)6.16
Fwd EY6.03%
FCF(TTM)5.1
FCFY4.99%
OCF(TTM)5.73
OCFY5.61%
SpS34.82
BVpS1.93
TBVpS-6.25
PEG (NY)2.14
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 | 3.49 |
F-Score6
WACC10.52%
ROIC/WACC2.35
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 18.75 and the Price/Book (PB) ratio is 52.95.
How financially healthy is TAPESTRY INC?
The financial health rating of TAPESTRY INC (TPR) is 6 / 10.