TAPESTRY INC (TPR) Stock Fundamental Analysis
NYSE:TPR - New York Stock Exchange, Inc. - US8760301072 - Common Stock - Currency: USD
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. TPR has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, TPR is valued expensive at the moment.
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.
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
TPR has a Return On Assets of 11.77%. This is amongst the best in the industry. TPR outperforms 92.00% of its industry peers.
TPR has a better Return On Equity (57.54%) than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 17.65%, TPR belongs to the top of the industry, outperforming 88.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TPR is above the industry average of 10.82%.
The last Return On Invested Capital (17.65%) for TPR is above the 3 year average (13.78%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.77% | ||
| ROE | 57.54% | ||
| ROIC | 17.65% |
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 (12.50%) is better than 94.00% of its industry peers.
TPR's Profit Margin has improved in the last couple of years.
TPR's Operating Margin of 17.93% is amongst the best of the industry. TPR outperforms 90.00% of its industry peers.
In the last couple of years the Operating Margin of TPR has grown nicely.
The Gross Margin of TPR (75.09%) is better than 98.00% of its industry peers.
In the last couple of years the Gross Margin of TPR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.93% | ||
| PM (TTM) | 12.5% | ||
| GM | 75.09% |
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) well above the Cost of Capital (WACC), TPR is creating value.
The number of shares outstanding for TPR has been increased compared to 1 year ago.
Compared to 5 years ago, TPR has less shares outstanding
The debt/assets ratio for TPR is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.67 indicates that TPR is not in any danger for bankruptcy at the moment.
TPR has a better Altman-Z score (3.67) than 74.00% of its industry peers.
The Debt to FCF ratio of TPR is 3.13, which is a good value as it means it would take TPR, 3.13 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.13, TPR is in the better half of the industry, outperforming 68.00% of the companies in the same industry.
TPR has a Debt/Equity ratio of 1.59. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.59, TPR is doing worse than 78.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.59 | ||
| Debt/FCF | 3.13 | ||
| Altman-Z | 3.67 |
ROIC/WACC1.95
WACC9.04%
2.3 Liquidity
A Current Ratio of 1.76 indicates that TPR should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.76, TPR is doing worse than 62.00% of the companies in the same industry.
A Quick Ratio of 1.22 indicates that TPR should not have too much problems paying its short term obligations.
TPR has a Quick ratio (1.22) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
TPR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.05%, which is quite good.
The Earnings Per Share has been growing by 10.71% on average over the past years. This is quite good.
Looking at the last year, TPR shows a small growth in Revenue. The Revenue has grown by 2.67% in the last year.
Measured over the past years, TPR shows a small growth in Revenue. The Revenue has been growing by 2.05% on average per year.
EPS 1Y (TTM)15.05%
EPS 3Y12.91%
EPS 5Y10.71%
EPS Q2Q%27.16%
Revenue 1Y (TTM)2.67%
Revenue growth 3Y5.1%
Revenue growth 5Y2.05%
Sales Q2Q%6.89%
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 9.21% on average per year.
The Revenue is expected to grow by 2.96% on average over the next years.
EPS Next Y19.34%
EPS Next 2Y12.73%
EPS Next 3Y12.41%
EPS Next 5Y9.21%
Revenue Next Year4.7%
Revenue Next 2Y3.48%
Revenue Next 3Y3.58%
Revenue Next 5Y2.96%
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
TPR is valuated rather expensively with a Price/Earnings ratio of 21.95.
The rest of the industry has a similar Price/Earnings ratio as TPR.
Compared to an average S&P500 Price/Earnings ratio of 26.51, TPR is valued at the same level.
The Price/Forward Earnings ratio is 20.01, which indicates a rather expensive current valuation of TPR.
62.00% of the companies in the same industry are cheaper than TPR, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 34.09. TPR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.95 | ||
| Fwd PE | 20.01 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TPR is valued a bit more expensive than 64.00% of the companies in the same industry.
TPR's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.26 | ||
| EV/EBITDA | 17.32 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of TPR may justify a higher PE ratio.
TPR's earnings are expected to grow with 12.41% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.13
PEG (5Y)2.05
EPS Next 2Y12.73%
EPS Next 3Y12.41%
5. Dividend
5.1 Amount
TPR has a Yearly Dividend Yield of 1.29%.
TPR's Dividend Yield is a higher than the industry average which is at 3.82.
With a Dividend Yield of 1.29, TPR pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
5.2 History
The dividend of TPR has a limited annual growth rate of 0.66%.
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)0.66%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
35.71% of the earnings are spent on dividend by TPR. This is a low number and sustainable payout ratio.
The dividend of TPR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP35.71%
EPS Next 2Y12.73%
EPS Next 3Y12.41%
109.09
+0.61 (+0.56%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners103.02%
Inst Owner Change-0.41%
Ins Owners0.31%
Ins Owner Change-4.77%
Market Cap22.66B
Analysts79.17
Price Target105.29 (-3.48%)
Short Float %6.03%
Short Ratio3.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
Yearly Dividend1.4
Dividend Growth(5Y)0.66%
DP35.71%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.46%
Min EPS beat(2)13.05%
Max EPS beat(2)15.87%
EPS beat(4)4
Avg EPS beat(4)9.74%
Min EPS beat(4)3.9%
Max EPS beat(4)15.87%
EPS beat(8)7
Avg EPS beat(8)8.57%
EPS beat(12)10
Avg EPS beat(12)9.1%
EPS beat(16)14
Avg EPS beat(16)10.35%
Revenue beat(2)2
Avg Revenue beat(2)2.92%
Min Revenue beat(2)2.76%
Max Revenue beat(2)3.07%
Revenue beat(4)4
Avg Revenue beat(4)1.8%
Min Revenue beat(4)0.07%
Max Revenue beat(4)3.07%
Revenue beat(8)5
Avg Revenue beat(8)0.03%
Revenue beat(12)6
Avg Revenue beat(12)0.02%
Revenue beat(16)10
Avg Revenue beat(16)0.73%
PT rev (1m)15.1%
PT rev (3m)22.96%
EPS NQ rev (1m)1.21%
EPS NQ rev (3m)0.11%
EPS NY rev (1m)0%
EPS NY rev (3m)3.11%
Revenue NQ rev (1m)0.41%
Revenue NQ rev (3m)1.99%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)1.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.95 | ||
| Fwd PE | 20.01 | ||
| P/S | 3.29 | ||
| P/FCF | 26.26 | ||
| P/OCF | 22.74 | ||
| P/B | 15.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.32 |
EPS(TTM)4.97
EY4.56%
EPS(NY)5.45
Fwd EY5%
FCF(TTM)4.15
FCFY3.81%
OCF(TTM)4.8
OCFY4.4%
SpS33.12
BVpS7.19
TBVpS-5.07
PEG (NY)1.13
PEG (5Y)2.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.77% | ||
| ROE | 57.54% | ||
| ROCE | 21.72% | ||
| ROIC | 17.65% | ||
| ROICexc | 21.69% | ||
| ROICexgc | 48.32% | ||
| OM | 17.93% | ||
| PM (TTM) | 12.5% | ||
| GM | 75.09% | ||
| FCFM | 12.54% |
ROA(3y)10.34%
ROA(5y)6.55%
ROE(3y)35.58%
ROE(5y)20.74%
ROIC(3y)13.78%
ROIC(5y)12.02%
ROICexc(3y)19.95%
ROICexc(5y)17.13%
ROICexgc(3y)43.52%
ROICexgc(5y)37.52%
ROCE(3y)16.96%
ROCE(5y)14.79%
ROICexcg growth 3Y6.58%
ROICexcg growth 5Y1.06%
ROICexc growth 3Y4.19%
ROICexc growth 5Y7.39%
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%
F-Score8
Asset Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.59 | ||
| Debt/FCF | 3.13 | ||
| Debt/EBITDA | 1.7 | ||
| Cap/Depr | 79.52% | ||
| Cap/Sales | 1.94% | ||
| Interest Coverage | 2.29 | ||
| Cash Conversion | 71.1% | ||
| Profit Quality | 100.38% | ||
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | 3.67 |
F-Score8
WACC9.04%
ROIC/WACC1.95
Cap/Depr(3y)70.59%
Cap/Depr(5y)69.51%
Cap/Sales(3y)1.93%
Cap/Sales(5y)2.39%
Profit Quality(3y)104.57%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)15.05%
EPS 3Y12.91%
EPS 5Y10.71%
EPS Q2Q%27.16%
EPS Next Y19.34%
EPS Next 2Y12.73%
EPS Next 3Y12.41%
EPS Next 5Y9.21%
Revenue 1Y (TTM)2.67%
Revenue growth 3Y5.1%
Revenue growth 5Y2.05%
Sales Q2Q%6.89%
Revenue Next Year4.7%
Revenue Next 2Y3.48%
Revenue Next 3Y3.58%
Revenue Next 5Y2.96%
EBIT growth 1Y4.65%
EBIT growth 3Y0.85%
EBIT growth 5Y6.25%
EBIT Next Year27.13%
EBIT Next 3Y12.86%
EBIT Next 5Y8.64%
FCF growth 1Y34.16%
FCF growth 3Y-1.71%
FCF growth 5Y17.25%
OCF growth 1Y22.78%
OCF growth 3Y-1.75%
OCF growth 5Y9.66%