TAPESTRY INC (TPR) Stock Fundamental Analysis
NYSE:TPR - New York Stock Exchange, Inc. - US8760301072 - Common Stock - Currency: USD
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. While TPR has a great profitability rating, 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
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.
Each year in the past 5 years TPR had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 11.77%, TPR belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
TPR's Return On Equity of 57.54% is amongst the best of the industry. TPR outperforms 97.92% of its industry peers.
TPR has a better Return On Invested Capital (17.65%) than 83.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TPR is in line with the industry average of 13.51%.
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
TPR has a Profit Margin of 12.50%. This is amongst the best in the industry. TPR outperforms 91.67% of its industry peers.
In the last couple of years the Profit Margin of TPR has grown nicely.
TPR has a Operating Margin of 17.93%. This is amongst the best in the industry. TPR outperforms 87.50% of its industry peers.
TPR's Operating Margin has improved in the last couple of years.
TPR's Gross Margin of 75.09% is amongst the best of the industry. TPR outperforms 97.92% of its industry peers.
TPR's Gross Margin has improved in the last couple of years.
| 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) just above the Cost of Capital (WACC), TPR is creating some value.
Compared to 1 year ago, TPR has more shares outstanding
Compared to 5 years ago, TPR has less shares outstanding
Compared to 1 year ago, TPR has a worse debt to assets ratio.
2.2 Solvency
TPR has an Altman-Z score of 3.06. This indicates that TPR is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 3.06, TPR perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
TPR has a debt to FCF ratio of 3.13. This is a good value and a sign of high solvency as TPR would need 3.13 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.13, TPR is doing good in the industry, outperforming 66.67% 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.
TPR's Debt to Equity ratio of 1.59 is on the low side compared to the rest of the industry. TPR is outperformed by 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.59 | ||
| Debt/FCF | 3.13 | ||
| Altman-Z | 3.06 |
ROIC/WACC1.75
WACC10.09%
2.3 Liquidity
TPR has a Current Ratio of 1.76. 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 1.76 is in line compared to the rest of the industry. TPR outperforms 43.75% of its industry peers.
TPR has a Quick Ratio of 1.22. This is a normal value and indicates that TPR is financially healthy and should not expect problems in meeting its short term obligations.
TPR has a Quick ratio (1.22) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.05% 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 10.71% yearly.
TPR shows a small growth in Revenue. In the last year, the Revenue has grown by 2.67%.
The Revenue has been growing slightly by 2.05% on average over the past years.
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 11.61% on average per year.
The Revenue is expected to grow by 3.84% on average over the next years.
EPS Next Y19.44%
EPS Next 2Y12.5%
EPS Next 3Y12.43%
EPS Next 5Y11.61%
Revenue Next Year4.6%
Revenue Next 2Y3.37%
Revenue Next 3Y3.66%
Revenue Next 5Y3.84%
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.
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 correctly with a Price/Earnings ratio of 15.78.
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 26.20, TPR is valued a bit cheaper.
A Price/Forward Earnings ratio of 14.45 indicates a correct valuation of TPR.
64.58% of the companies in the same industry are more expensive than TPR, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of TPR to the average of the S&P500 Index (22.13), we can say TPR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.78 | ||
| Fwd PE | 14.45 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TPR indicates a slightly more expensive valuation: TPR is more expensive than 62.50% of the companies listed 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 | 18.88 | ||
| EV/EBITDA | 13.07 |
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.
TPR's earnings are expected to grow with 12.43% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.81
PEG (5Y)1.47
EPS Next 2Y12.5%
EPS Next 3Y12.43%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.76%, TPR has a reasonable but not impressive dividend return.
TPR's Dividend Yield is a higher than the industry average which is at 3.64.
Compared to the average S&P500 Dividend Yield of 2.40, TPR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
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
TPR pays out 35.71% of its income as dividend. This is a sustainable payout ratio.
TPR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP35.71%
EPS Next 2Y12.5%
EPS Next 3Y12.43%
78.44
-1.98 (-2.46%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners107.88%
Inst Owner Change-4.44%
Ins Owners0.36%
Ins Owner Change-4.7%
Market Cap16.29B
Analysts78.46
Price Target85.62 (9.15%)
Short Float %7.42%
Short Ratio2.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
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)-6.72%
PT rev (3m)-2.62%
EPS NQ rev (1m)-1.15%
EPS NQ rev (3m)-1.08%
EPS NY rev (1m)3.19%
EPS NY rev (3m)2.97%
Revenue NQ rev (1m)1.44%
Revenue NQ rev (3m)1.51%
Revenue NY rev (1m)1.24%
Revenue NY rev (3m)1.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.78 | ||
| Fwd PE | 14.45 | ||
| P/S | 2.37 | ||
| P/FCF | 18.88 | ||
| P/OCF | 16.35 | ||
| P/B | 10.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.07 |
EPS(TTM)4.97
EY6.34%
EPS(NY)5.43
Fwd EY6.92%
FCF(TTM)4.15
FCFY5.3%
OCF(TTM)4.8
OCFY6.12%
SpS33.12
BVpS7.19
TBVpS-5.07
PEG (NY)0.81
PEG (5Y)1.47
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 | 3.06 |
F-Score8
WACC10.09%
ROIC/WACC1.75
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 Y19.44%
EPS Next 2Y12.5%
EPS Next 3Y12.43%
EPS Next 5Y11.61%
Revenue 1Y (TTM)2.67%
Revenue growth 3Y5.1%
Revenue growth 5Y2.05%
Sales Q2Q%6.89%
Revenue Next Year4.6%
Revenue Next 2Y3.37%
Revenue Next 3Y3.66%
Revenue Next 5Y3.84%
EBIT growth 1Y4.65%
EBIT growth 3Y0.85%
EBIT growth 5Y6.25%
EBIT Next Year27.06%
EBIT Next 3Y11.84%
EBIT Next 5Y9.37%
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%