TAPESTRY INC (TPR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TPR - US8760301072 - Common Stock
133.18 USD
+4.65 (+3.62%)
133.76 USD
+0.58 (+0.44%)
Overall TPR gets a fundamental rating of 6 out of 10. We evaluated TPR against 45 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 is quite expensive at the moment. It does show a decent growth rate.
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.
Each year in the past 5 years TPR has been profitable.
In the past 5 years TPR always reported a positive cash flow from operatings.
1.2 Ratios
TPR has a better Return On Assets (4.27%) than 68.89% of its industry peers.
With an excellent Return On Equity value of 67.93%, TPR belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
TPR has a Return On Invested Capital of 24.67%. This is amongst the best in the industry. TPR outperforms 93.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TPR is above the industry average of 11.62%.
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 60.00% of the companies in the same industry.
In the last couple of years the Profit Margin of TPR has declined.
TPR has a better Operating Margin (20.21%) than 88.89% of its industry peers.
TPR's Operating Margin has improved in the last couple of years.
The Gross Margin of TPR (75.67%) is better than 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.
Compared to 5 years ago, TPR has less shares outstanding
The debt/assets ratio for TPR has been reduced compared to a year ago.
2.2 Solvency
TPR has an Altman-Z score of 3.96. This indicates that TPR is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.96, TPR is doing good in the industry, outperforming 73.33% 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.
TPR has a Debt to FCF ratio of 2.49. This is in the better half of the industry: TPR outperforms 73.33% of its industry peers.
TPR has a Debt/Equity ratio of 6.55. This is a high value indicating a heavy dependency on external financing.
TPR has a Debt to Equity ratio of 6.55. This is amonst the worse of the industry: TPR underperforms 91.11% 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 | 3.96 |
ROIC/WACC2.13
WACC11.56%
2.3 Liquidity
A Current Ratio of 1.52 indicates that TPR should not have too much problems paying its short term obligations.
With a Current ratio value of 1.52, TPR is not doing good in the industry: 68.89% of the companies in the same industry are doing better.
A Quick Ratio of 0.93 indicates that TPR may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.93, TPR is in line with its industry, outperforming 46.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.43% over the past year.
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%.
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.
Based on estimates for the next years, TPR will show a small growth in Revenue. The Revenue will grow by 3.30% on average per year.
EPS Next Y11.54%
EPS Next 2Y11.28%
EPS Next 3Y11.4%
EPS Next 5Y9.32%
Revenue Next Year5.76%
Revenue Next 2Y5.15%
Revenue Next 3Y4.83%
Revenue Next 5Y3.3%
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 decreasing.
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
Based on the Price/Earnings ratio of 24.44, the valuation of TPR can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as TPR.
When comparing the Price/Earnings ratio of TPR to the average of the S&P500 Index (27.17), we can say TPR is valued inline with the index average.
The Price/Forward Earnings ratio is 21.13, which indicates a rather expensive current valuation of TPR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TPR is on the same level as its industry peers.
TPR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.79.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.44 | ||
| Fwd PE | 21.13 |
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 62.22% of the companies listed in the same industry.
TPR's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.8 | ||
| EV/EBITDA | 17.28 |
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)2.12
PEG (5Y)0.63
EPS Next 2Y11.28%
EPS Next 3Y11.4%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.25%, TPR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.53, TPR has a dividend in line with its industry peers.
TPR's Dividend Yield is slightly below the S&P500 average, which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
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.
The dividend of TPR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP110.98%
EPS Next 2Y11.28%
EPS Next 3Y11.4%
133.18
+4.65 (+3.62%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners98.77%
Inst Owner Change0%
Ins Owners0.32%
Ins Owner Change5.03%
Market Cap27.26B
Revenue(TTM)7.21B
Net Income(TTM)271.40M
Analysts80.8
Price Target127.67 (-4.14%)
Short Float %5.74%
Short Ratio3.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
Yearly Dividend1.37
Dividend Growth(5Y)0.22%
DP110.98%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
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)2.77%
PT rev (3m)8.15%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)0.97%
EPS NY rev (1m)0.08%
EPS NY rev (3m)2.85%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)2.08%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)1.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.44 | ||
| Fwd PE | 21.13 | ||
| P/S | 3.78 | ||
| P/FCF | 25.8 | ||
| P/OCF | 22.98 | ||
| P/B | 68.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.28 |
EPS(TTM)5.45
EY4.09%
EPS(NY)6.3
Fwd EY4.73%
FCF(TTM)5.16
FCFY3.88%
OCF(TTM)5.8
OCFY4.35%
SpS35.22
BVpS1.95
TBVpS-6.33
PEG (NY)2.12
PEG (5Y)0.63
Graham Number15.47
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 | 3.96 |
F-Score6
WACC11.56%
ROIC/WACC2.13
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 Y11.54%
EPS Next 2Y11.28%
EPS Next 3Y11.4%
EPS Next 5Y9.32%
Revenue 1Y (TTM)8.14%
Revenue growth 3Y1.6%
Revenue growth 5Y7.16%
Sales Q2Q%13.07%
Revenue Next Year5.76%
Revenue Next 2Y5.15%
Revenue Next 3Y4.83%
Revenue Next 5Y3.3%
EBIT growth 1Y27.93%
EBIT growth 3Y4.72%
EBIT growth 5Y26.13%
EBIT Next Year22.18%
EBIT Next 3Y12.38%
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.
Can you provide the valuation status for TAPESTRY INC?
ChartMill assigns a valuation rating of 2 / 10 to TAPESTRY INC (TPR). This can be considered as Overvalued.
How profitable is TAPESTRY INC (TPR) stock?
TAPESTRY INC (TPR) has a profitability rating of 8 / 10.
Can you provide the financial health for TPR stock?
The financial health rating of TAPESTRY INC (TPR) is 6 / 10.
How sustainable is the dividend of TAPESTRY INC (TPR) stock?
The dividend rating of TAPESTRY INC (TPR) is 4 / 10 and the dividend payout ratio is 110.98%.