TAPESTRY INC (TPR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TPR - US8760301072 - Common Stock
130.04 USD
+0.52 (+0.4%)
130.04 USD
0 (0%)
Taking everything into account, TPR scores 6 out of 10 in our fundamental rating. TPR was compared to 45 industry peers in the Textiles, Apparel & Luxury Goods industry. TPR scores excellent on profitability, 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
- In the past year TPR was profitable.
- TPR had a positive operating cash flow in the past year.
- TPR had positive earnings in each of the past 5 years.
- In the past 5 years TPR always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 4.27%, TPR is in the better half of the industry, outperforming 68.89% of the companies in the same industry.
- TPR has a better Return On Equity (67.93%) than 100.00% of its industry peers.
- TPR has a better Return On Invested Capital (24.67%) than 93.33% of its industry peers.
- TPR had an Average Return On Invested Capital over the past 3 years of 15.91%. This is above the industry average of 11.59%.
- The last Return On Invested Capital (24.67%) for TPR is above the 3 year average (15.91%), which is a sign of increasing profitability.
| 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's Operating Margin of 20.21% is amongst the best of the industry. TPR outperforms 88.89% of its industry peers.
- TPR's Operating Margin has improved in the last couple of years.
- TPR has a better Gross Margin (75.67%) 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so TPR is creating value.
- Compared to 1 year ago, TPR has less shares outstanding
- 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 3.99 indicates that TPR is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 3.99, TPR is doing good in the industry, outperforming 75.56% 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.
- The Debt to FCF ratio of TPR (2.49) is better than 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 | 3.99 |
ROIC/WACC2.1
WACC11.73%
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.
- The Current ratio of TPR (1.52) is worse than 68.89% of its industry peers.
- 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
- 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.
- Measured over the past years, TPR shows a very strong growth in Earnings Per Share. The EPS has been growing by 39.03% on average per year.
- The Revenue has grown by 8.14% in the past year. This is quite good.
- Measured over the past years, TPR shows a small growth in Revenue. The Revenue has been growing by 7.16% on average per year.
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 10.06% on average over the next years. This is quite good.
- TPR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.05% yearly.
EPS Next Y11.54%
EPS Next 2Y11.28%
EPS Next 3Y11.4%
EPS Next 5Y10.06%
Revenue Next Year5.89%
Revenue Next 2Y5.25%
Revenue Next 3Y4.96%
Revenue Next 5Y4.05%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- TPR is valuated rather expensively with a Price/Earnings ratio of 23.86.
- TPR's Price/Earnings is on the same level as the industry average.
- When comparing the Price/Earnings ratio of TPR to the average of the S&P500 Index (27.21), we can say TPR is valued inline with the index average.
- With a Price/Forward Earnings ratio of 20.63, TPR is valued on the expensive side.
- TPR's Price/Forward Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, TPR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.86 | ||
| Fwd PE | 20.63 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, TPR is valued a bit more expensive than 62.22% of the companies in the same industry.
- TPR's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.19 | ||
| EV/EBITDA | 17.41 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TPR does not grow enough to justify the current Price/Earnings ratio.
- The excellent profitability rating of TPR may justify a higher PE ratio.
PEG (NY)2.07
PEG (5Y)0.61
EPS Next 2Y11.28%
EPS Next 3Y11.4%
5. Dividend
5.1 Amount
- TPR has a Yearly Dividend Yield of 1.20%.
- Compared to an average industry Dividend Yield of 1.43, TPR has a dividend in line with its industry peers.
- TPR's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
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
- TPR pays out 110.98% of its income as dividend. 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%
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%.