TAPESTRY INC (TPR) Stock Fundamental Analysis
USA - NYSE:TPR - US8760301072 - Common Stock
114.71 USD
-0.19 (-0.17%)
115.18 USD
+0.47 (+0.41%)
We assign a fundamental rating of 6 out of 10 to TPR. TPR was compared to 48 industry peers in the Textiles, Apparel & Luxury Goods industry. TPR scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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.
Each year in the past 5 years TPR has been profitable.
TPR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TPR's Return On Assets of 2.78% is in line compared to the rest of the industry. TPR outperforms 52.08% of its industry peers.
Looking at the Return On Equity, with a value of 21.36%, TPR is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 22.49%, TPR belongs to the best of the industry, outperforming 89.58% 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 12.15%.
The last Return On Invested Capital (22.49%) for TPR is above the 3 year average (15.91%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.78% | ||
| ROE | 21.36% | ||
| ROIC | 22.49% |
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
The Profit Margin of TPR (2.61%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of TPR has declined.
TPR's Operating Margin of 19.49% is amongst the best of the industry. TPR outperforms 89.58% of its industry peers.
In the last couple of years the Operating Margin of TPR has grown nicely.
TPR's Gross Margin of 75.44% is amongst the best of 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 | 19.49% | ||
| PM (TTM) | 2.61% | ||
| GM | 75.44% |
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
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
An Altman-Z score of 3.95 indicates that TPR is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.95, TPR is in the better half of the industry, outperforming 70.83% of the companies in the same industry.
The Debt to FCF ratio of TPR is 2.24, which is a good value as it means it would take TPR, 2.24 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.24, TPR is doing good in the industry, outperforming 79.17% of the companies in the same industry.
A Debt/Equity ratio of 2.77 is on the high side and indicates that TPR has dependencies on debt financing.
With a Debt to Equity ratio value of 2.77, TPR is not doing good in the industry: 87.50% of the companies in the same industry are doing better.
Although TPR does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.77 | ||
| Debt/FCF | 2.24 | ||
| Altman-Z | 3.95 |
ROIC/WACC2.05
WACC10.95%
2.3 Liquidity
TPR has a Current Ratio of 1.87. This is a normal value and indicates that TPR is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.87, TPR is in line with its industry, outperforming 54.17% of the companies in the same industry.
A Quick Ratio of 1.31 indicates that TPR should not have too much problems paying its short term obligations.
TPR has a Quick ratio of 1.31. This is in the better half of the industry: TPR outperforms 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
TPR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.65%, which is quite good.
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.
Looking at the last year, TPR shows a small growth in Revenue. The Revenue has grown by 5.09% in the last year.
The Revenue has been growing slightly by 7.16% on average over the past years.
EPS 1Y (TTM)18.65%
EPS 3Y13.95%
EPS 5Y39.03%
EPS Q2Q%13.04%
Revenue 1Y (TTM)5.09%
Revenue growth 3Y1.6%
Revenue growth 5Y7.16%
Sales Q2Q%8.3%
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 9.32% on average per year.
TPR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.30% yearly.
EPS Next Y8.45%
EPS Next 2Y9.79%
EPS Next 3Y10.48%
EPS Next 5Y9.32%
Revenue Next Year3.73%
Revenue Next 2Y4.05%
Revenue Next 3Y4.17%
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
Based on the Price/Earnings ratio of 22.54, the valuation of TPR can be described as rather expensive.
TPR's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.91. TPR is around the same levels.
Based on the Price/Forward Earnings ratio of 20.78, the valuation of TPR can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as TPR.
The average S&P500 Price/Forward Earnings ratio is at 22.92. TPR is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.54 | ||
| Fwd PE | 20.78 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TPR is valued a bit more expensive than the industry average as 62.50% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, TPR is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.19 | ||
| EV/EBITDA | 16.38 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
TPR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.67
PEG (5Y)0.58
EPS Next 2Y9.79%
EPS Next 3Y10.48%
5. Dividend
5.1 Amount
TPR has a Yearly Dividend Yield of 1.39%. Purely for dividend investing, there may be better candidates out there.
TPR's Dividend Yield is a higher than the industry average which is at 3.30.
Compared to an average S&P500 Dividend Yield of 2.34, TPR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
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 163.37% of its income as dividend. This is not a sustainable payout ratio.
TPR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP163.37%
EPS Next 2Y9.79%
EPS Next 3Y10.48%
114.71
-0.19 (-0.17%)
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-0.4%
Ins Owners0.38%
Ins Owner Change4.99%
Market Cap23.75B
Revenue(TTM)7.01B
Net Income(TTM)183.20M
Analysts79.2
Price Target118.05 (2.91%)
Short Float %6.41%
Short Ratio4.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
Yearly Dividend1.37
Dividend Growth(5Y)0.22%
DP163.37%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.19%
Min EPS beat(2)0.51%
Max EPS beat(2)15.87%
EPS beat(4)4
Avg EPS beat(4)8.89%
Min EPS beat(4)0.51%
Max EPS beat(4)15.87%
EPS beat(8)8
Avg EPS beat(8)8.96%
EPS beat(12)11
Avg EPS beat(12)9.14%
EPS beat(16)14
Avg EPS beat(16)10%
Revenue beat(2)2
Avg Revenue beat(2)2.21%
Min Revenue beat(2)1.66%
Max Revenue beat(2)2.76%
Revenue beat(4)4
Avg Revenue beat(4)2.2%
Min Revenue beat(4)1.31%
Max Revenue beat(4)3.07%
Revenue beat(8)6
Avg Revenue beat(8)0.62%
Revenue beat(12)7
Avg Revenue beat(12)0.33%
Revenue beat(16)10
Avg Revenue beat(16)0.67%
PT rev (1m)0.72%
PT rev (3m)28.47%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)16.49%
EPS NY rev (1m)0.12%
EPS NY rev (3m)1.25%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)5.57%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)1.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.54 | ||
| Fwd PE | 20.78 | ||
| P/S | 3.39 | ||
| P/FCF | 22.19 | ||
| P/OCF | 19.91 | ||
| P/B | 27.68 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.38 |
EPS(TTM)5.09
EY4.44%
EPS(NY)5.52
Fwd EY4.81%
FCF(TTM)5.17
FCFY4.51%
OCF(TTM)5.76
OCFY5.02%
SpS33.87
BVpS4.14
TBVpS-4.08
PEG (NY)2.67
PEG (5Y)0.58
Graham Number21.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.78% | ||
| ROE | 21.36% | ||
| ROCE | 27.19% | ||
| ROIC | 22.49% | ||
| ROICexc | 28.94% | ||
| ROICexgc | 51.33% | ||
| OM | 19.49% | ||
| PM (TTM) | 2.61% | ||
| GM | 75.44% | ||
| FCFM | 15.27% |
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-Score7
Asset Turnover1.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.77 | ||
| Debt/FCF | 2.24 | ||
| Debt/EBITDA | 1.56 | ||
| Cap/Depr | 75.32% | ||
| Cap/Sales | 1.75% | ||
| Interest Coverage | 3.46 | ||
| Cash Conversion | 78.02% | ||
| Profit Quality | 584.17% | ||
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.31 | ||
| Altman-Z | 3.95 |
F-Score7
WACC10.95%
ROIC/WACC2.05
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)18.65%
EPS 3Y13.95%
EPS 5Y39.03%
EPS Q2Q%13.04%
EPS Next Y8.45%
EPS Next 2Y9.79%
EPS Next 3Y10.48%
EPS Next 5Y9.32%
Revenue 1Y (TTM)5.09%
Revenue growth 3Y1.6%
Revenue growth 5Y7.16%
Sales Q2Q%8.3%
Revenue Next Year3.73%
Revenue Next 2Y4.05%
Revenue Next 3Y4.17%
Revenue Next 5Y3.3%
EBIT growth 1Y19.82%
EBIT growth 3Y4.72%
EBIT growth 5Y26.13%
EBIT Next Year18.62%
EBIT Next 3Y10.99%
EBIT Next 5Y7.82%
FCF growth 1Y-6.67%
FCF growth 3Y12.12%
FCF growth 5Y39.64%
OCF growth 1Y-4.99%
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 3 / 10 to TAPESTRY INC (TPR). This can be considered as Overvalued.
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 22.54 and the Price/Book (PB) ratio is 27.68.
How financially healthy is TAPESTRY INC?
The financial health rating of TAPESTRY INC (TPR) is 7 / 10.