TAPESTRY INC (TPR) Stock Fundamental Analysis
USA - NYSE:TPR - US8760301072 - Common Stock
113.83 USD
+0.61 (+0.54%)
113.83 USD
0 (0%)
Taking everything into account, TPR scores 6 out of 10 in our fundamental rating. TPR was compared to 48 industry peers in the Textiles, Apparel & Luxury Goods industry. TPR has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. TPR is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year TPR was profitable.
TPR had a positive operating cash flow in the past year.
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'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.
The Return On Equity of TPR (21.36%) is better than 77.08% of its industry peers.
TPR's Return On Invested Capital of 22.49% is amongst the best of the industry. TPR outperforms 89.58% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TPR is above the industry average of 12.19%.
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
TPR's Profit Margin of 2.61% is in line compared to the rest of the industry. TPR outperforms 50.00% of its industry peers.
TPR's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 19.49%, TPR belongs to the best of the industry, outperforming 89.58% of the companies in the same industry.
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.
In the last couple of years the Gross Margin of TPR has grown nicely.
| 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
TPR has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
TPR has less shares outstanding than it did 1 year ago.
TPR has less shares outstanding than it did 5 years ago.
TPR has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.94 indicates that TPR is not in any danger for bankruptcy at the moment.
TPR's Altman-Z score of 3.94 is fine compared to the rest of the industry. TPR outperforms 70.83% of its industry peers.
TPR has a debt to FCF ratio of 2.24. This is a good value and a sign of high solvency as TPR would need 2.24 years to pay back of all of its debts.
TPR's Debt to FCF ratio of 2.24 is fine compared to the rest of the industry. TPR outperforms 79.17% of its industry peers.
TPR has a Debt/Equity ratio of 2.77. This is a high value indicating a heavy dependency on external 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 | 3.94 |
ROIC/WACC2.09
WACC10.77%
2.3 Liquidity
A Current Ratio of 1.87 indicates that TPR should not have too much problems paying its short term obligations.
TPR's Current ratio of 1.87 is in line compared to the rest of the industry. TPR outperforms 54.17% of its industry peers.
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.
The Revenue has been growing slightly by 5.09% in the past year.
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)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
The Earnings Per Share is expected to grow by 9.32% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.30% on average over the next years.
EPS Next Y8.45%
EPS Next 2Y9.79%
EPS Next 3Y10.55%
EPS Next 5Y9.32%
Revenue Next Year3.71%
Revenue Next 2Y4.02%
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.
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
The Price/Earnings ratio is 22.36, which indicates a rather expensive current valuation of TPR.
TPR's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.79. TPR is around the same levels.
The Price/Forward Earnings ratio is 20.62, which indicates a rather expensive current valuation of TPR.
TPR's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.21, TPR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.36 | ||
| Fwd PE | 20.62 |
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 64.58% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, TPR is valued a bit cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.14 | ||
| EV/EBITDA | 16.32 |
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)2.65
PEG (5Y)0.57
EPS Next 2Y9.79%
EPS Next 3Y10.55%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.48%, TPR has a reasonable but not impressive dividend return.
TPR's Dividend Yield is a higher than the industry average which is at 3.20.
TPR's Dividend Yield is slightly below the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
5.2 History
The dividend of TPR has a limited annual growth rate of 0.22%.
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)0.22%
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.
The dividend of TPR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP163.37%
EPS Next 2Y9.79%
EPS Next 3Y10.55%
113.83
+0.61 (+0.54%)
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-3.3%
Ins Owners0.38%
Ins Owner Change4.99%
Market Cap23.69B
Analysts79.2
Price Target117.21 (2.97%)
Short Float %5.55%
Short Ratio2.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
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)1.61%
PT rev (3m)28.14%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)16.34%
EPS NY rev (1m)0.12%
EPS NY rev (3m)1.2%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)5.44%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)1.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.36 | ||
| Fwd PE | 20.62 | ||
| P/S | 3.38 | ||
| P/FCF | 22.14 | ||
| P/OCF | 19.86 | ||
| P/B | 27.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.32 |
EPS(TTM)5.09
EY4.47%
EPS(NY)5.52
Fwd EY4.85%
FCF(TTM)5.14
FCFY4.52%
OCF(TTM)5.73
OCFY5.04%
SpS33.69
BVpS4.12
TBVpS-4.06
PEG (NY)2.65
PEG (5Y)0.57
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%
ROICexcg growth 3Y5.26%
ROICexcg 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 | 3.94 |
F-Score7
WACC10.77%
ROIC/WACC2.09
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 3Y10.55%
EPS Next 5Y9.32%
Revenue 1Y (TTM)5.09%
Revenue growth 3Y1.6%
Revenue growth 5Y7.16%
Sales Q2Q%8.3%
Revenue Next Year3.71%
Revenue Next 2Y4.02%
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 3Y11.2%
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%