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 50 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 valied quite expensively at the moment, while 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.
TPR had positive earnings in each of the past 5 years.
Each year in the past 5 years TPR had a positive operating cash flow.
1.2 Ratios
TPR's Return On Assets of 2.78% is in line compared to the rest of the industry. TPR outperforms 54.00% of its industry peers.
TPR's Return On Equity of 21.36% is amongst the best of the industry. TPR outperforms 84.00% of its industry peers.
TPR has a better Return On Invested Capital (22.49%) than 90.00% 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 11.02%.
The 3 year average ROIC (15.91%) for TPR is below the current ROIC(22.49%), indicating increased profibility in the last year.
| 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 52.00% of its industry peers.
TPR's Profit Margin has declined in the last couple of years.
TPR's Operating Margin of 19.49% is amongst the best of the industry. TPR outperforms 90.00% of its industry peers.
In the last couple of years the Operating Margin of TPR has grown nicely.
Looking at the Gross Margin, with a value of 75.44%, TPR belongs to the top of the industry, outperforming 98.00% of the companies in the same industry.
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.
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
TPR has an Altman-Z score of 3.60. This indicates that TPR is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.60, TPR is doing good in the industry, outperforming 68.00% of the companies in the same industry.
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 76.00% 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.
TPR has a Debt to Equity ratio of 2.77. This is amonst the worse of the industry: TPR underperforms 84.00% of its industry peers.
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 | 3.6 |
ROIC/WACC2.38
WACC9.47%
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 50.00% 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 (1.31) which is in line with 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.
The Earnings Per Share has been growing by 39.03% on average over the past years. This is a very strong growth
TPR shows a small growth in Revenue. In the last year, the Revenue has grown by 5.09%.
TPR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.16% yearly.
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 small growth in Earnings Per Share. The EPS will grow by 6.88% on average per year.
Based on estimates for the next years, TPR will show a small growth in Revenue. The Revenue will grow by 2.67% on average per year.
EPS Next Y8.32%
EPS Next 2Y9.48%
EPS Next 3Y10.09%
EPS Next 5Y6.88%
Revenue Next Year3.61%
Revenue Next 2Y3.94%
Revenue Next 3Y3.97%
Revenue Next 5Y2.67%
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
Based on the Price/Earnings ratio of 19.33, the valuation of TPR can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as TPR.
TPR is valuated rather cheaply when we compare the Price/Earnings ratio to 26.76, which is the current average of the S&P500 Index.
TPR is valuated rather expensively with a Price/Forward Earnings ratio of 17.84.
TPR's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of TPR to the average of the S&P500 Index (34.91), we can say TPR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.33 | ||
| Fwd PE | 17.84 |
4.2 Price Multiples
60.00% of the companies in the same industry are cheaper than TPR, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TPR is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.13 | ||
| EV/EBITDA | 14.21 |
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)2.32
PEG (5Y)0.5
EPS Next 2Y9.48%
EPS Next 3Y10.09%
5. Dividend
5.1 Amount
TPR has a Yearly Dividend Yield of 1.62%.
Compared to an average industry Dividend Yield of 3.64, TPR pays a bit more dividend than its industry peers.
TPR's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
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 2Y9.48%
EPS Next 3Y10.09%
98.39
-0.48 (-0.49%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners103.02%
Inst Owner Change-3.27%
Ins Owners0.31%
Ins Owner Change-4.77%
Market Cap20.48B
Analysts79.17
Price Target115.35 (17.24%)
Short Float %6.46%
Short Ratio3.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
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)15.1%
PT rev (3m)22.96%
EPS NQ rev (1m)2.35%
EPS NQ rev (3m)2.42%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.08%
Revenue NQ rev (1m)0.41%
Revenue NQ rev (3m)0.53%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.33 | ||
| Fwd PE | 17.84 | ||
| P/S | 2.92 | ||
| P/FCF | 19.13 | ||
| P/OCF | 17.17 | ||
| P/B | 23.87 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.21 |
EPS(TTM)5.09
EY5.17%
EPS(NY)5.51
Fwd EY5.6%
FCF(TTM)5.14
FCFY5.23%
OCF(TTM)5.73
OCFY5.83%
SpS33.69
BVpS4.12
TBVpS-4.06
PEG (NY)2.32
PEG (5Y)0.5
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 | 3.6 |
F-Score7
WACC9.47%
ROIC/WACC2.38
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 Y8.32%
EPS Next 2Y9.48%
EPS Next 3Y10.09%
EPS Next 5Y6.88%
Revenue 1Y (TTM)5.09%
Revenue growth 3Y1.6%
Revenue growth 5Y7.16%
Sales Q2Q%8.3%
Revenue Next Year3.61%
Revenue Next 2Y3.94%
Revenue Next 3Y3.97%
Revenue Next 5Y2.67%
EBIT growth 1Y19.82%
EBIT growth 3Y4.72%
EBIT growth 5Y26.13%
EBIT Next Year19.6%
EBIT Next 3Y10.62%
EBIT Next 5Y6.7%
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%