TAPESTRY INC (TPR)

US8760301072 - Common Stock

44.34  +0.86 (+1.98%)

Fundamental Rating

7

Overall TPR gets a fundamental rating of 7 out of 10. We evaluated TPR against 50 industry peers in the Textiles, Apparel & Luxury Goods industry. TPR has an excellent profitability rating, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on TPR. With these ratings, TPR could be worth investigating further for value investing!.



9

1. Profitability

1.1 Basic Checks

In the past year TPR was profitable.
TPR had a positive operating cash flow in the past year.
Of the past 5 years TPR 4 years were profitable.
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 6.42%, TPR is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
The Return On Equity of TPR (31.74%) is better than 85.71% of its industry peers.
TPR has a Return On Invested Capital of 7.80%. This is comparable to the rest of the industry: TPR outperforms 59.18% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TPR is significantly above the industry average of 10.34%.
The 3 year average ROIC (15.58%) for TPR is well above the current ROIC(7.80%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 6.42%
ROE 31.74%
ROIC 7.8%
ROA(3y)11.63%
ROA(5y)7.2%
ROE(3y)34.72%
ROE(5y)18.76%
ROIC(3y)15.58%
ROIC(5y)12.82%

1.3 Margins

The Profit Margin of TPR (13.15%) is better than 91.84% of its industry peers.
TPR's Profit Margin has improved in the last couple of years.
TPR's Operating Margin of 17.59% is amongst the best of the industry. TPR outperforms 91.84% of its industry peers.
In the last couple of years the Operating Margin of TPR has grown nicely.
TPR has a Gross Margin of 72.71%. This is amongst the best in 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 RankSector Rank
OM 17.59%
PM (TTM) 13.15%
GM 72.71%
OM growth 3Y25.82%
OM growth 5Y8.44%
PM growth 3YN/A
PM growth 5Y15.76%
GM growth 3Y1.51%
GM growth 5Y1.55%

5

2. Health

2.1 Basic Checks

TPR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some 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
Compared to 1 year ago, TPR has a worse debt to assets ratio.

2.2 Solvency

TPR has an Altman-Z score of 1.90. This is not the best score and indicates that TPR is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of TPR (1.90) is worse than 67.35% of its industry peers.
The Debt to FCF ratio of TPR is 5.91, which is a neutral value as it means it would take TPR, 5.91 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 5.91, TPR is not doing good in the industry: 61.22% of the companies in the same industry are doing better.
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: 89.80% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 2.77
Debt/FCF 5.91
Altman-Z 1.9
ROIC/WACC0.9
WACC8.69%

2.3 Liquidity

A Current Ratio of 6.59 indicates that TPR has no problem at all paying its short term obligations.
TPR's Current ratio of 6.59 is amongst the best of the industry. TPR outperforms 100.00% of its industry peers.
TPR has a Quick Ratio of 5.98. This indicates that TPR is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of TPR (5.98) is better than 100.00% of its industry peers.
Industry RankSector Rank
Current Ratio 6.59
Quick Ratio 5.98

5

3. Growth

3.1 Past

TPR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.44%, which is quite good.
TPR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.09% yearly.
Looking at the last year, TPR shows a small growth in Revenue. The Revenue has grown by 0.50% in the last year.
The Revenue has been growing slightly by 2.53% on average over the past years.
EPS 1Y (TTM)16.44%
EPS 3Y58.2%
EPS 5Y8.09%
EPS Q2Q%3.85%
Revenue 1Y (TTM)0.5%
Revenue growth 3Y10.32%
Revenue growth 5Y2.53%
Sales Q2Q%-1.8%

3.2 Future

TPR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.58% yearly.
The Revenue is expected to grow by 3.43% on average over the next years.
EPS Next Y10.43%
EPS Next 2Y8.52%
EPS Next 3Y7.78%
EPS Next 5Y9.58%
Revenue Next Year-0.69%
Revenue Next 2Y0.74%
Revenue Next 3Y1.77%
Revenue Next 5Y3.43%

3.3 Evolution

The EPS growth rate is stable: in the next years the growth will be about the same 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 accelerating.

8

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 10.26, the valuation of TPR can be described as reasonable.
Based on the Price/Earnings ratio, TPR is valued cheaply inside the industry as 87.76% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.91. TPR is valued rather cheaply when compared to this.
TPR is valuated reasonably with a Price/Forward Earnings ratio of 9.70.
Based on the Price/Forward Earnings ratio, TPR is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
TPR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.49.
Industry RankSector Rank
PE 10.26
Fwd PE 9.7

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, TPR is valued a bit cheaper than 79.59% of the companies in the same industry.
79.59% of the companies in the same industry are more expensive than TPR, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 7.82
EV/EBITDA 7.25

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
TPR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.98
PEG (5Y)1.27
EPS Next 2Y8.52%
EPS Next 3Y7.78%

5

5. Dividend

5.1 Amount

TPR has a Yearly Dividend Yield of 3.48%. Purely for dividend investing, there may be better candidates out there.
TPR's Dividend Yield is rather good when compared to the industry average which is at 2.86. TPR pays more dividend than 91.84% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, TPR pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 3.48%

5.2 History

The dividend of TPR decreases each year by -2.15%.
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)-2.15%
Div Incr Years3
Div Non Decr Years3

5.3 Sustainability

TPR pays out 35.20% of its income as dividend. This is a sustainable payout ratio.
DP35.2%
EPS Next 2Y8.52%
EPS Next 3Y7.78%

TAPESTRY INC

NYSE:TPR (7/12/2024, 10:45:09 AM)

44.34

+0.86 (+1.98%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap10.19B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 3.48%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 10.26
Fwd PE 9.7
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.98
PEG (5Y)1.27
Profitability
Industry RankSector Rank
ROA 6.42%
ROE 31.74%
ROCE
ROIC
ROICexc
ROICexgc
OM 17.59%
PM (TTM) 13.15%
GM 72.71%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.49
Health
Industry RankSector Rank
Debt/Equity 2.77
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 6.59
Quick Ratio 5.98
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)16.44%
EPS 3Y58.2%
EPS 5Y
EPS Q2Q%
EPS Next Y10.43%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.5%
Revenue growth 3Y10.32%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y