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 48 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year TPR was profitable.
In the past year TPR had a positive cash flow from operations.
Of the past 5 years TPR 4 years were profitable.
Each year in the past 5 years TPR had a positive operating cash flow.
1.2 Ratios
TPR's Return On Assets of 10.97% is amongst the best of the industry. TPR outperforms 83.33% of its industry peers.
TPR's Return On Equity of 59.54% is amongst the best of the industry. TPR outperforms 95.83% of its industry peers.
The Return On Invested Capital of TPR (17.49%) is better than 81.25% of its industry peers.
TPR had an Average Return On Invested Capital over the past 3 years of 13.78%. This is in line with the industry average of 13.58%.
The last Return On Invested Capital (17.49%) for TPR is above the 3 year average (13.78%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.97% | ||
| ROE | 59.54% | ||
| ROIC | 17.49% |
ROA(3y)10.34%
ROA(5y)6.55%
ROE(3y)35.58%
ROE(5y)20.74%
ROIC(3y)13.78%
ROIC(5y)12.02%
1.3 Margins
TPR has a better Profit Margin (11.74%) than 87.50% of its industry peers.
TPR's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 17.47%, TPR belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
TPR's Operating Margin has improved in the last couple of years.
TPR has a better Gross Margin (74.77%) than 97.92% of its industry peers.
TPR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.47% | ||
| PM (TTM) | 11.74% | ||
| GM | 74.77% |
OM growth 3Y-4.04%
OM growth 5Y4.12%
PM growth 3Y-5.55%
PM growth 5Y2.76%
GM growth 3Y0.98%
GM growth 5Y1.59%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TPR is creating some value.
The number of shares outstanding for TPR has been increased compared to 1 year ago.
Compared to 5 years ago, TPR has less shares outstanding
The debt/assets ratio for TPR is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.79 indicates that TPR is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.79, TPR perfoms like the industry average, outperforming 52.08% of the companies in the same industry.
TPR has a debt to FCF ratio of 3.13. This is a good value and a sign of high solvency as TPR would need 3.13 years to pay back of all of its debts.
The Debt to FCF ratio of TPR (3.13) is better than 62.50% of its industry peers.
TPR has a Debt/Equity ratio of 1.78. This is a high value indicating a heavy dependency on external financing.
TPR has a worse Debt to Equity ratio (1.78) than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.78 | ||
| Debt/FCF | 3.13 | ||
| Altman-Z | 2.79 |
ROIC/WACC1.8
WACC9.73%
2.3 Liquidity
TPR has a Current Ratio of 1.58. 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 (1.58) is worse than 64.58% of its industry peers.
A Quick Ratio of 1.05 indicates that TPR should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.05, TPR is in line with its industry, outperforming 43.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.72% over the past year.
The Earnings Per Share has been growing by 10.71% on average over the past years. This is quite good.
Looking at the last year, TPR shows a small growth in Revenue. The Revenue has grown by 0.74% in the last year.
Measured over the past years, TPR shows a small growth in Revenue. The Revenue has been growing by 2.05% on average per year.
EPS 1Y (TTM)10.72%
EPS 3Y12.91%
EPS 5Y10.71%
EPS Q2Q%22.7%
Revenue 1Y (TTM)0.74%
Revenue growth 3Y5.1%
Revenue growth 5Y2.05%
Sales Q2Q%5.32%
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 11.61% yearly.
TPR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.84% yearly.
EPS Next Y15.74%
EPS Next 2Y11.72%
EPS Next 3Y11.76%
EPS Next 5Y11.61%
Revenue Next Year3.32%
Revenue Next 2Y3.05%
Revenue Next 3Y3.36%
Revenue Next 5Y3.84%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.48, TPR is valued correctly.
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 28.18, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 13.73, the valuation of TPR can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TPR indicates a somewhat cheap valuation: TPR is cheaper than 60.42% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.81, TPR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.48 | ||
| Fwd PE | 13.73 |
4.2 Price Multiples
TPR's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. TPR is more expensive than 60.42% 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 | 17.74 | ||
| EV/EBITDA | 12.35 |
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.
The excellent profitability rating of TPR may justify a higher PE ratio.
PEG (NY)0.98
PEG (5Y)1.45
EPS Next 2Y11.72%
EPS Next 3Y11.76%
5. Dividend
5.1 Amount
TPR has a Yearly Dividend Yield of 1.99%. 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 4.04.
Compared to an average S&P500 Dividend Yield of 2.45, TPR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
5.2 History
The dividend of TPR has a limited annual growth rate of 0.66%.
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)0.66%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
TPR pays out 39.56% of its income as dividend. This is a sustainable payout ratio.
The dividend of TPR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP39.56%
EPS Next 2Y11.72%
EPS Next 3Y11.76%
NYSE:TPR (5/5/2025, 3:00:59 PM)
73.51
+0.75 (+1.03%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners107.88%
Inst Owner Change-1.47%
Ins Owners0.36%
Ins Owner Change-3.45%
Market Cap15.22B
Analysts78.46
Price Target86.47 (17.63%)
Short Float %8.08%
Short Ratio2.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
Yearly Dividend1.4
Dividend Growth(5Y)0.66%
DP39.56%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.58%
Min EPS beat(2)6.12%
Max EPS beat(2)13.05%
EPS beat(4)4
Avg EPS beat(4)10.65%
Min EPS beat(4)3.9%
Max EPS beat(4)19.51%
EPS beat(8)7
Avg EPS beat(8)10.45%
EPS beat(12)10
Avg EPS beat(12)9.65%
EPS beat(16)14
Avg EPS beat(16)13.17%
Revenue beat(2)2
Avg Revenue beat(2)2.19%
Min Revenue beat(2)1.31%
Max Revenue beat(2)3.07%
Revenue beat(4)3
Avg Revenue beat(4)0.61%
Min Revenue beat(4)-2.02%
Max Revenue beat(4)3.07%
Revenue beat(8)5
Avg Revenue beat(8)0.14%
Revenue beat(12)6
Avg Revenue beat(12)-0.17%
Revenue beat(16)10
Avg Revenue beat(16)0.77%
PT rev (1m)-5.79%
PT rev (3m)21.3%
EPS NQ rev (1m)0.23%
EPS NQ rev (3m)0.62%
EPS NY rev (1m)-0.22%
EPS NY rev (3m)5.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.25%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)1.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.48 | ||
| Fwd PE | 13.73 | ||
| P/S | 2.25 | ||
| P/FCF | 17.74 | ||
| P/OCF | 15.54 | ||
| P/B | 11.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.35 |
EPS(TTM)4.75
EY6.46%
EPS(NY)5.35
Fwd EY7.28%
FCF(TTM)4.14
FCFY5.64%
OCF(TTM)4.73
OCFY6.44%
SpS32.73
BVpS6.46
TBVpS-5.89
PEG (NY)0.98
PEG (5Y)1.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.97% | ||
| ROE | 59.54% | ||
| ROCE | 21.53% | ||
| ROIC | 17.49% | ||
| ROICexc | 21.39% | ||
| ROICexgc | 49.53% | ||
| OM | 17.47% | ||
| PM (TTM) | 11.74% | ||
| GM | 74.77% | ||
| FCFM | 12.66% |
ROA(3y)10.34%
ROA(5y)6.55%
ROE(3y)35.58%
ROE(5y)20.74%
ROIC(3y)13.78%
ROIC(5y)12.02%
ROICexc(3y)19.95%
ROICexc(5y)17.13%
ROICexgc(3y)43.52%
ROICexgc(5y)37.52%
ROCE(3y)16.96%
ROCE(5y)14.79%
ROICexcg growth 3Y6.58%
ROICexcg growth 5Y1.06%
ROICexc growth 3Y4.19%
ROICexc growth 5Y7.39%
OM growth 3Y-4.04%
OM growth 5Y4.12%
PM growth 3Y-5.55%
PM growth 5Y2.76%
GM growth 3Y0.98%
GM growth 5Y1.59%
F-Score8
Asset Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.78 | ||
| Debt/FCF | 3.13 | ||
| Debt/EBITDA | 1.76 | ||
| Cap/Depr | 71.59% | ||
| Cap/Sales | 1.8% | ||
| Interest Coverage | 2.19 | ||
| Cash Conversion | 72.32% | ||
| Profit Quality | 107.78% | ||
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z | 2.79 |
F-Score8
WACC9.73%
ROIC/WACC1.8
Cap/Depr(3y)70.59%
Cap/Depr(5y)69.51%
Cap/Sales(3y)1.93%
Cap/Sales(5y)2.39%
Profit Quality(3y)104.57%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)10.72%
EPS 3Y12.91%
EPS 5Y10.71%
EPS Q2Q%22.7%
EPS Next Y15.74%
EPS Next 2Y11.72%
EPS Next 3Y11.76%
EPS Next 5Y11.61%
Revenue 1Y (TTM)0.74%
Revenue growth 3Y5.1%
Revenue growth 5Y2.05%
Sales Q2Q%5.32%
Revenue Next Year3.32%
Revenue Next 2Y3.05%
Revenue Next 3Y3.36%
Revenue Next 5Y3.84%
EBIT growth 1Y-1.38%
EBIT growth 3Y0.85%
EBIT growth 5Y6.25%
EBIT Next Year24.9%
EBIT Next 3Y11.76%
EBIT Next 5Y9.37%
FCF growth 1Y66.04%
FCF growth 3Y-1.71%
FCF growth 5Y17.25%
OCF growth 1Y51.24%
OCF growth 3Y-1.75%
OCF growth 5Y9.66%