TAPESTRY INC (TPR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TPR - US8760301072 - Common Stock
123.09 USD
-0.49 (-0.4%)
123.09 USD
0 (0%)
Taking everything into account, TPR scores 6 out of 10 in our fundamental rating. TPR was compared to 45 industry peers in the Textiles, Apparel & Luxury Goods industry. TPR scores excellent on profitability, but there are some minor concerns on its financial health. 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.
In the past 5 years TPR has always been profitable.
In the past 5 years TPR always reported a positive cash flow from operatings.
1.2 Ratios
TPR has a better Return On Assets (4.27%) than 68.89% of its industry peers.
TPR has a Return On Equity of 67.93%. This is amongst the best in the industry. TPR outperforms 100.00% of its industry peers.
TPR has a better Return On Invested Capital (24.67%) than 93.33% 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 11.76%.
The last Return On Invested Capital (24.67%) for TPR is above the 3 year average (15.91%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.27% | ||
| ROE | 67.93% | ||
| ROIC | 24.67% |
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
With a Profit Margin value of 3.77%, TPR perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
In the last couple of years the Profit Margin of TPR has declined.
TPR's Operating Margin of 20.21% is amongst the best of the industry. TPR outperforms 88.89% of its industry peers.
In the last couple of years the Operating Margin of TPR has grown nicely.
TPR's Gross Margin of 75.67% 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 | 20.21% | ||
| PM (TTM) | 3.77% | ||
| GM | 75.68% |
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.
The number of shares outstanding for TPR has been reduced compared to 1 year ago.
TPR has less shares outstanding than it did 5 years ago.
The debt/assets ratio for TPR has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.85 indicates that TPR is not in any danger for bankruptcy at the moment.
TPR's Altman-Z score of 3.85 is fine compared to the rest of the industry. TPR outperforms 73.33% of its industry peers.
TPR has a debt to FCF ratio of 2.49. This is a good value and a sign of high solvency as TPR would need 2.49 years to pay back of all of its debts.
The Debt to FCF ratio of TPR (2.49) is better than 71.11% of its industry peers.
TPR has a Debt/Equity ratio of 6.55. This is a high value indicating a heavy dependency on external financing.
TPR has a worse Debt to Equity ratio (6.55) than 91.11% 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 | 6.55 | ||
| Debt/FCF | 2.49 | ||
| Altman-Z | 3.85 |
ROIC/WACC2.15
WACC11.49%
2.3 Liquidity
TPR has a Current Ratio of 1.52. This is a normal value and indicates that TPR is financially healthy and should not expect problems in meeting its short term obligations.
TPR has a Current ratio of 1.52. This is in the lower half of the industry: TPR underperforms 68.89% of its industry peers.
A Quick Ratio of 0.93 indicates that TPR may have some problems paying its short term obligations.
With a Quick ratio value of 0.93, TPR perfoms like the industry average, outperforming 46.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.43% over the past year.
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 grown by 8.14% in the past year. This is quite good.
The Revenue has been growing slightly by 7.16% on average over the past years.
EPS 1Y (TTM)24.43%
EPS 3Y13.95%
EPS 5Y39.03%
EPS Q2Q%35.29%
Revenue 1Y (TTM)8.14%
Revenue growth 3Y1.6%
Revenue growth 5Y7.16%
Sales Q2Q%13.07%
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.
The Revenue is expected to grow by 3.30% on average over the next years.
EPS Next Y11.45%
EPS Next 2Y11.28%
EPS Next 3Y11.48%
EPS Next 5Y9.32%
Revenue Next Year5.71%
Revenue Next 2Y5.19%
Revenue Next 3Y4.97%
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
TPR is valuated rather expensively with a Price/Earnings ratio of 22.59.
Based on the Price/Earnings ratio, TPR is valued a bit cheaper than 62.22% of the companies in the same industry.
When comparing the Price/Earnings ratio of TPR to the average of the S&P500 Index (26.43), we can say TPR is valued inline with the index average.
With a Price/Forward Earnings ratio of 19.53, TPR is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as TPR.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.66, TPR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.59 | ||
| Fwd PE | 19.53 |
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 62.22% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, TPR is valued a bit cheaper than 62.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.84 | ||
| EV/EBITDA | 16.59 |
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.
TPR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.97
PEG (5Y)0.58
EPS Next 2Y11.28%
EPS Next 3Y11.48%
5. Dividend
5.1 Amount
TPR has a Yearly Dividend Yield of 1.30%.
TPR's Dividend Yield is a higher than the industry average which is at 1.46.
Compared to the average S&P500 Dividend Yield of 1.87, TPR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
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 110.98% 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.
DP110.98%
EPS Next 2Y11.28%
EPS Next 3Y11.48%
123.09
-0.49 (-0.4%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners98.72%
Inst Owner Change-2.94%
Ins Owners0.32%
Ins Owner Change5.03%
Market Cap25.19B
Revenue(TTM)7.21B
Net Income(TTM)271.40M
Analysts80.8
Price Target124.29 (0.97%)
Short Float %5.79%
Short Ratio3.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
Yearly Dividend1.37
Dividend Growth(5Y)0.22%
DP110.98%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.32%
Min EPS beat(2)0.51%
Max EPS beat(2)8.13%
EPS beat(4)4
Avg EPS beat(4)9.39%
Min EPS beat(4)0.51%
Max EPS beat(4)15.87%
EPS beat(8)8
Avg EPS beat(8)9.7%
EPS beat(12)11
Avg EPS beat(12)9.51%
EPS beat(16)14
Avg EPS beat(16)9.47%
Revenue beat(2)2
Avg Revenue beat(2)2.36%
Min Revenue beat(2)1.66%
Max Revenue beat(2)3.06%
Revenue beat(4)4
Avg Revenue beat(4)2.64%
Min Revenue beat(4)1.66%
Max Revenue beat(4)3.07%
Revenue beat(8)7
Avg Revenue beat(8)1.3%
Revenue beat(12)8
Avg Revenue beat(12)0.62%
Revenue beat(16)10
Avg Revenue beat(16)0.73%
PT rev (1m)1.3%
PT rev (3m)6.04%
EPS NQ rev (1m)-0.16%
EPS NQ rev (3m)0.63%
EPS NY rev (1m)2.47%
EPS NY rev (3m)2.89%
Revenue NQ rev (1m)0.44%
Revenue NQ rev (3m)1.99%
Revenue NY rev (1m)1.82%
Revenue NY rev (3m)1.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.59 | ||
| Fwd PE | 19.53 | ||
| P/S | 3.49 | ||
| P/FCF | 23.84 | ||
| P/OCF | 21.24 | ||
| P/B | 63.05 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.59 |
EPS(TTM)5.45
EY4.43%
EPS(NY)6.3
Fwd EY5.12%
FCF(TTM)5.16
FCFY4.19%
OCF(TTM)5.8
OCFY4.71%
SpS35.22
BVpS1.95
TBVpS-6.33
PEG (NY)1.97
PEG (5Y)0.58
Graham Number15.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.27% | ||
| ROE | 67.93% | ||
| ROCE | 31.37% | ||
| ROIC | 24.67% | ||
| ROICexc | 29.1% | ||
| ROICexgc | 49.24% | ||
| OM | 20.21% | ||
| PM (TTM) | 3.77% | ||
| GM | 75.68% | ||
| FCFM | 14.66% |
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-Score6
Asset Turnover1.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.55 | ||
| Debt/FCF | 2.49 | ||
| Debt/EBITDA | 1.62 | ||
| Cap/Depr | 81.34% | ||
| Cap/Sales | 1.8% | ||
| Interest Coverage | 3.21 | ||
| Cash Conversion | 73.38% | ||
| Profit Quality | 389.28% | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 0.93 | ||
| Altman-Z | 3.85 |
F-Score6
WACC11.49%
ROIC/WACC2.15
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)24.43%
EPS 3Y13.95%
EPS 5Y39.03%
EPS Q2Q%35.29%
EPS Next Y11.45%
EPS Next 2Y11.28%
EPS Next 3Y11.48%
EPS Next 5Y9.32%
Revenue 1Y (TTM)8.14%
Revenue growth 3Y1.6%
Revenue growth 5Y7.16%
Sales Q2Q%13.07%
Revenue Next Year5.71%
Revenue Next 2Y5.19%
Revenue Next 3Y4.97%
Revenue Next 5Y3.3%
EBIT growth 1Y27.93%
EBIT growth 3Y4.72%
EBIT growth 5Y26.13%
EBIT Next Year21.68%
EBIT Next 3Y12.33%
EBIT Next 5Y7.82%
FCF growth 1Y1.28%
FCF growth 3Y12.12%
FCF growth 5Y39.64%
OCF growth 1Y-2.86%
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 22.59 and the Price/Book (PB) ratio is 63.05.
How financially healthy is TAPESTRY INC?
The financial health rating of TAPESTRY INC (TPR) is 6 / 10.