NYSE:TPR, an undervalued stock with good fundamentals.

TAPESTRY INC (NYSE:TPR) has caught the attention of our stock screener as a great value stock. NYSE:TPR excels in profitability, solvency, and liquidity, all while being very reasonably priced. Let's delve into the details.

Valuation Analysis for NYSE:TPR

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NYSE:TPR, the assigned 8 reflects its valuation:

• TPR is valuated cheaply with a Price/Earnings ratio of 7.25.
• Compared to the rest of the industry, the Price/Earnings ratio of TPR indicates a rather cheap valuation: TPR is cheaper than 93.62% of the companies listed in the same industry.
• The average S&P500 Price/Earnings ratio is at 25.55. TPR is valued rather cheaply when compared to this.
• A Price/Forward Earnings ratio of 6.74 indicates a rather cheap valuation of TPR.
• TPR's Price/Forward Earnings ratio is rather cheap when compared to the industry. TPR is cheaper than 85.11% of the companies in the same industry.
• When comparing the Price/Forward Earnings ratio of TPR to the average of the S&P500 Index (18.74), we can say TPR is valued rather cheaply.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TPR indicates a rather cheap valuation: TPR is cheaper than 85.11% of the companies listed in the same industry.
• 78.72% of the companies in the same industry are more expensive than TPR, based on the Price/Free Cash Flow ratio.
• TPR's 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.

Profitability Examination for NYSE:TPR

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:TPR has earned a 9 out of 10:

• The Return On Assets of TPR (13.15%) is better than 87.23% of its industry peers.
• TPR's Return On Equity of 41.09% is amongst the best of the industry. TPR outperforms 95.74% of its industry peers.
• TPR's Return On Invested Capital of 16.46% is amongst the best of the industry. TPR outperforms 85.11% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for TPR is above the industry average of 10.58%.
• The 3 year average ROIC (15.58%) for TPR is below the current ROIC(16.46%), indicating increased profibility in the last year.
• TPR's Profit Margin of 14.05% is amongst the best of the industry. TPR outperforms 93.62% of its industry peers.
• TPR's Profit Margin has improved in the last couple of years.
• TPR's Operating Margin of 17.60% is amongst the best of the industry. TPR outperforms 93.62% of its industry peers.
• TPR's Operating Margin has improved in the last couple of years.
• TPR has a better Gross Margin (70.78%) than 100.00% of its industry peers.
• In the last couple of years the Gross Margin of TPR has grown nicely.

Assessing Health Metrics for NYSE:TPR

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:TPR, the assigned 5 reflects its health status:

• TPR has a debt to FCF ratio of 2.10. This is a good value and a sign of high solvency as TPR would need 2.10 years to pay back of all of its debts.
• TPR has a Debt to FCF ratio of 2.10. This is in the better half of the industry: TPR outperforms 68.09% of its industry peers.
• Even though the debt/equity ratio score it not favorable for TPR, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.

Evaluating Growth: NYSE:TPR

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:TPR has received a 5 out of 10:

• The Earnings Per Share has grown by an nice 12.79% over the past year.
• The Earnings Per Share has been growing by 8.09% on average over the past years. This is quite good.
• 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.
• 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.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of TPR

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.