Don't overlook NYSE:TPR—it's a hidden gem with strong fundamentals and an attractive price tag.

Last update: Oct 5, 2023

Uncover the potential of TAPESTRY INC (NYSE:TPR) as our stock screener's choice for an undervalued stock. NYSE:TPR maintains a strong financial position and offers an appealing valuation. We'll delve into the specifics below.

Valuation Analysis for NYSE:TPR

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NYSE:TPR has received a 9 out of 10:

TPR is valuated cheaply with a Price/Earnings ratio of 7.18.
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.
When comparing the Price/Earnings ratio of TPR to the average of the S&P500 Index (25.33), we can say TPR is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.67, the valuation of TPR can be described as very cheap.
Based on the Price/Forward Earnings ratio, TPR is valued cheaply inside the industry as 87.23% of the companies are valued more expensively.
TPR is valuated cheaply when we compare the Price/Forward Earnings ratio to 18.56, which is the current average of the S&P500 Index.
TPR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TPR is cheaper than 93.62% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TPR indicates a rather cheap valuation: TPR is cheaper than 80.85% of the companies listed in the same industry.
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.

Evaluating Profitability: NYSE:TPR

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:TPR was assigned a score of 9 for profitability:

With an excellent Return On Assets value of 13.15%, TPR belongs to the best of the industry, outperforming 87.23% of the companies in the same industry.
The Return On Equity of TPR (41.09%) is better than 95.74% of its industry peers.
With an excellent Return On Invested Capital value of 16.46%, TPR belongs to the best of the industry, outperforming 85.11% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years 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.
In the last couple of years the Profit Margin of TPR has grown nicely.
TPR has a better Operating Margin (17.60%) than 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.
TPR's Gross Margin has improved in the last couple of years.

ChartMill's Evaluation of Health

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 better Debt to FCF ratio (2.10) than 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.

A Closer Look at Growth for NYSE:TPR

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:TPR was assigned a score of 5 for growth:

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.

More Decent Value stocks can be found in our Decent Value screener.

Check the latest full fundamental report of TPR for a complete fundamental analysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.