NYSE:TPR is an undervalued gem with solid fundamentals.

Our stock screening tool has pinpointed TAPESTRY INC (NYSE:TPR) as an undervalued stock option. NYSE:TPR retains a strong financial foundation and an attractive price tag. Let's delve into the specifics below.

Understanding NYSE:TPR's Valuation

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 7.13.
• Based on the Price/Earnings ratio, TPR is valued cheaply inside the industry as 93.75% of the companies are valued more expensively.
• The average S&P500 Price/Earnings ratio is at 25.88. TPR is valued rather cheaply when compared to this.
• The Price/Forward Earnings ratio is 6.62, which indicates a rather cheap valuation of TPR.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of TPR indicates a rather cheap valuation: TPR is cheaper than 87.50% of the companies listed in the same industry.
• TPR is valuated cheaply when we compare the Price/Forward Earnings ratio to 18.97, 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 93.75% of the companies in the same industry.
• Based on the Price/Free Cash Flow ratio, TPR is valued cheaply inside the industry as 81.25% of the companies are valued more expensively.
• 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.

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:

• Looking at the Return On Assets, with a value of 13.15%, TPR belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
• With an excellent Return On Equity value of 41.09%, TPR belongs to the best of the industry, outperforming 95.83% of the companies in the same industry.
• TPR has a better Return On Invested Capital (16.46%) than 85.42% 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 10.54%.
• The last Return On Invested Capital (16.46%) for TPR is above the 3 year average (15.58%), which is a sign of increasing profitability.
• With an excellent Profit Margin value of 14.05%, TPR belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
• 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 93.75% of its industry peers.
• In the last couple of years the Operating Margin of TPR has grown nicely.
• With an excellent Gross Margin value of 70.78%, TPR belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
• In the last couple of years the Gross Margin of TPR has grown nicely.

Looking at the Health

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:TPR has earned a 5 out of 10:

• 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.
• Looking at the Debt to FCF ratio, with a value of 2.10, TPR is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
• 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.

Growth Examination for NYSE:TPR

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:TPR boasts 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.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

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

Keep in mind

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.