Despite its impressive fundamentals, NYSE:TPR remains undervalued.

TAPESTRY INC (NYSE:TPR) was identified as a decent value stock by our stock screener. NYSE:TPR scores well on profitability, solvency and liquidity. At the same time it seems to be priced very reasonably. We'll explore this a bit deeper below.

Evaluating Valuation: 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 9 reflects its valuation:

• TPR is valuated cheaply with a Price/Earnings ratio of 7.22.
• 93.75% of the companies in the same industry are more expensive than TPR, based on the Price/Earnings ratio.
• Compared to an average S&P500 Price/Earnings ratio of 26.04, TPR is valued rather cheaply.
• The Price/Forward Earnings ratio is 6.71, which indicates a rather cheap valuation of TPR.
• 87.50% of the companies in the same industry are more expensive than TPR, based on the Price/Forward Earnings ratio.
• Compared to an average S&P500 Price/Forward Earnings ratio of 19.05, 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 93.75% of the companies listed 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 81.25% 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.

Looking at the Profitability

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:TPR has achieved a 9:

• TPR has a better Return On Assets (13.15%) than 87.50% of its industry peers.
• 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's Return On Invested Capital of 16.46% is amongst the best of the industry. TPR outperforms 85.42% of its industry peers.
• The Average Return On Invested Capital over the past 3 years 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.
• TPR's Profit Margin of 14.05% is amongst the best of the industry. TPR outperforms 93.75% of its industry peers.
• TPR's Profit Margin has improved in the last couple of years.
• With an excellent Operating Margin value of 17.60%, TPR belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
• TPR's Operating Margin has improved in the last couple of years.
• Looking at the Gross Margin, with a value of 70.78%, TPR belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
• TPR's Gross Margin has improved in the last couple of years.

Health Insights: NYSE:TPR

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:TPR, the assigned 5 for health provides valuable insights:

• The Debt to FCF ratio of TPR is 2.10, which is a good value as it means it would take TPR, 2.10 years of fcf income to pay off all of its debts.
• With a decent Debt to FCF ratio value of 2.10, TPR is doing good in the industry, outperforming 68.75% of the companies in the same industry.
• 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

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.
• TPR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.09% yearly.
• The Earnings Per Share is expected to grow by 9.58% on average over the next years. This is quite good.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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

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

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.