NYSE:TPR appears to be flying under the radar despite its strong fundamentals.

Last update: Nov 2, 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 Assessment of NYSE:TPR

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:TPR has achieved a 9 out of 10:

A Price/Earnings ratio of 6.85 indicates a rather cheap valuation of TPR.
Compared to the rest of the industry, the Price/Earnings ratio of TPR indicates a rather cheap valuation: TPR is cheaper than 95.92% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of TPR to the average of the S&P500 Index (23.21), we can say TPR is valued rather cheaply.
TPR is valuated cheaply with a Price/Forward Earnings ratio of 6.37.
87.76% 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 18.26, TPR is valued rather cheaply.
TPR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TPR is cheaper than 93.88% of the companies in the same industry.
TPR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TPR is cheaper than 81.63% of the companies in the same industry.
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.

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:

Looking at the Return On Assets, with a value of 13.15%, TPR belongs to the top of the industry, outperforming 87.76% of the companies in the same industry.
TPR has a Return On Equity of 41.09%. This is amongst the best in the industry. TPR outperforms 95.92% of its industry peers.
TPR's Return On Invested Capital of 16.46% is amongst the best of the industry. TPR outperforms 85.71% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TPR is above the industry average of 10.72%.
The 3 year average ROIC (15.58%) for TPR is below the current ROIC(16.46%), indicating increased profibility in the last year.
TPR has a Profit Margin of 14.05%. This is amongst the best in the industry. TPR outperforms 91.84% of its industry peers.
In the last couple of years the Profit Margin of TPR has grown nicely.
TPR's Operating Margin of 17.60% is amongst the best of the industry. TPR outperforms 91.84% of its industry peers.
In the last couple of years the Operating Margin of TPR has grown nicely.
TPR's Gross Margin of 70.78% 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.

Unpacking NYSE:TPR's Health Rating

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:TPR scores a 5 out of 10:

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.
TPR has a better Debt to FCF ratio (2.10) than 69.39% 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.

What does the Growth looks like for NYSE:TPR

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:TPR scores a 5 out of 10:

TPR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.79%, which is quite good.
The Earnings Per Share has been growing by 8.09% on average over the past years. This is quite good.
The Earnings Per Share is expected to grow by 9.58% on average over the next years. This is quite good.
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.

Our latest full fundamental report of TPR contains the most current fundamental analsysis.

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.