Why NYSE:TPR provides a good dividend, while having solid fundamentals.

Last update: Dec 4, 2023

TAPESTRY INC (NYSE:TPR) is a hidden gem unveiled by our stock screening tool, featuring a promising dividend outlook alongside solid fundamentals. NYSE:TPR demonstrates decent financial health and profitability while ensuring a sustainable dividend. Let's break it down further.

Deciphering NYSE:TPR's Dividend Rating

An integral part of ChartMill's stock analysis is the Dividend Rating, which spans from 0 to 10. This rating evaluates diverse dividend factors, including yield, historical data, growth, and sustainability. NYSE:TPR has received a 7 out of 10:

With a Yearly Dividend Yield of 4.42%, TPR is a good candidate for dividend investing.
TPR's Dividend Yield is rather good when compared to the industry average which is at 3.12. TPR pays more dividend than 89.80% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.59, TPR pays a better dividend.
TPR has paid a dividend for at least 10 years, which is a reliable track record.
TPR pays out 31.08% of its income as dividend. This is a sustainable payout ratio.

Understanding NYSE:TPR's Health

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:TPR has achieved a 6 out of 10:

The Debt to FCF ratio of TPR is 1.59, which is an excellent value as it means it would take TPR, only 1.59 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TPR (1.59) is better than 71.43% 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 Current Ratio of 2.02 indicates that TPR has no problem at all paying its short term obligations.

Evaluating Profitability: NYSE:TPR

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:TPR, the assigned 9 is a significant indicator of profitability:

TPR has a Return On Assets of 13.10%. This is amongst the best in the industry. TPR outperforms 87.76% of its industry peers.
TPR has a Return On Equity of 38.73%. This is amongst the best in the industry. TPR outperforms 95.92% of its industry peers.
TPR has a better Return On Invested Capital (16.11%) than 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 10.83%.
The last Return On Invested Capital (16.11%) for TPR is above the 3 year average (15.58%), which is a sign of increasing profitability.
TPR has a better Profit Margin (14.03%) than 91.84% of its industry peers.
In the last couple of years the Profit Margin of TPR has grown nicely.
The Operating Margin of TPR (17.57%) is better than 91.84% of its industry peers.
TPR's Operating Margin has improved in the last couple of years.
TPR has a better Gross Margin (71.36%) than 100.00% of its industry peers.
In the last couple of years the Gross Margin of TPR has grown nicely.

More Best Dividend stocks can be found in our Best Dividend screener.

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

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.