For those who appreciate value investing, NYSE:TPR is a compelling option with its solid fundamentals.

Last update: Jan 5, 2024

TAPESTRY INC (NYSE:TPR) has caught the attention of our stock screener as a great value stock. NYSE:TPR excels in profitability, solvency, and liquidity, all while being very reasonably priced. Let's delve into the details.

Valuation Insights: 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 8 reflects its valuation:

The Price/Earnings ratio is 9.18, which indicates a very decent valuation of TPR.
Based on the Price/Earnings ratio, TPR is valued cheaper than 89.80% of the companies in the same industry.
TPR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.53.
The Price/Forward Earnings ratio is 8.20, which indicates a very decent valuation of TPR.
Based on the Price/Forward Earnings ratio, TPR is valued cheaper than 97.96% of the companies in the same industry.
TPR is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.53, which is the current average of the S&P500 Index.
89.80% of the companies in the same industry are more expensive than TPR, based on the Enterprise Value to EBITDA ratio.
79.59% of the companies in the same industry are more expensive than TPR, based on the Price/Free Cash Flow ratio.
TPR has an outstanding profitability rating, which may justify a higher PE ratio.

Profitability Insights: NYSE:TPR

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:

The Return On Assets of TPR (13.10%) is better than 87.76% of its industry peers.
The Return On Equity of TPR (38.73%) is better than 95.92% of its industry peers.
The Return On Invested Capital of TPR (16.11%) is better 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 10.85%.
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.
With an excellent Profit Margin value of 14.03%, TPR belongs to the best of the industry, outperforming 91.84% of the companies in the same industry.
In the last couple of years the Profit Margin of TPR has grown nicely.
TPR has a Operating Margin of 17.57%. This is amongst the best in 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 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.

Analyzing Health Metrics

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 69.39% of its industry peers.
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.
TPR has a Current Ratio of 2.02. This indicates that TPR is financially healthy and has no problem in meeting its short term obligations.

Growth Assessment of 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 17.89% 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.
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.

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

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.