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

Consider TAPESTRY INC (NYSE:TPR) as a top value stock, identified by our stock screening tool. NYSE:TPR shines in terms of profitability, solvency, and liquidity, all while remaining very reasonably priced. Let's dive deeper into the analysis.

Analyzing Valuation Metrics

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:TPR has earned a 8 for valuation:

• With a Price/Earnings ratio of 9.52, the valuation of TPR can be described as very reasonable.
• Based on the Price/Earnings ratio, TPR is valued cheaply inside the industry as 89.80% of the companies are valued more expensively.
• TPR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.04.
• A Price/Forward Earnings ratio of 8.50 indicates a reasonable valuation of TPR.
• 97.96% of the companies in the same industry are more expensive than TPR, based on the Price/Forward Earnings ratio.
• The average S&P500 Price/Forward Earnings ratio is at 20.95. TPR is valued rather cheaply when compared to this.
• TPR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TPR is cheaper than 89.80% of the companies in the same industry.
• Based on the Price/Free Cash Flow ratio, TPR is valued a bit cheaper than 73.47% of the companies in the same industry.
• The excellent profitability rating of TPR may justify a higher PE ratio.

Understanding NYSE:TPR's Profitability

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:TPR, the assigned 9 is noteworthy for profitability:

• The Return On Assets of TPR (13.10%) is better than 87.76% of its industry peers.
• TPR has a better Return On Equity (38.73%) than 95.92% of its industry peers.
• TPR's Return On Invested Capital of 16.11% is amongst the best of the industry. TPR outperforms 85.71% of its industry peers.
• TPR had an Average Return On Invested Capital over the past 3 years of 15.58%. This is above the industry average of 10.60%.
• 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.
• Looking at the Operating Margin, with a value of 17.57%, TPR belongs to the top of the industry, outperforming 91.84% of the companies in the same industry.
• TPR's Operating Margin has improved in the last couple of years.
• TPR has a Gross Margin of 71.36%. This is amongst the best in the industry. TPR outperforms 100.00% of its industry peers.
• TPR's Gross Margin has improved in the last couple of years.

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 67.35% 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.
• 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 Analysis for NYSE:TPR

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:TPR has achieved a 5 out of 10:

• TPR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.89%, which is quite good.
• 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.

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

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

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.