Investors should take notice of NYSE:TPR—it offers a great deal for the fundamentals it presents.

Discover TAPESTRY INC (NYSE:TPR)—an undervalued stock our stock screener has picked out. NYSE:TPR demonstrates solid fundamentals, including health and profitability, all while staying attractively priced. Let's explore the details.

Assessing Valuation Metrics for 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 7 out of 10:

• A Price/Earnings ratio of 10.60 indicates a reasonable 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 89.80% of the companies listed in the same industry.
• TPR is valuated cheaply when we compare the Price/Earnings ratio to 26.56, which is the current average of the S&P500 Index.
• With a Price/Forward Earnings ratio of 10.11, the valuation of TPR can be described as very reasonable.
• Based on the Price/Forward Earnings ratio, TPR is valued cheaply inside the industry as 83.67% of the companies are valued more expensively.
• Compared to an average S&P500 Price/Forward Earnings ratio of 21.62, TPR is valued rather cheaply.
• TPR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TPR is cheaper than 91.84% of the companies in the same industry.
• 77.55% 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.

Evaluating Profitability: NYSE:TPR

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:

• With a decent Return On Assets value of 6.72%, TPR is doing good in the industry, outperforming 67.35% of the companies in the same industry.
• Looking at the Return On Equity, with a value of 34.89%, TPR belongs to the top of the industry, outperforming 91.84% of the companies in the same industry.
• With a decent Return On Invested Capital value of 7.94%, TPR is doing good in the industry, outperforming 67.35% of the companies in the same industry.
• TPR had an Average Return On Invested Capital over the past 3 years of 15.58%. This is significantly above the industry average of 10.16%.
• The last Return On Invested Capital (7.94%) for TPR is well below the 3 year average (15.58%), which needs to be investigated, but indicates that TPR had better years and this may not be a problem.
• The Profit Margin of TPR (13.80%) is better than 93.88% of its industry peers.
• In the last couple of years the Profit Margin of TPR has grown nicely.
• TPR has a Operating Margin of 17.85%. This is amongst the best in the industry. TPR outperforms 91.84% of its industry peers.
• TPR's Operating Margin has improved in the last couple of years.
• Looking at the Gross Margin, with a value of 72.28%, 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 Analysis for NYSE:TPR

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:TPR has earned a 5 out of 10:

• A Current Ratio of 6.25 indicates that TPR has no problem at all paying its short term obligations.
• Looking at the Current ratio, with a value of 6.25, TPR belongs to the top of the industry, outperforming 97.96% of the companies in the same industry.
• A Quick Ratio of 5.68 indicates that TPR has no problem at all paying its short term obligations.
• TPR has a Quick ratio of 5.68. This is amongst the best in the industry. TPR outperforms 97.96% of its industry peers.

Growth Analysis for NYSE:TPR

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:TPR has earned a 5 for growth:

• The Earnings Per Share has grown by an impressive 24.71% 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.
• Based on estimates for the next years, TPR will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.58% on average per year.
• 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.

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

Disclaimer

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.