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

Last update: Mar 11, 2024

Take a closer look at TAPESTRY INC (NYSE:TPR), a remarkable value stock uncovered by our stock screener. NYSE:TPR excels in fundamentals and maintains a very reasonable valuation. Let's break it down further.

Understanding NYSE:TPR's Valuation

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NYSE:TPR was assigned a score of 8 for valuation:

TPR is valuated reasonably with a Price/Earnings ratio of 10.97.
Based on the Price/Earnings ratio, TPR is valued cheaper than 90.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.97, TPR is valued rather cheaply.
TPR is valuated reasonably with a Price/Forward Earnings ratio of 10.20.
TPR's Price/Forward Earnings ratio is rather cheap when compared to the industry. TPR is cheaper than 92.00% of the companies in the same industry.
TPR is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.31, which is the current average of the S&P500 Index.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TPR indicates a rather cheap valuation: TPR is cheaper than 84.00% of the companies listed in the same industry.
TPR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TPR is cheaper than 76.00% of the companies in the same industry.
The excellent profitability rating of TPR may justify a higher PE ratio.

Evaluating Profitability: NYSE:TPR

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:TPR has earned a 9 out of 10:

With a decent Return On Assets value of 6.72%, TPR is doing good in the industry, outperforming 68.00% of the companies in the same industry.
TPR has a better Return On Equity (34.89%) than 92.00% of its industry peers.
TPR has a Return On Invested Capital of 7.94%. This is in the better half of the industry: TPR outperforms 68.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TPR is significantly above the industry average of 10.06%.
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.
TPR has a Profit Margin of 13.80%. This is amongst the best in the industry. TPR outperforms 94.00% of its industry peers.
TPR's Profit Margin has improved in the last couple of years.
The Operating Margin of TPR (17.85%) is better than 92.00% 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.
In the last couple of years the Gross Margin of TPR has grown nicely.

Health Examination 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 6 out of 10:

A Current Ratio of 6.25 indicates that TPR has no problem at all paying its short term obligations.
With an excellent Current ratio value of 6.25, TPR belongs to the best of the industry, outperforming 96.00% of the companies in the same industry.
TPR has a Quick Ratio of 5.68. This indicates that TPR is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 5.68, TPR belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.

How We Gauge Growth 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:

The Earnings Per Share has grown by an impressive 24.71% over the past year.
Measured over the past years, TPR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.09% on average per year.
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.

Every day, new Decent Value stocks can be found on ChartMill 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.