NYSE:TPR is a prime example of a stock that offers more than what meets the eye in terms of 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.

Deciphering NYSE:TPR's Valuation Rating

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 8 out of 10:

• The Price/Earnings ratio is 9.89, which indicates a very decent valuation of TPR.
• Based on the Price/Earnings ratio, TPR is valued cheaper than 92.00% 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 28.70.
• TPR is valuated reasonably with a Price/Forward Earnings ratio of 9.35.
• Based on the Price/Forward Earnings ratio, TPR is valued cheaply inside the industry as 86.00% of the companies are valued more expensively.
• TPR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.26.
• TPR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TPR is cheaper than 80.00% of the companies in the same industry.
• 78.00% of the companies in the same industry are more expensive than TPR, based on the Price/Free Cash Flow ratio.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• The excellent profitability rating of TPR may justify a higher PE ratio.

Looking at the Profitability

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:

• TPR has a Return On Assets of 6.42%. This is in the better half of the industry: TPR outperforms 72.00% of its industry peers.
• The Return On Equity of TPR (31.74%) is better than 86.00% of its industry peers.
• TPR had an Average Return On Invested Capital over the past 3 years of 15.58%. This is significantly above the industry average of 10.36%.
• The 3 year average ROIC (15.58%) for TPR is well above the current ROIC(7.80%). The reason for the recent decline needs to be investigated.
• TPR has a Profit Margin of 13.15%. This is amongst the best in the industry. TPR outperforms 92.00% of its industry peers.
• In the last couple of years the Profit Margin of TPR has grown nicely.
• The Operating Margin of TPR (17.59%) 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 72.71%, 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.

Looking at the Health

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:TPR was assigned a score of 5 for health:

• TPR has a Current Ratio of 6.59. This indicates that TPR is financially healthy and has no problem in meeting its short term obligations.
• Looking at the Current ratio, with a value of 6.59, TPR belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
• TPR has a Quick Ratio of 5.98. This indicates that TPR is financially healthy and has no problem in meeting its short term obligations.
• With an excellent Quick ratio value of 5.98, TPR belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.

Understanding NYSE:TPR's Growth Score

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 16.44% 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.
• The Earnings Per Share is expected to grow by 9.58% on average over the next years. This is quite good.
• 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.