In a market where value is scarce, NYSE:TPR offers a refreshing opportunity with its solid fundamentals.

TAPESTRY INC (NYSE:TPR) is a hidden gem identified by our stock screening tool, featuring undervaluation and robust fundamentals. NYSE:TPR showcases decent financial health and profitability, coupled with an attractive price. Let's dig deeper into the analysis.

How We Gauge Valuation for NYSE:TPR

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:

• Based on the Price/Earnings ratio of 9.83, the valuation of TPR can be described as reasonable.
• Based on the Price/Earnings ratio, TPR is valued cheaply inside the industry as 87.76% of the companies are valued more expensively.
• The average S&P500 Price/Earnings ratio is at 29.19. TPR is valued rather cheaply when compared to this.
• Based on the Price/Forward Earnings ratio of 9.30, the valuation of TPR can be described as reasonable.
• TPR's Price/Forward Earnings ratio is rather cheap when compared to the industry. TPR is cheaper than 85.71% of the companies in the same industry.
• TPR is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.63, which is the current average of the S&P500 Index.
• Based on the Enterprise Value to EBITDA ratio, TPR is valued a bit cheaper than 77.55% of the companies in the same industry.
• Based on the Price/Free Cash Flow ratio, TPR is valued a bit cheaper than 79.59% of the companies in the same industry.
• 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.

Evaluating Profitability: NYSE:TPR

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:TPR, the assigned 8 is a significant indicator of profitability:

• TPR has a better Return On Assets (6.42%) than 71.43% of its industry peers.
• TPR has a better Return On Equity (31.74%) than 85.71% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for TPR is above the industry average of 10.62%.
• The last Return On Invested Capital (7.80%) 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.
• With an excellent Profit Margin value of 13.15%, TPR belongs to the best of the industry, outperforming 91.84% of the companies in the same industry.
• TPR's Profit Margin has improved in the last couple of years.
• TPR has a better Operating Margin (17.59%) than 91.84% of its industry peers.
• TPR's Operating Margin has improved in the last couple of years.
• With an excellent Gross Margin value of 72.71%, TPR belongs to the best 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.

Understanding NYSE:TPR's 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.
• The Current ratio of TPR (6.59) is better than 100.00% of its industry peers.
• 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.
• TPR has a better Quick ratio (5.98) than 100.00% of its industry peers.

A Closer Look at Growth for NYSE:TPR

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:TPR boasts a 5 out of 10:

• The Earnings Per Share has grown by an nice 16.44% 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.
• 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.

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.