NYSE:TPR, an undervalued stock with good fundamentals.

Last update: Aug 6, 2024

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.

Valuation Assessment of NYSE:TPR

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:TPR scores a 8 out of 10:

Based on the Price/Earnings ratio of 8.53, the valuation of TPR can be described as reasonable.
92.00% of the companies in the same industry are more expensive than TPR, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.44. TPR is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 8.08, which indicates a very decent valuation of TPR.
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 19.90, which is the current average of the S&P500 Index.
Based on the Enterprise Value to EBITDA ratio, TPR is valued cheaply inside the industry as 84.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, TPR is valued cheaply inside the industry as 84.00% of the companies are valued more expensively.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
TPR has an outstanding profitability rating, which may justify a higher PE ratio.

Exploring 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 8 is noteworthy for profitability:

With a decent Return On Assets value of 6.42%, TPR is doing good in the industry, outperforming 72.00% of the companies in the same industry.
The Return On Equity of TPR (31.74%) is better than 86.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TPR is above the industry average of 10.74%.
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.
TPR has a Operating Margin of 17.59%. This is amongst the best in the industry. TPR outperforms 92.00% of its industry peers.
TPR's Operating Margin has improved in the last couple of years.
TPR has a Gross Margin of 72.71%. This is amongst the best in the industry. TPR outperforms 100.00% of its industry peers.
In the last couple of years the Gross Margin of TPR has grown nicely.

Understanding NYSE:TPR's Health

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:TPR, the assigned 5 for health provides valuable insights:

A Current Ratio of 6.59 indicates that TPR has no problem at all paying its short term obligations.
TPR has a better Current ratio (6.59) than 100.00% of its industry peers.
A Quick Ratio of 5.98 indicates that TPR has no problem at all paying its short term obligations.
TPR has a better Quick ratio (5.98) than 100.00% of its industry peers.

Growth Assessment of 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:

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.
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.

For an up to date full fundamental analysis you can check the fundamental report of TPR

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.