Overall CPRI gets a fundamental rating of 2 out of 10. We evaluated CPRI against 45 industry peers in the Textiles, Apparel & Luxury Goods industry. Both the profitability and financial health of CPRI have multiple concerns. CPRI has a valuation in line with the averages, but on the other hand it scores bad on growth.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

CPRI had positive earnings in the past year.
In the past year CPRI had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: CPRI reported negative net income in multiple years.
Each year in the past 5 years CPRI had a positive operating cash flow.

1.2 Ratios

With a Return On Assets value of -20.78%, CPRI is not doing good in the industry: 88.89% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 1.50%, CPRI is doing worse than 80.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CPRI is significantly below the industry average of 11.60%.
The 3 year average ROIC (5.93%) for CPRI is well above the current ROIC(1.50%). The reason for the recent decline needs to be investigated.

		Industry Rank	Sector Rank
ROA	-20.78%
ROE	N/A
ROIC	1.5%

ROA(3y)-5.88%

ROA(5y)-1.5%

ROE(3y)-100.73%

ROE(5y)-54.59%

ROIC(3y)5.93%

ROIC(5y)7.29%

1.3 Margins

CPRI's Operating Margin of 2.05% is on the low side compared to the rest of the industry. CPRI is outperformed by 80.00% of its industry peers.
In the last couple of years the Operating Margin of CPRI has declined.
The Gross Margin of CPRI (62.47%) is better than 84.44% of its industry peers.
In the last couple of years the Gross Margin of CPRI has grown nicely.

		Industry Rank	Sector Rank
OM	2.05%
PM (TTM)	N/A
GM	62.47%

OM growth 3Y-59.47%

OM growth 5Y-34.95%

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y-1.18%

GM growth 5Y1.54%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CPRI is destroying value.
CPRI has more shares outstanding than it did 1 year ago.
The number of shares outstanding for CPRI has been reduced compared to 5 years ago.
CPRI has a worse debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 2.18 indicates that CPRI is not a great score, but indicates only limited risk for bankruptcy at the moment.
CPRI's Altman-Z score of 2.18 is on the low side compared to the rest of the industry. CPRI is outperformed by 60.00% of its industry peers.
The Debt to FCF ratio of CPRI is 441.00, which is on the high side as it means it would take CPRI, 441.00 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CPRI (441.00) is worse than 64.44% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	N/A
Debt/FCF	441
Altman-Z	2.18

ROIC/WACC0.18

WACC8.47%

2.3 Liquidity

A Current Ratio of 1.25 indicates that CPRI should not have too much problems paying its short term obligations.
CPRI's Current ratio of 1.25 is on the low side compared to the rest of the industry. CPRI is outperformed by 88.89% of its industry peers.
A Quick Ratio of 0.69 indicates that CPRI may have some problems paying its short term obligations.
With a Quick ratio value of 0.69, CPRI is not doing good in the industry: 91.11% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Current Ratio	1.25
Quick Ratio	0.69

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The earnings per share for CPRI have decreased strongly by -73.16% in the last year.
The earnings per share for CPRI have been decreasing by -26.36% on average. This is quite bad
The Revenue for CPRI has decreased by -17.66% in the past year. This is quite bad
CPRI shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.36% yearly.

EPS 1Y (TTM)-73.16%

EPS 3Y-48.61%

EPS 5Y-26.36%

EPS Q2Q%-104.62%

Revenue 1Y (TTM)-17.66%

Revenue growth 3Y-7.73%

Revenue growth 5Y-4.36%

Sales Q2Q%-20.67%

3.2 Future

Based on estimates for the next years, CPRI will show a very strong growth in Earnings Per Share. The EPS will grow by 46.41% on average per year.
CPRI is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.53% yearly.

EPS Next Y66.56%

EPS Next 2Y50.15%

EPS Next 3Y43.57%

EPS Next 5Y46.41%

Revenue Next Year-21.31%

Revenue Next 2Y-10.34%

Revenue Next 3Y-5.94%

Revenue Next 5Y-2.53%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

CPRI is valuated quite expensively with a Price/Earnings ratio of 36.40.
Based on the Price/Earnings ratio, CPRI is valued a bit more expensive than 62.22% of the companies in the same industry.
CPRI's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.30.
Based on the Price/Forward Earnings ratio of 11.92, the valuation of CPRI can be described as reasonable.
Based on the Price/Forward Earnings ratio, CPRI is valued cheaply inside the industry as 84.44% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of CPRI to the average of the S&P500 Index (25.57), we can say CPRI is valued rather cheaply.

		Industry Rank	Sector Rank
PE	36.4
Fwd PE	11.92

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, CPRI is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
CPRI's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. CPRI is more expensive than 64.44% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	672.25
EV/EBITDA	18.21

4.3 Compensation for Growth

CPRI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CPRI's earnings are expected to grow with 43.57% in the coming years. This may justify a more expensive valuation.