CPRI gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 45 industry peers in the Textiles, Apparel & Luxury Goods industry. CPRI has a bad profitability rating. Also its financial health evaluation is rather negative. CPRI is valued correctly, but it does not seem to be growing.

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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.
In multiple years CPRI reported negative net income over the last 5 years.
CPRI had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

CPRI's Return On Assets of -20.78% is on the low side compared to the rest of the industry. CPRI is outperformed by 88.89% of its industry peers.
With a Return On Invested Capital value of 1.50%, CPRI is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for CPRI is significantly below the industry average of 11.59%.
The last Return On Invested Capital (1.50%) for CPRI is well below the 3 year average (5.93%), which needs to be investigated, but indicates that CPRI had better years and this may not be a problem.

		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

With a Operating Margin value of 2.05%, CPRI is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of CPRI has declined.
With an excellent Gross Margin value of 62.47%, CPRI belongs to the best of the industry, outperforming 84.44% of the companies in the same industry.
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

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
The debt/assets ratio for CPRI is higher compared to a year ago.

2.2 Solvency

CPRI has an Altman-Z score of 2.21. This is not the best score and indicates that CPRI is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.21, CPRI is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
CPRI has a debt to FCF ratio of 441.00. This is a negative value and a sign of low solvency as CPRI would need 441.00 years to pay back of all of its debts.
CPRI's Debt to FCF ratio of 441.00 is on the low side compared to the rest of the industry. CPRI is outperformed by 64.44% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	N/A
Debt/FCF	441
Altman-Z	2.21

ROIC/WACC0.18

WACC8.5%

2.3 Liquidity

A Current Ratio of 1.25 indicates that CPRI should not have too much problems paying its short term obligations.
With a Current ratio value of 1.25, CPRI is not doing good in the industry: 88.89% of the companies in the same industry are doing better.
CPRI has a Quick Ratio of 1.25. This is a bad value and indicates that CPRI is not financially healthy enough and could expect problems in meeting its short term obligations.
CPRI has a worse Quick ratio (0.69) than 91.11% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.25
Quick Ratio	0.69

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

CPRI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -73.16%.
CPRI shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -26.36% yearly.
Looking at the last year, CPRI shows a very negative growth in Revenue. The Revenue has decreased by -17.66% in the last year.
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

The Earnings Per Share is expected to grow by 46.41% on average over the next years. This is a very strong growth
The Revenue is expected to decrease by -2.53% on average over the next years.

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.
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.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 39.27 indicates a quite expensive valuation of CPRI.
Based on the Price/Earnings ratio, CPRI is valued a bit more expensive than the industry average as 62.22% of the companies are valued more cheaply.
CPRI is valuated rather expensively when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 12.86, CPRI is valued correctly.
80.00% of the companies in the same industry are more expensive than CPRI, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, CPRI is valued rather cheaply.

		Industry Rank	Sector Rank
PE	39.27
Fwd PE	12.86

4.2 Price Multiples

66.67% of the companies in the same industry are cheaper than CPRI, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, CPRI is valued a bit more expensive than 64.44% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	725.27
EV/EBITDA	19.1

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.