CAPRI HOLDINGS LTD (CPRI) Stock Fundamental Analysis
NYSE:CPRI - New York Stock Exchange, Inc. - VGG1890L1076 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to CPRI. CPRI was compared to 49 industry peers in the Textiles, Apparel & Luxury Goods industry. CPRI has a bad profitability rating. Also its financial health evaluation is rather negative. CPRI has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year CPRI was profitable.
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.
Each year in the past 5 years CPRI had a positive operating cash flow.
1.2 Ratios
CPRI's Return On Assets of -22.67% is on the low side compared to the rest of the industry. CPRI is outperformed by 85.71% of its industry peers.
CPRI has a Return On Equity of -321.20%. This is amonst the worse of the industry: CPRI underperforms 87.76% of its industry peers.
The Return On Invested Capital of CPRI (1.06%) is worse than 71.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CPRI is significantly below the industry average of 11.45%.
The last Return On Invested Capital (1.06%) 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 | -22.67% | ||
| ROE | -321.2% | ||
| ROIC | 1.06% |
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
The Operating Margin of CPRI (1.17%) is worse than 71.43% of its industry peers.
In the last couple of years the Operating Margin of CPRI has declined.
CPRI has a better Gross Margin (63.62%) than 83.67% of its industry peers.
CPRI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.17% | ||
| PM (TTM) | N/A | ||
| GM | 63.62% |
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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CPRI is destroying value.
The number of shares outstanding for CPRI has been increased compared to 1 year ago.
CPRI has less shares outstanding than it did 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 2.37. 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.
Looking at the Altman-Z score, with a value of 2.37, CPRI is doing worse than 69.39% of the companies in the same industry.
CPRI has a debt to FCF ratio of 9.80. This is a negative value and a sign of low solvency as CPRI would need 9.80 years to pay back of all of its debts.
CPRI's Debt to FCF ratio of 9.80 is in line compared to the rest of the industry. CPRI outperforms 44.90% of its industry peers.
A Debt/Equity ratio of 4.01 is on the high side and indicates that CPRI has dependencies on debt financing.
With a Debt to Equity ratio value of 4.01, CPRI is not doing good in the industry: 87.76% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.01 | ||
| Debt/FCF | 9.8 | ||
| Altman-Z | 2.37 |
ROIC/WACC0.12
WACC8.63%
2.3 Liquidity
CPRI has a Current Ratio of 1.14. This is a normal value and indicates that CPRI is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.14, CPRI is doing worse than 85.71% of the companies in the same industry.
A Quick Ratio of 0.49 indicates that CPRI may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.49, CPRI is doing worse than 93.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
The earnings per share for CPRI have decreased strongly by -75.93% in the last year.
CPRI shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -26.36% yearly.
CPRI shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -14.08%.
The Revenue has been decreasing by -4.36% on average over the past years.
EPS 1Y (TTM)-75.93%
EPS 3Y-48.61%
EPS 5Y-26.36%
EPS Q2Q%-171.43%
Revenue 1Y (TTM)-14.08%
Revenue growth 3Y-7.73%
Revenue growth 5Y-4.36%
Sales Q2Q%-15.37%
3.2 Future
The Earnings Per Share is expected to grow by 47.14% on average over the next years. This is a very strong growth
The Revenue is expected to decrease by -2.79% on average over the next years.
EPS Next Y58.12%
EPS Next 2Y46.16%
EPS Next 3Y33.57%
EPS Next 5Y47.14%
Revenue Next Year-22.07%
Revenue Next 2Y-9.74%
Revenue Next 3Y-4.2%
Revenue Next 5Y-2.79%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 22.92, the valuation of CPRI can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of CPRI is on the same level as its industry peers.
CPRI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 14.49, which indicates a correct valuation of CPRI.
Based on the Price/Forward Earnings ratio, CPRI is valued a bit cheaper than 61.22% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CPRI to the average of the S&P500 Index (21.76), we can say CPRI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.92 | ||
| Fwd PE | 14.49 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CPRI.
Based on the Price/Free Cash Flow ratio, CPRI is valued a bit cheaper than the industry average as 67.35% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.84 | ||
| EV/EBITDA | 14.95 |
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.
A more expensive valuation may be justified as CPRI's earnings are expected to grow with 33.57% in the coming years.
PEG (NY)0.39
PEG (5Y)N/A
EPS Next 2Y46.16%
EPS Next 3Y33.57%
5. Dividend
5.1 Amount
CPRI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
19.25
-0.49 (-2.48%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners99.68%
Inst Owner Change-0.16%
Ins Owners2.12%
Ins Owner Change3.62%
Market Cap2.27B
Analysts67.62
Price Target24.49 (27.22%)
Short Float %7.76%
Short Ratio2.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-68.21%
Min EPS beat(2)-102.84%
Max EPS beat(2)-33.59%
EPS beat(4)0
Avg EPS beat(4)-61.26%
Min EPS beat(4)-102.84%
Max EPS beat(4)-15.28%
EPS beat(8)1
Avg EPS beat(8)-42.22%
EPS beat(12)4
Avg EPS beat(12)-27.74%
EPS beat(16)8
Avg EPS beat(16)-9.42%
Revenue beat(2)1
Avg Revenue beat(2)0.62%
Min Revenue beat(2)-1.64%
Max Revenue beat(2)2.88%
Revenue beat(4)1
Avg Revenue beat(4)-4.64%
Min Revenue beat(4)-10.23%
Max Revenue beat(4)2.88%
Revenue beat(8)2
Avg Revenue beat(8)-4.58%
Revenue beat(12)4
Avg Revenue beat(12)-2.95%
Revenue beat(16)8
Avg Revenue beat(16)-0.86%
PT rev (1m)0%
PT rev (3m)-7.43%
EPS NQ rev (1m)1.66%
EPS NQ rev (3m)66.67%
EPS NY rev (1m)26.6%
EPS NY rev (3m)14.43%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)-17.13%
Revenue NY rev (1m)-1.91%
Revenue NY rev (3m)-16.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.92 | ||
| Fwd PE | 14.49 | ||
| P/S | 0.51 | ||
| P/FCF | 14.84 | ||
| P/OCF | 8.08 | ||
| P/B | 6.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.95 |
EPS(TTM)0.84
EY4.36%
EPS(NY)1.33
Fwd EY6.9%
FCF(TTM)1.3
FCFY6.74%
OCF(TTM)2.38
OCFY12.38%
SpS37.67
BVpS3.12
TBVpS-12.18
PEG (NY)0.39
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -22.67% | ||
| ROE | -321.2% | ||
| ROCE | 1.34% | ||
| ROIC | 1.06% | ||
| ROICexc | 1.11% | ||
| ROICexgc | 2.15% | ||
| OM | 1.17% | ||
| PM (TTM) | N/A | ||
| GM | 63.62% | ||
| FCFM | 3.44% |
ROA(3y)-5.88%
ROA(5y)-1.5%
ROE(3y)-100.73%
ROE(5y)-54.59%
ROIC(3y)5.93%
ROIC(5y)7.29%
ROICexc(3y)6.19%
ROICexc(5y)7.57%
ROICexgc(3y)13.19%
ROICexgc(5y)17.21%
ROCE(3y)7.5%
ROCE(5y)9.23%
ROICexcg growth 3Y-59.18%
ROICexcg growth 5Y-34.44%
ROICexc growth 3Y-56.73%
ROICexc growth 5Y-31.62%
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%
F-Score5
Asset Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.01 | ||
| Debt/FCF | 9.8 | ||
| Debt/EBITDA | 6.02 | ||
| Cap/Depr | 66.32% | ||
| Cap/Sales | 2.88% | ||
| Interest Coverage | 0.6 | ||
| Cash Conversion | 114.69% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.49 | ||
| Altman-Z | 2.37 |
F-Score5
WACC8.63%
ROIC/WACC0.12
Cap/Depr(3y)97.7%
Cap/Depr(5y)82.67%
Cap/Sales(3y)3.52%
Cap/Sales(5y)3.12%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-75.93%
EPS 3Y-48.61%
EPS 5Y-26.36%
EPS Q2Q%-171.43%
EPS Next Y58.12%
EPS Next 2Y46.16%
EPS Next 3Y33.57%
EPS Next 5Y47.14%
Revenue 1Y (TTM)-14.08%
Revenue growth 3Y-7.73%
Revenue growth 5Y-4.36%
Sales Q2Q%-15.37%
Revenue Next Year-22.07%
Revenue Next 2Y-9.74%
Revenue Next 3Y-4.2%
Revenue Next 5Y-2.79%
EBIT growth 1Y-85.83%
EBIT growth 3Y-62.6%
EBIT growth 5Y-37.79%
EBIT Next Year218.52%
EBIT Next 3Y60.95%
EBIT Next 5Y49.56%
FCF growth 1Y27.5%
FCF growth 3Y-35.61%
FCF growth 5Y-24.79%
OCF growth 1Y-9.06%
OCF growth 3Y-26.37%
OCF growth 5Y-20.03%