TAPESTRY INC (TPR)
US8760301072 - Common Stock
Overall TPR gets a fundamental rating of 5 out of 10. We evaluated TPR against 50 industry peers in the Textiles, Apparel & Luxury Goods industry. TPR scores excellent on profitability, but there are some minor concerns on its financial health. TPR has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year TPR was profitable.
In the past year TPR had a positive cash flow from operations.
Of the past 5 years TPR 4 years were profitable.
Each year in the past 5 years TPR had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.88%, TPR is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
The Return On Equity of TPR (27.08%) is better than 84.00% of its industry peers.
TPR's Return On Invested Capital of 7.79% is in line compared to the rest of the industry. TPR outperforms 58.00% of its industry peers.
TPR had an Average Return On Invested Capital over the past 3 years of 13.78%. This is above the industry average of 11.61%.
The last Return On Invested Capital (7.79%) for TPR is well below the 3 year average (13.78%), which needs to be investigated, but indicates that TPR had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.88% | ||
| ROE | 27.08% | ||
| ROIC | 7.79% |
ROA(3y)10.34%
ROA(5y)6.55%
ROE(3y)35.58%
ROE(5y)20.74%
ROIC(3y)13.78%
ROIC(5y)12.02%
1.3 Margins
TPR's Profit Margin of 12.12% is amongst the best of 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 better Operating Margin (17.09%) than 90.00% of its industry peers.
TPR's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 73.91%, TPR belongs to the top 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.09% | ||
| PM (TTM) | 12.12% | ||
| GM | 73.91% |
OM growth 3Y-4.04%
OM growth 5Y4.12%
PM growth 3Y-5.55%
PM growth 5Y2.76%
GM growth 3Y0.98%
GM growth 5Y1.59%
2. Health
2.1 Basic Checks
TPR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for TPR has been increased compared to 1 year ago.
The number of shares outstanding for TPR has been reduced compared to 5 years ago.
TPR has a worse debt/assets ratio than last year.
2.2 Solvency
TPR has an Altman-Z score of 2.17. This is not the best score and indicates that TPR is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.17, TPR is not doing good in the industry: 68.00% of the companies in the same industry are doing better.
The Debt to FCF ratio of TPR is 6.16, which is on the high side as it means it would take TPR, 6.16 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TPR (6.16) is worse than 60.00% of its industry peers.
TPR has a Debt/Equity ratio of 2.35. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.35, TPR is not doing good in the industry: 88.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.35 | ||
| Debt/FCF | 6.16 | ||
| Altman-Z | 2.17 |
ROIC/WACC0.96
WACC8.16%
2.3 Liquidity
A Current Ratio of 4.93 indicates that TPR has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 4.93, TPR belongs to the top of the industry, outperforming 98.00% of the companies in the same industry.
TPR has a Quick Ratio of 4.38. This indicates that TPR is financially healthy and has no problem in meeting its short term obligations.
TPR has a Quick ratio of 4.38. This is amongst the best in the industry. TPR outperforms 98.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.93 | ||
| Quick Ratio | 4.38 |
3. Growth
3.1 Past
TPR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.96%, which is quite good.
Measured over the past years, TPR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.71% on average per year.
TPR shows a decrease in Revenue. In the last year, the revenue decreased by -0.03%.
Measured over the past years, TPR shows a small growth in Revenue. The Revenue has been growing by 2.05% on average per year.
EPS 1Y (TTM)8.96%
EPS 3Y12.91%
EPS 5Y10.71%
EPS Q2Q%9.68%
Revenue 1Y (TTM)-0.03%
Revenue growth 3Y5.1%
Revenue growth 5Y2.05%
Sales Q2Q%-0.38%
3.2 Future
The Earnings Per Share is expected to grow by 2.90% on average over the next years.
The Revenue is expected to grow by 2.55% on average over the next years.
EPS Next Y9.11%
EPS Next 2Y8.7%
EPS Next 3Y9.54%
EPS Next 5Y2.9%
Revenue Next Year1.68%
Revenue Next 2Y2.24%
Revenue Next 3Y2.39%
Revenue Next 5Y2.55%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.65 indicates a correct valuation of TPR.
Based on the Price/Earnings ratio, TPR is valued a bit cheaper than 74.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.20, TPR is valued a bit cheaper.
With a Price/Forward Earnings ratio of 12.66, TPR is valued correctly.
Based on the Price/Forward Earnings ratio, TPR is valued a bit cheaper than 78.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TPR to the average of the S&P500 Index (23.73), we can say TPR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.65 | ||
| Fwd PE | 12.66 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TPR indicates a somewhat cheap valuation: TPR is cheaper than 68.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, TPR is valued a bit cheaper than 64.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.6 | ||
| EV/EBITDA | 10.78 |
4.3 Compensation for Growth
TPR's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of TPR may justify a higher PE ratio.
PEG (NY)1.61
PEG (5Y)1.37
EPS Next 2Y8.7%
EPS Next 3Y9.54%
5. Dividend
5.1 Amount
TPR has a Yearly Dividend Yield of 2.23%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.87, TPR pays a better dividend. On top of this TPR pays more dividend than 82.00% of the companies listed in the same industry.
TPR's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
5.2 History
The dividend of TPR has a limited annual growth rate of 0.66%.
TPR has been paying a dividend for at least 10 years, so it has a reliable track record.
TPR has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)0.66%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
TPR pays out 39.95% of its income as dividend. This is a sustainable payout ratio.
TPR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP39.95%
EPS Next 2Y8.7%
EPS Next 3Y9.54%
TAPESTRY INC
NYSE:TPR (12/20/2024, 8:04:00 PM)
Premarket: 64.41 +0.26 (+0.41%)64.15
+1.49 (+2.38%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners91.65%
Inst Owner Change1.61%
Ins Owners0.32%
Ins Owner Change-1.66%
Market Cap14.95B
Analysts77.6
Price Target62.56 (-2.48%)
Short Float %9.79%
Short Ratio4.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
Dividend Growth(5Y)0.66%
DP39.95%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.01%
Min EPS beat(2)3.9%
Max EPS beat(2)6.12%
EPS beat(4)4
Avg EPS beat(4)10.02%
Min EPS beat(4)3.9%
Max EPS beat(4)19.51%
EPS beat(8)7
Avg EPS beat(8)9.57%
EPS beat(12)10
Avg EPS beat(12)9.49%
EPS beat(16)14
Avg EPS beat(16)13.18%
Revenue beat(2)2
Avg Revenue beat(2)0.69%
Min Revenue beat(2)0.07%
Max Revenue beat(2)1.31%
Revenue beat(4)3
Avg Revenue beat(4)-0.05%
Min Revenue beat(4)-2.02%
Max Revenue beat(4)1.31%
Revenue beat(8)4
Avg Revenue beat(8)-0.39%
Revenue beat(12)6
Avg Revenue beat(12)0.1%
Revenue beat(16)10
Avg Revenue beat(16)0.73%
PT rev (1m)25.97%
PT rev (3m)26.79%
EPS NQ rev (1m)0.62%
EPS NQ rev (3m)2.89%
EPS NY rev (1m)2.15%
EPS NY rev (3m)3.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.14%
Revenue NY rev (1m)0.43%
Revenue NY rev (3m)0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.65 | ||
| Fwd PE | 12.66 | ||
| P/S | 2.24 | ||
| P/FCF | 12.6 | ||
| P/OCF | 11.5 | ||
| P/B | 5.01 | ||
| P/tB | 37.57 | ||
| EV/EBITDA | 10.78 |
EPS(TTM)4.38
EY6.83%
EPS(NY)5.07
Fwd EY7.9%
FCF(TTM)5.09
FCFY7.93%
OCF(TTM)5.58
OCFY8.69%
SpS28.6
BVpS12.8
TBVpS1.71
PEG (NY)1.61
PEG (5Y)1.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.88% | ||
| ROE | 27.08% | ||
| ROCE | 9.59% | ||
| ROIC | 7.79% | ||
| ROICexc | 20.25% | ||
| ROICexgc | 46.6% | ||
| OM | 17.09% | ||
| PM (TTM) | 12.12% | ||
| GM | 73.91% | ||
| FCFM | 17.8% |
ROA(3y)10.34%
ROA(5y)6.55%
ROE(3y)35.58%
ROE(5y)20.74%
ROIC(3y)13.78%
ROIC(5y)12.02%
ROICexc(3y)19.95%
ROICexc(5y)17.13%
ROICexgc(3y)43.52%
ROICexgc(5y)37.52%
ROCE(3y)16.96%
ROCE(5y)14.79%
ROICexcg growth 3Y6.58%
ROICexcg growth 5Y1.06%
ROICexc growth 3Y4.19%
ROICexc growth 5Y7.39%
OM growth 3Y-4.04%
OM growth 5Y4.12%
PM growth 3Y-5.55%
PM growth 5Y2.76%
GM growth 3Y0.98%
GM growth 5Y1.59%
F-Score5
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.35 | ||
| Debt/FCF | 6.16 | ||
| Debt/EBITDA | 5.35 | ||
| Cap/Depr | 66.59% | ||
| Cap/Sales | 1.7% | ||
| Interest Coverage | 4.39 | ||
| Cash Conversion | 99.26% | ||
| Profit Quality | 146.88% | ||
| Current Ratio | 4.93 | ||
| Quick Ratio | 4.38 | ||
| Altman-Z | 2.17 |
F-Score5
WACC8.16%
ROIC/WACC0.96
Cap/Depr(3y)70.59%
Cap/Depr(5y)69.51%
Cap/Sales(3y)1.93%
Cap/Sales(5y)2.39%
Profit Quality(3y)104.57%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)8.96%
EPS 3Y12.91%
EPS 5Y10.71%
EPS Q2Q%9.68%
EPS Next Y9.11%
EPS Next 2Y8.7%
EPS Next 3Y9.54%
EPS Next 5Y2.9%
Revenue 1Y (TTM)-0.03%
Revenue growth 3Y5.1%
Revenue growth 5Y2.05%
Sales Q2Q%-0.38%
Revenue Next Year1.68%
Revenue Next 2Y2.24%
Revenue Next 3Y2.39%
Revenue Next 5Y2.55%
EBIT growth 1Y-2.77%
EBIT growth 3Y0.85%
EBIT growth 5Y6.25%
EBIT Next Year20.59%
EBIT Next 3Y9.61%
EBIT Next 5Y6.3%
FCF growth 1Y106.94%
FCF growth 3Y-1.71%
FCF growth 5Y17.25%
OCF growth 1Y96.64%
OCF growth 3Y-1.75%
OCF growth 5Y9.66%