TAPESTRY INC (TPR)
US8760301072 - Common Stock
Taking everything into account, TPR scores 6 out of 10 in our fundamental rating. TPR was compared to 50 industry peers in the Textiles, Apparel & Luxury Goods industry. TPR has an excellent profitability rating, but there are some minor concerns on its financial health. TPR is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
TPR had positive earnings in the past year.
In the past year TPR had a positive cash flow from operations.
TPR had positive earnings in 4 of the past 5 years.
TPR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of TPR (5.88%) is better than 70.00% of its industry peers.
TPR's Return On Equity of 27.08% is amongst the best of the industry. TPR outperforms 84.00% of its industry peers.
TPR has a Return On Invested Capital of 7.79%. This is comparable to the rest of the industry: TPR outperforms 58.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TPR is above the industry average of 11.54%.
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 has a Profit Margin of 12.12%. This is amongst the best in the industry. TPR outperforms 92.00% of its industry peers.
TPR's Profit Margin has improved in the last couple of years.
The Operating Margin of TPR (17.09%) is better than 90.00% of its industry peers.
TPR's Operating Margin has improved in the last couple of years.
TPR has a Gross Margin of 73.91%. 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.
| 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.
Compared to 1 year ago, TPR has a worse debt to assets ratio.
2.2 Solvency
TPR has an Altman-Z score of 2.07. 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 2.07, TPR is not doing good in the industry: 68.00% of the companies in the same industry are doing better.
TPR has a debt to FCF ratio of 6.16. This is a slightly negative value and a sign of low solvency as TPR would need 6.16 years to pay back of all of its debts.
TPR has a Debt to FCF ratio of 6.16. This is in the lower half of the industry: TPR underperforms 62.00% 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.
The Debt to Equity ratio of TPR (2.35) is worse than 88.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.35 | ||
| Debt/FCF | 6.16 | ||
| Altman-Z | 2.07 |
ROIC/WACC0.93
WACC8.42%
2.3 Liquidity
A Current Ratio of 4.93 indicates that TPR has no problem at all paying its short term obligations.
The Current ratio of TPR (4.93) is better than 100.00% of its industry peers.
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.
The Quick ratio of TPR (4.38) is better than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.93 | ||
| Quick Ratio | 4.38 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.96% 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 10.71% on average per year.
The Revenue has decreased by -0.03% in the past year.
TPR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.05% yearly.
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 8.85% on average over the next years. This is quite good.
TPR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.20% yearly.
EPS Next Y6.81%
EPS Next 2Y5.82%
EPS Next 3Y6.16%
EPS Next 5Y8.85%
Revenue Next Year1.25%
Revenue Next 2Y2.1%
Revenue Next 3Y2.62%
Revenue Next 5Y4.2%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
A Price/Earnings ratio of 13.41 indicates a correct valuation of TPR.
80.00% of the companies in the same industry are more expensive than TPR, based on the Price/Earnings ratio.
TPR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.96.
The Price/Forward Earnings ratio is 12.23, which indicates a correct valuation of TPR.
Based on the Price/Forward Earnings ratio, TPR is valued a bit cheaper than 78.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.82. TPR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.41 | ||
| Fwd PE | 12.23 |
4.2 Price Multiples
TPR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TPR is cheaper than 72.00% of the companies in the same industry.
TPR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TPR is cheaper than 64.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.54 | ||
| EV/EBITDA | 9.4 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TPR does not grow enough to justify the current Price/Earnings ratio.
TPR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.97
PEG (5Y)1.25
EPS Next 2Y5.82%
EPS Next 3Y6.16%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.42%, TPR has a reasonable but not impressive dividend return.
TPR's Dividend Yield is rather good when compared to the industry average which is at 2.92. TPR pays more dividend than 84.00% of the companies in the same industry.
TPR's Dividend Yield is comparable with the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
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 Years3
Div Non Decr Years3
5.3 Sustainability
39.95% of the earnings are spent on dividend by TPR. This is a low number and sustainable payout ratio.
TPR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP39.95%
EPS Next 2Y5.82%
EPS Next 3Y6.16%
TAPESTRY INC
NYSE:TPR (11/22/2024, 10:26:03 AM)
58.74
+2.33 (+4.13%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap13.69B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.41 | ||
| Fwd PE | 12.23 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.97
PEG (5Y)1.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.88% | ||
| ROE | 27.08% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.09% | ||
| PM (TTM) | 12.12% | ||
| GM | 73.91% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.35 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.93 | ||
| Quick Ratio | 4.38 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)8.96%
EPS 3Y12.91%
EPS 5Y
EPS Q2Q%
EPS Next Y6.81%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.03%
Revenue growth 3Y5.1%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y