TAPESTRY INC (TPR) Stock Fundamental Analysis
NYSE:TPR - New York Stock Exchange, Inc. - US8760301072 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to TPR. TPR was compared to 50 industry peers in the Textiles, Apparel & Luxury Goods industry. While TPR has a great profitability rating, 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.
TPR had a positive operating cash flow in the past year.
TPR had positive earnings in 4 of the past 5 years.
In the past 5 years TPR always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.97%, TPR belongs to the top of the industry, outperforming 81.63% of the companies in the same industry.
TPR's Return On Equity of 59.54% is amongst the best of the industry. TPR outperforms 97.96% of its industry peers.
TPR has a better Return On Invested Capital (17.49%) than 83.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TPR is above the industry average of 11.63%.
The 3 year average ROIC (13.78%) for TPR is below the current ROIC(17.49%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.97% | ||
| ROE | 59.54% | ||
| ROIC | 17.49% |
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 11.74%. This is amongst the best in the industry. TPR outperforms 91.84% of its industry peers.
TPR's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 17.47%, TPR belongs to the top of the industry, outperforming 89.80% of the companies in the same industry.
TPR's Operating Margin has improved in the last couple of years.
TPR has a Gross Margin of 74.77%. This is amongst the best in the industry. TPR outperforms 100.00% of its industry peers.
TPR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.47% | ||
| PM (TTM) | 11.74% | ||
| GM | 74.77% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TPR is creating some value.
Compared to 1 year ago, TPR has more shares outstanding
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 3.08. This indicates that TPR is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.08, TPR is in line with its industry, outperforming 59.18% of the companies in the same industry.
TPR has a debt to FCF ratio of 3.13. This is a good value and a sign of high solvency as TPR would need 3.13 years to pay back of all of its debts.
TPR's Debt to FCF ratio of 3.13 is in line compared to the rest of the industry. TPR outperforms 53.06% of its industry peers.
TPR has a Debt/Equity ratio of 1.78. This is a high value indicating a heavy dependency on external financing.
TPR's Debt to Equity ratio of 1.78 is on the low side compared to the rest of the industry. TPR is outperformed by 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.78 | ||
| Debt/FCF | 3.13 | ||
| Altman-Z | 3.08 |
ROIC/WACC1.77
WACC9.87%
2.3 Liquidity
A Current Ratio of 1.58 indicates that TPR should not have too much problems paying its short term obligations.
TPR's Current ratio of 1.58 is on the low side compared to the rest of the industry. TPR is outperformed by 71.43% of its industry peers.
TPR has a Quick Ratio of 1.05. This is a normal value and indicates that TPR is financially healthy and should not expect problems in meeting its short term obligations.
TPR's Quick ratio of 1.05 is in line compared to the rest of the industry. TPR outperforms 42.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
TPR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.72%, which is quite good.
TPR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.71% yearly.
The Revenue has been growing slightly by 0.74% in the past year.
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)10.72%
EPS 3Y12.91%
EPS 5Y10.71%
EPS Q2Q%22.7%
Revenue 1Y (TTM)0.74%
Revenue growth 3Y5.1%
Revenue growth 5Y2.05%
Sales Q2Q%5.32%
3.2 Future
TPR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.90% yearly.
TPR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.55% yearly.
EPS Next Y15.99%
EPS Next 2Y12.63%
EPS Next 3Y12.39%
EPS Next 5Y2.9%
Revenue Next Year3.36%
Revenue Next 2Y3.15%
Revenue Next 3Y3.35%
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.
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
TPR is valuated rather expensively with a Price/Earnings ratio of 18.22.
TPR's Price/Earnings ratio is in line with the industry average.
TPR is valuated rather cheaply when we compare the Price/Earnings ratio to 29.36, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 15.90, TPR is valued correctly.
TPR's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.65. TPR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.22 | ||
| Fwd PE | 15.9 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TPR is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as TPR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.9 | ||
| EV/EBITDA | 14.46 |
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.
TPR's earnings are expected to grow with 12.39% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.14
PEG (5Y)1.7
EPS Next 2Y12.63%
EPS Next 3Y12.39%
5. Dividend
5.1 Amount
TPR has a Yearly Dividend Yield of 1.62%.
Compared to an average industry Dividend Yield of 2.87, TPR pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.27, TPR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
5.2 History
The dividend of TPR has a limited annual growth rate of 0.66%.
TPR has paid a dividend for at least 10 years, which is 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
39.56% 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.
DP39.56%
EPS Next 2Y12.63%
EPS Next 3Y12.39%
86.56
+2.53 (+3.01%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners107.88%
Inst Owner Change-90.72%
Ins Owners0.36%
Ins Owner Change-1.16%
Market Cap17.92B
Analysts77.78
Price Target87.93 (1.58%)
Short Float %9.12%
Short Ratio3.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
Yearly Dividend1.4
Dividend Growth(5Y)0.66%
DP39.56%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.58%
Min EPS beat(2)6.12%
Max EPS beat(2)13.05%
EPS beat(4)4
Avg EPS beat(4)10.65%
Min EPS beat(4)3.9%
Max EPS beat(4)19.51%
EPS beat(8)7
Avg EPS beat(8)10.45%
EPS beat(12)10
Avg EPS beat(12)9.65%
EPS beat(16)14
Avg EPS beat(16)13.17%
Revenue beat(2)2
Avg Revenue beat(2)2.19%
Min Revenue beat(2)1.31%
Max Revenue beat(2)3.07%
Revenue beat(4)3
Avg Revenue beat(4)0.61%
Min Revenue beat(4)-2.02%
Max Revenue beat(4)3.07%
Revenue beat(8)5
Avg Revenue beat(8)0.14%
Revenue beat(12)6
Avg Revenue beat(12)-0.17%
Revenue beat(16)10
Avg Revenue beat(16)0.77%
PT rev (1m)32.96%
PT rev (3m)40.64%
EPS NQ rev (1m)1.58%
EPS NQ rev (3m)0.6%
EPS NY rev (1m)6.31%
EPS NY rev (3m)8.6%
Revenue NQ rev (1m)1.05%
Revenue NQ rev (3m)0.26%
Revenue NY rev (1m)1.71%
Revenue NY rev (3m)2.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.22 | ||
| Fwd PE | 15.9 | ||
| P/S | 2.64 | ||
| P/FCF | 20.9 | ||
| P/OCF | 18.3 | ||
| P/B | 13.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.46 |
EPS(TTM)4.75
EY5.49%
EPS(NY)5.44
Fwd EY6.29%
FCF(TTM)4.14
FCFY4.79%
OCF(TTM)4.73
OCFY5.46%
SpS32.73
BVpS6.46
TBVpS-5.89
PEG (NY)1.14
PEG (5Y)1.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.97% | ||
| ROE | 59.54% | ||
| ROCE | 21.53% | ||
| ROIC | 17.49% | ||
| ROICexc | 21.39% | ||
| ROICexgc | 49.53% | ||
| OM | 17.47% | ||
| PM (TTM) | 11.74% | ||
| GM | 74.77% | ||
| FCFM | 12.66% |
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-Score8
Asset Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.78 | ||
| Debt/FCF | 3.13 | ||
| Debt/EBITDA | 1.76 | ||
| Cap/Depr | 71.59% | ||
| Cap/Sales | 1.8% | ||
| Interest Coverage | 2.19 | ||
| Cash Conversion | 72.32% | ||
| Profit Quality | 107.78% | ||
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z | 3.08 |
F-Score8
WACC9.87%
ROIC/WACC1.77
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)10.72%
EPS 3Y12.91%
EPS 5Y10.71%
EPS Q2Q%22.7%
EPS Next Y15.99%
EPS Next 2Y12.63%
EPS Next 3Y12.39%
EPS Next 5Y2.9%
Revenue 1Y (TTM)0.74%
Revenue growth 3Y5.1%
Revenue growth 5Y2.05%
Sales Q2Q%5.32%
Revenue Next Year3.36%
Revenue Next 2Y3.15%
Revenue Next 3Y3.35%
Revenue Next 5Y2.55%
EBIT growth 1Y-1.38%
EBIT growth 3Y0.85%
EBIT growth 5Y6.25%
EBIT Next Year20.59%
EBIT Next 3Y10.27%
EBIT Next 5Y6.3%
FCF growth 1Y66.04%
FCF growth 3Y-1.71%
FCF growth 5Y17.25%
OCF growth 1Y51.24%
OCF growth 3Y-1.75%
OCF growth 5Y9.66%