Capri Holdings (NYSE:CPRI) - Share price, News & Analysis

Q: What is the Fair Price of CPRI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

CPRI ($44.71) is trading below our estimate of [[fair value]] ($102.43)

CPRI fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	2/6
Past Performance	3/6
Financial Health	4/6
Dividends	0/6

CPRI Stock Overview

Rewards

Trading at 56.3% below our estimate of its fair value

Earnings are forecast to grow 4.53% per year

Became profitable this year

Risk Analysis

No risks detected for CPRI from our risk checks.

Capri Holdings Competitors

Levi Strauss

NYSE:LEVI

US$6.8b

Ralph Lauren

NYSE:RL

US$6.6b

Tapestry

NYSE:TPR

US$8.2b

Columbia Sportswear

NasdaqGS:COLM

US$4.8b

Price History & Performance

Summary of all time highs, changes and price drops for Capri Holdings
Historical stock prices
Current Share Price	US$44.71
52 Week High	US$72.37
52 Week Low	US$36.90
Beta	2.3
1 Month Change	-6.01%
3 Month Change	-21.37%
1 Year Change	-18.07%
3 Year Change	28.33%
5 Year Change	23.34%
Change since IPO	84.75%

Recent News & Updates

Jun 11

Does Capri Holdings (NYSE:CPRI) Have A Healthy Balance Sheet?

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Jun 06

Capri Holdings: Now A Buy

We are positive on the fashion sector. Solid Q1 results were driven by all the business lines. The new buyback plan aims to lower its implied discount compared to peers.

Shareholder Returns

	CPRI	US Luxury	US Market
7D	-0.6%	3.4%	6.3%
1Y	-18.1%	-29.0%	-18.8%

Return vs Industry: CPRI exceeded the US Luxury industry which returned -28.6% over the past year.

Return vs Market: CPRI matched the US Market which returned -18.4% over the past year.

Price Volatility

Is CPRI's price volatile compared to industry and market?
CPRI volatility
CPRI Average Weekly Movement	8.9%
Luxury Industry Average Movement	7.5%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.7%
10% least volatile stocks in US Market	3.2%

Stable Share Price: CPRI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: CPRI's weekly volatility (9%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1981	12,150	John Idol	https://www.capriholdings.com

Capri Holdings Limited designs, markets, distributes, and retails branded women’s and men’s apparel, footwear, and accessories in the United States, Canada, Latin America, Europe, the Middle East, Africa, and Asia. It operates through three segments: Versace, Jimmy Choo, and Michael Kors. The company offers ready-to-wear, accessories, footwear, handbags, scarves and belts, small leather goods, eyewear, watches, jewelry, fragrances, and home furnishings through a distribution network, including boutiques, department, and specialty stores, as well as through e-commerce sites.

Capri Holdings Fundamentals Summary

How do Capri Holdings's earnings and revenue compare to its market cap?
CPRI fundamental statistics
Market Cap	US$6.39b
Earnings (TTM)	US$822.00m
Revenue (TTM)	US$5.65b

7.8x

P/E Ratio

1.1x

P/S Ratio

Is CPRI overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CPRI income statement (TTM)
Revenue	US$5.65b
Cost of Revenue	US$1.93b
Gross Profit	US$3.73b
Other Expenses	US$2.91b
Earnings	US$822.00m

Last Reported Earnings

Apr 02, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	5.76
Gross Margin	65.94%
Net Profit Margin	14.54%
Debt/Equity Ratio	45.3%

How did CPRI perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is CPRI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CPRI?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for CPRI. This is calculated by dividing CPRI's market cap by their current preferred multiple.
What is CPRI's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$6.39b

CPRI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.6x
Enterprise Value/EBITDA	7.7x
PEG Ratio	1.7x

Price to Earnings Ratio vs Peers

How does CPRI's PE Ratio compare to its peers?

CPRI PE Ratio vs Peers

The above table shows the PE ratio for CPRI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	11.1x
LEVI Levi Strauss	11.1x	10.7%	US$6.8b
RL Ralph Lauren	10.9x	4.8%	US$6.6b
TPR Tapestry	9.5x	10.2%	US$8.2b
COLM Columbia Sportswear	13x	6.8%	US$4.8b
CPRI Capri Holdings	7.8x	4.5%	US$6.4b

Forward PE

Price-To-Earnings vs Peers: CPRI is good value based on its Price-To-Earnings Ratio (7.8x) compared to the peer average (11.1x).

Price to Earnings Ratio vs Industry

How does CPRI's PE Ratio compare vs other companies in the US Luxury Industry?

Price-To-Earnings vs Industry: CPRI is good value based on its Price-To-Earnings Ratio (7.8x) compared to the US Luxury industry average (10.6x)

Price to Earnings Ratio vs Fair Ratio

What is CPRI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CPRI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	7.8x
Fair PE Ratio	13.5x

Price-To-Earnings vs Fair Ratio: CPRI is good value based on its Price-To-Earnings Ratio (7.8x) compared to the estimated Fair Price-To-Earnings Ratio (13.5x).

Share Price vs Fair Value

What is the Fair Price of CPRI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CPRI ($44.71) is trading below our estimate of fair value ($102.43)

Significantly Below Fair Value: CPRI is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: CPRI is poor value based on its PEG Ratio (1.7x)

Discover undervalued companies

Future Growth

How is Capri Holdings forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

4.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: CPRI's forecast earnings growth (4.5% per year) is above the savings rate (1.9%).

Earnings vs Market: CPRI's earnings (4.5% per year) are forecast to grow slower than the US market (13.9% per year).

High Growth Earnings: CPRI's earnings are forecast to grow, but not significantly.

Revenue vs Market: CPRI's revenue (5.5% per year) is forecast to grow slower than the US market (8.4% per year).

High Growth Revenue: CPRI's revenue (5.5% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: CPRI's Return on Equity is forecast to be high in 3 years time (29.7%)

Discover growth companies

Past Performance

How has Capri Holdings performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-19.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CPRI has high quality earnings.

Growing Profit Margin: CPRI became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: CPRI's earnings have declined by 19.3% per year over the past 5 years.

Accelerating Growth: CPRI has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: CPRI has become profitable in the last year, making it difficult to compare its past year earnings growth to the Luxury industry (88.3%).

Return on Equity

High ROE: CPRI's Return on Equity (32.2%) is considered high.

Discover strong past performing companies

Financial Health

How is Capri Holdings's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: CPRI's short term assets ($1.9B) exceed its short term liabilities ($1.6B).

Long Term Liabilities: CPRI's short term assets ($1.9B) do not cover its long term liabilities ($3.4B).

Debt to Equity History and Analysis

Debt Level: CPRI's net debt to equity ratio (38.7%) is considered satisfactory.

Reducing Debt: CPRI's debt to equity ratio has increased from 8.4% to 45.3% over the past 5 years.

Debt Coverage: CPRI's debt is well covered by operating cash flow (60.7%).

Interest Coverage: CPRI earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is Capri Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate CPRI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate CPRI's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CPRI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CPRI's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as CPRI has not reported any payouts.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

5.4yrs

Average management tenure

CEO

John Idol (62 yo)

18.5yrs

Tenure

US$14,737,831

Compensation

Mr. John D. Idol has been the Chairman of Capri Holdings Limited since September 2011 and has been its Chief Executive Officer since December 2003. Mr. Idol had been the Chief Executive Officer of Michael...

CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD14.74M) is above average for companies of similar size in the US market ($USD8.23M).

Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: CPRI's management team is seasoned and experienced (5.4 years average tenure).

Board Members

Experienced Board: CPRI's board of directors are considered experienced (9.3 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/27 00:00
End of Day Share Price	2022/06/27 00:00
Earnings	2022/04/02
Annual Earnings	2022/04/02