NYSE:CPRI

Stock Analysis Report

Executive Summary

Capri Holdings Limited designs, markets, distributes, and retails branded women’s and men’s apparel and accessories in the United States, Canada, Latin America, Europe, the Middle East, Africa, and Asia.

Rewards

Trading at 48.7% below its fair value

Earnings are forecast to grow 15.68% per year

Risk Analysis

Has a high level of debt

Highly volatile share price over past 3 months

Large one-off items impacting financial results

Profit margins (6.1%) are lower than last year (11.6%)



Snowflake Analysis

Good value with moderate growth potential.


Similar Companies

Share Price & News

How has Capri Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CPRI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.1%

CPRI

3.3%

US Luxury

0.8%

US Market


1 Year Return

3.6%

CPRI

24.9%

US Luxury

17.8%

US Market

Return vs Industry: CPRI underperformed the US Luxury industry which returned 24.9% over the past year.

Return vs Market: CPRI underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

CPRIIndustryMarket
7 Day3.1%3.3%0.8%
30 Day9.4%5.9%1.8%
90 Day22.8%8.1%4.1%
1 Year3.6%3.6%27.5%24.9%20.4%17.8%
3 Year-13.0%-13.0%61.6%54.4%45.9%36.4%
5 Year-47.3%-47.3%49.9%40.0%68.1%49.6%

Price Volatility Vs. Market

How volatile is Capri Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Capri Holdings undervalued compared to its fair value and its price relative to the market?

47.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CPRI ($38.1) is trading below our estimate of fair value ($74.33)

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


Price To Earnings Ratio

PE vs Industry: CPRI is good value based on its PE Ratio (17x) compared to the Luxury industry average (17.8x).

PE vs Market: CPRI is good value based on its PE Ratio (17x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: CPRI is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: CPRI is overvalued based on its PB Ratio (2.4x) compared to the US Luxury industry average (1.3x).


Next Steps

Future Growth

How is Capri Holdings forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

15.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CPRI's forecast earnings growth (15.7% per year) is above the savings rate (1.7%).

Earnings vs Market: CPRI's earnings (15.7% per year) are forecast to grow faster than the US market (14.2% per year).

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

Revenue vs Market: CPRI's revenue (3.7% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: CPRI's revenue (3.7% 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 (22.2%)


Next Steps

Past Performance

How has Capri Holdings performed over the past 5 years?

-14.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CPRI has a large one-off loss of $327.0M impacting its September 28 2019 financial results.

Growing Profit Margin: CPRI's current net profit margins (6.1%) are lower than last year (11.6%).


Past Earnings Growth Analysis

Earnings Trend: CPRI's earnings have declined by -14.2% per year over the past 5 years.

Accelerating Growth: CPRI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CPRI had negative earnings growth (-42.7%) over the past year, making it difficult to compare to the Luxury industry average (2.6%).


Return on Equity

High ROE: CPRI's Return on Equity (14%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Capri Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: CPRI's short term assets ($1.9B) exceed its short term liabilities ($1.8B).

Long Term Liabilities: CPRI's short term assets ($1.9B) do not cover its long term liabilities ($4.2B).


Debt to Equity History and Analysis

Debt Level: CPRI's debt to equity ratio (99.5%) is considered high.

Reducing Debt: Insufficient data to determine if CPRI's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: CPRI's debt is well covered by operating cash flow (28.1%).

Interest Coverage: CPRI's interest payments on its debt are well covered by EBIT (19.9x coverage).


Balance Sheet

Inventory Level: CPRI has a high level of physical assets or inventory.

Debt Coverage by Assets: CPRI's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.4%forecastin3Years0%

Current dividend yield vs market & industry

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CPRI's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Capri Holdings's salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average management tenure


CEO

John Idol (60yo)

16yrs

Tenure

US$14,354,013

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 has been the Chief Executive Officer of Michael  ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD14.35M) is above average for companies of similar size in the US market ($USD6.70M).

Compensation vs Earnings: John's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

4.3yrs

Average Tenure

55yo

Average Age

Experienced Management: CPRI's management team is considered experienced (4.3 years average tenure).


Board Age and Tenure

6.8yrs

Average Tenure

63yo

Average Age

Experienced Board: CPRI's board of directors are considered experienced (6.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$9,976,68515 Aug 19
John Idol
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares363,000
Max PriceUS$28.30
BuyUS$399,21204 Jun 19
Thomas Edwards
EntityIndividual
Role
Chief Financial Officer
Executive VP
Shares11,600
Max PriceUS$34.41
BuyUS$20,030,29703 Jun 19
John Idol
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares615,000
Max PriceUS$33.14
SellUS$171,45611 Feb 19
Cathy Robinson
EntityIndividual
Role
Co-Chief Operating Officer
Senior VP
Shares3,648
Max PriceUS$47.00

Ownership Breakdown

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


Management Team

  • John Idol (60yo)

    Chairman & CEO

    • Tenure: 16yrs
    • Compensation: US$14.35m
  • Don Witkowski

    President

    • Tenure: 3.9yrs
  • Tom Edwards (55yo)

    Executive VP

    • Tenure: 2.7yrs
    • Compensation: US$3.52m
  • Cathy Robinson (51yo)

    Senior VP

    • Tenure: 4.3yrs
    • Compensation: US$2.26m
  • Pascale Meyran (59yo)

    Consultant

    • Tenure: 5.3yrs
    • Compensation: US$2.26m
  • Michael Kim

    President of Korea

    • Tenure: 4.7yrs
  • Marcel Ostwald

    Senior Vice President of Menswear

    • Tenure: 4.3yrs
  • Krista McDonough (38yo)

    General Counsel

    • Tenure: 3.2yrs
  • Francesca Leoni

    Chief Brand Officer & Senior VP

    • Tenure: 1.8yrs
  • Katina Metzidakis

    Vice President of Investor Relations

    • Tenure: 0yrs

Board Members

  • John Idol (60yo)

    Chairman & CEO

    • Tenure: 16yrs
    • Compensation: US$14.35m
  • Ann Korologos (77yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$299.00k
  • M. Benedetto (78yo)

    Lead Director

    • Tenure: 5.4yrs
    • Compensation: US$317.00k
  • Stephen Reitman (72yo)

    Independent Director

    • Tenure: 8yrs
    • Compensation: US$274.00k
  • Judy Gibbons (62yo)

    Independent Director

    • Tenure: 7.1yrs
    • Compensation: US$265.00k
  • Robin Freestone (60yo)

    Independent Director

    • Tenure: 3.1yrs
    • Compensation: US$295.00k
  • Jane Thompson (47yo)

    Independent Director

    • Tenure: 4.9yrs
    • Compensation: US$265.00k
  • Jean Tomlin (64yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$290.00k

Company Information

Capri Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Capri Holdings Limited
  • Ticker: CPRI
  • Exchange: NYSE
  • Founded: 1981
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: US$5.962b
  • Shares outstanding: 151.64m
  • Website: https://www.capriholdings.com

Number of Employees


Location

  • Capri Holdings Limited
  • 33 Kingsway
  • London
  • Greater London
  • WC2B 6UF
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CPRINYSE (New York Stock Exchange)YesOrdinary SharesUSUSDDec 2011
MKODB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2011
CPRISWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFDec 2011
CPRI NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNDec 2011
CAPH34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REP 1 COM NPVBRBRLMay 2019

Biography

Capri Holdings Limited designs, markets, distributes, and retails branded women’s and men’s apparel and accessories in the United States, Canada, Latin America, Europe, the Middle East, Africa, and Asia. T ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/13 00:08
End of Day Share Price2019/12/12 00:00
Earnings2019/09/28
Annual Earnings2019/03/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.