NYSE:TPR

Stock Analysis Report

Executive Summary

Tapestry, Inc. provides luxury accessories and branded lifestyle products in the United States, Japan, China, Hong Kong, Macau, Europe, Canada, Taiwan, South Korea, Malaysia, Australia, New Zealand, and Singapore.

Snowflake

Fundamentals

6 star dividend payer and good value.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

3.2%

TPR

1.7%

US Luxury

1.0%

US Market


1 Year Return

-39.7%

TPR

9.8%

US Luxury

6.7%

US Market

Return vs Industry: TPR underperformed the US Luxury industry which returned 9.8% over the past year.

Return vs Market: TPR underperformed the US Market which returned 6.7% over the past year.


Share holder returns

TPRIndustryMarket
7 Day3.2%1.7%1.0%
30 Day3.2%3.3%-1.8%
90 Day-16.7%0.5%-1.8%
1 Year-36.8%-39.7%12.1%9.8%9.1%6.7%
3 Year-17.0%-25.5%54.8%47.9%46.1%36.6%
5 Year-11.3%-26.2%53.9%43.9%66.9%48.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Tapestry undervalued based on future cash flows and its price relative to the stock market?

49%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: TPR ($25.98) is trading below our estimate of fair value ($50.88)

Significantly Undervalued: TPR is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: TPR is good value based on its PE Ratio (11.7x) compared to the Luxury industry average (16.7x).

PE vs Market: TPR is good value based on its PE Ratio (11.7x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: TPR is poor value based on its PEG Ratio (1.6x)


Price Based on Value of Assets

PB vs Industry: TPR is overvalued based on its PB Ratio (2.1x) compared to the US Luxury industry average (1.6x).


Next Steps

Future Growth

How is Tapestry expected to perform in the next 1 to 3 years based on estimates from 28 analysts?

7.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: TPR's forecast earnings growth (7.1% per year) is above the savings rate (2.7%).

Earnings vs Market: TPR's earnings (7.1% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: TPR's revenue (3.1% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: TPR's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: TPR's Return on Equity is forecast to be low in 3 years time (19.5%).


Next Steps

Past Performance

How has Tapestry performed over the past 5 years?

0.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TPR's earnings have grown by 0.7% per year over the past 5 years.

Accelerating Growth: TPR's earnings growth over the past year (62.1%) exceeds its 5-year average (0.7% per year).

Earnings vs Industry: TPR earnings growth over the past year (62.1%) exceeded the Luxury industry 23.9%.


Return on Equity

High ROE: TPR's Return on Equity (18.3%) is considered low.


Return on Assets

ROA vs Industry: TPR has a higher Return on Assets than the Luxury industry average last year.


Return on Capital Employed

ROCE Improving: TPR's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Tapestry's financial position?


Financial Position Analysis

Short Term Liabilities: TPR's short term assets ($2.6B) exceeds its short term liabilities ($918.0M)

Long Term Liabilities: TPR's short term assets (2.6B) exceeds its long term liabilities (2.4B)


Debt to Equity History and Analysis

Debt Level: TPR's debt to equity ratio (45.4%) is considered high

Reducing Debt: TPR's debt to equity ratio has increased from 5.8% to 45.4% over the past 5 years.

Debt Coverage: TPR's debt is well covered by operating cash flow (49.6%).

Interest Coverage: TPR's interest payments on its debt are well covered by EBIT (19x coverage).


Balance Sheet

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

Debt Coverage by Assets: TPR's debt is covered by short term assets (assets are 1.601400x debt).


Next Steps

Dividend

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

5.53%

Expected Dividend Yield


Dividend Yield vs Market

company5.2%marketbottom25%1.5%markettop25%3.8%industryaverage2.1%forecastin3Years5.5%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: TPR's dividend (5.2%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: TPR's dividend (5.2%) is in the top 25% of dividend payers in the US market (3.77%)

Stable Dividend: TPR's dividends per share have been stable in the past 10 years.

Growing Dividend: TPR's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (60.7%), TPR's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TPR's dividends in 3 years are forecast to be covered by earnings (52.6% payout ratio).


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Jide Zeitlin (55yo)

0.08yrs

Tenure

US$410,039

Compensation

Mr. Jide J. Zeitlin is the Founder of The Keffi Group. Mr. Zeitlin serves as a Treasurer of Teach For America, Inc., Milton Academy and Common Ground Community. Mr. Zeitlin founded Independent Mobile Infra ...


Management Age and Tenure

2.0yrs

Average Tenure

56.5yo

Average Age

Experienced Management: TPR's management team is not considered experienced ( 2 years average tenure), which suggests a new team.


Board Age and Tenure

3.8yrs

Average Tenure

55yo

Average Age

Experienced Board: TPR's board of directors are considered experienced (3.8 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

SellUS$93,41513 Jun 19
Yu Long
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,229
Max PriceUS$28.93
BuyUS$210,05030 May 19
Darrell Cavens
EntityIndividual
Role
Member of the Board of Directors
Outside Director
Shares7,000
Max PriceUS$30.01

Ownership Breakdown


Management Team

  • Sarah Dunn (59yo)

    Global Human Resources Officer

    • Tenure: 5.5yrs
    • Compensation: US$1.83m
  • Jide Zeitlin (55yo)

    CEO & Chairman of the Board

    • Tenure: 0.08yrs
    • Compensation: US$410.04k
  • Joanne Crevoiserat (55yo)

    Chief Financial Officer

    • Tenure: 0.2yrs
  • Andrea Resnick (58yo)

    Global Head of Investor Relations & Corporate Communications

    • Tenure: 0yrs
    • Compensation: US$1.44m
  • Tom Glaser (58yo)

    Chief Operations Officer

    • Tenure: 0.3yrs
  • Josh Schulman (48yo)

    CEO & Brand President of Coach

    • Tenure: 2.3yrs
    • Compensation: US$4.53m
  • Todd Kahn (55yo)

    President

    • Tenure: 3.4yrs
    • Compensation: US$2.98m
  • Jo Baldwin

    Global Head of Creative Studio& VP

    • Tenure: 4yrs
  • Anna Bakst (58yo)

    CEO & Brand President of Kate Spade

    • Tenure: 1.6yrs
    • Compensation: US$3.45m
  • Michael Braine

    Chief Information Officer

    • Tenure: 0yrs

Board Members

  • Susan Kropf (70yo)

    Lead Independent Director

    • Tenure: 0.08yrs
    • Compensation: US$270.04k
  • Bill Nuti (55yo)

    Director Emeritus

    • Tenure: 0.9yrs
    • Compensation: US$54.54k
  • Ivan Menezes (60yo)

    Independent Non Executive Director

    • Tenure: 14.7yrs
    • Compensation: US$240.04k
  • Jide Zeitlin (55yo)

    CEO & Chairman of the Board

    • Tenure: 0.08yrs
    • Compensation: US$410.04k
  • Andrea Guerra (54yo)

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: US$240.04k
  • Darrell Cavens (46yo)

    Outside Director

    • Tenure: 1.3yrs
    • Compensation: US$390.16k
  • Anne Gates (59yo)

    Outside Director

    • Tenure: 1.8yrs
    • Compensation: US$240.04k
  • Dave Denton (54yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: US$270.04k
  • Annabelle Long (46yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$90.00k

Company Information

Tapestry, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tapestry, Inc.
  • Ticker: TPR
  • Exchange: NYSE
  • Founded: 1941
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: US$7.478b
  • Shares outstanding: 287.83m
  • Website: https://www.tapestry.com

Number of Employees


Location

  • Tapestry, Inc.
  • 10 Hudson Yards
  • New York
  • New York
  • 10001
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TPRNYSE (New York Stock Exchange)YesCommon StockUSUSDOct 2000
COYDB (Deutsche Boerse AG)YesCommon StockDEEUROct 2000
0LD5LSE (London Stock Exchange)YesCommon StockGBUSDOct 2000
6388SEHK (The Stock Exchange of Hong Kong Ltd.)HDR USD0.01HKHKDDec 2017
TPRY34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REP 1 COM USD0.01BRBRLMay 2019

Biography

Tapestry, Inc. provides luxury accessories and branded lifestyle products in the United States, Japan, China, Hong Kong, Macau, Europe, Canada, Taiwan, South Korea, Malaysia, Australia, New Zealand, and Si ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 01:03
End of Day Share Price2019/10/11 00:00
Earnings2019/06/29
Annual Earnings2019/06/29


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.

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