Tapestry, Inc. [NYSE:TPR]: Analyst Rating and Earnings
Stock market traders frequently keep their eyes on what Wall Street experts as it relates to a potential investment. For Tapestry, Inc. [TPR], the most recent analyst consensus recommendation available since its latest financial results for the quarter ending in June. On average, stock market experts give TPR an Outperform rating. Its stock price has been found in the range of 30.69 to 55.50. This is compared to its latest closing price of $32.30.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Tapestry, Inc. [TPR] is sitting at 1.91. This is compared to 1 month ago, when its average rating was 1.91.
For the quarter ending in Dec-18 Tapestry, Inc. [TPR] generated $1.8 billion in sales. That’s 3.24% lower than the average estimate of $1.86 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.
Keep your eyes peeled for the soon-to-be-published financial results of this company, which are expected to be made public on Tue 7 May (In 21 Days).
Fundamental Analysis of Tapestry, Inc. [TPR]
Now let’s turn to look at profitability: with a current Operating Margin for Tapestry, Inc. [TPR] sitting at +16.87 and its Gross Margin at +67.52, this company’s Net Margin is now 12.20%. These measurements indicate that Tapestry, Inc. [TPR] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 21.04, and its Return on Invested Capital has reached 13.20%. Its Return on Equity is 12.73, and its Return on Assets is 6.35. These metrics all suggest that Tapestry, Inc. is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, Tapestry, Inc. [TPR] has generated a Total Debt to Total Equity ratio of 49.33. Similarly, its Total Debt to Total Capital is 33.03, while its Total Debt to Total Assets stands at 23.97. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 49.31, and its Long-Term Debt to Total Capital is 33.02. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 8.21 and its Total Debt to EBITDA Value is 1.28. The Enterprise Value to Sales for this firm is now 1.72, and its Total Debt to Enterprise Value stands at 0.12. Tapestry, Inc. [TPR] has a Price to Book Ratio of 4.15, a Price to Cash Flow Ratio of 13.53 and P/E Ratio of 12.88. These metrics all suggest that Tapestry, Inc. is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, Tapestry, Inc. [TPR] earns $282,692 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 18.11 and its Total Asset Turnover is 0.94. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.87 and its Current Ratio is 2.59. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Tapestry, Inc. [TPR] has 291.67M shares outstanding, amounting to a total market cap of $9.41B. Its stock price has been found in the range of 30.69 to 55.50. At its current price, it has moved by -41.87% from its 52-week high, and it has moved 5.12% from its 52-week low.
This stock’s Beta value is currently 0.75, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 39.30. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Tapestry, Inc. [TPR] a Reliable Buy?
Shares of Tapestry, Inc. [TPR], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.