Tapestry Intrinsic Value – Tapestry Stock Falls on Friday, Fails to Keep Up with Market
December 28, 2023
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On Friday, Tapestry ($NYSE:TPR) Inc. stock fell down and failed to keep up with the market. Tapestry Inc., formerly known as Coach Inc., is a luxury accessories and lifestyle brand that has a portfolio of brands that includes Coach, Kate Spade, and Stuart Weitzman. This was in stark contrast to the market which experienced a strong rally on Friday. It appears that investors are starting to become more cautious when it comes to luxury brands and the stock has not kept up with the rest of the market.
This could be related to growing concerns about the global economic outlook and the potential impacts to the luxury goods sector. With the market continuing to climb, Tapestry Inc. needs to find ways to boost investor confidence in order to regain the upward momentum.
Share Price
TAPESTRY had managed to remain resilient on Tuesday despite market headwinds, with its stock price rising 1.5% from the previous closing of 37.0. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Tapestry. More…
| Total Revenues | Net Income | Net Margin |
| 6.67k | 935.7 | 14.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Tapestry. More…
| Operations | Investing | Financing |
| 1.22k | -163.9 | -959.1 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Tapestry. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 7.14k | 4.73k | 10.54 |
Key Ratios Snapshot
Some of the financial key ratios for Tapestry are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 11.8% | 147.2% | 17.7% |
| FCF Margin | ROE | ROA |
| 15.6% | 31.4% | 10.3% |
Analysis – Tapestry Intrinsic Value
GoodWhale has conducted an analysis of TAPESTRY‘s fundamentals and, based on our proprietary Valuation Line, the intrinsic value of the TAPESTRY stock is around $44.9. We believe this to be a fair price, yet TAPESTRY stock is currently trading at $37.6 – an undervaluation of 16.3%. This presents investors with an opportunity to purchase a quality stock at a good price. More…
Peers
In the luxury goods industry, Tapestry Inc. competes against companies like CCC SA, Prada SpA, and Nordstrom Inc. While each company has its own unique strengths, Tapestry Inc. has been able to compete effectively by offering a combination of high-quality products, exclusive designs, and excellent customer service. As a result, Tapestry Inc. has been able to maintain a loyal customer base and grow its business.
– CCC SA ($LTS:0LS5)
CCA SA is a Chile-based holding company engaged in the telecommunications sector. The Company’s main shareholder is América Móvil, S.A.B. de C.V. (AMX), through its subsidiary Telmex Internacional, S.A.B. de C.V. (Telmex). CCA SA’s subsidiaries include VTR Chile S.A., an operator of a pay television and Internet service; VTR Banda Ancha Ltda., a provider of broadband Internet; Willax TV Ltda., an over-the-air television broadcaster; Nextel Chile Ltda., a provider of digital mobile radio communications services; and Núcleo Ltda., a provider of telecommunications infrastructure.
– Prada SpA ($SEHK:01913)
Prada SpA is an Italian luxury fashion house that designs, manufactures, and markets men’s and women’s clothing, footwear, handbags, and other accessories. The company has a market cap of 96.72B as of 2022 and a Return on Equity of 11.91%. Prada was founded in 1913 by Mario Prada and is currently headed by Miuccia Prada. The company’s products are sold through its own boutiques, department stores, and online.
– Nordstrom Inc ($NYSE:JWN)
Nordstrom, Inc. is a leading fashion retailer offering quality apparel, shoes, and accessories for men, women, and children. Nordstrom operates more than 120 stores in the United States and Canada, and also has an e-commerce business. The company’s strong performance is due in part to its focus on customer service and providing a unique shopping experience. Nordstrom’s market cap is 3.15B as of 2022, and its ROE is 70.09%. Nordstrom is a publicly traded company on the Nasdaq stock exchange.
Summary
Tapestry Inc. (TAP) stock has taken a dive on Friday, underperforming the overall market. Investors are concerned with the current performance of the company, especially in light of its weak financial results from the previous quarter. Analysts will monitor the stock to determine if this trend continues or if it represents a short-term dip. Going forward, investors should consider current market conditions and the outlook for Tapestry’s business when making their decisions to buy or sell shares.
