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Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Tapestry, Inc. (NYSE:TPR) due to its excellent fundamentals in more than one area. TPR is a financially-robust , dividend-paying company with a a great track record of performance. Below, I’ve touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, take a look at the report on Tapestry here.
6 star dividend payer with solid track record
Over the past few years, TPR has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. This strong performance generated a robust double-digit return on equity of 21%, which is an optimistic signal for the future. TPR’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that TPR manages its cash and cost levels well, which is an important determinant of the company’s health. TPR appears to have made good use of debt, producing operating cash levels of 0.73x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
Income investors would also be happy to know that TPR is one of the highest dividend payers in the market, with current dividend yield standing at 3.9%. TPR has also been regularly increasing its dividend payments to shareholders over the past decade.
For Tapestry, there are three pertinent aspects you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for TPR’s future growth? Take a look at our free research report of analyst consensus for TPR’s outlook.
- Valuation: What is TPR worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether TPR is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of TPR? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.