Yahoo Finance Interested In Tapestry, Inc. (NYSE:TPR)? Here's How It Performed Recently
For long term investors, improvement in profitability and outperformance against the industry can be important characteristics in a stock. In this article, I will take a look at Tapestry, Inc.'s (NYSE:TPR) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers.
Check out our latest analysis for Tapestry
Commentary On TPR's Past Performance
TPR's trailing twelve-month earnings (from 28 September 2019) of US$541m has increased by 1.0% compared to the previous year.
However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 4.1%, indicating the rate at which TPR is growing has slowed down. What could be happening here? Well, let’s take a look at what’s transpiring with margins and if the rest of the industry is experiencing the hit as well.
In terms of returns from investment, Tapestry has fallen short of achieving a 20% return on equity (ROE), recording 18% instead. However, its return on assets (ROA) of 7.0% exceeds the US Luxury industry of 5.9%, indicating Tapestry has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Tapestry’s debt level, has declined over the past 3 years from 18% to 12%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 6.8% to 52% over the past 5 years.
What does this mean?
Though Tapestry's past data is helpful, it is only one aspect of my investment thesis. Recent positive growth isn't always indicative of a continued optimistic outlook. I recommend you continue to research Tapestry to get a better picture of the stock by looking at:
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.
Financial Health: Are TPR’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 28 September 2019. This may not be consistent with full year annual report figures.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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.
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