Tapestry Inc. (TPR) Stock

Tapestry Inc. trades at a P/E ratio of 134.79, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 20.00 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 0.35 suggests the stock may be undervalued relative to its growth rate.

With a beta of 1.54, Tapestry Inc. is significantly more volatile than the market. For every 10% market move, this stock tends to move 15% in the same direction. Higher beta stocks offer greater potential returns but with increased risk. The price-to-book ratio of 26.46 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Tapestry Inc. achieves a profit margin of 2.61%, meaning it retains $2.61 from every $100 in revenue after all expenses. This relatively low margin suggests the company operates in a competitive environment or high-cost industry where profitability is challenging. The operating margin of 17.50% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 9.76% and ROA at 8.81%, the company achieves moderate returns on invested capital.

Tapestry Inc.'s revenue grew by 8.30% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 58.30% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against LUXURY GOODS industry averages for proper context.

Tapestry Inc. offers a dividend yield of 1.26%, paying $1.40 per share annually. This modest yield below 2% suggests the company prioritizes growth investments over current income. While the dividend provides some return, investors are likely attracted more by capital appreciation potential than income generation. To receive the next dividend, shares must be purchased before the ex-dividend date of Sep 5, 2025.

The dividend sustainability can be assessed through the payout ratio - Tapestry Inc. pays $1.40 per share in dividends against earnings of $0.84 per share, resulting in a payout ratio of 100.00%. This very high payout exceeding 90% raises sustainability concerns, as nearly all earnings go to dividends. Any earnings decline could force a dividend cut. The next dividend payment is scheduled for Sep 22, 2025.

Tapestry Inc. has a market capitalization of $23.4B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 207.01M shares outstanding, the company's ownership is relatively concentrated. As a participant in the LUXURY GOODS industry, it competes with other firms in this sector.

Tapestry Inc.'s book value per share is $4.12, while the current stock price is $111.49, resulting in a price-to-book (P/B) ratio of 27.05. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

20 analysts cover TPR with 75% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The strong bullish consensus may already be priced in. The consensus target of $117.22 implies 5.1% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:4 Strong Buy, 11 Buy, 4 Hold, 01 Strong Sell. The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.