Coach (COH) Lags In After-Hours Trading
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
(
) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Coach as such a stock due to the following factors:
- COH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $256.0 million.
- COH is down 2.4% today from today's close.
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More details on COH:
Coach, Inc. provides luxury accessories and lifestyle collections for women and men in the United States and internationally. The stock currently has a dividend yield of 3.2%. COH has a PE ratio of 20.7. Currently there are 8 analysts that rate Coach a buy, 3 analysts rate it a sell, and 14 rate it a hold.
The average volume for Coach has been 5.2 million shares per day over the past 30 days. Coach has a market cap of $11.8 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 0.69 and a short float of 8.8% with 3.85 days to cover. Shares are up 11.7% year-to-date as of the close of trading on Wednesday.
Analysis:
rates Coach as a
. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.
Highlights from the ratings report include:
- COH's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, COH has a quick ratio of 1.81, which demonstrates the ability of the company to cover short-term liquidity needs.
- Net operating cash flow has increased to $444.70 million or 11.07% when compared to the same quarter last year. Despite an increase in cash flow, COACH INC's cash flow growth rate is still lower than the industry average growth rate of 45.60%.
- COACH INC's earnings per share declined by 37.7% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, COACH INC reported lower earnings of $2.78 versus $3.62 in the prior year. For the next year, the market is expecting a contraction of 32.4% in earnings ($1.88 versus $2.78).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Textiles, Apparel & Luxury Goods industry. The net income has significantly decreased by 38.3% when compared to the same quarter one year ago, falling from $297.44 million to $183.50 million.
- You can view the full Coach Ratings Report.
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