COH : NYSE : Consumer Goods
$38.02 | %
Today's Range: 37.535 - 38.29
Avg. Daily Volume: 3433600.0
02/24/17 - 4:04 PM ET

Financial Analysis


COACH INC's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. COACH INC is extremely liquid. Currently, the Quick Ratio is 3.01 which clearly shows the ability to cover any short-term cash needs. COH managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.

During the same period, stockholders' equity ("net worth") has increased by 9.49% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)1321.71273.8
EBITDA ($mil)342.2337.7
EBIT ($mil)294.3285.0
Net Income ($mil)199.7170.1


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)1835.91337.1
Total Assets ($mil)4678.74603.7
Total Debt ($mil)591.6887.0
Equity ($mil)2811.12567.3


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin72.271.58
EBITDA Margin25.8926.51
Operating Margin22.2722.37
Sales Turnover0.970.92
Return on Assets10.927.95
Return on Equity18.1814.26
Debt Q2 FY17 Q2 FY16
Current Ratio3.873.27
Debt/Capital0.170.26
Interest Expense5.16.3
Interest Coverage57.7145.24


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)280.6277.7
Div / share0.340.34
EPS0.710.61
Book value / share10.029.24
Institutional Own % n/a n/a
Avg Daily Volume3396840.03478279.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 24.76 for the Textiles, Apparel & Luxury Goods industry and a discount compared to the S&P 500 average of 26.53. Conducting a second comparison, its price-to-book ratio of 3.79 indicates a premium versus the S&P 500 average of 2.96 and a significant discount versus the industry average of 5.32. The current price-to-sales ratio is above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, COACH INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
COH 20.85 Peers 24.76   COH 13.67 Peers 19.19

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

COH is trading at a discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

COH is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
COH 16.08 Peers 21.46   COH 0.69 Peers 3.09

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

COH is trading at a discount to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

COH trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
COH 3.79 Peers 5.32   COH 37.87 Peers 9.68

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

COH is trading at a significant discount to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

COH is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
COH 2.34 Peers 2.23   COH 7.30 Peers 6.37

Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

COH is trading at a valuation on par with its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

COH has a sales growth rate that exceeds its peers.

 

 

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