COH : NYSE : Consumer Goods
$38.18 -0.41 | -1.06%
Today's Range: 37.90 - 38.78
Avg. Daily Volume: 3,641,500
08/31/16 - 4:02 PM ET

Financial Analysis


COACH INC's gross profit margin for the fourth quarter of its fiscal year 2016 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 has strong liquidity. Currently, the Quick Ratio is 1.89 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 7.75% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)1154.61004.1
EBITDA ($mil)228.8180.7
EBIT ($mil)174.8126.1
Net Income ($mil)81.511.7


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)1319.41525.8
Total Assets ($mil)4892.74666.9
Total Debt ($mil)876.2890.4
Equity ($mil)2682.92489.9


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin72.4874.39
EBITDA Margin19.8117.99
Operating Margin15.1412.56
Sales Turnover0.920.9
Return on Assets9.418.62
Return on Equity17.1616.16
Debt Q4 FY16 Q4 FY15
Current Ratio2.633.0
Debt/Capital0.250.26
Interest Expense7.40.0
Interest Coverage23.620.0


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)278.5276.6
Div / share0.340.34
EPS0.290.04
Book value / share9.639.0
Institutional Own % n/a n/a
Avg Daily Volume3694980.03645984.0

Valuation


BUY. COACH INC's P/E ratio indicates a discount compared to an average of 28.56 for the Textiles, Apparel & Luxury Goods industry and a value on par with the S&P 500 average of 25.13. Conducting a second comparison, its price-to-book ratio of 4.13 indicates a premium versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 6.53. The current price-to-sales ratio is well above the S&P 500 average, but below the industry average. 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 24.14 Peers 28.56   COH 14.62 Peers 39.49

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 16.53 Peers 23.81   COH 0.80 Peers 2.75

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 4.13 Peers 6.53   COH 13.79 Peers 8.11

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 2.47 Peers 2.74   COH 7.16 Peers 8.07

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.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

COH trails its peers on the basis of sales growth

 

 

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