COH : NYSE : Consumer Goods
$47.12 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 3409800.0
06/27/17 - 4:02 PM ET

Financial Analysis


COACH INC's gross profit margin for the third quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. COACH INC is extremely liquid. Currently, the Quick Ratio is 3.38 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 10.15% 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 Q3 FY17 Q3 FY16
Net Sales ($mil)995.21033.1
EBITDA ($mil)210.5201.3
EBIT ($mil)162.0151.8
Net Income ($mil)122.2112.5


Balance Sheet Q3 FY17 Q3 FY16
Cash & Equiv. ($mil)1891.91282.4
Total Assets ($mil)4661.04676.5
Total Debt ($mil)591.8883.5
Equity ($mil)2891.92625.4


Profitability Q3 FY17 Q3 FY16
Gross Profit Margin75.7873.81
EBITDA Margin21.1519.48
Operating Margin16.2814.69
Sales Turnover0.970.93
Return on Assets11.178.35
Return on Equity18.014.88
Debt Q3 FY17 Q3 FY16
Current Ratio4.353.1
Debt/Capital0.170.25
Interest Expense4.06.5
Interest Coverage40.523.35


Share Data Q3 FY17 Q3 FY16
Shares outstanding (mil)281.1277.9
Div / share0.340.34
EPS0.430.4
Book value / share10.299.45
Institutional Own % n/a n/a
Avg Daily Volume3491432.03403612.0

Valuation


BUY. COACH INC's P/E ratio indicates a discount compared to an average of 28.77 for the Textiles, Apparel & Luxury Goods industry and a value on par with the S&P 500 average of 25.75. To use another comparison, its price-to-book ratio of 4.52 indicates a premium versus the S&P 500 average of 3.09 and a discount versus the industry average of 5.17. The price-to-sales ratio is well 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 25.12 Peers 28.77   COH 16.74 Peers 16.68

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.

 

Average. 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 valuation on par 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 19.59 Peers 19.61   COH 0.83 Peers 2.02

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

COH is trading at a premium 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 4.52 Peers 5.17   COH 32.14 Peers 12.44

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 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 2.90 Peers 2.07   COH 3.86 Peers 17.80

Premium. 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 significant premium to its industry.

 

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

COH significantly trails its peers on the basis of sales growth

 

 

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