June 28, 2025 a 12:46 pm
TPR: Dividend Analysis - Tapestry, Inc.
Tapestry, Inc. shows a consistent dividend history with a moderate payout ratio. The stability of dividends over 17 years is a positive indicator for income-oriented investors. With a current dividend yield of 1.77%, it remains attractive in a low-interest-rate environment, despite the limited growth in recent years. However, the financial leverage and debt ratios merit closer observation.
📊 Overview
Tapestry, Inc., a player in the consumer discretionary sector, exhibits a firm dividend policy catering to stable returns.
| Metric | Value |
|---|---|
| Sector | Consumer Discretionary |
| Dividend Yield | 1.773% |
| Current Dividend Per Share | 1.40 USD |
| Dividend History (Years) | 17 |
| Last Cut or Suspension | None |
🗣️ Dividend History
The consistency in dividend payouts over 17 years underscores the company's commitment to returning capital to shareholders.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 0.70 |
| 2024 | 1.40 |
| 2023 | 1.30 |
| 2022 | 1.10 |
| 2021 | 0.50 |
📈 Dividend Growth
The modest growth in dividends over the past 3 and 5 years reveals underlying resilience despite market fluctuations.
| Time | Growth |
|---|---|
| 3 years | 40.95% |
| 5 years | 0.73% |
The average dividend growth is 0.73% over 5 years. This shows moderate but steady dividend growth.
💰 Payout Ratio
The payout ratios provide insight into the company's dividend sustainability and its capacity to maintain payouts.
| Key Figure | Ratio |
|---|---|
| EPS-based | 33.82% |
| Free Cash Flow-based | 32.64% |
The payout ratios appear sustainable, suggesting a balanced approach between rewarding shareholders and retaining cash for growth.
📊 Cashflow & Capital Efficiency
Cashflow metrics indicate a company's ability to generate cash and its efficiency in utilizing capital for growth.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 11.69% | 7.82% | 9.32% |
| Earnings Yield | 8.32% | 9.25% | 10.51% |
| CAPEX to Operating Cash Flow | 13.02% | 18.89% | 11.01% |
| Stock-based Compensation to Revenue | 1.29% | 1.18% | 1.08% |
| Free Cash Flow / Operating Cash Flow Ratio | 91.33% | 81.11% | 88.99% |
These figures reflect a stable cash flow situation, supporting ongoing operations and potential dividend payments.
📉 Balance Sheet & Leverage Analysis
The balance sheet provides a snapshot of a company's financial health and its leverage capacity.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 3.03% | 1.45% | 1.43% |
| Debt-to-Assets | 65.43% | 46.26% | 44.89% |
| Debt-to-Capital | 75.16% | 59.10% | 58.80% |
| Net Debt to EBITDA | 2.15% | 1.88% | 1.80% |
| Current Ratio | 5.14% | 1.84% | 1.75% |
| Quick Ratio | 4.66% | 1.12% | 1.08% |
| Financial Leverage | 4.62% | 3.12% | 3.18% |
The company's strong financial leverage signifies potential for growth, but the high debt levels need careful management to avoid risks.
📈 Fundamental Strength & Profitability
Profitability ratios provide insight into how efficiently a company generates income relative to its revenue, assets, and equity.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 28.17% | 41.09% | 37.47% |
| Return on Assets | 6.09% | 13.15% | 11.79% |
| Margins: Net | 12.23% | 14.05% | 12.81% |
| Margins: EBIT | 17.04% | 17.71% | 16.54% |
| Margins: EBITDA | 20.52% | 20.45% | 20.51% |
| Margins: Gross | 73.29% | 70.78% | 69.57% |
| Research & Development to Revenue | 0% | 0% | 0% |
Strong return ratios underscore solid profitability, indicating efficient resource utilization and revenue growth relative to the industry.
📉 Price Development
✅ Dividend Scoring System
| Criterion | Score | Visual Representation |
|---|---|---|
| Dividend Yield | 3 | |
| Dividend Stability | 4 | |
| Dividend Growth | 2 | |
| Payout Ratio | 4 | |
| Financial Stability | 3 | |
| Dividend Continuity | 4 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 3 |
Total Score: 27/40
🔍 Rating
In conclusion, Tapestry, Inc. presents a solid dividend profile with consistent payouts. With moderate earnings and cash flow coverage, the dividend appears secure. However, potential investors should be wary of the high leverage, which might impel future volatility. Our recommendation is to hold if already invested or consider for a well-diversified dividend portfolio.