Capri Holdings Ltd (CPRI) stock analysis

P/E below its 5-year median

Capri's P/E of 11.7 is below its own 5-year median of 12.8.

P/E below the industry

Capri's P/E of 11.7 is below the Consumer discretionary median of 19.6.

EV/EBITDA above its 5-year median

Capri's EV/EBITDA of 15.2 is above its 5-year median of 13.5.

P/B above the industry

Capri's price-to-book of 33.22 is above the Consumer discretionary median of 2.44.

Trading above fair value

The share price of $20.89 is above our fair value estimate of $20.59.

Margin of safety under 20%

The price is 1.4% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew -14.8% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -37.2% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew -4.2% over the last twelve months; the Consumer discretionary median is 7.2%.

Guidance lowered

Capri lowered its Fiscal Year 2027 Total revenue outlook on Aug 5, 2026.

Gross margin improving

Gross margin was 63.3% over the last twelve months, against 61.8% a year earlier.

Return on equity

Needs positive equity and five years of results.

Return on capital under 10%

Return on invested capital was 4.4%, below the 10% that usually covers the cost of capital.

Return on equity against the industry

Needs positive equity.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was 6.1% over the last twelve months, against a 5-year average of -1.7%.

Net margin above the industry

Capri's net margin of 6.1% is above the Consumer discretionary median of 5.6%.

High debt

Debt is 738% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 63.0% five years ago to 738%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 54.4% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 1.18 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.50; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Capri has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.