Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, luxury handbag maker Coach (TPR -2.16%) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Coach and see what CAPS investors are saying about the stock right now.
Coach facts
| |
---|---|
Headquarters (founded) |
New York, N.Y. (1941) |
Market Cap |
$14.1 billion |
Industry |
Apparel, accessories, and luxury goods |
Trailing-12-Month Revenue |
$4.9 billion |
Management |
Chairman/CEO Lew Frankfort President/COO Jerry Stritzke |
Return on Equity (average, past 3 years) |
50.9% |
Cash/Debt |
$858.7 million/$22.7 million |
Dividend Yield |
2.5% |
Competitors |
Michael Kors Holdings (CPRI -3.82%) Ralph Lauren (RL 3.77%) Tiffany (TIF) |
On CAPS, 94% of the 3,000 members who have rated Coach believe the stock will outperform the S&P 500 going forward.
Just last week, one of those Fools, All-Star RockyMountainMan, tapped Coach as a particularly solid income opportunity:
Strong [free cash flow] that supports dividend increases. Currently around [30%] payout ratio so [Coach] can continue to increase the dividend which will put a floor under the stock. [Coach] will pay you while you (to the tune of 3% -- bonds anyone?) wait for the growth in China to kick in. Having a stellar balance sheet with virtually zero debt is what I like to see in companies I own. [Coach] is near the bottom range of its past P/E.
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