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 (COH 0.33%) 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
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Headquarters (founded) |
New York, N.Y. (1941) |
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Market Cap |
$16.1 billion |
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Industry |
Apparel, accessories, and luxury goods |
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Trailing-12-Month Revenue |
$5.0 billion |
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Management |
Chairman/CEO Lew Frankfort President/COO Jerry Stritzke |
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Return on Equity (average, past 3 years) |
52% |
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Cash/Debt |
$928.5 million/$22.6 million |
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Dividend Yield |
2.1% |
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Competitors |
Michael Kors Holdings Ralph Lauren Tiffany |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 94% of the 3,117 members who have rated Coach believe the stock will outperform the S&P 500 going forward.
Just last week, one of those Fools, TMFInnovator, tapped the stock as a particularly solid bargain opportunity:
Coach is on the clearance rack [these] days, which presents a great opportunity for patient investors.
Their international focus is paying off. Coach grew NA revenues only 1% last year, but China revenues 40%. ...I like the credibility of management. They controversially deployed capital straight through the recession (their $240MM of CapEx from Jun '08-Jun'09 was their largest annual spend on record, significantly). This move was opportunistic -- revenues shot back at a whiplash pace over the next three years.
Coach is continuing to invest in their business this year with focus on international operations. Critics continue to be skeptical, but I see it as another well-placed bet.
