CPRICPRI
US • —
$18.57
P/E
16.21
PEG
—
FCF Yield
—
Rev Growth YoY
-21.8% YoY
Gross Margin
62.3%
Health Score
5/10
D/E Ratio
4.46
Confidence
LOW
Business Snapshot
Capri Holdings (CPRI) is a fashion luxury group, operating through brands such as Versace, Jimmy Choo, and Michael Kors. The company competes in the premium apparel, accessories, and footwear market, positioning itself as a challenger to European luxury conglomerates. With a P/E ratio of 16.21x and a Price/Sales ratio of 0.62x, the market values the company modestly relative to its sales, suggesting limited scale or growth expectations. Revenue has declined sharply by 21.8% year-over-year, a defining characteristic that highlights the pressures the company faces from shifting consumer demand and competitive dynamics in the luxury sector.
Financial Health
Gross margin stands at a strong 62.3%, reflecting healthy pricing power and brand value, while the net margin of 3.9% is thin, indicating elevated operating costs relative to sales. The balance sheet shows a debt-to-equity ratio of 4.46x, which is highly leveraged, and a current ratio of 1.21x, suggesting adequate but not robust short-term liquidity...
Risk Assessment
- DEBT — Debt/equity of 4.46x indicates a highly leveraged capital structure, significantly increasing financial risk.
- REVENUE DECELERATION — Revenue declined 21.8% year-over-year, a severe contraction that signals a reversal in business momentum.
- EARNINGS QUALITY — Despite beating estimates in 3 of 4 quarters, the revenue decline raises questions about the sustainability of earnings surprises.
- VALUATION DIVERGENCE — Price/Book of 25.01x is extremely high, likely reflecting a very low equity base rather than asset value, making this ratio misleading.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed....
Gross margin stands at a strong 62.3%, reflecting healthy pricing power and brand value, while the net margin of 3.9% is thin, indicating elevated operating costs relative to sales. The balance sheet shows a debt-to-equity ratio of 4.46x, which is highly leveraged, and a current ratio of 1.21x, suggesting adequate but not robust short-term liquidity. Return on equity is 121.1%, a figure that may be distorted due to low equity base, making it an unreliable measure of profitability. Free cash flow data is unavailable, preventing a direct assessment of cash generation or burn. Overall, the company’s financial health is strained by high leverage and thin margins, limiting its ability to reinvest or service debt comfortably without risking dilution or asset sales.
- DEBT — Debt/equity of 4.46x indicates a highly leveraged capital structure, significantly increasing financial risk. - REVENUE DECELERATION — Revenue declined 21.8% year-over-year, a severe contraction that signals a reversal in business momentum. - EARNINGS QUALITY — Despite beating estimates in 3 of 4 quarters, the revenue decline raises questions about the sustainability of earnings surprises. - VALUATION DIVERGENCE — Price/Book of 25.01x is extremely high, likely reflecting a very low equity base rather than asset value, making this ratio misleading. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
Unlock the full AI report
Full 8-section analysis includes:
Metric deep-dives