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Coach, Inc. - Value Alert



July 24, 2013 – Comments (3) | RELATED TICKERS: TPR

Texas (July 24 2013) Wax Ink has issued a Loss of Investment Interest rating for Coach, Inc. (NYSE: COH) based on a recent baseline equity review which placed fair value between $47-$55.

The recent close of $59.45 is approximately 112% above the fair value buy target for the stock and approximately 3% above the fair value close target for the stock. The recent close is also 9% below analysts’ twelve-month $65.00 median price target for the stock.

The recent close represents a 12% increase in price since the last baseline equity review was conducted in January of 2011.

The stock currently has a trailing twelve-month PE Ratio of 15, and a PEG Ratio of 1.3 basis estimated forward earnings growth of 11%.

In the past 52 weeks, share prices have moved between a high of $63.24 and a low of $48.87, placing equilibrium at $56.59.

Basis the recent close, the stock is trading 6% below the 52 week high, 23% above the 52 week low, 5% above equilibrium, and has an average daily trading volume of approximately 3.2 million shares.

Coach, Inc. engages in the design, marketing, and distribution of handbags, accessories, wearables, footwear, jewelry, sunwear, travel bags, watches, and fragrances for women and men in the United States and internationally.

The company's competitors include The Gap, Inc., L Brands, Inc, VF Corporation, Ralph Lauren Corporation, and Guess?, Inc..

Financial information that may be contained herein, is based on the company's most recent annual SEC filing for year ending June 30, 2012. All prices are per share unless otherwise noted.

Wax Ink currently has no investment position in the company mentioned in this alert.

For use by Accredited Investors as defined under Title 17, CFR §230.500, Regulation D

Wax Ink is a baseline equity research company NOT licensed or registered with any government agency

3 Comments – Post Your Own

#1) On July 24, 2013 at 10:58 AM, JohnCLeven (26.94) wrote:

Dumb article.

Coach has been in the 1% of companies, over the past decade, in terms of profitability. 10 year avg ROIC is an insane 45%, and that average has been rising as well. (ROIC was 57% last year, with ZERO debt.)

They have 10 yr avg EPS growth rate over 30%, good dividend and buybacks, churn out lots of free cash flow, and are selling for a lower multiple than the S&P 500.

And they're not done growing yet, not by a long shot.

Long COH. (23% of my portfolio)

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#2) On July 24, 2013 at 1:29 PM, elcid24 (59.15) wrote:

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#3) On July 25, 2013 at 5:30 AM, wax (< 20) wrote:


Thanx for you comments. The post was not about the "wonders" of Coach, it was about what I think the stock is actually worth and the reasons why I think that.

My thoughts and the supporting documentation could be used as a starting point for anyone actually researching the company for future investment.

I'm sorry the post didn't not appeal to your particular perception of the company.



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