Financial Analysis Coach Inc. - 1686 Words

Coach Inc. Research Report Weibo Xiong BU.230.620.82 Johns Hopkins University April 25, 2016 COACH.INC ________________________________________ Date: 04/25/2016 Current Price: $40.23 Recommendation: HOLD Ticker - NYSE: COH Headquarters: New York City, NY Target Price: $42.36 USD ________________________________________ Highlights Market Profile We give Coach (COH) a Hold recommendation based on a one-year target price of $42.36, offering 4.6% upside from its closing price of $40.23 on April 25, 2016. Our recommendations are followed by: †¢ Financial Analysis - COACH INC s gross profit margin is decreasing and operating expenses is increasing when compared to the same period years ago. Profitability has decreased. But, COACH INC is extremely liquid. Currently, the Current Ratio (3) shows the company has ability to cover short-term debt. Cash flow is still abundant. But ROE has decline. Overall, the company is facing some financial issues in the brand transition process. †¢ Valuation - Valuation methods indicate a current intrinsic value of $42.36 per share. Based on its business strategy and cash flow structure, we believe there is growth potential in the future. We evaluated Coach’s intrinsic value primarily though a discounted cash flow analysis. †¢ Main Risks– Risks to ourShow MoreRelatedWhy Canada And South America Could Be Viable Places For Business1278 Words   |  6 Pagestargeted towards mixed gender locations. conclusion While Coach, Inc. has managed to capture a large amount of the market by pursuing a broad differentiation strategy and promoting the company as an accessible luxury brand, they still have some areas to improve upon. Appendix A – External Analysis A.1 Porter’s Five Forces Rivals: High: Very strong competitive forces, many options for a consumer to choose from. Suppliers: Low: Coach, Inc. has many supplier options to purchase the materials thatRead MoreA Note On Leadership And Management Essay961 Words   |  4 Pagesintroduces the background of Coach Inc., analyzes its ratios to compare the company to the average luxury industry data, and analyzes the future situation based on the analysis of these ratios. Coach Inc., established in 1941, is a famous manufacturing company. Based on its ratio analysis, it operated well in previous years and will have an amazing life in the manufacturing and luxury field in the future. This paragraph introduces the background information of Coach Inc. Coach Inc., which was establishedRead MoreSwot Analysis Of Coach Inc.854 Words   |  4 Pages1. SWOT Analysis of Coach Coach Inc.’s strengths mainly come from their financial status and images of their brand. One of Coach’s strength is from their own income statement. Coach has no debt, which gives them the ability to expand their operations and fund critical projects. Their other essential strength is their brand image; Coach being in the business for so long has allowed their brand to grow year after year. In addition, another strength to Coach is their diverse retail channels;Read MoreCoach Concept Of Coach Company1599 Words   |  7 PagesThe Coach brand is one of the most recognized brands in both North America and overseas in targeted international markets. Coach Incorporated markets a lifestyle to a loyal customer base. At the same time they provide consumers with fresh, compelling, and innovative products that are extremely well made at an attractive price. (Coach Incorporated, 2015) We note that in their responses to customer demands for both fashion and function, Coach Incorporated offers various styles and product categoriesRead MoreThe Complexity Of Coach Inc.862 Words   |  4 PagesBased on the complexity of Coach Inc. (Coach) inventory system and policy, I identified potential risks that could affect Coach’s productivity and carefully chosen critical extended procedures to detect possible fraud and misstatement. Analysis and overview of potential fraud risks related to Coach Inc. inventory policy. Coach is exposed to (1) employee theft; if proper inventory controls and segregation of duties are not correctly implemented, employees could steal items after delivery to theRead MoreInventory Control at Wheeled Coach Inc.1682 Words   |  7 PagesProfile: Wheeled Coach Wheeled Coach Industries, Incorporated is the largest manufacturer of ambulances and rescue vehicles. The subsidiary of Collins Industries, Inc. was founded in 1975, and is currently based in Winter Park, Florida. Wheeled Coach, led by their President Bob Collins, Jr. employs a highly trained production team of over three hundred and fifty personnel who are responsible for the assembly and final production of all ambulances in their production facility. Wheeled Coach offers itsRead MoreCase Study : Coach Inc.1231 Words   |  5 PagesExternal Analysis Coach Inc. operates in the luxury goods industry where it sells high quality leather handbags, accessories, and other leather products. The scopes of the products within this market are rated high in their â€Å"quality, style, and value† (Gamble, 2015, Page 71). The qualities of these luxury goods are rare, desirable, hard to replicate, and have a strong brand reputation. Firms within this market choose to compete domestically, in North America, and globally, in Europe, andRead MoreCoach Analysis : Coach Inc.1821 Words   |  8 PagesCoach Incorporated Analysis In this portfolio project assignment there will be an analysis of Coach Inc., which has a company ticker symbol of COH, and a close competitor Michael Kors Holdings Limited, ticker symbol of KORS. First, there will be a review on the ratio analysis on the results and rationale for the items selected. Second, there will be a horizontal and vertical analysis for Coach Inc. on the income statement and the balance sheet. Third, there will be a review of at least four itemsRead MoreCase Study : Coach Inc.1230 Words   |  5 PagesB. External Analysis Coach Inc. operates in the luxury goods industry where it sells high quality leather handbags, accessories, and other leather products. The scopes of the products within this market are rated high in their â€Å"quality, style, and value† (Gamble, 2015, C-71). These qualities of the luxury goods are rare, desirable, hard to replicate, and have strong brand reputation. Firms within this market choose to compete geographically in countries North America, Europe, and more recentlyRead MoreFinancial Analysis On Financial Statements854 Words   |  4 PagesFirm Performance: A Review of Financial Statements Financial crises like dot-com bubble in the late 1990s and the housing market crash in the late 2000s prompted investors, and firms, to reconsider the criticality of financial discipline. Transparency would be necessary to entice investors to spend money again, thus a firm’s financial statements became their marketing tools. These examples reinforce the importance of financial statements’ relation to the financial wellbeing of a company. This