Capri Holdings Limited Ordinary Shares (CPRI)

FairStock Score: 26/100 — RISKY

Key Financials

Strengths

• Generates $153 million in annual free cash flow (6.2% yield on market cap)

Concerns

• High leverage at 12.14x debt-to-equity increases financial risk and interest expense burden
• Revenue declining at 4.0% year-over-year signals potential demand weakness or market share loss

AI Analysis

Capri Holdings Limited Ordinary Shares is a small-cap consumer cyclical company valued at $2.5 billion. The business generates $4.3 billion in annual revenue with a 1.3% net margin and $153 million in free cash flow. From a quality standpoint, Capri shows solid Piotroski F-Score of 6/9 and Altman Z-Score of 2.7 in the grey zone. On valuation, the stock is solid 7.4% FCF yield. Growth dynamics show revenue growing at -4.0% and profit growth of 121.2%. Our composite FairStock Score of 26/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $153 million in annual free cash flow (6.2% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Elevated leverage at 12.1x D/E means rising interest rates or revenue weakness could strain debt covenants and force asset sales at distressed prices. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer