Capri Stock Story


USD 50.05  1.46  3.00%   

Today we may see the proof that Kontoor Brands would recover much slower from the current slip as its shares went up 0.53% to Capri Holdings's 2.4595%. As many rational traders are trying to avoid consumer cyclical space, it makes sense to concentrate on Capri Holdings a little further and understand how it stands against Kontoor Brands and other similar entities. We are going to examine some of the competitive aspects of both Capri and Kontoor.
Published over two months ago
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Will Kontoor Brands stockholders switch to Capri (NYSE:CPRI)?

By analyzing existing basic indicators between Capri Holdings and Kontoor, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Kontoor with a short position in Capri Holdings. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Capri Holdings has an asset utilization ratio of 311.96 percent. This implies that the company is making $3.12 for each dollar of assets. An increasing asset utilization means that Capri Holdings is more efficient with each dollar of assets it utilizes for everyday operations.

How important is Capri Holdings's Liquidity

Capri Holdings financial leverage refers to using borrowed capital as a funding source to finance Capri Holdings ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Capri Holdings financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Capri Holdings's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Capri Holdings, but it might be worth checking our own buy vs. sell analysis

Acquisition by Marilyn Crouther of 3036 shares of Capri Holdings subject to Rule 16b-3

Legal trades by Capri Holdings insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Capri insider trading alert for grant of restricted share units by Marilyn Crouther, the corporate stakeholder, on 4th of August 2022. This event was filed by Capri Holdings Ltd with SEC on 2022-08-04. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

A Deeper Perspective

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me take a closer look at Capri Holdings revenue. Based on the latest financial disclosure, Capri Holdings reported 5.36 B of revenue. This is 24.82% lower than that of the Consumer Cyclical sector and 61.8% higher than that of the Apparel Manufacturing industry. The revenue for all United States stocks is 43.19% higher than that of the entity. As for Kontoor Brands we see revenue of 2.48 B, which is 25.14% lower than that of the Apparel Manufacturing

Capri5.36 Billion
Sector3.31 Billion
Kontoor2.48 Billion
5.4 B
3.3 B
2.5 B

Will Capri Holdings current rise continue?

Capri Holdings current kurtosis boosts over 1.95. Capri Holdings exhibits very low volatility with skewness of -0.62 and kurtosis of 1.95. However, we advise investors to further study Capri Holdings technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Capri Holdings' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Capri Holdings' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Capri Holdings Implied Volatility

Capri Holdings' implied volatility exposes the market's sentiment of Capri Holdings stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Capri Holdings' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Capri Holdings stock will not fluctuate a lot when Capri Holdings' options are near their expiration.

Our Final Take On Capri Holdings

While some companies within the apparel manufacturing industry are still a little expensive, even after the recent corrections, Capri Holdings may offer a potential longer-term growth to stockholders. On the whole, as of the 1st of June 2022, our up-to-date 90 days buy-hold-sell advice on the company is Hold. We believe Capri Holdings is undervalued with low probability of financial unrest for the next two years.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Capri Holdings. Please refer to our Terms of Use for any information regarding our disclosure principles.

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