Coach, Inc. (COH)’s Global Aspirations Starting to Pay Off

Valuations and Metrics

Coach, Inc. (NYSE:COH) looks more or less fairly valued at the moment. The stock trades at around 14 times trailing earnings, which is on par with the industry average. To compare, Kors trades at around 30 times earnings and Tumi Holdings Inc (NYSE:TUMI) at about 37 times.

Coach has a great operating margin of 31% and a stellar return on equity of over 53%. The company has barely any debt and around $850 million in cash on its balance sheet. While not a bargain at the moment, Coach, Inc. (NYSE:COH) is definitely trading at a discount to competitors.

The Bottom Line

Coach, Inc. (NYSE:COH) is working hard on transforming its brand and image, and appears to be doing a good job. In any case, the company’s products are catching on fast in China, which is seeing spectacular top line growth. While competition is heating up, with new names emerging to challenge the company’s market share, the company’s most recent results indicate that it is still able to grow revenues and maintain its focus on expansion and product development.

The article Coach’s Global Aspirations Starting to Pay Off originally appeared on Fool.com.

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