TIF  Tiffany & Co.

Exchange

NYSE

Sector

Consumer Services

Industry

Consumer Specialties

Market Cap.

11.23B

Vuru Grade

56.57/100

Current Price

$90.23
+1.93 (+2.19%)

Growth Price

$52.40
Overvalued by 41.93%

Stability Price

$53.64
Overvalued by 40.56%

Company Metrics

  • P/E 25.27
  • P/S 2.76
  • P/B 3.78
  • EPS 3.57
  • Cash ROIC 4.73%
  • Cash Ratio 1.21
  • Dividend 1.80 / 2.04 %
  • Avg. Vol. 1.95M
  • Shares 124.46M
  • Market Cap. 11.23B

Company Description

Tiffany & Co., through its subsidiaries, engages in the design, manufacture, and retail of fine jewelry worldwide. Its jewelry products include fine and solitaire jewelry; diamond engagement rings and wedding bands for brides and grooms; and non-gemstone, sterling silver, gold, and platinum jewelry. The company also provides timepieces, sterling silver goods, china, crystal, stationery, fragrances... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Tiffany & Co. Adds Three Members To Its Board In Agreement With JANA
Forbes - Feb 21, 2017
Tiffany & Co. will increase its board of directors from 10 to 13 members in an agreement with JANA Partners LLC. The most familiar name within the jewelry trade is Francesco Trapani, the former CEO of the Italian jewelry house, Bulgari.
Why People Are Talking About Tiffany & Co.'s New Directors - JCK (blog)
Here's a Quick Look At the Heavy Hitters That Struggling Tiffany & Co. Just ... - TheStreet.com
April 7th Options Now Available For Tiffany & Co.
Nasdaq - 19 hours ago
Investors in Tiffany & Co. (Symbol: TIF) saw new options begin trading today, for the April 7th expiration. At Stock Options Channel , our YieldBoost formula has looked up and down the TIF options chain for the new April 7th contracts and identified ...
A Whitney Biennial on Fifth Avenue? Tiffany & Co. to Host Provocative Artist ...
artnet News - Feb 21, 2017
Forget about “Breakfast at Tiffany's”—this spring, the throngs of tourists visiting Fifth Avenue's most fabled jeweler will be treated to a Biennial at Tiffany's.
Tiffany & Co. - The Next 12 Months Could Be A Struggle
Seeking Alpha - Feb 16, 2017
We expect President Trump's travel ban to have a negative impact on tourism into the United States. Tourism could also be hurt by a strengthening U.S.
Behind The Scenes With Lady Gaga For Tiffany & Co. Legendary Style Campaign
Forbes - Feb 14, 2017
There are certain pieces of jewelry that mark milestones in life. Sixteenth birthdays are celebrated with a silver charm bracelet.
Tiffany & Co is sliding as its CEO resigns (TIF)
Business Insider - Feb 6, 2017
Tiffany & Co is down 2.46% at $78.49 after Frederic Cumenal stepped down as chief executive officer on Sunday, Reuters reports.
CEO of Tiffany & Co. jewelry business steps down - New York Daily News
After CEO Leaves, Tiffany & Co. Needs a Comeback for the Ages - Zacks.com
Can Lady Gaga Save Tiffany & Co?
Rapaport - Feb 7, 2017
RAPAPORT... The diamond and jewelry industry has long since lost its cutting edge. As such, Tiffany & Co.'s decision to partner with Lady Gaga on Super Bowl night should be applauded as a bold move that will resonate with consumers across the globe.
Tiffany Faces Identity Crisis That Lady Gaga Alone Won't Fix - Bloomberg
Behind the Scenes of Lady Gaga's Super Bowl Commercial for Tiffany & Co. - Vogue.com
The New Tiffany & Co. Needs Women
Racked - Feb 6, 2017
While the Tiffany family spent 100 years establishing the brand's reputation, it is Walter Hoving that brought Tiffany & Co. to true commercial glory. The shrewd businessman acquired the company in 1955 and pivoted it towards “good design,” as the New ...
Tiffany's pushed out employee with cancer mutation
ABC News - Feb 16, 2017
In this Tuesday, Feb. 14, 2017 photo former Tiffany & Co. employee Lisa O'Rourke stands for a portrait in her home in North Kingstown, R.I.
Tiffany & Co allegedly pushed out employee with cancer mutation - New Zealand Herald
Lady Gaga Will Star in Tiffany & Co.'s First Super Bowl Ad
Hollywood Reporter - Jan 31, 2017
While details of Lady Gaga's halftime performance (and wardrobe) are still under wraps, it's a safe bet that the singer will be wearing Tiffany & Co. jewelry during the show, as the brand just announced that she will star in its first-ever Super Bowl ad.
Tiffany & Co. taps Lady Gaga to star in its first Super Bowl commercial - Los Angeles Times
Lady Gaga and Tiffany & Co. Kick into Action for Super Bowl LI - Forbes
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for TIF to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate TIF's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$90.23 Current Price

$52.40 Growth Price (DCF)

Overvalued by 41.93%


Growth Rate Assumed by Market: 20.51%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$53.64 Stability Price (EPV)

Overvalued by 40.56%


Discount Rate: 15.0%

$10.37 NCA Price

Overvalued by 88.51%

$77.78 Book Price

Overvalued by 13.80%


Poor Cash Return on Invested Capital over the past 5 years

TIF has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

TIF has only created $4.73 of cash for every $100 invested.
Figures in USD. Fiscal year ends in January
20122013201420152016
Free Cash Flow -28.84M 26.10M -66.80M 367.72M 560.90M
divided by
Invested Capital 3.09B 3.54B 3.69B 3.79B 3.51B
Cash ROIC -0.93% 0.74% -1.81% 9.70% 15.97%

Satisfactory Return on Equity over the past 5 years

TIF has generated adequate returns with capital that shareholders have invested. This is sufficient and implies that management performance has been good.

TIF has generated $14.88 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in January
20122013201420152016
Net Income 439.19M 416.16M 181.37M 484.18M 463.90M
divided by
Stockholders' Equity 2.35B 2.60B 2.72B 2.84B 2.91B
Return on Equity 18.70% 16.01% 6.67% 17.08% 15.93%

Good Business Performance over the past 10 years

It's likely TIF has been unable to maintain profitability in tough economic times, making it a somewhat cyclical business. The other possibility is TIF has expended significant capital on items such as property, plant and equipment in specific years. Look for correlations.

TIF has created positive free cash flow for 7 or 8 of the past 10 years.
Figures in USD. Fiscal year ends in January
2007200820092010201120122013201420152016
Free Cash Flow 51.19M 200.69M -21.19M 605.91M 171.92M -28.84M 26.10M -66.80M 367.72M 560.90M

Strong Balance Sheet

TIF is financially strong with Current Assets covering Total Liabilities. It's in a fairly liquid position and dependent on the amount and saleability of any inventory; it may have the financial security to survive an economic downturn.
Figures in USD. Fiscal year ends in January
2007200820092010201120122013201420152016
Cash 192.00M 246.65M 160.45M 785.70M 740.87M 442.19M 504.84M 367.04M 731.46M 886.60M
Current Assets 1.71B 1.84B 2.05B 2.45B 2.68B 2.89B 3.15B 3.23B 3.61B 3.51B
Total Assets 2.85B 2.92B 3.10B 3.49B 3.74B 4.16B 4.63B 4.75B 5.18B 5.13B
Current Liabilities 452.67M 584.86M 601.92M 600.27M 479.91M 626.68M 586.59M 696.74M 658.03M 729.90M
Total Liabilities 1.04B 1.28B 1.51B 1.61B 1.56B 1.81B 2.03B 2.03B 2.35B 2.22B
Stockholder' Equity 1.80B 1.64B 1.59B 1.88B 2.18B 2.35B 2.60B 2.72B 2.84B 2.91B
Current Ratio 3.77 3.15 3.40 4.07 5.59 4.61 5.37 4.63 5.49 4.81
TL-to-TA 0.37 0.44 0.49 0.46 0.42 0.44 0.44 0.43 0.45 0.43

Consistent Reinvestment of Profits over the past 10 years

TIF has consistently retained profits. This may put TIF in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, TIF can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in January
2007200820092010201120122013201420152016
Retained Earnings 1.27B 958.92M 971.30M 1.15B 1.32B 1.46B 1.67B 1.68B 1.95B 2.01B
Retained Earnings Growth - -24.49% 1.29% 18.51% 15.09% 10.40% 14.28% 0.66% 15.94% 3.17%

Competitive Industry over the past 10 years

TIF is likely operating in an industry with medium to low barriers to entry. This may mean that TIF doesn't have a characteristic that's hard to replicate, such as exclusive distribution, branding or the ability to keep costs low. If Gross Margins are at least satisfactory, it's likely that TIF invests heavily in R&D and Sales, General & Administrative expenses.

Only $9.95 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in January
2007200820092010201120122013201420152016
Net Income 253.93M 303.77M 220.02M 264.82M 368.40M 439.19M 416.16M 181.37M 484.18M 463.90M
divided by
Revenue 2.65B 2.94B 2.86B 2.71B 3.09B 3.64B 3.79B 4.03B 4.25B 4.10B
Net Profit Margin 9.59% 10.34% 7.69% 9.77% 11.94% 12.06% 10.97% 4.50% 11.39% 11.30%

Strong Pricing Power over the past 10 years

TIF has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$61.97 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in January
2007200820092010201120122013201420152016
Gross Profit 1.48B 1.63B 1.65B 1.53B 1.82B 3.64B 2.16B 2.34B 2.54B 2.49B
divided by
Revenue 2.65B 2.94B 2.86B 2.71B 3.09B 3.64B 3.79B 4.03B 4.25B 4.10B
Gross Margin 55.72% 55.47% 57.53% 56.47% 59.06% 100.00% 57.01% 58.06% 59.70% 60.69%

High Capital Intensity over the past 10 years

TIF spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

62.09% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in January
2007200820092010201120122013201420152016
Capital Expenditure 182.39M 185.61M 154.41M 75.40M 127.00M 239.44M 302.19M 221.45M 247.39M 252.70M
divided by
Net Income 253.93M 303.77M 220.02M 264.82M 368.40M 439.19M 416.16M 181.37M 484.18M 463.90M
Capital Expenditure Ratio 71.83% 61.10% 70.18% 28.47% 34.47% 54.52% 72.62% 122.10% 51.10% 54.47%

Very Strong Dividend History over the past 10 years

TIF has consistently distributed a dividend for at least the past 10 years. Such a long dividend history suggests TIF is very established in its market and that its dividend distribution is likely to continue for a significant period of time.
Figures in USD. Fiscal year ends in January
2007200820092010201120122013201420152016
Dividend Paid 52.61M 69.92M 82.26M 84.58M 120.39M 142.84M 145.84M 170.98M 193.08M 203.40M
divided by
Shares Outstanding 140.84M 138.14M 126.41M 125.38M 128.41M 129.08M 127.93M 128.87M 129.92M 129.10M
Dividend Paid Per Share 0.37 0.51 0.65 0.67 0.94 1.11 1.14 1.33 1.49 1.58
Price at Year End 42.62 21.69 42.20 62.06 66.26 56.44 92.09 107.42 77.05 77.43
Dividend Yield 0.88% 2.33% 1.54% 1.09% 1.41% 1.96% 1.24% 1.24% 1.93% 2.03%

History of Stock Buybacks over the past 10 years

TIF has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in January
2007200820092010201120122013201420152016
Shares Outstanding 140.84M 138.14M 126.41M 125.38M 128.41M 129.08M 127.93M 128.87M 129.92M 129.10M
Stock Bought Back - 1.96% 9.28% 0.82% -2.35% -0.52% 0.90% -0.72% -0.81% 0.63%
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