What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Price-to-Book
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies. Negative P/B indicates book equity has been reduced by buybacks — common in highly profitable capital-return businesses.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Capri Holdings Limited engages in the design, marketing, distribution, and retail of branded women's and men's apparel, footwear, and accessories in the United States, Canada, Latin America, Europe, the Middle East, Africa, Asia, and the Oceania. It operates through three segments: Versace, Jimmy Choo, and Michael Kors. The company offers ready-to-wear, eyewear, watches, jewelry, fragrances, home furnishings, handbags, small leather goods, scarves and belts, and shoes and related accessories through a distribution network, including boutiques, and department and specialty stores, as well as through e-commerce sites. It also undertakes licensing agreements relating to manufacture and sale of watches, jewelry, eyewear, and fragrances. The company was formerly known as Michael Kors Holdings Limited and changed its name to Capri Holdings Limited in December 2018. Capri Holdings Limited was founded in 1981 and is headquartered in London, the United Kingdom.
Showing Key Metrics
Income Highlights
Metric
2025
2024
2023
2022
Gross Profit %
63.6%▼
64.6%
66.3%
66.2%
Operating Margin %
1.2%▼
7.1%
14.9%
18.0%
Net Income %
-26.6%▼
-4.4%
11.0%
14.5%
Diluted EPS
-10.00▼
-1.96
4.60
5.39
Balance Sheet Highlights
Metric
2025
2024
2023
2022
Total Assets
$5.2B
$6.7B
$7.3B
$7.5B
Total Debt
$3.1B↓
$3.6B
$3.6B
$3.0B
Working Capital
$185M▲
-$87M
$420M
$325M
Years to Pay Debt
-2.63
-15.61
5.85
3.70
Cash Flow Highlights
Metric
2025
2024
2023
2022
Free Cash Flow
$153M▲
$120M
$545M
$573M
Owner Earnings
-$861M
$148M
$1.0B
$1.1B
CapEx % of Net Income
N/A
N/A
36.7%
15.9%
Income Statement
2025
2024
2023
2022
Tax Effect Of Unusual Items
-169,680
-122,550
-7,519
-12,423
Tax Rate For Calcs
0
0
0
0
Normalized EBITDA
1,053,000
1,200,000
1,184,000
1,334,000
Total Unusual Items
-808,000
-645,000
-168,000
-123,000
Total Unusual Items Excluding Goodwill
-808,000
-645,000
-168,000
-123,000
Net Income From Continuing Operation Net Minority Interest
-1,182,000
-229,000
616,000
822,000
Reconciled Depreciation
193,000
188,000
179,000
193,000
Reconciled Cost Of Revenue
1,616,000
1,831,000
1,895,000
1,910,000
EBITDA
245,000
555,000
1,016,000
1,211,000
EBIT
52,000
367,000
837,000
1,018,000
Net Interest Income
37,000
-6,000
-24,000
18,000
Normalized Income
-543,680
293,450
776,481
932,577
Net Income From Continuing And Discontinued Operation
-1,182,000
-229,000
616,000
822,000
Total Expenses
4,390,000
4,803,000
4,782,000
4,636,000
Total Operating Income As Reported
-752,000
-241,000
679,000
903,000
Diluted Average Shares
118,256
117,014
134,002
152,498
Basic Average Shares
118,256
117,014
132,532
149,725
Diluted EPS
0
0
0
0
Basic EPS
0
0
0
0
Diluted NI Availto Com Stockholders
-1,182,000
-229,000
616,000
822,000
Net Income Common Stockholders
-1,182,000
-229,000
616,000
822,000
Net Income
-1,182,000
-229,000
616,000
822,000
Minority Interests
-3,000
0
-3,000
-1,000
Net Income Including Noncontrolling Interests
-1,179,000
-229,000
619,000
823,000
Net Income Continuous Operations
-1,179,000
-229,000
619,000
823,000
Tax Provision
452,000
-54,000
29,000
92,000
Pretax Income
-727,000
-283,000
648,000
915,000
Other Income Expense
-816,000
-644,000
-165,000
-121,000
Other Non Operating Income Expenses
-8,000
1,000
3,000
2,000
Special Income Charges
-804,000
-608,000
-158,000
-115,000
Impairment Of Capital Assets
797,000
575,000
142,000
73,000
Restructuring And Mergern Acquisition
7,000
33,000
16,000
42,000
Gain On Sale Of Security
-4,000
-37,000
-10,000
-8,000
Net Non Operating Interest Income Expense
37,000
-6,000
-24,000
18,000
Total Other Finance Cost
-37,000
6,000
24,000
-18,000
Operating Income
52,000
367,000
837,000
1,018,000
Operating Expense
2,774,000
2,972,000
2,887,000
2,726,000
Depreciation Amortization Depletion Income Statement
193,000
188,000
179,000
193,000
Depreciation And Amortization In Income Statement
193,000
188,000
179,000
193,000
Selling General And Administration
2,581,000
2,784,000
2,708,000
2,533,000
Gross Profit
2,826,000
3,339,000
3,724,000
3,744,000
Cost Of Revenue
1,616,000
1,831,000
1,895,000
1,910,000
Total Revenue
4,442,000
5,170,000
5,619,000
5,654,000
Operating Revenue
4,442,000
5,170,000
5,619,000
5,654,000
Balance Sheet
2025
2024
2023
2022
Treasury Shares Number
109,759
109,641
106,819
79,161
Ordinary Shares Number
117,913
116,630
117,347
142,806
Share Issued
227,672
226,271
224,166
221,968
Net Debt
1,334,000
1,524,000
1,578,000
991,000
Total Debt
3,103,000
3,575,000
3,604,000
3,041,000
Tangible Book Value
-1,436,000
-901,000
-1,173,000
-706,000
Invested Capital
1,868,000
3,322,000
3,675,000
3,719,000
Working Capital
185,000
-87,000
420,000
325,000
Net Tangible Assets
-1,436,000
-901,000
-1,173,000
-706,000
Capital Lease Obligations
1,603,000
1,852,000
1,777,000
1,881,000
Common Stock Equity
368,000
1,599,000
1,848,000
2,559,000
Total Capitalization
1,844,000
2,860,000
3,670,000
3,690,000
Total Equity Gross Minority Interest
372,000
1,600,000
1,849,000
2,558,000
Minority Interest
4,000
1,000
1,000
-1,000
Stockholders Equity
368,000
1,599,000
1,848,000
2,559,000
Gains Losses Not Affecting Retained Earnings
57,000
161,000
147,000
194,000
Other Equity Adjustments
57,000
161,000
147,000
194,000
Treasury Stock
5,462,000
5,458,000
5,351,000
3,987,000
Retained Earnings
4,297,000
5,479,000
5,708,000
5,092,000
Additional Paid In Capital
1,476,000
1,417,000
1,344,000
1,260,000
Total Liabilities Net Minority Interest
4,841,000
5,089,000
5,446,000
4,922,000
Total Non Current Liabilities Net Minority Interest
3,505,000
3,394,000
3,996,000
3,356,000
Other Non Current Liabilities
437,000
319,000
318,000
326,000
Non Current Deferred Liabilities
339,000
362,000
508,000
432,000
Non Current Deferred Taxes Liabilities
339,000
362,000
508,000
432,000
Long Term Debt And Capital Lease Obligation
2,729,000
2,713,000
3,170,000
2,598,000
Long Term Capital Lease Obligation
1,253,000
1,452,000
1,348,000
1,467,000
Long Term Debt
1,476,000
1,261,000
1,822,000
1,131,000
Current Liabilities
1,336,000
1,695,000
1,450,000
1,566,000
Other Current Liabilities
101,000
114,000
123,000
137,000
Current Deferred Liabilities
14,000
15,000
32,000
24,000
Current Deferred Revenue
14,000
15,000
32,000
24,000
Current Debt And Capital Lease Obligation
374,000
862,000
434,000
443,000
Current Capital Lease Obligation
350,000
400,000
429,000
414,000
Current Debt
24,000
462,000
5,000
29,000
Other Current Borrowings
24,000
462,000
5,000
29,000
Payables And Accrued Expenses
847,000
704,000
861,000
962,000
Current Accrued Expenses
255,000
259,000
281,000
294,000
Interest Payable
6,000
17,000
16,000
10,000
Payables
592,000
445,000
580,000
668,000
Total Tax Payable
107,000
93,000
105,000
113,000
Income Tax Payable
68,000
64,000
73,000
52,000
Accounts Payable
485,000
352,000
475,000
555,000
Total Assets
5,213,000
6,689,000
7,295,000
7,480,000
Total Non Current Assets
3,692,000
5,081,000
5,425,000
5,589,000
Other Non Current Assets
162,000
212,000
226,000
250,000
Non Current Deferred Assets
0
352,000
296,000
240,000
Non Current Deferred Taxes Assets
0
352,000
296,000
240,000
Goodwill And Other Intangible Assets
1,804,000
2,500,000
3,021,000
3,265,000
Other Intangible Assets
1,116,000
1,394,000
1,728,000
1,847,000
Goodwill
688,000
1,106,000
1,293,000
1,418,000
Net PPE
1,726,000
2,017,000
1,882,000
1,834,000
Accumulated Depreciation
-773,000
-726,000
-784,000
-790,000
Gross PPE
2,499,000
2,743,000
2,666,000
2,624,000
Leases
519,000
535,000
577,000
575,000
Construction In Progress
20,000
82,000
90,000
66,000
Other Properties
1,323,000
1,550,000
1,436,000
1,439,000
Machinery Furniture Equipment
523,000
466,000
453,000
430,000
Buildings And Improvements
96,000
92,000
92,000
95,000
Land And Improvements
18,000
18,000
18,000
19,000
Current Assets
1,521,000
1,608,000
1,870,000
1,891,000
Other Current Assets
30,000
50,000
48,000
61,000
Restricted Cash
9,000
6,000
Prepaid Assets
126,000
109,000
127,000
101,000
Inventory
869,000
862,000
1,057,000
1,096,000
Receivables
321,000
382,000
389,000
464,000
Receivables Adjustments Allowances
-48,000
-47,000
-57,000
-44,000
Other Receivables
38,000
45,000
24,000
34,000
Accrued Interest Receivable
36,000
42,000
10,000
13,000
Accounts Receivable
295,000
342,000
412,000
461,000
Gross Accounts Receivable
412,000
461,000
Cash Cash Equivalents And Short Term Investments
166,000
199,000
249,000
169,000
Cash And Cash Equivalents
166,000
199,000
249,000
169,000
Cash Flow
2025
2024
2023
2022
Free Cash Flow
153,000
120,000
545,000
573,000
Repurchase Of Capital Stock
-4,000
-107,000
-1,364,000
-661,000
Repayment Of Debt
-3,547,000
-1,839,000
-3,474,000
-1,132,000
Issuance Of Debt
3,329,000
1,737,000
4,061,000
945,000
Capital Expenditure
-128,000
-189,000
-226,000
-131,000
Interest Paid Supplemental Data
87,000
96,000
58,000
37,000
Income Tax Paid Supplemental Data
125,000
156,000
133,000
43,000
End Cash Position
175,000
205,000
256,000
172,000
Beginning Cash Position
205,000
256,000
172,000
234,000
Effect Of Exchange Rate Changes
-16,000
-17,000
-94,000
-24,000
Changes In Cash
-14,000
-34,000
178,000
-38,000
Financing Cash Flow
-242,000
-208,000
-776,000
-800,000
Cash Flow From Continuing Financing Activities
-229,000
-208,000
-776,000
-800,000
Net Other Financing Charges
-20,000
-5,000
31,000
Proceeds From Stock Option Exercised
0
1,000
6,000
17,000
Net Common Stock Issuance
-4,000
-107,000
-1,364,000
-661,000
Common Stock Payments
-4,000
-107,000
-1,364,000
-661,000
Net Issuance Payments Of Debt
-218,000
-102,000
587,000
-187,000
Net Long Term Debt Issuance
-218,000
-102,000
587,000
-187,000
Long Term Debt Payments
-3,547,000
-1,839,000
-3,474,000
-1,132,000
Long Term Debt Issuance
3,329,000
1,737,000
4,061,000
945,000
Investing Cash Flow
-53,000
-135,000
183,000
58,000
Cash Flow From Continuing Investing Activities
-53,000
-135,000
183,000
58,000
Net Other Investing Changes
84,000
54,000
409,000
Net Investment Purchase And Sale
84,000
54,000
409,000
189,000
Net Business Purchase And Sale
-9,000
0
0
Purchase Of Business
-9,000
0
0
Capital Expenditure Reported
-128,000
-189,000
-226,000
-131,000
Operating Cash Flow
281,000
309,000
771,000
704,000
Cash Flow From Continuing Operating Activities
281,000
309,000
771,000
704,000
Change In Working Capital
132,000
-42,000
-82,000
-291,000
Change In Other Working Capital
-48,000
-36,000
-28,000
60,000
Change In Payables And Accrued Expense
125,000
-179,000
-109,000
99,000
Change In Accrued Expense
-3,000
-60,000
-9,000
30,000
Change In Payable
128,000
-119,000
-100,000
69,000
Change In Account Payable
128,000
-119,000
-100,000
69,000
Change In Prepaid Assets
8,000
-29,000
-8,000
14,000
Change In Inventory
-3,000
175,000
13,000
-386,000
Change In Receivables
50,000
27,000
50,000
-78,000
Other Non Cash Items
-103,000
-99,000
-92,000
-132,000
Stock Based Compensation
59,000
72,000
78,000
85,000
Asset Impairment Charge
797,000
577,000
142,000
83,000
Deferred Tax
388,000
-187,000
-101,000
-57,000
Deferred Income Tax
388,000
-187,000
-101,000
-57,000
Depreciation Amortization Depletion
193,000
188,000
179,000
193,000
Depreciation And Amortization
193,000
188,000
179,000
193,000
Operating Gains Losses
-6,000
29,000
28,000
Net Foreign Currency Exchange Gain Loss
-6,000
29,000
28,000
0
Net Income From Continuing Operations
-1,179,000
-229,000
619,000
823,000
These metrics estimate what Capri Holdings Limited is worth based on its fundamentals — independent of what the market currently prices it at.
Graham's Fair Value and NCAV are conservative floors rooted in 1930s–60s principles.
EPV assumes zero growth. None are price targets — they are reference points for judging whether the current price offers a margin of safety.
Graham's Fair Value
N/A (negative EPS)
Margin of Safety
—
Market Cap ÷ Company Value
4.96
P/B Ratio
6.02
Warren's Owner Earnings
-$861M
Latest fiscal year
Graham's 7 Criteria
Defensive Investor Checklist
2/7 — Speculative Investor
✅Adequate Size
$4.4B
vs > $1.5B revenue
❌Strong Financial Condition
1.14x
vs Current Ratio > 2.0x
❌Earnings Stability
2 loss years (4 yrs data)
vs No negative EPS years
❌Dividend Record
No dividend
vs Uninterrupted dividends
❌Earnings Growth
-14.7% EPS growth
vs > 33% EPS growth
✅Moderate P/E Ratio
9.9x
vs P/E ≤ 15.0x
❌Moderate Price-to-Book
6.02x P/B (P/E×P/B: 59.9)
vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5
Graham's 7 Criteria — Explained
What each criterion measures and why it may or may not apply to modern businesses.
✅ Adequate Size — $4.4Bvs > $1.5B revenue
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
"The minimum size of an enterprise should be not less than $100 million of annual sales."
❌ Strong Financial Condition — 1.14xvs Current Ratio > 2.0x
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
"For industrial companies, current assets should be at least twice current liabilities."
❌ Earnings Stability — 2 loss years (4 yrs data)vs No negative EPS years
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
"The company should have shown no deficit in the past ten years."
❌ Dividend Record — No dividendvs Uninterrupted dividends
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
"Some current dividend payments — for at least the past 20 years."
EPS grew from $5.39 to $4.60 over 1 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
"A minimum increase of at least one-third in per-share earnings over ten years."
✅ Moderate P/E Ratio — 9.9xvs P/E ≤ 15.0x
Graham's 15x P/E threshold was calibrated to 1960s market averages when interest rates were higher. Today's lower rate environment structurally supports higher multiples — the S&P 500 long-run average P/E is now closer to 20–25x. A stock trading at 20x is not automatically speculative in the modern context.
"The price-earnings ratio should be no more than 15 times average earnings."
Graham's 1.5x P/B threshold made sense when most company value was tangible. Today, intangible assets — brand, software, patents, network effects — rarely appear on the balance sheet. A high P/B in tech, pharma, or consumer brands often reflects intangible value, not overvaluation. P/FCF or EV/EBITDA are more reliable for asset-light businesses.
"The price should not be more than 1½ times book value. P/E × P/B ≤ 22.5."
Net Current Asset Value
$-27.86
Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign.
"Buy at two-thirds of net current assets." — Graham
Earnings Power Value
$4.85
Per share, no-growth floor. Compare to current price.
Cash Flow Analysis
Metric
2025
2024
2023
2022
Capital Expenditure % of Net Income
N/A
N/A
36.7%
15.9%
Repurchase of Capital Stock
-$4M
-$107M
-$1.4B
-$661M
Free Cash Flow
$153M▲
$120M▼
$545M▼
$573M•
Warren's Owner Earnings
-$861M
$148M
$1.0B
$1.1B
Peers & Industry
No auto-detected peers for Luxury Goods. You can manually compare CPRI against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
Capital Allocation & Alignment
Insider Ownership
1.62%
Low — management has little skin in the game
Return on Equity (ROE)
-321.2%
Weak — poor returns on equity
Return on Assets (ROA)
-22.7%
Poor — assets are not generating adequate returns
Share Buybacks (Latest Year)
$4M
Management is returning capital to shareholders via buybacks
Debt Trend YoY
-13.2% YoY
Debt is declining — management is deleveraging
Leadership Team
John Idol
Chairman & CEO
Age 66
Pay: $2,058,699
Tyler Reddien
CFO & COO
Jennifer Michelle Davis
Vice President of Investor Relations
Denise Guerra
Senior Vice President of Brand Communications
Top Institutional Holders
Institution
% Owned
Shares
FMR, LLC
12.03%
14,340,237
Blackrock Inc.
11.77%
14,021,097
Vanguard Group Inc
9.82%
11,701,832
DME Capital Management, LP
4.00%
4,768,007
State Street Corporation
3.60%
4,290,378
Primecap Management Company
3.28%
3,906,744
Geode Capital Management, LLC
2.45%
2,924,405
Cartenna Capital, LP
2.39%
2,850,000
⚠️Very high debt-to-equity — leverage risk
Risk Analysis
Beta (Market Risk)
1.43
Moderate volatility — moves slightly more than market
Short Interest
11.4% of float
Moderate short interest
Debt-to-Equity
12.14x
High leverage — significant financial risk
Current Ratio
1.14x
Adequate liquidity
52-Week Price Range
Low: $15.05Current: $18.58High: $28.27
Currently at 27% of 52-week range
Capri Holdings Limited (CPRI) fundamental analysis — Overall grade F based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: N/A (negative EPS). Gross profit margin: 63.6%. Operating margin: 1.2%. Net margin: -26.6%. Market cap: $2.2B. Sector: Consumer Cyclical. Industry: Luxury Goods. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
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