Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, travel products company Tumi Holdings (NYS: TUMI) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at Tumi and see what CAPS investors are saying about the stock right now.

Tumi facts

  

Headquarters (founded)

South Plainfield, N.J. (1975)

Market Cap

$1.5 billion

Industry

Accessories and luxury goods

Trailing-12-Month Revenue

$378.7 million

Management

CEO Jerome Griffith (since 2009)

CFO Michael Mardy (since 2003)

Trailing-12-Month Return on Equity

21.8%

Cash/Debt

$16.4 million / $52.0 million

Competitors

Coach (NYS: COH)
LVMH Moet Hennessy Louis Vuitton
Samsonite International


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 66% of the 29 members who have rated Tumi believe the stock will underperform the S&P 500 going forward.

Just yesterday, one of those Fools, All-Star BlacknGold, succinctly summed up the bear case for our community:

Tumi is worth about $300 million on paper and over $1.5 billion on the market. Most of its shareholders' equity can be attributed to its $338 million IPO. Income is up, revenue is up, valuation is up. As with software companies, I usually stay away from retailers because I honestly have no idea how to value them. I just think this is a bit overvalued.

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The article Why Tumi Will Underperform originally appeared on Fool.com.

Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool owns shares of Coach. Motley Fool newsletter services recommend Coach. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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