PVH CORP (PVH)
US6936561009 - Common Stock
PVH gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 50 industry peers in the Textiles, Apparel & Luxury Goods industry. PVH scores excellent on profitability, but there are some minor concerns on its financial health. PVH may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year PVH was profitable.
PVH had a positive operating cash flow in the past year.
PVH had positive earnings in 4 of the past 5 years.
In the past 5 years PVH always reported a positive cash flow from operatings.
1.2 Ratios
PVH's Return On Assets of 6.61% is fine compared to the rest of the industry. PVH outperforms 74.00% of its industry peers.
With a decent Return On Equity value of 14.31%, PVH is doing good in the industry, outperforming 74.00% of the companies in the same industry.
PVH has a Return On Invested Capital (7.15%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for PVH is below the industry average of 11.70%.
The last Return On Invested Capital (7.15%) for PVH is above the 3 year average (6.89%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.61% | ||
| ROE | 14.31% | ||
| ROIC | 7.15% |
ROA(3y)5.11%
ROA(5y)1.97%
ROE(3y)11.66%
ROE(5y)3.63%
ROIC(3y)6.89%
ROIC(5y)4.97%
1.3 Margins
PVH's Profit Margin of 8.37% is amongst the best of the industry. PVH outperforms 82.00% of its industry peers.
PVH's Profit Margin has been stable in the last couple of years.
PVH has a better Operating Margin (10.47%) than 80.00% of its industry peers.
PVH's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 59.52%, PVH is doing good in the industry, outperforming 78.00% of the companies in the same industry.
In the last couple of years the Gross Margin of PVH has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.47% | ||
| PM (TTM) | 8.37% | ||
| GM | 59.52% |
OM growth 3Y181.01%
OM growth 5Y1.81%
PM growth 3YN/A
PM growth 5Y-1.41%
GM growth 3Y3.19%
GM growth 5Y1.14%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PVH is destroying value.
The number of shares outstanding for PVH has been reduced compared to 1 year ago.
The number of shares outstanding for PVH has been reduced compared to 5 years ago.
Compared to 1 year ago, PVH has an improved debt to assets ratio.
2.2 Solvency
PVH has an Altman-Z score of 2.42. This is not the best score and indicates that PVH is in the grey zone with still only limited risk for bankruptcy at the moment.
PVH has a worse Altman-Z score (2.42) than 60.00% of its industry peers.
PVH has a debt to FCF ratio of 2.75. This is a good value and a sign of high solvency as PVH would need 2.75 years to pay back of all of its debts.
With a Debt to FCF ratio value of 2.75, PVH perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
PVH has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
PVH has a Debt to Equity ratio (0.32) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 2.75 | ||
| Altman-Z | 2.42 |
ROIC/WACC0.94
WACC7.64%
2.3 Liquidity
A Current Ratio of 1.24 indicates that PVH should not have too much problems paying its short term obligations.
PVH has a Current ratio of 1.24. This is amonst the worse of the industry: PVH underperforms 88.00% of its industry peers.
PVH has a Quick Ratio of 1.24. This is a bad value and indicates that PVH is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of PVH (0.66) is worse than 92.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
PVH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 32.75%, which is quite impressive.
PVH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.29% yearly.
The Revenue has decreased by -2.80% in the past year.
Measured over the past years, PVH shows a decrease in Revenue. The Revenue has been decreasing by -0.93% on average per year.
EPS 1Y (TTM)32.75%
EPS 3YN/A
EPS 5Y2.29%
EPS Q2Q%52.02%
Revenue 1Y (TTM)-2.8%
Revenue growth 3Y8.92%
Revenue growth 5Y-0.93%
Sales Q2Q%-6.01%
3.2 Future
The Earnings Per Share is expected to grow by 13.06% on average over the next years. This is quite good.
PVH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.92% yearly.
EPS Next Y10.21%
EPS Next 2Y9.14%
EPS Next 3Y10.43%
EPS Next 5Y13.06%
Revenue Next Year-5.73%
Revenue Next 2Y-1.98%
Revenue Next 3Y-0.59%
Revenue Next 5Y0.92%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.89, the valuation of PVH can be described as very reasonable.
90.00% of the companies in the same industry are more expensive than PVH, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of PVH to the average of the S&P500 Index (27.73), we can say PVH is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.40, the valuation of PVH can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PVH indicates a rather cheap valuation: PVH is cheaper than 92.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, PVH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.89 | ||
| Fwd PE | 8.4 |
4.2 Price Multiples
PVH's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PVH is cheaper than 90.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PVH is valued a bit cheaper than 78.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.55 | ||
| EV/EBITDA | 6.02 |
4.3 Compensation for Growth
PVH's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of PVH may justify a higher PE ratio.
PEG (NY)0.87
PEG (5Y)3.88
EPS Next 2Y9.14%
EPS Next 3Y10.43%
5. Dividend
5.1 Amount
PVH has a yearly dividend return of 0.14%, which is pretty low.
PVH's Dividend Yield is a higher than the industry average which is at 2.81.
With a Dividend Yield of 0.14, PVH pays less dividend than the S&P500 average, which is at 2.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.14% |
5.2 History
The dividend of PVH has a limited annual growth rate of 0.42%.
PVH has been paying a dividend for at least 10 years, so it has a reliable track record.
PVH has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)0.42%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
1.20% of the earnings are spent on dividend by PVH. This is a low number and sustainable payout ratio.
The dividend of PVH is growing, but earnings are growing more, so the dividend growth is sustainable.
DP1.2%
EPS Next 2Y9.14%
EPS Next 3Y10.43%
PVH CORP
NYSE:PVH (12/20/2024, 8:04:00 PM)
After market: 107.453 0 (0%)107.45
+3.81 (+3.68%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners100.66%
Inst Owner Change-0.01%
Ins Owners2.09%
Ins Owner Change0.9%
Market Cap6.00B
Analysts76.84
Price Target126.01 (17.27%)
Short Float %4.01%
Short Ratio3.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.14% |
Dividend Growth(5Y)0.42%
DP1.2%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)21.09%
Min EPS beat(2)12.05%
Max EPS beat(2)30.12%
EPS beat(4)4
Avg EPS beat(4)12.8%
Min EPS beat(4)4.44%
Max EPS beat(4)30.12%
EPS beat(8)8
Avg EPS beat(8)16.63%
EPS beat(12)12
Avg EPS beat(12)20%
EPS beat(16)15
Avg EPS beat(16)57.54%
Revenue beat(2)0
Avg Revenue beat(2)-0.38%
Min Revenue beat(2)-0.66%
Max Revenue beat(2)-0.11%
Revenue beat(4)1
Avg Revenue beat(4)-0.44%
Min Revenue beat(4)-2.84%
Max Revenue beat(4)1.84%
Revenue beat(8)4
Avg Revenue beat(8)0.47%
Revenue beat(12)6
Avg Revenue beat(12)-0.24%
Revenue beat(16)9
Avg Revenue beat(16)0.87%
PT rev (1m)-0.06%
PT rev (3m)-10.8%
EPS NQ rev (1m)0.47%
EPS NQ rev (3m)-2.61%
EPS NY rev (1m)0%
EPS NY rev (3m)0.24%
Revenue NQ rev (1m)0.54%
Revenue NQ rev (3m)0.54%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.89 | ||
| Fwd PE | 8.4 | ||
| P/S | 0.68 | ||
| P/FCF | 7.55 | ||
| P/OCF | 6 | ||
| P/B | 1.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.02 |
EPS(TTM)12.08
EY11.24%
EPS(NY)12.79
Fwd EY11.91%
FCF(TTM)14.24
FCFY13.25%
OCF(TTM)17.9
OCFY16.66%
SpS159.09
BVpS93.03
TBVpS-4.17
PEG (NY)0.87
PEG (5Y)3.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.61% | ||
| ROE | 14.31% | ||
| ROCE | 10.96% | ||
| ROIC | 7.15% | ||
| ROICexc | 7.7% | ||
| ROICexgc | 24.74% | ||
| OM | 10.47% | ||
| PM (TTM) | 8.37% | ||
| GM | 59.52% | ||
| FCFM | 8.95% |
ROA(3y)5.11%
ROA(5y)1.97%
ROE(3y)11.66%
ROE(5y)3.63%
ROIC(3y)6.89%
ROIC(5y)4.97%
ROICexc(3y)7.59%
ROICexc(5y)5.43%
ROICexgc(3y)25.56%
ROICexgc(5y)17.96%
ROCE(3y)10.57%
ROCE(5y)7.63%
ROICexcg growth 3Y219.6%
ROICexcg growth 5Y1.02%
ROICexc growth 3Y223.23%
ROICexc growth 5Y5.28%
OM growth 3Y181.01%
OM growth 5Y1.81%
PM growth 3YN/A
PM growth 5Y-1.41%
GM growth 3Y3.19%
GM growth 5Y1.14%
F-Score7
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 2.75 | ||
| Debt/EBITDA | 1.37 | ||
| Cap/Depr | 69.76% | ||
| Cap/Sales | 2.3% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.74% | ||
| Profit Quality | 106.99% | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z | 2.42 |
F-Score7
WACC7.64%
ROIC/WACC0.94
Cap/Depr(3y)87.89%
Cap/Depr(5y)87.97%
Cap/Sales(3y)2.93%
Cap/Sales(5y)3.09%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)32.75%
EPS 3YN/A
EPS 5Y2.29%
EPS Q2Q%52.02%
EPS Next Y10.21%
EPS Next 2Y9.14%
EPS Next 3Y10.43%
EPS Next 5Y13.06%
Revenue 1Y (TTM)-2.8%
Revenue growth 3Y8.92%
Revenue growth 5Y-0.93%
Sales Q2Q%-6.01%
Revenue Next Year-5.73%
Revenue Next 2Y-1.98%
Revenue Next 3Y-0.59%
Revenue Next 5Y0.92%
EBIT growth 1Y6.5%
EBIT growth 3Y206.08%
EBIT growth 5Y0.87%
EBIT Next Year24.99%
EBIT Next 3Y12.35%
EBIT Next 5Y8.57%
FCF growth 1Y156.77%
FCF growth 3Y15.44%
FCF growth 5Y8.91%
OCF growth 1Y73.45%
OCF growth 3Y11.59%
OCF growth 5Y2.6%