PVH CORP (PVH) Stock Fundamental Analysis
NYSE:PVH - New York Stock Exchange, Inc. - US6936561009 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to PVH. PVH was compared to 50 industry peers in the Textiles, Apparel & Luxury Goods industry. PVH has an average financial health and profitability rating. PVH scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year PVH was profitable.
In the past year PVH had a positive cash flow from operations.
Of the past 5 years PVH 4 years were profitable.
In the past 5 years PVH always reported a positive cash flow from operatings.
1.2 Ratios
PVH has a better Return On Assets (6.34%) than 73.47% of its industry peers.
PVH's Return On Equity of 13.48% is fine compared to the rest of the industry. PVH outperforms 73.47% of its industry peers.
PVH's Return On Invested Capital of 6.07% is in line compared to the rest of the industry. PVH outperforms 46.94% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PVH is below the industry average of 11.76%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.34% | ||
| ROE | 13.48% | ||
| ROIC | 6.07% |
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 has a better Profit Margin (8.13%) than 81.63% of its industry peers.
PVH's Profit Margin has been stable in the last couple of years.
With a decent Operating Margin value of 9.06%, PVH is doing good in the industry, outperforming 65.31% of the companies in the same industry.
In the last couple of years the Operating Margin of PVH has grown nicely.
Looking at the Gross Margin, with a value of 60.00%, PVH is in the better half of the industry, outperforming 75.51% of the companies in the same industry.
PVH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.06% | ||
| PM (TTM) | 8.13% | ||
| GM | 60% |
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.
PVH has less shares outstanding than it did 5 years ago.
The debt/assets ratio for PVH has been reduced compared to a year ago.
2.2 Solvency
PVH has an Altman-Z score of 2.27. 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.
With a Altman-Z score value of 2.27, PVH is not doing good in the industry: 65.31% of the companies in the same industry are doing better.
The Debt to FCF ratio of PVH is 3.03, which is a good value as it means it would take PVH, 3.03 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 3.03, PVH perfoms like the industry average, outperforming 55.10% of the companies in the same industry.
A Debt/Equity ratio of 0.31 indicates that PVH is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.31, PVH is in line with its industry, outperforming 53.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 3.03 | ||
| Altman-Z | 2.27 |
ROIC/WACC0.69
WACC8.77%
2.3 Liquidity
A Current Ratio of 1.29 indicates that PVH should not have too much problems paying its short term obligations.
The Current ratio of PVH (1.29) is worse than 85.71% of its industry peers.
PVH has a Quick Ratio of 1.29. This is a bad value and indicates that PVH is not financially healthy enough and could expect problems in meeting its short term obligations.
PVH has a worse Quick ratio (0.69) than 89.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 29.89% over the past year.
The Earnings Per Share has been growing slightly by 2.29% on average over the past years.
PVH shows a decrease in Revenue. In the last year, the revenue decreased by -4.83%.
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)29.89%
EPS 3YN/A
EPS 5Y2.29%
EPS Q2Q%4.48%
Revenue 1Y (TTM)-4.83%
Revenue growth 3Y8.92%
Revenue growth 5Y-0.93%
Sales Q2Q%-4.56%
3.2 Future
The Earnings Per Share is expected to grow by 12.71% on average over the next years. This is quite good.
The Revenue is expected to grow by 0.82% on average over the next years.
EPS Next Y10.04%
EPS Next 2Y6.68%
EPS Next 3Y9.19%
EPS Next 5Y12.71%
Revenue Next Year-5.72%
Revenue Next 2Y-2.48%
Revenue Next 3Y-0.61%
Revenue Next 5Y0.82%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
PVH is valuated cheaply with a Price/Earnings ratio of 6.45.
PVH's Price/Earnings ratio is rather cheap when compared to the industry. PVH is cheaper than 97.96% of the companies in the same industry.
PVH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.63.
PVH is valuated cheaply with a Price/Forward Earnings ratio of 6.44.
Based on the Price/Forward Earnings ratio, PVH is valued cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.68. PVH is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.45 | ||
| Fwd PE | 6.44 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PVH is valued cheaply inside the industry as 89.80% of the companies are valued more expensively.
85.71% of the companies in the same industry are more expensive than PVH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.12 | ||
| EV/EBITDA | 5.53 |
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.
PVH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.64
PEG (5Y)2.81
EPS Next 2Y6.68%
EPS Next 3Y9.19%
5. Dividend
5.1 Amount
With a yearly dividend of 0.19%, PVH is not a good candidate for dividend investing.
In the last 3 months the price of PVH has falen by -24.23%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 2.88, PVH pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.29, PVH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.19% |
5.2 History
The dividend of PVH has a limited annual growth rate of 0.42%.
PVH has paid a dividend for at least 10 years, which is 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
1.22% 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.
DP1.22%
EPS Next 2Y6.68%
EPS Next 3Y9.19%
78.7
+0.04 (+0.05%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners103.77%
Inst Owner Change3.99%
Ins Owners0.59%
Ins Owner Change-0.16%
Market Cap4.38B
Analysts75.79
Price Target128.83 (63.7%)
Short Float %5.24%
Short Ratio2.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.19% |
Yearly Dividend0.16
Dividend Growth(5Y)0.42%
DP1.22%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)22.98%
Min EPS beat(2)15.84%
Max EPS beat(2)30.12%
EPS beat(4)4
Avg EPS beat(4)15.61%
Min EPS beat(4)4.44%
Max EPS beat(4)30.12%
EPS beat(8)8
Avg EPS beat(8)16.15%
EPS beat(12)12
Avg EPS beat(12)19.04%
EPS beat(16)15
Avg EPS beat(16)31.09%
Revenue beat(2)1
Avg Revenue beat(2)-0.04%
Min Revenue beat(2)-0.66%
Max Revenue beat(2)0.58%
Revenue beat(4)2
Avg Revenue beat(4)0.41%
Min Revenue beat(4)-0.66%
Max Revenue beat(4)1.84%
Revenue beat(8)4
Avg Revenue beat(8)0.39%
Revenue beat(12)7
Avg Revenue beat(12)0.15%
Revenue beat(16)9
Avg Revenue beat(16)0.58%
PT rev (1m)-1.98%
PT rev (3m)2.18%
EPS NQ rev (1m)-13.15%
EPS NQ rev (3m)-7.26%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)-0.16%
Revenue NQ rev (1m)-1.91%
Revenue NQ rev (3m)-1.54%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.45 | ||
| Fwd PE | 6.44 | ||
| P/S | 0.5 | ||
| P/FCF | 6.12 | ||
| P/OCF | 4.8 | ||
| P/B | 0.83 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.53 |
EPS(TTM)12.21
EY15.51%
EPS(NY)12.22
Fwd EY15.53%
FCF(TTM)12.86
FCFY16.34%
OCF(TTM)16.4
OCFY20.83%
SpS157.67
BVpS95.06
TBVpS-2.12
PEG (NY)0.64
PEG (5Y)2.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.34% | ||
| ROE | 13.48% | ||
| ROCE | 9.3% | ||
| ROIC | 6.07% | ||
| ROICexc | 6.49% | ||
| ROICexgc | 20.09% | ||
| OM | 9.06% | ||
| PM (TTM) | 8.13% | ||
| GM | 60% | ||
| FCFM | 8.16% |
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 Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 3.03 | ||
| Debt/EBITDA | 1.53 | ||
| Cap/Depr | 68.52% | ||
| Cap/Sales | 2.24% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.32% | ||
| Profit Quality | 100.31% | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 2.27 |
F-Score7
WACC8.77%
ROIC/WACC0.69
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)29.89%
EPS 3YN/A
EPS 5Y2.29%
EPS Q2Q%4.48%
EPS Next Y10.04%
EPS Next 2Y6.68%
EPS Next 3Y9.19%
EPS Next 5Y12.71%
Revenue 1Y (TTM)-4.83%
Revenue growth 3Y8.92%
Revenue growth 5Y-0.93%
Sales Q2Q%-4.56%
Revenue Next Year-5.72%
Revenue Next 2Y-2.48%
Revenue Next 3Y-0.61%
Revenue Next 5Y0.82%
EBIT growth 1Y-10.21%
EBIT growth 3Y206.08%
EBIT growth 5Y0.87%
EBIT Next Year24.88%
EBIT Next 3Y11.02%
EBIT Next 5Y8.4%
FCF growth 1Y997.49%
FCF growth 3Y15.44%
FCF growth 5Y8.91%
OCF growth 1Y329.63%
OCF growth 3Y11.59%
OCF growth 5Y2.6%