PVH CORP (PVH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PVH - US6936561009 - Common Stock
61.35 USD
-0.34 (-0.55%)
61.49 USD
+0.14 (+0.23%)
Overall PVH gets a fundamental rating of 5 out of 10. We evaluated PVH against 45 industry peers in the Textiles, Apparel & Luxury Goods industry. PVH has an average financial health and profitability rating. 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.
- Of the past 5 years PVH 4 years were profitable.
- Each year in the past 5 years PVH had a positive operating cash flow.
1.2 Ratios
- PVH has a Return On Assets (2.98%) which is comparable to the rest of the industry.
- PVH has a Return On Equity (6.99%) which is in line with its industry peers.
- With a Return On Invested Capital value of 5.85%, PVH perfoms like the industry average, outperforming 46.67% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for PVH is below the industry average of 11.59%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.98% | ||
| ROE | 6.99% | ||
| ROIC | 5.85% |
ROA(3y)4.36%
ROA(5y)2.44%
ROE(3y)9.53%
ROE(5y)4.52%
ROIC(3y)7.83%
ROIC(5y)6.46%
1.3 Margins
- Looking at the Profit Margin, with a value of 3.87%, PVH is in the better half of the industry, outperforming 62.22% of the companies in the same industry.
- In the last couple of years the Profit Margin of PVH has grown nicely.
- PVH has a Operating Margin of 7.44%. This is in the better half of the industry: PVH outperforms 66.67% of its industry peers.
- PVH's Operating Margin has been stable in the last couple of years.
- PVH's Gross Margin of 57.69% is fine compared to the rest of the industry. PVH outperforms 71.11% of its industry peers.
- In the last couple of years the Gross Margin of PVH has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.44% | ||
| PM (TTM) | 3.87% | ||
| GM | 57.69% |
OM growth 3Y-13.18%
OM growth 5Y0.59%
PM growth 3Y-12.72%
PM growth 5Y10.43%
GM growth 3Y0.72%
GM growth 5Y1.79%
2. Health
2.1 Basic Checks
- PVH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, PVH has less shares outstanding
- 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
- An Altman-Z score of 2.10 indicates that PVH is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of PVH (2.10) is worse than 75.56% of its industry peers.
- PVH has a debt to FCF ratio of 5.11. This is a neutral value as PVH would need 5.11 years to pay back of all of its debts.
- The Debt to FCF ratio of PVH (5.11) is comparable to the rest of the industry.
- PVH has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
- PVH has a Debt to Equity ratio (0.46) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 5.11 | ||
| Altman-Z | 2.1 |
ROIC/WACC0.56
WACC10.46%
2.3 Liquidity
- PVH has a Current Ratio of 1.47. This is a normal value and indicates that PVH is financially healthy and should not expect problems in meeting its short term obligations.
- PVH has a Current ratio of 1.47. This is in the lower half of the industry: PVH underperforms 75.56% of its industry peers.
- A Quick Ratio of 0.72 indicates that PVH may have some problems paying its short term obligations.
- The Quick ratio of PVH (0.72) is worse than 86.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
- The earnings per share for PVH have decreased strongly by -10.57% in the last year.
- PVH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.27% yearly.
- The Revenue has been growing slightly by 0.52% in the past year.
- PVH shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.67% yearly.
EPS 1Y (TTM)-10.57%
EPS 3Y5.03%
EPS 5Y4.27%
EPS Q2Q%-6.6%
Revenue 1Y (TTM)0.52%
Revenue growth 3Y-1.86%
Revenue growth 5Y-2.67%
Sales Q2Q%1.74%
3.2 Future
- The Earnings Per Share is expected to grow by 13.35% 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 3.13% yearly.
EPS Next Y-6.45%
EPS Next 2Y1.46%
EPS Next 3Y5.55%
EPS Next 5Y13.35%
Revenue Next Year3.08%
Revenue Next 2Y2.46%
Revenue Next 3Y2.6%
Revenue Next 5Y3.13%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 5.62, which indicates a rather cheap valuation of PVH.
- Compared to the rest of the industry, the Price/Earnings ratio of PVH indicates a rather cheap valuation: PVH is cheaper than 95.56% of the companies listed in the same industry.
- PVH is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- PVH is valuated cheaply with a Price/Forward Earnings ratio of 5.07.
- 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 24.26. PVH is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.62 | ||
| Fwd PE | 5.07 |
4.2 Price Multiples
- PVH's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PVH is cheaper than 88.89% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, PVH is valued cheaper than 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.68 | ||
| EV/EBITDA | 5.44 |
4.3 Compensation for Growth
- The decent profitability rating of PVH may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.31
EPS Next 2Y1.46%
EPS Next 3Y5.55%
5. Dividend
5.1 Amount
- PVH has a yearly dividend return of 0.22%, which is pretty low.
- The stock price of PVH dropped by -28.27% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
- Compared to an average industry Dividend Yield of 1.43, PVH has a dividend in line with its industry peers.
- With a Dividend Yield of 0.22, PVH pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.22% |
5.2 History
- The dividend of PVH has a limited annual growth rate of 0.27%.
- 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)0.27%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
- PVH pays out 2.32% of its income as dividend. This is a sustainable payout ratio.
- The dividend of PVH is growing, but earnings are growing more, so the dividend growth is sustainable.
DP2.32%
EPS Next 2Y1.46%
EPS Next 3Y5.55%
PVH CORP / PVH FAQ
What is the ChartMill fundamental rating of PVH CORP (PVH) stock?
ChartMill assigns a fundamental rating of 5 / 10 to PVH.
What is the valuation status of PVH CORP (PVH) stock?
ChartMill assigns a valuation rating of 8 / 10 to PVH CORP (PVH). This can be considered as Undervalued.
What is the profitability of PVH stock?
PVH CORP (PVH) has a profitability rating of 6 / 10.
What is the earnings growth outlook for PVH CORP?
The Earnings per Share (EPS) of PVH CORP (PVH) is expected to decline by -6.45% in the next year.
Can you provide the dividend sustainability for PVH stock?
The dividend rating of PVH CORP (PVH) is 5 / 10 and the dividend payout ratio is 2.32%.