RALPH LAUREN CORP (RL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RL - US7512121010 - Common Stock
363.05 USD
-6.1 (-1.65%)
363.05 USD
0 (0%)
Overall RL gets a fundamental rating of 7 out of 10. We evaluated RL against 45 industry peers in the Textiles, Apparel & Luxury Goods industry. Both the health and profitability get an excellent rating, making RL a very profitable company, without any liquidiy or solvency issues. RL has a correct valuation and a medium growth rate. These ratings could make RL a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
- RL had positive earnings in the past year.
- RL had a positive operating cash flow in the past year.
- Of the past 5 years RL 4 years were profitable.
- Each year in the past 5 years RL had a positive operating cash flow.
1.2 Ratios
- RL has a better Return On Assets (11.63%) than 91.11% of its industry peers.
- RL has a better Return On Equity (33.08%) than 88.89% of its industry peers.
- RL's Return On Invested Capital of 16.88% is amongst the best of the industry. RL outperforms 86.67% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for RL is above the industry average of 11.59%.
- The last Return On Invested Capital (16.88%) for RL is above the 3 year average (13.65%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.63% | ||
| ROE | 33.08% | ||
| ROIC | 16.88% |
ROA(3y)9.34%
ROA(5y)6.85%
ROE(3y)25.53%
ROE(5y)19.12%
ROIC(3y)13.65%
ROIC(5y)11.13%
1.3 Margins
- RL has a Profit Margin of 11.28%. This is amongst the best in the industry. RL outperforms 91.11% of its industry peers.
- In the last couple of years the Profit Margin of RL has grown nicely.
- RL has a better Operating Margin (15.22%) than 86.67% of its industry peers.
- RL's Operating Margin has improved in the last couple of years.
- With an excellent Gross Margin value of 69.22%, RL belongs to the best of the industry, outperforming 95.56% of the companies in the same industry.
- In the last couple of years the Gross Margin of RL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.22% | ||
| PM (TTM) | 11.28% | ||
| GM | 69.22% |
OM growth 3Y1.83%
OM growth 5Y16.31%
PM growth 3Y2.83%
PM growth 5Y10.96%
GM growth 3Y0.92%
GM growth 5Y2.93%
2. Health
2.1 Basic Checks
- RL has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, RL has less shares outstanding
- The number of shares outstanding for RL has been reduced compared to 5 years ago.
- Compared to 1 year ago, RL has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 6.14 indicates that RL is not in any danger for bankruptcy at the moment.
- RL's Altman-Z score of 6.14 is amongst the best of the industry. RL outperforms 91.11% of its industry peers.
- RL has a debt to FCF ratio of 2.22. This is a good value and a sign of high solvency as RL would need 2.22 years to pay back of all of its debts.
- RL has a Debt to FCF ratio of 2.22. This is in the better half of the industry: RL outperforms 77.78% of its industry peers.
- RL has a Debt/Equity ratio of 0.57. This is a neutral value indicating RL is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.57, RL is not doing good in the industry: 64.44% of the companies in the same industry are doing better.
- Although RL does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 2.22 | ||
| Altman-Z | 6.14 |
ROIC/WACC1.5
WACC11.27%
2.3 Liquidity
- A Current Ratio of 2.04 indicates that RL has no problem at all paying its short term obligations.
- With a Current ratio value of 2.04, RL perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
- A Quick Ratio of 1.35 indicates that RL should not have too much problems paying its short term obligations.
- RL's Quick ratio of 1.35 is fine compared to the rest of the industry. RL outperforms 68.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.04 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 31.74% over the past year.
- Measured over the past years, RL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.66% on average per year.
- The Revenue has grown by 12.32% in the past year. This is quite good.
- The Revenue has been growing slightly by 2.82% on average over the past years.
EPS 1Y (TTM)31.74%
EPS 3Y13.92%
EPS 5Y13.66%
EPS Q2Q%49.21%
Revenue 1Y (TTM)12.32%
Revenue growth 3Y4.41%
Revenue growth 5Y2.82%
Sales Q2Q%16.49%
3.2 Future
- RL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.21% yearly.
- RL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.92% yearly.
EPS Next Y29.26%
EPS Next 2Y19.15%
EPS Next 3Y16.58%
EPS Next 5Y10.21%
Revenue Next Year10.54%
Revenue Next 2Y7.77%
Revenue Next 3Y6.87%
Revenue Next 5Y4.92%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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 24.78, which indicates a rather expensive current valuation of RL.
- Compared to the rest of the industry, the Price/Earnings ratio of RL is on the same level as its industry peers.
- RL's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.38.
- Based on the Price/Forward Earnings ratio of 20.74, the valuation of RL can be described as rather expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of RL is on the same level as its industry peers.
- When comparing the Price/Forward Earnings ratio of RL to the average of the S&P500 Index (24.29), we can say RL is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.78 | ||
| Fwd PE | 20.74 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RL indicates a slightly more expensive valuation: RL is more expensive than 60.00% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of RL is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.97 | ||
| EV/EBITDA | 15.75 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The excellent profitability rating of RL may justify a higher PE ratio.
- RL's earnings are expected to grow with 16.58% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.85
PEG (5Y)1.81
EPS Next 2Y19.15%
EPS Next 3Y16.58%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.99%, RL is not a good candidate for dividend investing.
- RL's Dividend Yield is comparable with the industry average which is at 1.43.
- With a Dividend Yield of 0.99, RL pays less dividend than the S&P500 average, which is at 1.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
5.2 History
- The dividend of RL has a limited annual growth rate of 3.54%.
- RL has paid a dividend for at least 10 years, which is a reliable track record.
- RL has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)3.54%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
- RL pays out 24.37% of its income as dividend. This is a sustainable payout ratio.
- The dividend of RL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP24.37%
EPS Next 2Y19.15%
EPS Next 3Y16.58%
363.05
-6.1 (-1.65%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)11-06 2025-11-06/bmo
Earnings (Next)02-05 2026-02-05/bmo
Inst Owners101.16%
Inst Owner Change0.24%
Ins Owners3.54%
Ins Owner Change-0.2%
Market Cap22.02B
Revenue(TTM)7.57B
Net Income(TTM)854.30M
Analysts82.22
Price Target392.52 (8.12%)
Short Float %4.59%
Short Ratio2.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
Yearly Dividend3.22
Dividend Growth(5Y)3.54%
DP24.37%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.8%
Min EPS beat(2)4.63%
Max EPS beat(2)6.97%
EPS beat(4)4
Avg EPS beat(4)6.44%
Min EPS beat(4)4.24%
Max EPS beat(4)9.93%
EPS beat(8)7
Avg EPS beat(8)6.07%
EPS beat(12)11
Avg EPS beat(12)9.5%
EPS beat(16)15
Avg EPS beat(16)11.6%
Revenue beat(2)2
Avg Revenue beat(2)2.05%
Min Revenue beat(2)0.77%
Max Revenue beat(2)3.32%
Revenue beat(4)4
Avg Revenue beat(4)1.89%
Min Revenue beat(4)0.14%
Max Revenue beat(4)3.35%
Revenue beat(8)5
Avg Revenue beat(8)0.51%
Revenue beat(12)7
Avg Revenue beat(12)0.28%
Revenue beat(16)10
Avg Revenue beat(16)0.81%
PT rev (1m)4.91%
PT rev (3m)12.83%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)8.27%
EPS NY rev (1m)0.43%
EPS NY rev (3m)3.92%
Revenue NQ rev (1m)0.21%
Revenue NQ rev (3m)3.84%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)2.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.78 | ||
| Fwd PE | 20.74 | ||
| P/S | 2.91 | ||
| P/FCF | 32.97 | ||
| P/OCF | 20.2 | ||
| P/B | 8.53 | ||
| P/tB | 13.64 | ||
| EV/EBITDA | 15.75 |
EPS(TTM)14.65
EY4.04%
EPS(NY)17.5
Fwd EY4.82%
FCF(TTM)11.01
FCFY3.03%
OCF(TTM)17.97
OCFY4.95%
SpS124.84
BVpS42.58
TBVpS26.61
PEG (NY)0.85
PEG (5Y)1.81
Graham Number118.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.63% | ||
| ROE | 33.08% | ||
| ROCE | 20.93% | ||
| ROIC | 16.88% | ||
| ROICexc | 24.07% | ||
| ROICexgc | 32.12% | ||
| OM | 15.22% | ||
| PM (TTM) | 11.28% | ||
| GM | 69.22% | ||
| FCFM | 8.82% |
ROA(3y)9.34%
ROA(5y)6.85%
ROE(3y)25.53%
ROE(5y)19.12%
ROIC(3y)13.65%
ROIC(5y)11.13%
ROICexc(3y)21.58%
ROICexc(5y)18.48%
ROICexgc(3y)31.01%
ROICexgc(5y)27.05%
ROCE(3y)16.93%
ROCE(5y)13.8%
ROICexgc growth 3Y5.94%
ROICexgc growth 5Y26.51%
ROICexc growth 3Y6.82%
ROICexc growth 5Y25.11%
OM growth 3Y1.83%
OM growth 5Y16.31%
PM growth 3Y2.83%
PM growth 5Y10.96%
GM growth 3Y0.92%
GM growth 5Y2.93%
F-Score8
Asset Turnover1.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 2.22 | ||
| Debt/EBITDA | 1.06 | ||
| Cap/Depr | 190.35% | ||
| Cap/Sales | 5.58% | ||
| Interest Coverage | 28.32 | ||
| Cash Conversion | 79.3% | ||
| Profit Quality | 78.16% | ||
| Current Ratio | 2.04 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | 6.14 |
F-Score8
WACC11.27%
ROIC/WACC1.5
Cap/Depr(3y)89.69%
Cap/Depr(5y)77.05%
Cap/Sales(3y)2.97%
Cap/Sales(5y)2.81%
Profit Quality(3y)104.73%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)31.74%
EPS 3Y13.92%
EPS 5Y13.66%
EPS Q2Q%49.21%
EPS Next Y29.26%
EPS Next 2Y19.15%
EPS Next 3Y16.58%
EPS Next 5Y10.21%
Revenue 1Y (TTM)12.32%
Revenue growth 3Y4.41%
Revenue growth 5Y2.82%
Sales Q2Q%16.49%
Revenue Next Year10.54%
Revenue Next 2Y7.77%
Revenue Next 3Y6.87%
Revenue Next 5Y4.92%
EBIT growth 1Y32.83%
EBIT growth 3Y6.32%
EBIT growth 5Y19.59%
EBIT Next Year47.21%
EBIT Next 3Y19.71%
EBIT Next 5Y12.28%
FCF growth 1Y24.41%
FCF growth 3Y22.89%
FCF growth 5Y16.04%
OCF growth 1Y44.8%
OCF growth 3Y19.94%
OCF growth 5Y10.36%
RALPH LAUREN CORP / RL FAQ
What is the ChartMill fundamental rating of RALPH LAUREN CORP (RL) stock?
ChartMill assigns a fundamental rating of 7 / 10 to RL.
What is the valuation status of RALPH LAUREN CORP (RL) stock?
ChartMill assigns a valuation rating of 4 / 10 to RALPH LAUREN CORP (RL). This can be considered as Fairly Valued.
How profitable is RALPH LAUREN CORP (RL) stock?
RALPH LAUREN CORP (RL) has a profitability rating of 9 / 10.
What are the PE and PB ratios of RALPH LAUREN CORP (RL) stock?
The Price/Earnings (PE) ratio for RALPH LAUREN CORP (RL) is 24.78 and the Price/Book (PB) ratio is 8.53.
What is the financial health of RALPH LAUREN CORP (RL) stock?
The financial health rating of RALPH LAUREN CORP (RL) is 7 / 10.