RALPH LAUREN CORP (RL) Stock Fundamental Analysis
NYSE:RL • US7512121010
378.08 USD
+7.58 (+2.05%)
At close: Feb 18, 2026
379 USD
+0.92 (+0.24%)
After Hours: 2/18/2026, 8:04:00 PM
RL gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 45 industry peers in the Textiles, Apparel & Luxury Goods industry. RL gets an excellent profitability rating and is at the same time showing great financial health properties. RL has a correct valuation and a medium growth rate. This makes RL very considerable for quality investing!
1. Profitability
1.1 Basic Checks
- RL had positive earnings in the past year.
- In the past year RL had a positive cash flow from operations.
- 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
- The Return On Assets of RL (11.75%) is better than 93.33% of its industry peers.
- RL has a better Return On Equity (31.80%) than 86.67% of its industry peers.
- RL has a Return On Invested Capital of 17.38%. This is amongst the best in 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 11.64%.
- The 3 year average ROIC (13.65%) for RL is below the current ROIC(17.38%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.75% | ||
| ROE | 31.8% | ||
| ROIC | 17.38% |
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's Profit Margin of 11.73% is amongst the best of the industry. RL outperforms 91.11% of its industry peers.
- RL's Profit Margin has improved in the last couple of years.
- With an excellent Operating Margin value of 16.01%, RL belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
- RL's Operating Margin has improved in the last couple of years.
- RL has a better Gross Margin (69.65%) than 95.56% of its industry peers.
- In the last couple of years the Gross Margin of RL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.01% | ||
| PM (TTM) | 11.73% | ||
| GM | 69.65% |
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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RL is creating some value.
- RL has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, RL has less shares outstanding
- The debt/assets ratio for RL has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 6.07 indicates that RL is not in any danger for bankruptcy at the moment.
- RL's Altman-Z score of 6.07 is amongst the best of the industry. RL outperforms 91.11% of its industry peers.
- RL has a debt to FCF ratio of 2.13. This is a good value and a sign of high solvency as RL would need 2.13 years to pay back of all of its debts.
- RL's Debt to FCF ratio of 2.13 is fine compared to the rest of the industry. RL outperforms 80.00% of its industry peers.
- RL has a Debt/Equity ratio of 0.50. This is a neutral value indicating RL is somewhat dependend on debt financing.
- RL has a worse Debt to Equity ratio (0.50) than 62.22% of its industry peers.
- Even though the debt/equity ratio score it not favorable for RL, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 2.13 | ||
| Altman-Z | 6.07 |
ROIC/WACC1.62
WACC10.76%
2.3 Liquidity
- RL has a Current Ratio of 2.10. This indicates that RL is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Current ratio, with a value of 2.10, RL is in line with its industry, outperforming 57.78% of the companies in the same industry.
- RL has a Quick Ratio of 1.52. This is a normal value and indicates that RL is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of RL (1.52) is better than 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.1 | ||
| Quick Ratio | 1.52 |
3. Growth
3.1 Past
- RL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 36.36%, which is quite impressive.
- The Earnings Per Share has been growing by 13.66% on average over the past years. This is quite good.
- RL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.71%.
- Measured over the past years, RL shows a small growth in Revenue. The Revenue has been growing by 2.82% on average per year.
EPS 1Y (TTM)36.36%
EPS 3Y13.92%
EPS 5Y13.66%
EPS Q2Q%29.05%
Revenue 1Y (TTM)12.71%
Revenue growth 3Y4.41%
Revenue growth 5Y2.82%
Sales Q2Q%12.25%
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.
- The Revenue is expected to grow by 4.92% on average over the next years.
EPS Next Y29.61%
EPS Next 2Y19.47%
EPS Next 3Y16.98%
EPS Next 5Y10.21%
Revenue Next Year10.8%
Revenue Next 2Y8.01%
Revenue Next 3Y7.04%
Revenue Next 5Y4.92%
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
- RL is valuated rather expensively with a Price/Earnings ratio of 23.56.
- RL's Price/Earnings is on the same level as the industry average.
- The average S&P500 Price/Earnings ratio is at 27.27. RL is around the same levels.
- A Price/Forward Earnings ratio of 21.48 indicates a rather expensive valuation of RL.
- The rest of the industry has a similar Price/Forward Earnings ratio as RL.
- RL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.16.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.56 | ||
| Fwd PE | 21.48 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as RL.
- RL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.96 | ||
| EV/EBITDA | 14.48 |
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.
- A more expensive valuation may be justified as RL's earnings are expected to grow with 16.98% in the coming years.
PEG (NY)0.8
PEG (5Y)1.72
EPS Next 2Y19.47%
EPS Next 3Y16.98%
5. Dividend
5.1 Amount
- RL has a Yearly Dividend Yield of 1.01%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.40, RL has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.84, RL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
5.2 History
- The dividend of RL has a limited annual growth rate of 3.54%.
- RL has been paying a dividend for at least 10 years, so it has 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
- 23.11% of the earnings are spent on dividend by RL. This is a low number and sustainable payout ratio.
- The dividend of RL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP23.11%
EPS Next 2Y19.47%
EPS Next 3Y16.98%
378.08
+7.58 (+2.05%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)02-05 2026-02-05/bmo
Earnings (Next)05-20 2026-05-20/amc
Inst Owners101.16%
Inst Owner Change-0.25%
Ins Owners3.54%
Ins Owner Change-4.09%
Market Cap22.89B
Revenue(TTM)7.83B
Net Income(TTM)918.50M
Analysts82.14
Price Target398.84 (5.49%)
Short Float %6.2%
Short Ratio3.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
Yearly Dividend3.22
Dividend Growth(5Y)3.54%
DP23.11%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.45%
Min EPS beat(2)3.93%
Max EPS beat(2)6.97%
EPS beat(4)4
Avg EPS beat(4)6.36%
Min EPS beat(4)3.93%
Max EPS beat(4)9.93%
EPS beat(8)7
Avg EPS beat(8)4.76%
EPS beat(12)11
Avg EPS beat(12)8.9%
EPS beat(16)15
Avg EPS beat(16)9.89%
Revenue beat(2)2
Avg Revenue beat(2)2.14%
Min Revenue beat(2)0.97%
Max Revenue beat(2)3.32%
Revenue beat(4)4
Avg Revenue beat(4)1.3%
Min Revenue beat(4)0.14%
Max Revenue beat(4)3.32%
Revenue beat(8)5
Avg Revenue beat(8)0.56%
Revenue beat(12)7
Avg Revenue beat(12)0.29%
Revenue beat(16)10
Avg Revenue beat(16)0.42%
PT rev (1m)4.51%
PT rev (3m)11.59%
EPS NQ rev (1m)13.03%
EPS NQ rev (3m)15.8%
EPS NY rev (1m)0.27%
EPS NY rev (3m)3.91%
Revenue NQ rev (1m)4.67%
Revenue NQ rev (3m)4.79%
Revenue NY rev (1m)0.24%
Revenue NY rev (3m)2.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.56 | ||
| Fwd PE | 21.48 | ||
| P/S | 2.92 | ||
| P/FCF | 32.96 | ||
| P/OCF | 20.24 | ||
| P/B | 7.92 | ||
| P/tB | 11.91 | ||
| EV/EBITDA | 14.48 |
EPS(TTM)16.05
EY4.25%
EPS(NY)17.6
Fwd EY4.66%
FCF(TTM)11.47
FCFY3.03%
OCF(TTM)18.68
OCFY4.94%
SpS129.39
BVpS47.71
TBVpS31.74
PEG (NY)0.8
PEG (5Y)1.72
Graham Number131.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.75% | ||
| ROE | 31.8% | ||
| ROCE | 21.55% | ||
| ROIC | 17.38% | ||
| ROICexc | 28.34% | ||
| ROICexgc | 38.88% | ||
| OM | 16.01% | ||
| PM (TTM) | 11.73% | ||
| GM | 69.65% | ||
| FCFM | 8.87% |
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
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 2.13 | ||
| Debt/EBITDA | 0.98 | ||
| Cap/Depr | 192.17% | ||
| Cap/Sales | 5.57% | ||
| Interest Coverage | 25.59 | ||
| Cash Conversion | 76.37% | ||
| Profit Quality | 75.61% | ||
| Current Ratio | 2.1 | ||
| Quick Ratio | 1.52 | ||
| Altman-Z | 6.07 |
F-Score8
WACC10.76%
ROIC/WACC1.62
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)36.36%
EPS 3Y13.92%
EPS 5Y13.66%
EPS Q2Q%29.05%
EPS Next Y29.61%
EPS Next 2Y19.47%
EPS Next 3Y16.98%
EPS Next 5Y10.21%
Revenue 1Y (TTM)12.71%
Revenue growth 3Y4.41%
Revenue growth 5Y2.82%
Sales Q2Q%12.25%
Revenue Next Year10.8%
Revenue Next 2Y8.01%
Revenue Next 3Y7.04%
Revenue Next 5Y4.92%
EBIT growth 1Y31.69%
EBIT growth 3Y6.32%
EBIT growth 5Y19.59%
EBIT Next Year47.51%
EBIT Next 3Y20.1%
EBIT Next 5Y12.28%
FCF growth 1Y-10.53%
FCF growth 3Y22.89%
FCF growth 5Y16.04%
OCF growth 1Y17.49%
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 23.56 and the Price/Book (PB) ratio is 7.92.
What is the financial health of RALPH LAUREN CORP (RL) stock?
The financial health rating of RALPH LAUREN CORP (RL) is 7 / 10.