RALPH LAUREN CORP (RL) Stock Fundamental Analysis

NYSE:RL • US7512121010

376.84 USD
-1.24 (-0.33%)
At close: Feb 19, 2026
378.985 USD
+2.15 (+0.57%)
After Hours: 2/19/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

7

We assign a fundamental rating of 7 out of 10 to RL. RL was compared to 45 industry peers in the Textiles, Apparel & Luxury Goods industry. RL scores excellent points on both the profitability and health parts. This is a solid base for a good stock. RL is not valued too expensively and it also shows a decent growth rate. These ratings would make RL suitable for quality investing!


Dividend Valuation Growth Profitability Health

9

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.
RL Yearly Net Income VS EBIT VS OCF VS FCFRL Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M 800M 1B

1.2 Ratios

  • RL has a Return On Assets of 11.75%. This is amongst the best in the industry. RL outperforms 93.33% of its industry peers.
  • With an excellent Return On Equity value of 31.80%, RL belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 17.38%, RL belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for RL is above the industry average of 11.64%.
  • The last Return On Invested Capital (17.38%) for RL is above the 3 year average (13.65%), which is a sign of increasing profitability.
Industry RankSector 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%
RL Yearly ROA, ROE, ROICRL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20

1.3 Margins

  • The Profit Margin of RL (11.73%) is better than 91.11% of its industry peers.
  • RL's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 16.01%, RL belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
  • In the last couple of years the Operating Margin of RL has grown nicely.
  • Looking at the Gross Margin, with a value of 69.65%, RL belongs to the top 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 RankSector 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%
RL Yearly Profit, Operating, Gross MarginsRL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

7

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.
  • 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.
  • The debt/assets ratio for RL has been reduced compared to a year ago.
RL Yearly Shares OutstandingRL Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M
RL Yearly Total Debt VS Total AssetsRL Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

2.2 Solvency

  • RL has an Altman-Z score of 6.13. This indicates that RL is financially healthy and has little risk of bankruptcy at the moment.
  • RL has a Altman-Z score of 6.13. This is amongst the best in the industry. RL outperforms 91.11% of its industry peers.
  • The Debt to FCF ratio of RL is 2.13, which is a good value as it means it would take RL, 2.13 years of fcf income to pay off all of its debts.
  • RL has a better Debt to FCF ratio (2.13) than 80.00% of its industry peers.
  • A Debt/Equity ratio of 0.50 indicates that RL is somewhat dependend on debt financing.
  • RL has a Debt to Equity ratio of 0.50. This is in the lower half of the industry: RL underperforms 62.22% of its industry peers.
  • 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 RankSector Rank
Debt/Equity 0.5
Debt/FCF 2.13
Altman-Z 6.13
ROIC/WACC1.61
WACC10.82%
RL Yearly LT Debt VS Equity VS FCFRL Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

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.
  • RL's Current ratio of 2.10 is in line compared to the rest of the industry. RL outperforms 57.78% of its industry peers.
  • A Quick Ratio of 1.52 indicates that RL should not have too much problems paying its short term obligations.
  • RL's Quick ratio of 1.52 is fine compared to the rest of the industry. RL outperforms 77.78% of its industry peers.
Industry RankSector Rank
Current Ratio 2.1
Quick Ratio 1.52
RL Yearly Current Assets VS Current LiabilitesRL Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 36.36% over the past year.
  • RL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.66% yearly.
  • The Revenue has grown by 12.71% in the past year. This is quite good.
  • RL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.82% yearly.
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

  • Based on estimates for the next years, RL will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.21% on average per year.
  • 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

  • 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.
RL Yearly Revenue VS EstimatesRL Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2B 4B 6B 8B
RL Yearly EPS VS EstimatesRL Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5 10 15 20 25

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Find the best growth stocksShow best growing peers

4

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 23.48 indicates a rather expensive valuation of RL.
  • RL's Price/Earnings ratio is in line with the industry average.
  • RL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.09, which is the current average of the S&P500 Index.
  • RL is valuated rather expensively with a Price/Forward Earnings ratio of 21.41.
  • RL's Price/Forward Earnings is on the same level as the industry average.
  • The average S&P500 Price/Forward Earnings ratio is at 27.98. RL is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 23.48
Fwd PE 21.41
RL Price Earnings VS Forward Price EarningsRL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • RL's Enterprise Value to EBITDA ratio is in line with the industry average.
  • RL's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 32.85
EV/EBITDA 14.78
RL Per share dataRL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80 100

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)0.79
PEG (5Y)1.72
EPS Next 2Y19.47%
EPS Next 3Y16.98%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. Dividend

5.1 Amount

  • RL has a Yearly Dividend Yield of 1.01%.
  • 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 1.85, RL's dividend is way lower than the S&P500 average.
Industry RankSector 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
RL Yearly Dividends per shareRL Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3

5.3 Sustainability

  • RL pays out 23.11% 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.
DP23.11%
EPS Next 2Y19.47%
EPS Next 3Y16.98%
RL Yearly Income VS Free CF VS DividendRL Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M 800M 1B
RL Dividend Payout.RL Dividend Payout, showing the Payout Ratio.RL Dividend Payout.PayoutRetained Earnings

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Find the best dividend stocksShow peers with best dividend

RALPH LAUREN CORP

NYSE:RL (2/19/2026, 8:04:00 PM)

After market: 378.985 +2.15 (+0.57%)

376.84

-1.24 (-0.33%)

Chartmill FA Rating
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)02-05
Earnings (Next)05-20
Inst Owners101.16%
Inst Owner Change-0.25%
Ins Owners3.54%
Ins Owner Change-4.09%
Market Cap22.81B
Revenue(TTM)7.83B
Net Income(TTM)918.50M
Analysts82.14
Price Target398.84 (5.84%)
Short Float %6.2%
Short Ratio3.49
Dividend
Industry RankSector 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 RankSector Rank
PE 23.48
Fwd PE 21.41
P/S 2.91
P/FCF 32.85
P/OCF 20.17
P/B 7.9
P/tB 11.87
EV/EBITDA 14.78
EPS(TTM)16.05
EY4.26%
EPS(NY)17.6
Fwd EY4.67%
FCF(TTM)11.47
FCFY3.04%
OCF(TTM)18.68
OCFY4.96%
SpS129.39
BVpS47.71
TBVpS31.74
PEG (NY)0.79
PEG (5Y)1.72
Graham Number131.26
Profitability
Industry RankSector 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 RankSector 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 6.13
F-Score8
WACC10.82%
ROIC/WACC1.61
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 23.48 and the Price/Book (PB) ratio is 7.9.


What is the financial health of RALPH LAUREN CORP (RL) stock?

The financial health rating of RALPH LAUREN CORP (RL) is 7 / 10.