RALPH LAUREN CORP (RL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RL - US7512121010 - Common Stock
368.42 USD
+11.45 (+3.21%)
368.42 USD
0 (0%)
RL gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 46 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 is not valued too expensively and it also shows a decent growth rate. These ratings would make RL suitable 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.
RL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RL has a Return On Assets of 11.63%. This is amongst the best in the industry. RL outperforms 91.30% of its industry peers.
RL has a Return On Equity of 33.08%. This is amongst the best in the industry. RL outperforms 86.96% of its industry peers.
RL has a Return On Invested Capital of 16.88%. This is amongst the best in the industry. RL outperforms 86.96% of its industry peers.
RL had an Average Return On Invested Capital over the past 3 years of 13.65%. This is in line with the industry average of 11.99%.
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
The Profit Margin of RL (11.28%) is better than 91.30% of its industry peers.
RL's Profit Margin has improved in the last couple of years.
RL's Operating Margin of 15.22% is amongst the best of the industry. RL outperforms 86.96% of its industry peers.
In the last couple of years the Operating Margin of RL has grown nicely.
With an excellent Gross Margin value of 69.22%, RL belongs to the best of the industry, outperforming 95.65% of the companies in the same industry.
RL's Gross Margin has improved in the last couple of years.
| 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
RL has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, RL has an improved debt to assets ratio.
2.2 Solvency
RL has an Altman-Z score of 6.18. This indicates that RL is financially healthy and has little risk of bankruptcy at the moment.
RL has a Altman-Z score of 6.18. This is amongst the best in the industry. RL outperforms 91.30% 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 better Debt to FCF ratio (2.22) than 76.09% 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.
RL's Debt to Equity ratio of 0.57 is on the low side compared to the rest of the industry. RL is outperformed by 60.87% 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 | 0.57 | ||
| Debt/FCF | 2.22 | ||
| Altman-Z | 6.18 |
ROIC/WACC1.54
WACC10.94%
2.3 Liquidity
RL has a Current Ratio of 2.04. This indicates that RL is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 2.04, RL perfoms like the industry average, outperforming 56.52% 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 71.74% 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.
RL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.66% yearly.
RL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.32%.
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)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
The Earnings Per Share is expected to grow by 12.46% on average over the next years. This is quite good.
Based on estimates for the next years, RL will show a small growth in Revenue. The Revenue will grow by 5.98% on average per year.
EPS Next Y28.62%
EPS Next 2Y18.46%
EPS Next 3Y16.42%
EPS Next 5Y12.46%
Revenue Next Year10.39%
Revenue Next 2Y7.64%
Revenue Next 3Y6.83%
Revenue Next 5Y5.98%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
Based on the Price/Earnings ratio of 25.15, the valuation of RL can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of RL is on the same level as its industry peers.
When comparing the Price/Earnings ratio of RL to the average of the S&P500 Index (26.46), we can say RL is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 21.29, the valuation of RL can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as RL.
When comparing the Price/Forward Earnings ratio of RL to the average of the S&P500 Index (36.10), we can say RL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.15 | ||
| Fwd PE | 21.29 |
4.2 Price Multiples
RL's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. RL is more expensive than 63.04% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as RL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.46 | ||
| EV/EBITDA | 15.99 |
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.
RL has an outstanding profitability rating, which may justify a higher PE ratio.
RL's earnings are expected to grow with 16.42% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.88
PEG (5Y)1.84
EPS Next 2Y18.46%
EPS Next 3Y16.42%
5. Dividend
5.1 Amount
RL has a Yearly Dividend Yield of 1.02%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.22, RL pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.02, RL pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
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
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 2Y18.46%
EPS Next 3Y16.42%
368.42
+11.45 (+3.21%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners101.25%
Inst Owner Change-2.45%
Ins Owners3.55%
Ins Owner Change10.33%
Market Cap22.34B
Revenue(TTM)7.57B
Net Income(TTM)854.30M
Analysts82.96
Price Target374.16 (1.56%)
Short Float %4.29%
Short Ratio2.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
Yearly Dividend3.22
Dividend Growth(5Y)3.54%
DP24.37%
Div Incr Years4
Div Non Decr Years4
Ex-Date
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)4.69%
PT rev (3m)9.94%
EPS NQ rev (1m)0.5%
EPS NQ rev (3m)8.26%
EPS NY rev (1m)3.12%
EPS NY rev (3m)3.48%
Revenue NQ rev (1m)1.02%
Revenue NQ rev (3m)4.04%
Revenue NY rev (1m)2.1%
Revenue NY rev (3m)2.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.15 | ||
| Fwd PE | 21.29 | ||
| P/S | 2.95 | ||
| P/FCF | 33.46 | ||
| P/OCF | 20.5 | ||
| P/B | 8.65 | ||
| P/tB | 13.84 | ||
| EV/EBITDA | 15.99 |
EPS(TTM)14.65
EY3.98%
EPS(NY)17.3
Fwd EY4.7%
FCF(TTM)11.01
FCFY2.99%
OCF(TTM)17.97
OCFY4.88%
SpS124.84
BVpS42.58
TBVpS26.61
PEG (NY)0.88
PEG (5Y)1.84
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 | 6.18 |
F-Score8
WACC10.94%
ROIC/WACC1.54
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 Y28.62%
EPS Next 2Y18.46%
EPS Next 3Y16.42%
EPS Next 5Y12.46%
Revenue 1Y (TTM)12.32%
Revenue growth 3Y4.41%
Revenue growth 5Y2.82%
Sales Q2Q%16.49%
Revenue Next Year10.39%
Revenue Next 2Y7.64%
Revenue Next 3Y6.83%
Revenue Next 5Y5.98%
EBIT growth 1Y32.83%
EBIT growth 3Y6.32%
EBIT growth 5Y19.59%
EBIT Next Year47.11%
EBIT Next 3Y19.6%
EBIT Next 5Y14.06%
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 for RL stock?
ChartMill assigns a valuation rating of 3 / 10 to RALPH LAUREN CORP (RL). This can be considered as Overvalued.
How profitable is RALPH LAUREN CORP (RL) stock?
RALPH LAUREN CORP (RL) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for RL stock?
The Price/Earnings (PE) ratio for RALPH LAUREN CORP (RL) is 25.15 and the Price/Book (PB) ratio is 8.65.
Can you provide the expected EPS growth for RL stock?
The Earnings per Share (EPS) of RALPH LAUREN CORP (RL) is expected to grow by 28.62% in the next year.