RALPH LAUREN CORP (RL) Fundamental Analysis & Valuation
NYSE:RL • US7512121010
353.42 USD
-6.39 (-1.78%)
At close: Mar 5, 2026
353.42 USD
0 (0%)
After Hours: 3/5/2026, 8:19:15 PM
This RL fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
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. With these ratings, RL could be worth investigating further for quality investing!.
1. RL Profitability Analysis
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.
- In the past 5 years RL always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 11.75%, RL belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
- With an excellent Return On Equity value of 31.80%, RL belongs to the best of the industry, outperforming 88.89% 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 88.89% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for RL is in line with the industry average of 11.70%.
- 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 has a Profit Margin of 11.73%. This is amongst the best in the industry. RL outperforms 93.33% of its industry peers.
- In the last couple of years the Profit Margin of RL has grown nicely.
- RL's Operating Margin of 16.01% is amongst the best of the industry. RL outperforms 86.67% of its industry peers.
- In the last couple of years the Operating Margin of RL has grown nicely.
- RL has a better Gross Margin (69.65%) than 95.56% of its industry peers.
- RL's Gross Margin has improved in the last couple of years.
| 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. RL Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RL is still creating some value.
- RL has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, RL has less shares outstanding
- RL has a better debt/assets ratio than last year.
2.2 Solvency
- RL has an Altman-Z score of 5.99. This indicates that RL is financially healthy and has little risk of bankruptcy at the moment.
- RL has a Altman-Z score of 5.99. 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 Debt to FCF ratio of 2.13. This is in the better half of the industry: RL outperforms 75.56% 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 | 5.99 |
ROIC/WACC1.62
WACC10.7%
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 has a Current ratio (2.10) which is in line with its industry peers.
- A Quick Ratio of 1.52 indicates that RL should not have too much problems paying its short term obligations.
- With a decent Quick ratio value of 1.52, RL is doing good in the industry, outperforming 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.1 | ||
| Quick Ratio | 1.52 |
3. RL Growth Analysis
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.
- RL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.66% yearly.
- Looking at the last year, RL shows a quite strong growth in Revenue. The Revenue has grown by 12.71% in the last year.
- 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
- The Earnings Per Share is expected to grow by 10.21% on average over the next years. This is quite good.
- 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 Year13.32%
Revenue Next 2Y9.48%
Revenue Next 3Y7.87%
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. RL Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 22.02, the valuation of RL can be described as rather expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of RL is on the same level as its industry peers.
- The average S&P500 Price/Earnings ratio is at 26.74. RL is around the same levels.
- RL is valuated rather expensively with a Price/Forward Earnings ratio of 20.08.
- RL's Price/Forward Earnings is on the same level as the industry average.
- RL's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.02 | ||
| Fwd PE | 20.08 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RL is on the same level as its industry peers.
- 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 | 30.81 | ||
| EV/EBITDA | 14.04 |
4.3 Compensation for Growth
- RL's 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 16.98% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.74
PEG (5Y)1.61
EPS Next 2Y19.47%
EPS Next 3Y16.98%
5. RL Dividend Analysis
5.1 Amount
- RL has a yearly dividend return of 0.96%, which is pretty low.
- Compared to an average industry Dividend Yield of 1.37, RL has a dividend in line with its industry peers.
- With a Dividend Yield of 0.96, RL pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
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
- 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%
RL Fundamentals: All Metrics, Ratios and Statistics
353.42
-6.39 (-1.78%)
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 Change2.78%
Ins Owners3.54%
Ins Owner Change-3.4%
Market Cap21.40B
Revenue(TTM)7.83B
Net Income(TTM)918.50M
Analysts82.14
Price Target409.61 (15.9%)
Short Float %6.54%
Short Ratio3.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
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)4.36%
PT rev (3m)10.41%
EPS NQ rev (1m)15.52%
EPS NQ rev (3m)20.11%
EPS NY rev (1m)0.27%
EPS NY rev (3m)3.91%
Revenue NQ rev (1m)5.17%
Revenue NQ rev (3m)5.58%
Revenue NY rev (1m)2.46%
Revenue NY rev (3m)4.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.02 | ||
| Fwd PE | 20.08 | ||
| P/S | 2.73 | ||
| P/FCF | 30.81 | ||
| P/OCF | 18.92 | ||
| P/B | 7.41 | ||
| P/tB | 11.13 | ||
| EV/EBITDA | 14.04 |
EPS(TTM)16.05
EY4.54%
EPS(NY)17.6
Fwd EY4.98%
FCF(TTM)11.47
FCFY3.25%
OCF(TTM)18.68
OCFY5.29%
SpS129.39
BVpS47.71
TBVpS31.74
PEG (NY)0.74
PEG (5Y)1.61
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 | 5.99 |
F-Score8
WACC10.7%
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 Year13.32%
Revenue Next 2Y9.48%
Revenue Next 3Y7.87%
Revenue Next 5Y4.92%
EBIT growth 1Y31.69%
EBIT growth 3Y6.32%
EBIT growth 5Y19.59%
EBIT Next Year54.09%
EBIT Next 3Y21.52%
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 22.02 and the Price/Book (PB) ratio is 7.41.
What is the financial health of RALPH LAUREN CORP (RL) stock?
The financial health rating of RALPH LAUREN CORP (RL) is 7 / 10.