RALPH LAUREN CORP (RL) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:RL • US7512121010

352.385 USD
+4.24 (+1.22%)
Last: Feb 10, 2026, 01:55 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

7

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. RL has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. RL has a correct valuation and a medium growth rate. With these ratings, RL could be worth investigating further for quality investing!.


Dividend Valuation Growth Profitability Health

9

1. Profitability

1.1 Basic Checks

  • In the past year RL was profitable.
  • RL had a positive operating cash flow in the past year.
  • RL had positive earnings in 4 of the past 5 years.
  • 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

  • The Return On Assets of RL (11.75%) is better than 93.33% of its industry peers.
  • The Return On Equity of RL (31.80%) is better than 86.67% of its industry peers.
  • 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.
  • RL had an Average Return On Invested Capital over the past 3 years of 13.65%. This is above the industry average of 11.62%.
  • The 3 year average ROIC (13.65%) for RL is below the current ROIC(17.38%), indicating increased profibility in the last year.
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

  • 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.
  • The Operating Margin of RL (16.01%) is better 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 69.65%, RL belongs to the best of the industry, outperforming 95.56% of the companies in the same industry.
  • RL's Gross Margin has improved in the last couple of years.
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.
  • The number of shares outstanding for RL has been reduced compared to 1 year ago.
  • Compared to 5 years ago, RL has less shares outstanding
  • RL has a better debt/assets ratio than last year.
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 5.91. This indicates that RL is financially healthy and has little risk of bankruptcy at the moment.
  • RL's Altman-Z score of 5.91 is amongst the best of the industry. RL outperforms 91.11% of its industry peers.
  • The Debt to FCF ratio of RL is 2.10, which is a good value as it means it would take RL, 2.10 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 2.10, RL is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
  • A Debt/Equity ratio of 0.50 indicates that 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 RankSector Rank
Debt/Equity 0.5
Debt/FCF 2.1
Altman-Z 5.91
ROIC/WACC1.59
WACC10.94%
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.
  • With a Current ratio value of 2.10, RL perfoms like the industry average, 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.
  • RL has a better Quick ratio (1.52) than 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

  • 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%.
  • The Revenue has been growing slightly by 2.82% on average over the past years.
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 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

5

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 21.96, the valuation of RL can be described as rather expensive.
  • The rest of the industry has a similar Price/Earnings ratio as RL.
  • RL is valuated rather cheaply when we compare the Price/Earnings ratio to 28.06, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 20.02, the valuation of RL can be described as rather expensive.
  • 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 27.86.
Industry RankSector Rank
PE 21.96
Fwd PE 20.02
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.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as RL.
Industry RankSector Rank
P/FCF 30.77
EV/EBITDA 13.57
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.
  • 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%

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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 1.06%.
  • RL's Dividend Yield is comparable with the industry average which is at 1.44.
  • With a Dividend Yield of 1.06, RL pays less dividend than the S&P500 average, which is at 1.80.
Industry RankSector Rank
Dividend Yield 1.06%

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.
  • RL's earnings are growing more than its dividend. This makes the dividend growth 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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RALPH LAUREN CORP

NYSE:RL (2/10/2026, 1:55:47 PM)

352.385

+4.24 (+1.22%)

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 Change0.12%
Ins Owners3.54%
Ins Owner Change-0.53%
Market Cap21.37B
Revenue(TTM)7.83B
Net Income(TTM)918.50M
Analysts82.22
Price Target398.84 (13.18%)
Short Float %6.13%
Short Ratio3.8
Dividend
Industry RankSector Rank
Dividend Yield 1.06%
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)3.65%
EPS NQ rev (3m)-9.94%
EPS NY rev (1m)0.69%
EPS NY rev (3m)4.12%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)-1.59%
Revenue NY rev (1m)0.33%
Revenue NY rev (3m)2.57%
Valuation
Industry RankSector Rank
PE 21.96
Fwd PE 20.02
P/S 2.73
P/FCF 30.77
P/OCF 18.89
P/B 7.4
P/tB 11.12
EV/EBITDA 13.57
EPS(TTM)16.05
EY4.55%
EPS(NY)17.6
Fwd EY4.99%
FCF(TTM)11.45
FCFY3.25%
OCF(TTM)18.65
OCFY5.29%
SpS129.17
BVpS47.63
TBVpS31.69
PEG (NY)0.74
PEG (5Y)1.61
Graham Number131.15
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 2.1
Debt/EBITDA 0.98
Cap/Depr 192.17%
Cap/Sales 5.57%
Interest Coverage 250
Cash Conversion 76.37%
Profit Quality 75.61%
Current Ratio 2.1
Quick Ratio 1.52
Altman-Z 5.91
F-Score8
WACC10.94%
ROIC/WACC1.59
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 5 / 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 21.96 and the Price/Book (PB) ratio is 7.4.


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

The financial health rating of RALPH LAUREN CORP (RL) is 8 / 10.