RALPH LAUREN CORP (RL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RL - US7512121010 - Common Stock
365.72 USD
-3.59 (-0.97%)
365.72 USD
0 (0%)
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 valied quite expensively at the moment, while it does show a decent growth rate. These ratings would make RL suitable for quality investing!
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.
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 91.11% of its industry peers.
With an excellent Return On Equity value of 33.08%, RL belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
The Return On Invested Capital of RL (16.88%) is better than 86.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RL is in line with the industry average of 11.76%.
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
With an excellent Profit Margin value of 11.28%, RL belongs to the best of the industry, outperforming 91.11% of the companies in the same industry.
In the last couple of years the Profit Margin of RL has grown nicely.
Looking at the Operating Margin, with a value of 15.22%, 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.
With an excellent Gross Margin value of 69.22%, 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 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
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
Compared to 1 year ago, RL has an improved debt to assets ratio.
2.2 Solvency
RL has an Altman-Z score of 6.19. This indicates that RL is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.19, RL belongs to the top of the industry, outperforming 91.11% of the companies in the same industry.
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.
With a decent Debt to FCF ratio value of 2.22, RL is doing good in the industry, outperforming 75.56% of the companies in the same industry.
A Debt/Equity ratio of 0.57 indicates that RL is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.57, RL is not doing good in the industry: 62.22% of the companies in the same industry are doing better.
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 | 6.19 |
ROIC/WACC1.53
WACC11.06%
2.3 Liquidity
A Current Ratio of 2.04 indicates that RL has no problem at all paying its short term obligations.
RL has a Current ratio (2.04) which is comparable to the rest of the industry.
A Quick Ratio of 1.35 indicates that RL should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.35, RL is doing good in the industry, outperforming 68.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.04 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
RL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 31.74%, which is quite impressive.
Measured over the past years, RL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.66% on average per year.
The Revenue has grown by 12.32% in the past year. This is quite good.
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
Based on estimates for the next years, RL will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.46% on average per year.
The Revenue is expected to grow by 5.98% on average over the next years.
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
RL is valuated rather expensively with a Price/Earnings ratio of 24.96.
RL's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.22, RL is valued at the same level.
Based on the Price/Forward Earnings ratio of 21.14, the valuation of RL can be described as rather expensive.
62.22% of the companies in the same industry are cheaper than RL, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.58, RL is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.96 | ||
| Fwd PE | 21.14 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RL indicates a slightly more expensive valuation: RL is more expensive than 60.00% of the companies listed 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 | 33.21 | ||
| EV/EBITDA | 16.03 |
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.
The excellent profitability rating of RL 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)0.87
PEG (5Y)1.83
EPS Next 2Y18.46%
EPS Next 3Y16.42%
5. Dividend
5.1 Amount
RL has a yearly dividend return of 0.99%, which is pretty low.
RL's Dividend Yield is comparable with the industry average which is at 1.46.
Compared to an average S&P500 Dividend Yield of 1.87, RL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
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
24.37% 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.
DP24.37%
EPS Next 2Y18.46%
EPS Next 3Y16.42%
365.72
-3.59 (-0.97%)
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-2.44%
Ins Owners3.55%
Ins Owner Change-0.18%
Market Cap22.18B
Revenue(TTM)7.57B
Net Income(TTM)854.30M
Analysts82.96
Price Target374.16 (2.31%)
Short Float %5.02%
Short Ratio3.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
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)9.01%
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)2.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.96 | ||
| Fwd PE | 21.14 | ||
| P/S | 2.93 | ||
| P/FCF | 33.21 | ||
| P/OCF | 20.35 | ||
| P/B | 8.59 | ||
| P/tB | 13.74 | ||
| EV/EBITDA | 16.03 |
EPS(TTM)14.65
EY4.01%
EPS(NY)17.3
Fwd EY4.73%
FCF(TTM)11.01
FCFY3.01%
OCF(TTM)17.97
OCFY4.91%
SpS124.84
BVpS42.58
TBVpS26.61
PEG (NY)0.87
PEG (5Y)1.83
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 | 6.19 |
F-Score8
WACC11.06%
ROIC/WACC1.53
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 24.96 and the Price/Book (PB) ratio is 8.59.
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.