RALPH LAUREN CORP (RL) Fundamental Analysis & Valuation

NYSE:RL • US7512121010

Current stock price

371.24 USD
+0.1 (+0.03%)
At close:
371.24 USD
0 (0%)
After Hours:

This RL fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. RL Profitability Analysis

1.1 Basic Checks

  • RL had positive earnings in the past year.
  • In the past year RL had a positive cash flow from operations.
  • Of the past 5 years RL 4 years were profitable.
  • In the past 5 years RL always reported a positive cash flow from operatings.
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's Return On Assets of 11.75% is amongst the best of the industry. RL outperforms 93.33% of its industry peers.
  • The Return On Equity of RL (31.80%) is better than 91.11% of its industry peers.
  • With an excellent Return On Invested Capital value of 17.38%, RL belongs to the best of the industry, outperforming 91.11% 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 9.53%.
  • 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 has a Profit Margin of 11.73%. This is amongst the best in the industry. RL outperforms 93.33% of its industry peers.
  • RL's Profit Margin has improved in the last couple of years.
  • RL has a better Operating Margin (16.01%) than 86.67% of its industry peers.
  • In the last couple of years the Operating Margin of RL has grown nicely.
  • The Gross Margin of RL (69.65%) is better than 93.33% of its industry peers.
  • 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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7

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.
  • The number of shares outstanding for RL has been reduced compared to 5 years ago.
  • Compared to 1 year ago, RL has an improved debt to assets ratio.
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

  • An Altman-Z score of 6.08 indicates that RL is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 6.08, RL belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
  • 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.
  • With a decent Debt to FCF ratio value of 2.13, RL is doing good in the industry, outperforming 75.56% 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 64.44% 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 2.13
Altman-Z 6.08
ROIC/WACC1.6
WACC10.89%
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 55.56% 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 has a better Quick ratio (1.52) than 75.56% 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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6

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.
  • 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 12.71% 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)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

  • RL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.69% yearly.
  • Based on estimates for the next years, RL will show a small growth in Revenue. The Revenue will grow by 5.72% on average per year.
EPS Next Y35.95%
EPS Next 2Y22.83%
EPS Next 3Y18.45%
EPS Next 5Y11.69%
Revenue Next Year13.36%
Revenue Next 2Y9.51%
Revenue Next 3Y7.87%
Revenue Next 5Y5.72%

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.
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 10B
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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4

4. RL Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 23.13 indicates a rather expensive valuation of RL.
  • RL's Price/Earnings ratio is in line with the industry average.
  • Compared to an average S&P500 Price/Earnings ratio of 27.42, RL is valued at the same level.
  • With a Price/Forward Earnings ratio of 19.96, RL is valued on the expensive side.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of RL is on the same level as its industry peers.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.24, RL is valued at the same level.
Industry RankSector Rank
PE 23.13
Fwd PE 19.96
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

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as RL.
  • RL's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 32.36
EV/EBITDA 14.5
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.
  • RL has an outstanding profitability rating, which may justify a higher PE ratio.
  • A more expensive valuation may be justified as RL's earnings are expected to grow with 18.45% in the coming years.
PEG (NY)0.64
PEG (5Y)1.69
EPS Next 2Y22.83%
EPS Next 3Y18.45%

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5

5. RL Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.99%, RL is not a good candidate for dividend investing.
  • RL's Dividend Yield is comparable with the industry average which is at 1.41.
  • Compared to an average S&P500 Dividend Yield of 1.81, RL's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.99%

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 past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)3.54%
Div Incr Years5
Div Non Decr Years5
RL Yearly Dividends per shareRL Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 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 2Y22.83%
EPS Next 3Y18.45%
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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RL Fundamentals: All Metrics, Ratios and Statistics

RALPH LAUREN CORP

NYSE:RL (4/24/2026, 8:06:30 PM)

After market: 371.24 0 (0%)

371.24

+0.1 (+0.03%)

Chartmill FA Rating
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)02-05
Earnings (Next)05-20
Inst Owners103.14%
Inst Owner Change0.11%
Ins Owners3.41%
Ins Owner Change-3.33%
Market Cap22.47B
Revenue(TTM)7.83B
Net Income(TTM)918.50M
Analysts83.57
Price Target415.19 (11.84%)
Short Float %7.8%
Short Ratio4.22
Dividend
Industry RankSector Rank
Dividend Yield 0.99%
Yearly Dividend3.22
Dividend Growth(5Y)3.54%
DP23.11%
Div Incr Years5
Div Non Decr Years5
Ex-Date03-27
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)1.36%
PT rev (3m)5.78%
EPS NQ rev (1m)0.42%
EPS NQ rev (3m)16.56%
EPS NY rev (1m)0.12%
EPS NY rev (3m)5.18%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)5.28%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.55%
Valuation
Industry RankSector Rank
PE 23.13
Fwd PE 19.96
P/S 2.87
P/FCF 32.36
P/OCF 19.87
P/B 7.78
P/tB 11.7
EV/EBITDA 14.5
EPS(TTM)16.05
EY4.32%
EPS(NY)18.6
Fwd EY5.01%
FCF(TTM)11.47
FCFY3.09%
OCF(TTM)18.68
OCFY5.03%
SpS129.39
BVpS47.71
TBVpS31.74
PEG (NY)0.64
PEG (5Y)1.69
Graham Number131.261 (-64.64%)
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 6.08
F-Score8
WACC10.89%
ROIC/WACC1.6
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 Y35.95%
EPS Next 2Y22.83%
EPS Next 3Y18.45%
EPS Next 5Y11.69%
Revenue 1Y (TTM)12.71%
Revenue growth 3Y4.41%
Revenue growth 5Y2.82%
Sales Q2Q%12.25%
Revenue Next Year13.36%
Revenue Next 2Y9.51%
Revenue Next 3Y7.87%
Revenue Next 5Y5.72%
EBIT growth 1Y31.69%
EBIT growth 3Y6.32%
EBIT growth 5Y19.59%
EBIT Next Year54.59%
EBIT Next 3Y22.01%
EBIT Next 5Y13.44%
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 Fundamental Analysis 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.


Can you provide the profitability details for RALPH LAUREN CORP?

RALPH LAUREN CORP (RL) has a profitability rating of 9 / 10.


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 35.95% in the next year.


Is the dividend of RALPH LAUREN CORP sustainable?

The dividend rating of RALPH LAUREN CORP (RL) is 5 / 10 and the dividend payout ratio is 23.11%.