RALPH LAUREN CORP (RL) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:RL • US7512121010
353.55 USD
-2.99 (-0.84%)
Last: Feb 3, 2026, 10:57 AM
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 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. Profitability
1.1 Basic Checks
- In the past year RL was profitable.
- In the past year RL had a positive cash flow from operations.
- RL had positive earnings in 4 of the past 5 years.
- 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 11.63%, RL belongs to the top of the industry, outperforming 91.11% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 33.08%, RL belongs to the top 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.
- Measured over the past 3 years, the Average Return On Invested Capital for RL is above the industry average of 11.60%.
- 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
- RL's Profit Margin of 11.28% 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.
- With an excellent Operating Margin value of 15.22%, RL belongs to the best 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.
- RL's Gross Margin of 69.22% is amongst the best of the industry. RL outperforms 95.56% of its industry peers.
- In the last couple of years the Gross Margin of RL has grown nicely.
| 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.
- The number of shares outstanding for RL has been reduced compared to 5 years ago.
- RL has a better debt/assets ratio than last year.
2.2 Solvency
- RL has an Altman-Z score of 6.09. This indicates that RL is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 6.09, RL belongs to the best 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.
- RL has a better Debt to FCF ratio (2.22) than 80.00% of its industry peers.
- A Debt/Equity ratio of 0.57 indicates that RL is somewhat dependend on debt financing.
- RL has a Debt to Equity ratio of 0.57. This is in the lower half of the industry: RL underperforms 64.44% of its industry peers.
- Although RL does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 2.22 | ||
| Altman-Z | 6.09 |
ROIC/WACC1.51
WACC11.18%
2.3 Liquidity
- A Current Ratio of 2.04 indicates that RL has no problem at all paying its short term obligations.
- The Current ratio of RL (2.04) 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.
- Looking at the Quick ratio, with a value of 1.35, RL is in the better half of 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
- The Earnings Per Share has grown by an impressive 31.74% over the past year.
- 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.
- RL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.82% yearly.
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 10.21% on average over the next years. This is quite good.
- RL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.92% yearly.
EPS Next Y29.26%
EPS Next 2Y19.15%
EPS Next 3Y16.58%
EPS Next 5Y10.21%
Revenue Next Year10.6%
Revenue Next 2Y7.81%
Revenue Next 3Y6.89%
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.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 24.13, RL is valued on the expensive side.
- RL's Price/Earnings ratio is in line with the industry average.
- RL's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.41.
- With a Price/Forward Earnings ratio of 20.20, RL is valued on the expensive side.
- 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 25.64.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.13 | ||
| Fwd PE | 20.2 |
4.2 Price Multiples
- RL's Enterprise Value to EBITDA is on the same level as the industry average.
- RL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.11 | ||
| EV/EBITDA | 15.47 |
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.
- A more expensive valuation may be justified as RL's earnings are expected to grow with 16.58% in the coming years.
PEG (NY)0.82
PEG (5Y)1.77
EPS Next 2Y19.15%
EPS Next 3Y16.58%
5. Dividend
5.1 Amount
- RL has a Yearly Dividend Yield of 1.03%.
- Compared to an average industry Dividend Yield of 1.48, RL has a dividend in line with its industry peers.
- With a Dividend Yield of 1.03, RL pays less dividend than the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
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.
- RL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP24.37%
EPS Next 2Y19.15%
EPS Next 3Y16.58%
NYSE:RL (2/3/2026, 10:57:41 AM)
353.55
-2.99 (-0.84%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)11-06 2025-11-06/bmo
Earnings (Next)02-05 2026-02-05/bmo
Inst Owners101.16%
Inst Owner Change-0.15%
Ins Owners3.54%
Ins Owner Change-0.53%
Market Cap21.44B
Revenue(TTM)7.57B
Net Income(TTM)854.30M
Analysts82.22
Price Target392.52 (11.02%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
Yearly Dividend3.22
Dividend Growth(5Y)3.54%
DP24.37%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
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)2.85%
PT rev (3m)12.83%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)8.01%
EPS NY rev (1m)0.43%
EPS NY rev (3m)3.84%
Revenue NQ rev (1m)0.21%
Revenue NQ rev (3m)3.57%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)2.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.13 | ||
| Fwd PE | 20.2 | ||
| P/S | 2.83 | ||
| P/FCF | 32.11 | ||
| P/OCF | 19.67 | ||
| P/B | 8.3 | ||
| P/tB | 13.28 | ||
| EV/EBITDA | 15.47 |
EPS(TTM)14.65
EY4.14%
EPS(NY)17.5
Fwd EY4.95%
FCF(TTM)11.01
FCFY3.11%
OCF(TTM)17.97
OCFY5.08%
SpS124.84
BVpS42.58
TBVpS26.61
PEG (NY)0.82
PEG (5Y)1.77
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 | 6.09 |
F-Score8
WACC11.18%
ROIC/WACC1.51
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 Y29.26%
EPS Next 2Y19.15%
EPS Next 3Y16.58%
EPS Next 5Y10.21%
Revenue 1Y (TTM)12.32%
Revenue growth 3Y4.41%
Revenue growth 5Y2.82%
Sales Q2Q%16.49%
Revenue Next Year10.6%
Revenue Next 2Y7.81%
Revenue Next 3Y6.89%
Revenue Next 5Y4.92%
EBIT growth 1Y32.83%
EBIT growth 3Y6.32%
EBIT growth 5Y19.59%
EBIT Next Year47.51%
EBIT Next 3Y20.1%
EBIT Next 5Y12.28%
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 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 24.13 and the Price/Book (PB) ratio is 8.3.
What is the financial health of RALPH LAUREN CORP (RL) stock?
The financial health rating of RALPH LAUREN CORP (RL) is 7 / 10.