RALPH LAUREN CORP (RL) Stock Fundamental Analysis
USA - NYSE:RL - US7512121010 - Common Stock
326.96 USD
-3.92 (-1.18%)
326.96 USD
0 (0%)
RL gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 48 industry peers in the Textiles, Apparel & Luxury Goods industry. RL gets an excellent profitability rating and is at the same time showing great financial health properties. RL has a correct valuation and a medium 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.
Of the past 5 years RL 4 years were profitable.
Each year in the past 5 years RL had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.63%, RL belongs to the top of the industry, outperforming 89.58% 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 87.50% of the companies in the same industry.
RL has a Return On Invested Capital of 16.88%. This is amongst the best in the industry. RL outperforms 83.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RL is in line with the industry average of 12.21%.
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 91.67% of its industry peers.
In the last couple of years the Profit Margin of RL has grown nicely.
The Operating Margin of RL (15.22%) is better than 87.50% of its industry peers.
RL's Operating Margin has improved in the last couple of years.
The Gross Margin of RL (69.22%) is better than 95.83% 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.
Compared to 1 year ago, RL has less shares outstanding
RL has less shares outstanding than it did 5 years ago.
RL has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.89 indicates that RL is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.89, RL belongs to the top of the industry, outperforming 89.58% of the companies in the same industry.
The Debt to FCF ratio of RL is 2.22, which is a good value as it means it would take RL, 2.22 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.22, RL is in the better half of the industry, outperforming 77.08% of the companies in the same industry.
A Debt/Equity ratio of 0.57 indicates that RL is somewhat dependend on debt financing.
The Debt to Equity ratio of RL (0.57) is comparable to the rest of the industry.
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 | 5.89 |
ROIC/WACC1.68
WACC10.02%
2.3 Liquidity
A Current Ratio of 2.04 indicates that RL has no problem at all paying its short term obligations.
RL's Current ratio of 2.04 is fine compared to the rest of the industry. RL outperforms 60.42% of its industry peers.
RL has a Quick Ratio of 1.35. This is a normal value and indicates that RL is financially healthy and should not expect problems in meeting its short term obligations.
RL's Quick ratio of 1.35 is fine compared to the rest of the industry. RL outperforms 70.83% of its industry peers.
| 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.
Looking at the last year, RL shows a quite strong growth in Revenue. The Revenue has grown by 12.32% 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)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
RL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.84% yearly.
Based on estimates for the next years, RL will show a small growth in Revenue. The Revenue will grow by 3.86% on average per year.
EPS Next Y24.73%
EPS Next 2Y16.58%
EPS Next 3Y14.89%
EPS Next 5Y8.84%
Revenue Next Year8.12%
Revenue Next 2Y6.48%
Revenue Next 3Y6.04%
Revenue Next 5Y3.86%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
The Price/Earnings ratio is 22.32, which indicates a rather expensive current valuation of RL.
The rest of the industry has a similar Price/Earnings ratio as RL.
The average S&P500 Price/Earnings ratio is at 25.07. RL is around the same levels.
A Price/Forward Earnings ratio of 19.51 indicates a rather expensive valuation of RL.
The rest of the industry has a similar Price/Forward Earnings ratio as RL.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.08, RL is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.32 | ||
| Fwd PE | 19.51 |
4.2 Price Multiples
RL's Enterprise Value to EBITDA ratio is in line with the industry average.
RL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.66 | ||
| EV/EBITDA | 14.32 |
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 14.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.9
PEG (5Y)1.63
EPS Next 2Y16.58%
EPS Next 3Y14.89%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.10%, RL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.35, RL pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.10, RL pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
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
5.3 Sustainability
RL pays out 24.37% of its income as dividend. This is a sustainable payout ratio.
The dividend of RL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP24.37%
EPS Next 2Y16.58%
EPS Next 3Y14.89%
326.96
-3.92 (-1.18%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners105.4%
Inst Owner Change-2.39%
Ins Owners3.55%
Ins Owner Change11.67%
Market Cap19.80B
Revenue(TTM)7.57B
Net Income(TTM)854.30M
Analysts82.96
Price Target357.41 (9.31%)
Short Float %4.12%
Short Ratio2.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
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)2.74%
PT rev (3m)5.42%
EPS NQ rev (1m)7.54%
EPS NQ rev (3m)10.92%
EPS NY rev (1m)0.28%
EPS NY rev (3m)8.27%
Revenue NQ rev (1m)2.53%
Revenue NQ rev (3m)3.94%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)2.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.32 | ||
| Fwd PE | 19.51 | ||
| P/S | 2.62 | ||
| P/FCF | 29.66 | ||
| P/OCF | 18.17 | ||
| P/B | 7.67 | ||
| P/tB | 12.27 | ||
| EV/EBITDA | 14.32 |
EPS(TTM)14.65
EY4.48%
EPS(NY)16.76
Fwd EY5.12%
FCF(TTM)11.02
FCFY3.37%
OCF(TTM)17.99
OCFY5.5%
SpS124.99
BVpS42.63
TBVpS26.64
PEG (NY)0.9
PEG (5Y)1.63
Graham Number118.54
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 | 5.89 |
F-Score8
WACC10.02%
ROIC/WACC1.68
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 Y24.73%
EPS Next 2Y16.58%
EPS Next 3Y14.89%
EPS Next 5Y8.84%
Revenue 1Y (TTM)12.32%
Revenue growth 3Y4.41%
Revenue growth 5Y2.82%
Sales Q2Q%16.49%
Revenue Next Year8.12%
Revenue Next 2Y6.48%
Revenue Next 3Y6.04%
Revenue Next 5Y3.86%
EBIT growth 1Y32.83%
EBIT growth 3Y6.32%
EBIT growth 5Y19.59%
EBIT Next Year41.82%
EBIT Next 3Y18.16%
EBIT Next 5Y10.4%
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 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.
Can you provide the PE and PB ratios for RL stock?
The Price/Earnings (PE) ratio for RALPH LAUREN CORP (RL) is 22.32 and the Price/Book (PB) ratio is 7.67.
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 24.73% in the next year.