RALPH LAUREN CORP (RL)
US7512121010 - Common Stock
RL gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 50 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 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.
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
With an excellent Return On Assets value of 10.06%, RL belongs to the best of the industry, outperforming 82.00% of the companies in the same industry.
RL has a Return On Equity of 28.00%. This is amongst the best in the industry. RL outperforms 86.00% of its industry peers.
RL's Return On Invested Capital of 14.62% is fine compared to the rest of the industry. RL outperforms 80.00% of its industry peers.
RL had an Average Return On Invested Capital over the past 3 years of 12.08%. This is in line with the industry average of 11.54%.
The last Return On Invested Capital (14.62%) for RL is above the 3 year average (12.08%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.06% | ||
| ROE | 28% | ||
| ROIC | 14.62% |
ROA(3y)8.42%
ROA(5y)5.8%
ROE(3y)23.85%
ROE(5y)16.23%
ROIC(3y)12.08%
ROIC(5y)8.89%
1.3 Margins
Looking at the Profit Margin, with a value of 10.15%, RL belongs to the top of the industry, outperforming 86.00% of the companies in the same industry.
RL's Profit Margin has improved in the last couple of years.
RL has a better Operating Margin (12.87%) than 86.00% of its industry peers.
In the last couple of years the Operating Margin of RL has grown nicely.
RL has a Gross Margin of 67.51%. This is amongst the best in the industry. RL outperforms 94.00% of its industry peers.
In the last couple of years the Gross Margin of RL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.87% | ||
| PM (TTM) | 10.15% | ||
| GM | 67.51% |
OM growth 3Y40.1%
OM growth 5Y1.65%
PM growth 3YN/A
PM growth 5Y7.38%
GM growth 3Y0.54%
GM growth 5Y1.6%
2. Health
2.1 Basic Checks
RL has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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
Compared to 1 year ago, RL has an improved debt to assets ratio.
2.2 Solvency
RL has an Altman-Z score of 4.96. This indicates that RL is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of RL (4.96) is better than 82.00% of its industry peers.
The Debt to FCF ratio of RL is 1.49, which is an excellent value as it means it would take RL, only 1.49 years of fcf income to pay off all of its debts.
RL has a better Debt to FCF ratio (1.49) than 72.00% of its industry peers.
RL has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.40, RL is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 1.49 | ||
| Altman-Z | 4.96 |
ROIC/WACC1.71
WACC8.55%
2.3 Liquidity
A Current Ratio of 1.72 indicates that RL should not have too much problems paying its short term obligations.
RL has a Current ratio of 1.72. This is in the lower half of the industry: RL underperforms 70.00% of its industry peers.
RL has a Quick Ratio of 1.18. 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 Quick ratio (1.18) which is comparable to the rest of the industry.
RL does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
RL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 27.96%, which is quite impressive.
RL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.50% yearly.
RL shows a small growth in Revenue. In the last year, the Revenue has grown by 3.65%.
Measured over the past years, RL shows a small growth in Revenue. The Revenue has been growing by 0.99% on average per year.
EPS 1Y (TTM)27.96%
EPS 3Y83.51%
EPS 5Y7.5%
EPS Q2Q%20.95%
Revenue 1Y (TTM)3.65%
Revenue growth 3Y14.65%
Revenue growth 5Y0.99%
Sales Q2Q%5.7%
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 9.88% yearly.
RL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.34% yearly.
EPS Next Y14.6%
EPS Next 2Y13.09%
EPS Next 3Y13.2%
EPS Next 5Y9.88%
Revenue Next Year2.73%
Revenue Next 2Y3.46%
Revenue Next 3Y3.65%
Revenue Next 5Y3.34%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
With a Price/Earnings ratio of 18.74, RL is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as RL.
The average S&P500 Price/Earnings ratio is at 28.53. RL is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 15.79, which indicates a correct valuation of RL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RL indicates a somewhat cheap valuation: RL is cheaper than 62.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.40. RL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.74 | ||
| Fwd PE | 15.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RL is valued a bit cheaper than 62.00% of the companies in the same industry.
RL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.72 | ||
| EV/EBITDA | 11.3 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 13.20% in the coming years.
PEG (NY)1.28
PEG (5Y)2.5
EPS Next 2Y13.09%
EPS Next 3Y13.2%
5. Dividend
5.1 Amount
RL has a Yearly Dividend Yield of 1.56%.
RL's Dividend Yield is a higher than the industry average which is at 2.92.
Compared to the average S&P500 Dividend Yield of 2.22, RL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
5.2 History
The dividend of RL has a limited annual growth rate of 4.76%.
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)4.76%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
RL pays out 28.56% 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.
DP28.56%
EPS Next 2Y13.09%
EPS Next 3Y13.2%
RALPH LAUREN CORP
NYSE:RL (11/15/2024, 8:04:00 PM)
After market: 208.38 0 (0%)208.38
-3.09 (-1.46%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap12.94B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.74 | ||
| Fwd PE | 15.79 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.28
PEG (5Y)2.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.06% | ||
| ROE | 28% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.87% | ||
| PM (TTM) | 10.15% | ||
| GM | 67.51% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)27.96%
EPS 3Y83.51%
EPS 5Y
EPS Q2Q%
EPS Next Y14.6%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.65%
Revenue growth 3Y14.65%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y