RALPH LAUREN CORP (RL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RL - US7512121010 - Common Stock
361.52 USD
-1.22 (-0.34%)
361.52 USD
0 (0%)
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. Both the health and profitability get an excellent rating, making RL a very profitable company, without any liquidiy or solvency issues. RL has a decent growth rate and is not valued too expensively. These ratings could make RL a good candidate 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
With an excellent Return On Assets value of 11.63%, RL belongs to the best of the industry, outperforming 91.11% of the companies in the same industry.
RL's Return On Equity of 33.08% is amongst the best of the industry. RL outperforms 88.89% of its industry peers.
RL has a better Return On Invested Capital (16.88%) than 86.67% of its industry peers.
RL had an Average Return On Invested Capital over the past 3 years of 13.65%. This is in line with the industry average of 11.70%.
The 3 year average ROIC (13.65%) for RL is below the current ROIC(16.88%), indicating increased profibility in the last year.
| 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 has a better Profit Margin (11.28%) than 91.11% of its industry peers.
RL's Profit Margin has improved in the last couple of years.
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.
RL's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 69.22%, RL belongs to the top 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
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.
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.
2.2 Solvency
RL has an Altman-Z score of 6.13. This indicates that RL is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 6.13, 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's Debt to FCF ratio of 2.22 is fine compared to the rest of the industry. RL outperforms 75.56% of its industry peers.
RL has a Debt/Equity ratio of 0.57. This is a neutral value indicating 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 | 6.13 |
ROIC/WACC1.51
WACC11.16%
2.3 Liquidity
RL has a Current Ratio of 2.04. This indicates that RL is financially healthy and has no problem in meeting 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.
RL's Quick ratio of 1.35 is fine compared to the rest of the industry. RL outperforms 68.89% 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.
RL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.32%.
The Revenue has been growing slightly by 2.82% on average over the past years.
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.
RL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.98% yearly.
EPS Next Y28.71%
EPS Next 2Y18.51%
EPS Next 3Y16.36%
EPS Next 5Y12.46%
Revenue Next Year10.44%
Revenue Next 2Y7.7%
Revenue Next 3Y6.85%
Revenue Next 5Y5.98%
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 stable.
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
A Price/Earnings ratio of 24.68 indicates a rather expensive valuation of RL.
RL's Price/Earnings is on the same level as the industry average.
RL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.59, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 20.88 indicates a rather expensive valuation of RL.
RL's Price/Forward Earnings ratio is in line with the industry average.
RL's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.03.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.68 | ||
| Fwd PE | 20.88 |
4.2 Price Multiples
60.00% of the companies in the same industry are cheaper than RL, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RL is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.83 | ||
| EV/EBITDA | 15.69 |
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 16.36% in the coming years.
PEG (NY)0.86
PEG (5Y)1.81
EPS Next 2Y18.51%
EPS Next 3Y16.36%
5. Dividend
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 1.50.
With a Dividend Yield of 0.99, RL pays less dividend than the S&P500 average, which is at 1.88.
| 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
RL pays out 24.37% 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.
DP24.37%
EPS Next 2Y18.51%
EPS Next 3Y16.36%
361.52
-1.22 (-0.34%)
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 Cap21.92B
Revenue(TTM)7.57B
Net Income(TTM)854.30M
Analysts82.96
Price Target381.64 (5.57%)
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)6.78%
PT rev (3m)11.19%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)8.37%
EPS NY rev (1m)3.2%
EPS NY rev (3m)3.48%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)4.08%
Revenue NY rev (1m)2.15%
Revenue NY rev (3m)2.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.68 | ||
| Fwd PE | 20.88 | ||
| P/S | 2.9 | ||
| P/FCF | 32.83 | ||
| P/OCF | 20.11 | ||
| P/B | 8.49 | ||
| P/tB | 13.58 | ||
| EV/EBITDA | 15.69 |
EPS(TTM)14.65
EY4.05%
EPS(NY)17.32
Fwd EY4.79%
FCF(TTM)11.01
FCFY3.05%
OCF(TTM)17.97
OCFY4.97%
SpS124.84
BVpS42.58
TBVpS26.61
PEG (NY)0.86
PEG (5Y)1.81
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 | 6.13 |
F-Score8
WACC11.16%
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 Y28.71%
EPS Next 2Y18.51%
EPS Next 3Y16.36%
EPS Next 5Y12.46%
Revenue 1Y (TTM)12.32%
Revenue growth 3Y4.41%
Revenue growth 5Y2.82%
Sales Q2Q%16.49%
Revenue Next Year10.44%
Revenue Next 2Y7.7%
Revenue Next 3Y6.85%
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 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 24.68 and the Price/Book (PB) ratio is 8.49.
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 28.71% in the next year.