RALPH LAUREN CORP (RL)
US7512121010 - Common Stock
Taking everything into account, RL scores 7 out of 10 in our fundamental rating. RL was compared to 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 has a decent growth rate and is not valued too expensively. With these ratings, RL could be worth investigating further for quality investing!.
1. Profitability
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.
1.2 Ratios
The Return On Assets of RL (10.06%) is better than 82.00% of its industry peers.
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.
Looking at the Return On Invested Capital, with a value of 14.62%, RL is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for RL is in line with the industry average of 11.67%.
The 3 year average ROIC (12.08%) for RL is below the current ROIC(14.62%), indicating increased profibility in the last year.
| 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
The Profit Margin of RL (10.15%) is better than 86.00% of its industry peers.
In the last couple of years the Profit Margin of RL has grown nicely.
RL has a Operating Margin of 12.87%. This is amongst the best in the industry. RL outperforms 86.00% of its industry peers.
RL's Operating Margin has improved in the last couple of years.
The Gross Margin of RL (67.51%) is better than 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.
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
An Altman-Z score of 5.12 indicates that RL is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.12, RL belongs to the top of the industry, outperforming 84.00% of the companies in the same industry.
RL has a debt to FCF ratio of 1.49. This is a very positive value and a sign of high solvency as it would only need 1.49 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.49, RL is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
RL has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
RL has a Debt to Equity ratio (0.40) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 1.49 | ||
| Altman-Z | 5.12 |
ROIC/WACC1.74
WACC8.4%
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 68.00% 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 of 1.18. This is comparable to the rest of the industry: RL outperforms 46.00% of its industry peers.
The current and quick ratio evaluation for RL is rather negative, while it does have 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.
The Revenue has been growing slightly by 3.65% in the past year.
The Revenue has been growing slightly by 0.99% on average over the past years.
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 9.96% yearly.
Based on estimates for the next years, RL will show a small growth in Revenue. The Revenue will grow by 3.69% on average per year.
EPS Next Y17.49%
EPS Next 2Y14.89%
EPS Next 3Y14.71%
EPS Next 5Y9.96%
Revenue Next Year3.65%
Revenue Next 2Y4.04%
Revenue Next 3Y4.05%
Revenue Next 5Y3.69%
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 accelerating.
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
The Price/Earnings ratio is 20.31, which indicates a rather expensive current valuation of RL.
Compared to the rest of the industry, the Price/Earnings ratio of RL is on the same level as its industry peers.
RL is valuated rather cheaply when we compare the Price/Earnings ratio to 28.77, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 16.58, which indicates a correct valuation of RL.
RL's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.38, RL is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.31 | ||
| Fwd PE | 16.58 |
4.2 Price Multiples
RL's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as RL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.87 | ||
| EV/EBITDA | 12.42 |
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.
RL's earnings are expected to grow with 14.71% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.16
PEG (5Y)2.71
EPS Next 2Y14.89%
EPS Next 3Y14.71%
5. Dividend
5.1 Amount
RL has a Yearly Dividend Yield of 1.46%.
RL's Dividend Yield is a higher than the industry average which is at 2.81.
Compared to the average S&P500 Dividend Yield of 2.24, RL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
5.2 History
The dividend of RL has a limited annual growth rate of 4.76%.
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)4.76%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
28.56% of the earnings are spent on dividend by RL. This is a low number and sustainable payout ratio.
The dividend of RL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP28.56%
EPS Next 2Y14.89%
EPS Next 3Y14.71%
RALPH LAUREN CORP
NYSE:RL (12/18/2024, 2:41:33 PM)
225.88
-2.05 (-0.9%)
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 Cap14.03B
Analysts
Price Target
Short Float %
Short Ratio
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
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 | 20.31 | ||
| Fwd PE | 16.58 | ||
| 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)1.16
PEG (5Y)2.71
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 Y17.49%
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