RALPH LAUREN CORP (RL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RL - US7512121010 - Common Stock
370.22 USD
+2.6 (+0.71%)
370.45 USD
+0.23 (+0.06%)
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 gets an excellent profitability rating and is at the same time showing great financial health properties. While showing a medium growth rate, RL is valued expensive at the moment. This makes RL very considerable for quality investing!
1. Profitability
1.1 Basic Checks
RL had positive earnings in the past year.
RL had a positive operating cash flow in the past year.
RL had positive earnings in 4 of the past 5 years.
Each year in the past 5 years RL had a positive operating cash flow.
1.2 Ratios
The Return On Assets of RL (11.63%) is better than 91.11% of its industry peers.
The Return On Equity of RL (33.08%) is better than 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 11.77%.
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
The Profit Margin of RL (11.28%) is better than 91.11% of its industry peers.
In the last couple of years the Profit Margin of RL has grown nicely.
RL has a Operating Margin of 15.22%. This is amongst the best in the industry. RL outperforms 86.67% of its industry peers.
In the last couple of years the Operating Margin of RL has grown nicely.
With an excellent Gross Margin value of 69.22%, RL belongs to the best 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.
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.
The debt/assets ratio for RL has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.19 indicates that RL is not in any danger for bankruptcy at the moment.
The Altman-Z score of RL (6.19) is better than 91.11% of its industry peers.
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.
The Debt to FCF ratio of RL (2.22) is better than 75.56% 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 62.22% of its industry peers.
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 | 6.19 |
ROIC/WACC1.51
WACC11.15%
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's Current ratio of 2.04 is in line compared to the rest of the industry. RL outperforms 55.56% of its industry peers.
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.
The Revenue has grown by 12.32% in the past year. This is quite good.
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
The Earnings Per Share is expected to grow by 12.46% 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 5.98% yearly.
EPS Next Y28.62%
EPS Next 2Y18.46%
EPS Next 3Y16.42%
EPS Next 5Y12.46%
Revenue Next Year10.39%
Revenue Next 2Y7.64%
Revenue Next 3Y6.83%
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 25.27 indicates a quite expensive valuation of RL.
RL's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of RL to the average of the S&P500 Index (26.54), we can say RL is valued inline with the index average.
RL is valuated rather expensively with a Price/Forward Earnings ratio of 21.40.
RL's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. RL is more expensive than 60.00% of the companies in the same industry.
RL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.27 | ||
| Fwd PE | 21.4 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as RL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.62 | ||
| EV/EBITDA | 16.07 |
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 16.42% in the coming years.
PEG (NY)0.88
PEG (5Y)1.85
EPS Next 2Y18.46%
EPS Next 3Y16.42%
5. Dividend
5.1 Amount
With a yearly dividend of 0.99%, RL is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.77, RL has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 1.96, RL's dividend is way lower than the S&P500 average.
| 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
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 2Y18.46%
EPS Next 3Y16.42%
370.22
+2.6 (+0.71%)
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 Cap22.45B
Revenue(TTM)7.57B
Net Income(TTM)854.30M
Analysts82.96
Price Target374.16 (1.06%)
Short Float %4.29%
Short Ratio2.74
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)4.69%
PT rev (3m)9.01%
EPS NQ rev (1m)0.5%
EPS NQ rev (3m)8.26%
EPS NY rev (1m)3.12%
EPS NY rev (3m)3.48%
Revenue NQ rev (1m)1.02%
Revenue NQ rev (3m)4.04%
Revenue NY rev (1m)2.1%
Revenue NY rev (3m)2.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.27 | ||
| Fwd PE | 21.4 | ||
| P/S | 2.97 | ||
| P/FCF | 33.62 | ||
| P/OCF | 20.6 | ||
| P/B | 8.69 | ||
| P/tB | 13.91 | ||
| EV/EBITDA | 16.07 |
EPS(TTM)14.65
EY3.96%
EPS(NY)17.3
Fwd EY4.67%
FCF(TTM)11.01
FCFY2.97%
OCF(TTM)17.97
OCFY4.85%
SpS124.84
BVpS42.58
TBVpS26.61
PEG (NY)0.88
PEG (5Y)1.85
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 | 6.19 |
F-Score8
WACC11.15%
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 Y28.62%
EPS Next 2Y18.46%
EPS Next 3Y16.42%
EPS Next 5Y12.46%
Revenue 1Y (TTM)12.32%
Revenue growth 3Y4.41%
Revenue growth 5Y2.82%
Sales Q2Q%16.49%
Revenue Next Year10.39%
Revenue Next 2Y7.64%
Revenue Next 3Y6.83%
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 25.27 and the Price/Book (PB) ratio is 8.69.
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 28.62% in the next year.