PVH CORP (NYSE:PVH) – A Potentially Undervalued Apparel Stock

PVH CORP (NYSE:PVH) was identified as a decent value stock by our screener, which looks for companies with strong valuation metrics alongside reasonable profitability, financial health, and growth. The parent company of brands like Tommy Hilfiger and Calvin Klein appears attractively priced relative to its fundamentals.

Valuation Highlights

PVH stands out with a Valuation Rating of 8/10, indicating it trades at a discount compared to peers and broader markets. Key points:

• P/E ratio of 5.52 – significantly below the industry average (31.87) and S&P 500 (26.32).
• Forward P/E of 4.53 – cheaper than 97.9% of its textile and apparel peers.
• Enterprise Value/EBITDA suggests the stock is undervalued relative to 83% of competitors.

Financial Health

With a Health Rating of 5/10, PVH maintains a balanced financial position:

• Debt/Equity ratio of 0.40 – manageable and in line with industry standards.
• Positive free cash flow supports debt repayment, with a Debt/FCF ratio of 3.98 years.
• Declining shares outstanding – a positive signal as buybacks reduce dilution.

Profitability & Growth

The company earns a Profitability Rating of 5/10, with mixed but stable metrics:

• Gross margin of 58.8% – above 70% of industry peers, reflecting brand strength.
• Operating margin expansion over recent years, though ROIC trails the sector average.
• Expected EPS growth of 13.5% annually – accelerating compared to past performance.

While revenue growth has been sluggish, cost controls and margin improvements suggest earnings potential.

For a deeper dive, review the full PVH fundamental report.

Our Decent Value screener lists more stocks with similar profiles and updates daily.

Disclaimer

This is not investment advice. Conduct your own research before making financial decisions.