PVH CORP (PVH)

US6936561009 - Common Stock

140.61  +1.21 (+0.87%)

After market: 140 -0.61 (-0.43%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to PVH. PVH was compared to 50 industry peers in the Textiles, Apparel & Luxury Goods industry. While PVH is still in line with the averages on profitability rating, there are concerns on its financial health. PVH has a correct valuation and a medium growth rate.



6

1. Profitability

1.1 Basic Checks

In the past year PVH was profitable.
In the past year PVH had a positive cash flow from operations.
Of the past 5 years PVH 4 years were profitable.
Each year in the past 5 years PVH had a positive operating cash flow.

1.2 Ratios

Looking at the Return On Assets, with a value of 4.75%, PVH is in line with its industry, outperforming 60.00% of the companies in the same industry.
PVH has a Return On Equity (10.50%) which is comparable to the rest of the industry.
PVH's Return On Invested Capital of 7.41% is fine compared to the rest of the industry. PVH outperforms 64.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PVH is below the industry average of 10.10%.
The 3 year average ROIC (5.21%) for PVH is below the current ROIC(7.41%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 4.75%
ROE 10.5%
ROIC 7.41%
ROA(3y)0.28%
ROA(5y)2.04%
ROE(3y)-0.67%
ROE(5y)3.59%
ROIC(3y)5.21%
ROIC(5y)5.37%

1.3 Margins

PVH's Profit Margin of 5.76% is fine compared to the rest of the industry. PVH outperforms 66.00% of its industry peers.
PVH's Profit Margin has declined in the last couple of years.
PVH's Operating Margin of 8.97% is fine compared to the rest of the industry. PVH outperforms 64.00% of its industry peers.
PVH's Operating Margin has improved in the last couple of years.
PVH has a better Gross Margin (56.99%) than 82.00% of its industry peers.
PVH's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 8.97%
PM (TTM) 5.76%
GM 56.99%
OM growth 3Y13.55%
OM growth 5Y6.52%
PM growth 3Y-19.21%
PM growth 5Y-18.12%
GM growth 3Y1.44%
GM growth 5Y0.67%

3

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PVH is destroying value.
The number of shares outstanding for PVH has been reduced compared to 1 year ago.
The number of shares outstanding for PVH has been reduced compared to 5 years ago.
Compared to 1 year ago, PVH has a worse debt to assets ratio.

2.2 Solvency

An Altman-Z score of 2.58 indicates that PVH is not a great score, but indicates only limited risk for bankruptcy at the moment.
PVH's Altman-Z score of 2.58 is in line compared to the rest of the industry. PVH outperforms 46.00% of its industry peers.
PVH has a debt to FCF ratio of 6.13. This is a slightly negative value and a sign of low solvency as PVH would need 6.13 years to pay back of all of its debts.
PVH's Debt to FCF ratio of 6.13 is in line compared to the rest of the industry. PVH outperforms 44.00% of its industry peers.
A Debt/Equity ratio of 0.31 indicates that PVH is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.31, PVH is in line with its industry, outperforming 52.00% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.31
Debt/FCF 6.13
Altman-Z 2.58
ROIC/WACC0.88
WACC8.44%

2.3 Liquidity

A Current Ratio of 1.18 indicates that PVH should not have too much problems paying its short term obligations.
The Current ratio of PVH (1.18) is worse than 86.00% of its industry peers.
PVH has a Quick Ratio of 1.18. This is a bad value and indicates that PVH is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.66, PVH is doing worse than 84.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.18
Quick Ratio 0.66

4

3. Growth

3.1 Past

The earnings per share for PVH have decreased by -3.49% in the last year.
Measured over the past 5 years, PVH shows a small growth in Earnings Per Share. The EPS has been growing by 3.17% on average per year.
Looking at the last year, PVH shows a small growth in Revenue. The Revenue has grown by 2.80% in the last year.
Measured over the past years, PVH shows a small growth in Revenue. The Revenue has been growing by 0.24% on average per year.
EPS 1Y (TTM)-3.49%
EPS 3Y-0.92%
EPS 5Y3.17%
EPS growth Q2Q11.54%
Revenue 1Y (TTM)2.8%
Revenue growth 3Y-3.07%
Revenue growth 5Y0.24%
Revenue growth Q2Q3.6%

3.2 Future

The Earnings Per Share is expected to grow by 14.60% on average over the next years. This is quite good.
Based on estimates for the next years, PVH will show a small growth in Revenue. The Revenue will grow by 4.33% on average per year.
EPS Next Y14.03%
EPS Next 2Y14.16%
EPS Next 3Y13.52%
EPS Next 5Y14.6%
Revenue Next Year2.55%
Revenue Next 2Y1.09%
Revenue Next 3Y2.31%
Revenue Next 5Y4.33%

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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

5

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 14.96 indicates a correct valuation of PVH.
PVH's Price/Earnings ratio is a bit cheaper when compared to the industry. PVH is cheaper than 68.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.42. PVH is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 11.63 indicates a reasonable valuation of PVH.
Based on the Price/Forward Earnings ratio, PVH is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
PVH is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.74, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 14.96
Fwd PE 11.63

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, PVH is valued a bit cheaper than the industry average as 68.00% of the companies are valued more expensively.
PVH's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 22.79
EV/EBITDA 9.05

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of PVH may justify a higher PE ratio.
A more expensive valuation may be justified as PVH's earnings are expected to grow with 13.52% in the coming years.
PEG (NY)1.07
PEG (5Y)4.72
EPS Next 2Y14.16%
EPS Next 3Y13.52%

5

5. Dividend

5.1 Amount

PVH has a yearly dividend return of 0.11%, which is pretty low.
Compared to an average industry Dividend Yield of 2.76, PVH pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.11, PVH pays less dividend than the S&P500 average, which is at 2.34.
Industry RankSector Rank
Dividend Yield 0.11%

5.2 History

The dividend of PVH has a limited annual growth rate of 0.05%.
PVH has paid a dividend for at least 10 years, which is a reliable track record.
PVH has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)0.05%
Div Incr Years0
Div Non Decr Years3

5.3 Sustainability

PVH pays out 1.79% of its income as dividend. This is a sustainable payout ratio.
The dividend of PVH is growing, but earnings are growing more, so the dividend growth is sustainable.
DP1.79%
EPS Next 2Y14.16%
EPS Next 3Y13.52%

PVH CORP

NYSE:PVH (3/28/2024, 5:05:00 PM)

After market: 140 -0.61 (-0.43%)

140.61

+1.21 (+0.87%)

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 Cap8.39B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 0.11%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 RankSector Rank
PE 14.96
Fwd PE 11.63
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)1.07
PEG (5Y)4.72
Profitability
Industry RankSector Rank
ROA 4.75%
ROE 10.5%
ROCE
ROIC
ROICexc
ROICexgc
OM 8.97%
PM (TTM) 5.76%
GM 56.99%
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 Turnover0.83
Health
Industry RankSector Rank
Debt/Equity 0.31
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.18
Quick Ratio 0.66
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)
Growth
EPS 1Y (TTM)-3.49%
EPS 3Y-0.92%
EPS 5Y
EPS growth Q2Q
EPS Next Y14.03%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.8%
Revenue growth 3Y-3.07%
Revenue growth 5Y
Revenue growth 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