PVH CORP (PVH) Stock Fundamental Analysis
NYSE:PVH - New York Stock Exchange, Inc. - US6936561009 - Common Stock - Currency: USD
Taking everything into account, PVH scores 6 out of 10 in our fundamental rating. PVH was compared to 48 industry peers in the Textiles, Apparel & Luxury Goods industry. PVH has an average financial health and profitability rating. PVH scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make PVH a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year PVH was profitable.
PVH had a positive operating cash flow in the past year.
PVH had positive earnings in 4 of the past 5 years.
PVH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PVH's Return On Assets of 5.42% is fine compared to the rest of the industry. PVH outperforms 60.42% of its industry peers.
PVH's Return On Equity of 11.64% is fine compared to the rest of the industry. PVH outperforms 60.42% of its industry peers.
PVH has a Return On Invested Capital (6.43%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for PVH is significantly below the industry average of 13.50%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.42% | ||
| ROE | 11.64% | ||
| ROIC | 6.43% |
ROA(3y)4.36%
ROA(5y)2.44%
ROE(3y)9.53%
ROE(5y)4.52%
ROIC(3y)7.83%
ROIC(5y)6.46%
1.3 Margins
Looking at the Profit Margin, with a value of 6.92%, PVH is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
In the last couple of years the Profit Margin of PVH has grown nicely.
The Operating Margin of PVH (7.52%) is comparable to the rest of the industry.
PVH's Operating Margin has been stable in the last couple of years.
PVH has a Gross Margin of 59.43%. This is in the better half of the industry: PVH outperforms 77.08% of its industry peers.
PVH's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.52% | ||
| PM (TTM) | 6.92% | ||
| GM | 59.43% |
OM growth 3Y-13.18%
OM growth 5Y0.59%
PM growth 3Y-12.72%
PM growth 5Y10.43%
GM growth 3Y0.72%
GM growth 5Y1.79%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PVH is destroying value.
PVH has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, PVH has less shares outstanding
Compared to 1 year ago, PVH has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.24 indicates that PVH is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.24, PVH is doing worse than 70.83% of the companies in the same industry.
The Debt to FCF ratio of PVH is 3.59, which is a good value as it means it would take PVH, 3.59 years of fcf income to pay off all of its debts.
PVH has a Debt to FCF ratio of 3.59. This is in the better half of the industry: PVH outperforms 62.50% of its industry peers.
A Debt/Equity ratio of 0.31 indicates that PVH is not too dependend on debt financing.
PVH's Debt to Equity ratio of 0.31 is fine compared to the rest of the industry. PVH outperforms 60.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 3.59 | ||
| Altman-Z | 2.24 |
ROIC/WACC0.69
WACC9.32%
2.3 Liquidity
A Current Ratio of 1.27 indicates that PVH should not have too much problems paying its short term obligations.
With a Current ratio value of 1.27, PVH is not doing good in the industry: 81.25% of the companies in the same industry are doing better.
PVH has a Quick Ratio of 1.27. 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 0.72, PVH is doing worse than 81.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.50% over the past year.
The Earnings Per Share has been growing slightly by 4.27% on average over the past years.
PVH shows a decrease in Revenue. In the last year, the revenue decreased by -6.13%.
Measured over the past years, PVH shows a decrease in Revenue. The Revenue has been decreasing by -2.67% on average per year.
EPS 1Y (TTM)9.5%
EPS 3Y5.03%
EPS 5Y4.27%
EPS Q2Q%-12.1%
Revenue 1Y (TTM)-6.13%
Revenue growth 3Y-1.86%
Revenue growth 5Y-2.67%
Sales Q2Q%-4.75%
3.2 Future
The Earnings Per Share is expected to grow by 13.81% on average over the next years. This is quite good.
The Revenue is expected to grow by 2.69% on average over the next years.
EPS Next Y3.57%
EPS Next 2Y9.73%
EPS Next 3Y10.71%
EPS Next 5Y13.81%
Revenue Next Year0.38%
Revenue Next 2Y1.23%
Revenue Next 3Y1.93%
Revenue Next 5Y2.69%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 7.36 indicates a rather cheap valuation of PVH.
Based on the Price/Earnings ratio, PVH is valued cheaper than 91.67% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.17, PVH is valued rather cheaply.
PVH is valuated cheaply with a Price/Forward Earnings ratio of 7.11.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PVH indicates a rather cheap valuation: PVH is cheaper than 97.92% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, PVH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.36 | ||
| Fwd PE | 7.11 |
4.2 Price Multiples
PVH's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PVH is cheaper than 85.42% of the companies in the same industry.
81.25% of the companies in the same industry are more expensive than PVH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.14 | ||
| EV/EBITDA | 5.89 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of PVH may justify a higher PE ratio.
PEG (NY)2.06
PEG (5Y)1.72
EPS Next 2Y9.73%
EPS Next 3Y10.71%
5. Dividend
5.1 Amount
PVH has a yearly dividend return of 0.18%, which is pretty low.
PVH's Dividend Yield is a higher than the industry average which is at 3.65.
With a Dividend Yield of 0.18, PVH pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.18% |
5.2 History
The dividend of PVH has a limited annual growth rate of 0.18%.
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)0.18%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
1.44% of the earnings are spent on dividend by PVH. This is a low number and sustainable payout ratio.
The dividend of PVH is growing, but earnings are growing more, so the dividend growth is sustainable.
DP1.44%
EPS Next 2Y9.73%
EPS Next 3Y10.71%
86.61
+0.08 (+0.09%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners106.7%
Inst Owner Change-6.93%
Ins Owners0.61%
Ins Owner Change11.57%
Market Cap4.16B
Analysts73.33
Price Target94.44 (9.04%)
Short Float %10.17%
Short Ratio3.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.18% |
Yearly Dividend0.16
Dividend Growth(5Y)0.18%
DP1.44%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.28%
Min EPS beat(2)0.73%
Max EPS beat(2)15.84%
EPS beat(4)4
Avg EPS beat(4)14.68%
Min EPS beat(4)0.73%
Max EPS beat(4)30.12%
EPS beat(8)8
Avg EPS beat(8)11.11%
EPS beat(12)12
Avg EPS beat(12)15.72%
EPS beat(16)16
Avg EPS beat(16)31.87%
Revenue beat(2)2
Avg Revenue beat(2)0.6%
Min Revenue beat(2)0.58%
Max Revenue beat(2)0.62%
Revenue beat(4)2
Avg Revenue beat(4)0.11%
Min Revenue beat(4)-0.66%
Max Revenue beat(4)0.62%
Revenue beat(8)4
Avg Revenue beat(8)-0.03%
Revenue beat(12)7
Avg Revenue beat(12)0.09%
Revenue beat(16)10
Avg Revenue beat(16)0.76%
PT rev (1m)-10.04%
PT rev (3m)-22.75%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)-8.42%
EPS NY rev (1m)-1.21%
EPS NY rev (3m)-0.35%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)-0.76%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.36 | ||
| Fwd PE | 7.11 | ||
| P/S | 0.48 | ||
| P/FCF | 7.14 | ||
| P/OCF | 5.61 | ||
| P/B | 0.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.89 |
EPS(TTM)11.76
EY13.58%
EPS(NY)12.18
Fwd EY14.06%
FCF(TTM)12.13
FCFY14.01%
OCF(TTM)15.44
OCFY17.83%
SpS180.31
BVpS107.12
TBVpS-2.93
PEG (NY)2.06
PEG (5Y)1.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.42% | ||
| ROE | 11.64% | ||
| ROCE | 7.85% | ||
| ROIC | 6.43% | ||
| ROICexc | 7.06% | ||
| ROICexgc | 23.55% | ||
| OM | 7.52% | ||
| PM (TTM) | 6.92% | ||
| GM | 59.43% | ||
| FCFM | 6.73% |
ROA(3y)4.36%
ROA(5y)2.44%
ROE(3y)9.53%
ROE(5y)4.52%
ROIC(3y)7.83%
ROIC(5y)6.46%
ROICexc(3y)8.49%
ROICexc(5y)7.11%
ROICexgc(3y)27.32%
ROICexgc(5y)23.93%
ROCE(3y)9.59%
ROCE(5y)7.9%
ROICexcg growth 3Y-15.07%
ROICexcg growth 5Y7.78%
ROICexc growth 3Y-11.77%
ROICexc growth 5Y5.22%
OM growth 3Y-13.18%
OM growth 5Y0.59%
PM growth 3Y-12.72%
PM growth 5Y10.43%
GM growth 3Y0.72%
GM growth 5Y1.79%
F-Score6
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 3.59 | ||
| Debt/EBITDA | 1.69 | ||
| Cap/Depr | 56.24% | ||
| Cap/Sales | 1.83% | ||
| Interest Coverage | 8.3 | ||
| Cash Conversion | 79.39% | ||
| Profit Quality | 97.28% | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 2.24 |
F-Score6
WACC9.32%
ROIC/WACC0.69
Cap/Depr(3y)78.13%
Cap/Depr(5y)77.89%
Cap/Sales(3y)2.57%
Cap/Sales(5y)2.76%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)9.5%
EPS 3Y5.03%
EPS 5Y4.27%
EPS Q2Q%-12.1%
EPS Next Y3.57%
EPS Next 2Y9.73%
EPS Next 3Y10.71%
EPS Next 5Y13.81%
Revenue 1Y (TTM)-6.13%
Revenue growth 3Y-1.86%
Revenue growth 5Y-2.67%
Sales Q2Q%-4.75%
Revenue Next Year0.38%
Revenue Next 2Y1.23%
Revenue Next 3Y1.93%
Revenue Next 5Y2.69%
EBIT growth 1Y-29.93%
EBIT growth 3Y-14.8%
EBIT growth 5Y-2.1%
EBIT Next Year32.09%
EBIT Next 3Y14.06%
EBIT Next 5Y12.97%
FCF growth 1Y-19.66%
FCF growth 3Y-10.17%
FCF growth 5Y-2.92%
OCF growth 1Y-23.57%
OCF growth 3Y-11.56%
OCF growth 5Y-6.2%