PVH CORP (PVH) Stock Fundamental Analysis
NYSE:PVH - New York Stock Exchange, Inc. - US6936561009 - Common Stock - Currency: USD
Overall PVH gets a fundamental rating of 5 out of 10. We evaluated PVH against 49 industry peers in the Textiles, Apparel & Luxury Goods industry. Both the profitability and the financial health of PVH get a neutral evaluation. Nothing too spectacular is happening here. A decent growth rate in combination with a cheap valuation! Better keep an eye on PVH.
1. Profitability
1.1 Basic Checks
PVH had positive earnings in the past year.
PVH had a positive operating cash flow in the past year.
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 5.42%, PVH is in the better half of the industry, outperforming 63.27% of the companies in the same industry.
The Return On Equity of PVH (11.64%) is better than 61.22% of its industry peers.
PVH has a Return On Invested Capital of 6.43%. This is comparable to the rest of the industry: PVH outperforms 51.02% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PVH is significantly below the industry average of 13.58%.
| 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
PVH has a better Profit Margin (6.92%) than 71.43% of its industry peers.
PVH's Profit Margin has improved in the last couple of years.
PVH has a Operating Margin (7.52%) which is comparable to the rest of the industry.
PVH's Operating Margin has been stable in the last couple of years.
PVH has a better Gross Margin (59.43%) than 77.55% of its industry peers.
In the last couple of years the Gross Margin of PVH has grown nicely.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PVH is destroying value.
PVH has less shares outstanding than it did 1 year ago.
PVH has less shares outstanding than it did 5 years ago.
PVH has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.19 indicates that PVH is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.19, PVH is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
PVH has a debt to FCF ratio of 3.59. This is a good value and a sign of high solvency as PVH would need 3.59 years to pay back of all of its debts.
PVH has a Debt to FCF ratio of 3.59. This is comparable to the rest of the industry: PVH outperforms 59.18% of its industry peers.
A Debt/Equity ratio of 0.31 indicates that PVH is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.31, PVH perfoms like the industry average, outperforming 55.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 3.59 | ||
| Altman-Z | 2.19 |
ROIC/WACC0.72
WACC8.95%
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: 81.63% of the companies in the same industry are doing better.
A Quick Ratio of 0.72 indicates that PVH may have some problems paying its short term obligations.
PVH has a Quick ratio of 0.72. This is amonst the worse of the industry: PVH underperforms 81.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
PVH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.50%, which is quite good.
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%.
The Revenue has been decreasing by -2.67% on average over the past years.
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 Y4.84%
EPS Next 2Y10.78%
EPS Next 3Y10.73%
EPS Next 5Y13.81%
Revenue Next Year0.55%
Revenue Next 2Y1.4%
Revenue Next 3Y2.07%
Revenue Next 5Y2.69%
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.
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 5.97 indicates a rather cheap valuation of PVH.
Based on the Price/Earnings ratio, PVH is valued cheaper than 93.88% of the companies in the same industry.
PVH is valuated cheaply when we compare the Price/Earnings ratio to 28.22, which is the current average of the S&P500 Index.
PVH is valuated cheaply with a Price/Forward Earnings ratio of 5.70.
Based on the Price/Forward Earnings ratio, PVH is valued cheaply inside the industry as 97.96% of the companies are valued more expensively.
PVH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.97 | ||
| Fwd PE | 5.7 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PVH is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
PVH's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PVH is cheaper than 79.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.35 | ||
| EV/EBITDA | 5.31 |
4.3 Compensation for Growth
PVH's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PVH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.24
PEG (5Y)1.4
EPS Next 2Y10.78%
EPS Next 3Y10.73%
5. Dividend
5.1 Amount
With a yearly dividend of 0.20%, PVH is not a good candidate for dividend investing.
The stock price of PVH dropped by -21.61% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
PVH's Dividend Yield is a higher than the industry average which is at 4.03.
Compared to an average S&P500 Dividend Yield of 2.44, PVH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.2% |
5.2 History
The dividend of PVH has a limited annual growth rate of 0.18%.
PVH has been paying a dividend for at least 10 years, so it has 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
PVH pays out 1.44% 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.
DP1.44%
EPS Next 2Y10.78%
EPS Next 3Y10.73%
70.24
+1.53 (+2.23%)
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-0.05%
Ins Owners0.61%
Ins Owner Change10.58%
Market Cap3.70B
Analysts73.33
Price Target96.65 (37.6%)
Short Float %9.35%
Short Ratio3.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.2% |
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)-20.94%
PT rev (3m)-26.47%
EPS NQ rev (1m)-4.8%
EPS NQ rev (3m)-20.61%
EPS NY rev (1m)2.65%
EPS NY rev (3m)-3.15%
Revenue NQ rev (1m)0.52%
Revenue NQ rev (3m)-2.26%
Revenue NY rev (1m)0.28%
Revenue NY rev (3m)-0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.97 | ||
| Fwd PE | 5.7 | ||
| P/S | 0.43 | ||
| P/FCF | 6.35 | ||
| P/OCF | 4.99 | ||
| P/B | 0.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.31 |
EPS(TTM)11.76
EY16.74%
EPS(NY)12.33
Fwd EY17.55%
FCF(TTM)11.06
FCFY15.75%
OCF(TTM)14.07
OCFY20.04%
SpS164.38
BVpS97.65
TBVpS-2.67
PEG (NY)1.24
PEG (5Y)1.4
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 | 2.19 |
F-Score6
WACC8.95%
ROIC/WACC0.72
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 Y4.84%
EPS Next 2Y10.78%
EPS Next 3Y10.73%
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 Year0.55%
Revenue Next 2Y1.4%
Revenue Next 3Y2.07%
Revenue Next 5Y2.69%
EBIT growth 1Y-29.93%
EBIT growth 3Y-14.8%
EBIT growth 5Y-2.1%
EBIT Next Year33.14%
EBIT Next 3Y15.03%
EBIT Next 5Y12.95%
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%