PVH CORP (PVH) Stock Fundamental Analysis
NYSE:PVH - New York Stock Exchange, Inc. - US6936561009 - Common Stock - Currency: USD
Taking everything into account, PVH scores 5 out of 10 in our fundamental rating. PVH was compared to 50 industry peers in the Textiles, Apparel & Luxury Goods industry. PVH has an average financial health and profitability rating. PVH may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make PVH suitable for value investing!
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.
PVH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.77%, PVH is in line with its industry, outperforming 56.00% of the companies in the same industry.
PVH has a Return On Equity (8.71%) which is comparable to the rest of the industry.
PVH's Return On Invested Capital of 6.02% is in line compared to the rest of the industry. PVH outperforms 50.00% of its industry peers.
PVH had an Average Return On Invested Capital over the past 3 years of 7.83%. This is below the industry average of 10.79%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.77% | ||
| ROE | 8.71% | ||
| ROIC | 6.02% |
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 Profit Margin of 4.63%. This is in the better half of the industry: PVH outperforms 62.00% of its industry peers.
PVH's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 6.82%, PVH is in line with its industry, outperforming 52.00% of the companies in the same industry.
In the last couple of years the Operating Margin of PVH has remained more or less at the same level.
PVH has a better Gross Margin (58.79%) than 72.00% of its industry peers.
In the last couple of years the Gross Margin of PVH has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.82% | ||
| PM (TTM) | 4.63% | ||
| GM | 58.79% |
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
PVH has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
PVH has less shares outstanding than it did 1 year ago.
The number of shares outstanding for PVH has been reduced compared to 5 years ago.
The debt/assets ratio for PVH has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.17 indicates that PVH is not a great score, but indicates only limited risk for bankruptcy at the moment.
PVH has a Altman-Z score of 2.17. This is in the lower half of the industry: PVH underperforms 68.00% of its industry peers.
The Debt to FCF ratio of PVH is 3.98, which is a good value as it means it would take PVH, 3.98 years of fcf income to pay off all of its debts.
PVH's Debt to FCF ratio of 3.98 is fine compared to the rest of the industry. PVH outperforms 62.00% of its industry peers.
PVH has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.40, PVH is in line with its industry, outperforming 54.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 3.98 | ||
| Altman-Z | 2.17 |
ROIC/WACC0.9
WACC6.66%
2.3 Liquidity
PVH has a Current Ratio of 1.11. This is a normal value and indicates that PVH is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of PVH (1.11) is worse than 90.00% of its industry peers.
PVH has a Quick Ratio of 1.11. This is a bad value and indicates that PVH is not financially healthy enough and could expect problems in meeting its short term obligations.
PVH's Quick ratio of 0.53 is on the low side compared to the rest of the industry. PVH is outperformed by 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.07% over the past year.
PVH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.27% yearly.
The Revenue has decreased by -3.63% in the past year.
PVH shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.67% yearly.
EPS 1Y (TTM)5.07%
EPS 3Y5.03%
EPS 5Y4.27%
EPS Q2Q%-6.12%
Revenue 1Y (TTM)-3.63%
Revenue growth 3Y-1.86%
Revenue growth 5Y-2.67%
Sales Q2Q%1.62%
3.2 Future
The Earnings Per Share is expected to grow by 10.30% on average over the next years. This is quite good.
PVH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.93% yearly.
EPS Next Y-6.58%
EPS Next 2Y2.61%
EPS Next 3Y6.54%
EPS Next 5Y10.3%
Revenue Next Year2.51%
Revenue Next 2Y2.26%
Revenue Next 3Y2.48%
Revenue Next 5Y2.93%
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
Based on the Price/Earnings ratio of 6.35, the valuation of PVH can be described as very cheap.
Based on the Price/Earnings ratio, PVH is valued cheaper than 94.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.54. PVH is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 5.96, which indicates a rather cheap valuation of PVH.
100.00% of the companies in the same industry are more expensive than PVH, based on the Price/Forward Earnings ratio.
PVH is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.28, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.35 | ||
| Fwd PE | 5.96 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PVH is valued a bit cheaper than 78.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PVH is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.01 | ||
| EV/EBITDA | 6.47 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.49
EPS Next 2Y2.61%
EPS Next 3Y6.54%
5. Dividend
5.1 Amount
PVH has a yearly dividend return of 0.20%, which is pretty low.
Compared to an average industry Dividend Yield of 3.93, PVH pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, 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 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
2.06% 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.
DP2.06%
EPS Next 2Y2.61%
EPS Next 3Y6.54%
73.74
-0.97 (-1.3%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners113.95%
Inst Owner Change3.15%
Ins Owners0.79%
Ins Owner Change14.37%
Market Cap3.54B
Analysts75.79
Price Target89.52 (21.4%)
Short Float %13.82%
Short Ratio3.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.2% |
Yearly Dividend0.16
Dividend Growth(5Y)0.18%
DP2.06%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.96%
Min EPS beat(2)0.73%
Max EPS beat(2)1.19%
EPS beat(4)4
Avg EPS beat(4)11.97%
Min EPS beat(4)0.73%
Max EPS beat(4)30.12%
EPS beat(8)8
Avg EPS beat(8)10.07%
EPS beat(12)12
Avg EPS beat(12)12.75%
EPS beat(16)16
Avg EPS beat(16)23.88%
Revenue beat(2)2
Avg Revenue beat(2)1.07%
Min Revenue beat(2)0.62%
Max Revenue beat(2)1.51%
Revenue beat(4)3
Avg Revenue beat(4)0.52%
Min Revenue beat(4)-0.66%
Max Revenue beat(4)1.51%
Revenue beat(8)4
Avg Revenue beat(8)0.09%
Revenue beat(12)7
Avg Revenue beat(12)0.15%
Revenue beat(16)10
Avg Revenue beat(16)0.43%
PT rev (1m)-2.06%
PT rev (3m)-7.37%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)-18.58%
EPS NY rev (1m)0%
EPS NY rev (3m)-10.89%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)2.69%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)1.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.35 | ||
| Fwd PE | 5.96 | ||
| P/S | 0.41 | ||
| P/FCF | 6.01 | ||
| P/OCF | 4.81 | ||
| P/B | 0.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.47 |
EPS(TTM)11.61
EY15.74%
EPS(NY)12.38
Fwd EY16.79%
FCF(TTM)12.27
FCFY16.63%
OCF(TTM)15.32
OCFY20.77%
SpS180.67
BVpS96.07
TBVpS-7.88
PEG (NY)N/A
PEG (5Y)1.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.77% | ||
| ROE | 8.71% | ||
| ROCE | 7.46% | ||
| ROIC | 6.02% | ||
| ROICexc | 6.17% | ||
| ROICexgc | 16.91% | ||
| OM | 6.82% | ||
| PM (TTM) | 4.63% | ||
| GM | 58.79% | ||
| FCFM | 6.79% |
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-Score5
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 3.98 | ||
| Debt/EBITDA | 2.11 | ||
| Cap/Depr | 52.77% | ||
| Cap/Sales | 1.69% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.57% | ||
| Profit Quality | 146.56% | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z | 2.17 |
F-Score5
WACC6.66%
ROIC/WACC0.9
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)5.07%
EPS 3Y5.03%
EPS 5Y4.27%
EPS Q2Q%-6.12%
EPS Next Y-6.58%
EPS Next 2Y2.61%
EPS Next 3Y6.54%
EPS Next 5Y10.3%
Revenue 1Y (TTM)-3.63%
Revenue growth 3Y-1.86%
Revenue growth 5Y-2.67%
Sales Q2Q%1.62%
Revenue Next Year2.51%
Revenue Next 2Y2.26%
Revenue Next 3Y2.48%
Revenue Next 5Y2.93%
EBIT growth 1Y-35.86%
EBIT growth 3Y-14.8%
EBIT growth 5Y-2.1%
EBIT Next Year32.09%
EBIT Next 3Y10.36%
EBIT Next 5Y7.43%
FCF growth 1Y2176.06%
FCF growth 3Y-10.17%
FCF growth 5Y-2.92%
OCF growth 1Y175.52%
OCF growth 3Y-11.56%
OCF growth 5Y-6.2%