RALPH LAUREN CORP (RL) Stock Fundamental Analysis
USA - NYSE:RL - US7512121010 - Common Stock
332.77 USD
-7.44 (-2.19%)
332.77 USD
0 (0%)
RL gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 48 industry peers in the Textiles, Apparel & Luxury Goods industry. Both the health and profitability get an excellent rating, making RL a very profitable company, without any liquidiy or solvency issues. RL has a correct valuation and a medium growth rate. These ratings would make RL suitable for quality investing!
1. Profitability
1.1 Basic Checks
RL had positive earnings in the past year.
In the past year RL had a positive cash flow from operations.
Of the past 5 years RL 4 years were profitable.
RL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of RL (11.63%) is better than 89.58% of its industry peers.
Looking at the Return On Equity, with a value of 33.08%, RL belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 16.88%, RL belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for RL is in line with the industry average of 12.21%.
The 3 year average ROIC (13.65%) for RL is below the current ROIC(16.88%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.63% | ||
| ROE | 33.08% | ||
| ROIC | 16.88% |
ROA(3y)9.34%
ROA(5y)6.85%
ROE(3y)25.53%
ROE(5y)19.12%
ROIC(3y)13.65%
ROIC(5y)11.13%
1.3 Margins
The Profit Margin of RL (11.28%) is better than 91.67% of its industry peers.
In the last couple of years the Profit Margin of RL has grown nicely.
With an excellent Operating Margin value of 15.22%, RL belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
In the last couple of years the Operating Margin of RL has grown nicely.
The Gross Margin of RL (69.22%) is better than 95.83% of its industry peers.
In the last couple of years the Gross Margin of RL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.22% | ||
| PM (TTM) | 11.28% | ||
| GM | 69.22% |
OM growth 3Y1.83%
OM growth 5Y16.31%
PM growth 3Y2.83%
PM growth 5Y10.96%
GM growth 3Y0.92%
GM growth 5Y2.93%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RL is creating some value.
RL has less shares outstanding than it did 1 year ago.
RL has less shares outstanding than it did 5 years ago.
RL has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.90 indicates that RL is not in any danger for bankruptcy at the moment.
RL's Altman-Z score of 5.90 is amongst the best of the industry. RL outperforms 89.58% of its industry peers.
The Debt to FCF ratio of RL is 2.22, which is a good value as it means it would take RL, 2.22 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.22, RL is doing good in the industry, outperforming 77.08% of the companies in the same industry.
RL has a Debt/Equity ratio of 0.57. This is a neutral value indicating RL is somewhat dependend on debt financing.
RL has a Debt to Equity ratio of 0.57. This is comparable to the rest of the industry: RL outperforms 41.67% of its industry peers.
Although RL does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 2.22 | ||
| Altman-Z | 5.9 |
ROIC/WACC1.6
WACC10.56%
2.3 Liquidity
A Current Ratio of 2.04 indicates that RL has no problem at all paying its short term obligations.
The Current ratio of RL (2.04) is better than 62.50% of its industry peers.
A Quick Ratio of 1.35 indicates that RL should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.35, RL is in the better half of the industry, outperforming 70.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.04 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
RL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 31.74%, which is quite impressive.
Measured over the past years, RL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.66% on average per year.
The Revenue has grown by 12.32% in the past year. This is quite good.
RL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.82% yearly.
EPS 1Y (TTM)31.74%
EPS 3Y13.92%
EPS 5Y13.66%
EPS Q2Q%49.21%
Revenue 1Y (TTM)12.32%
Revenue growth 3Y4.41%
Revenue growth 5Y2.82%
Sales Q2Q%16.49%
3.2 Future
The Earnings Per Share is expected to grow by 8.84% on average over the next years. This is quite good.
RL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.86% yearly.
EPS Next Y24.73%
EPS Next 2Y16.58%
EPS Next 3Y14.89%
EPS Next 5Y8.84%
Revenue Next Year8.12%
Revenue Next 2Y6.48%
Revenue Next 3Y6.04%
Revenue Next 5Y3.86%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
With a Price/Earnings ratio of 22.71, RL is valued on the expensive side.
RL's Price/Earnings is on the same level as the industry average.
RL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.91, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 19.86 indicates a rather expensive valuation of RL.
RL's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of RL to the average of the S&P500 Index (34.57), we can say RL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.71 | ||
| Fwd PE | 19.86 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RL is valued a bit more expensive than 62.50% of the companies in the same industry.
RL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.19 | ||
| EV/EBITDA | 14.4 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
RL has an outstanding profitability rating, which may justify a higher PE ratio.
RL's earnings are expected to grow with 14.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.92
PEG (5Y)1.66
EPS Next 2Y16.58%
EPS Next 3Y14.89%
5. Dividend
5.1 Amount
RL has a Yearly Dividend Yield of 1.07%.
Compared to an average industry Dividend Yield of 3.40, RL pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.07, RL pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
5.2 History
The dividend of RL has a limited annual growth rate of 3.54%.
RL has been paying a dividend for at least 10 years, so it has a reliable track record.
RL has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)3.54%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
24.37% of the earnings are spent on dividend by RL. This is a low number and sustainable payout ratio.
RL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP24.37%
EPS Next 2Y16.58%
EPS Next 3Y14.89%
332.77
-7.44 (-2.19%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners105.4%
Inst Owner Change0.93%
Ins Owners3.55%
Ins Owner Change10.33%
Market Cap20.16B
Revenue(TTM)7.57B
Net Income(TTM)854.30M
Analysts82.96
Price Target357.41 (7.4%)
Short Float %3.68%
Short Ratio2.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
Yearly Dividend3.22
Dividend Growth(5Y)3.54%
DP24.37%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.8%
Min EPS beat(2)4.63%
Max EPS beat(2)6.97%
EPS beat(4)4
Avg EPS beat(4)6.44%
Min EPS beat(4)4.24%
Max EPS beat(4)9.93%
EPS beat(8)7
Avg EPS beat(8)6.07%
EPS beat(12)11
Avg EPS beat(12)9.5%
EPS beat(16)15
Avg EPS beat(16)11.6%
Revenue beat(2)2
Avg Revenue beat(2)2.05%
Min Revenue beat(2)0.77%
Max Revenue beat(2)3.32%
Revenue beat(4)4
Avg Revenue beat(4)1.89%
Min Revenue beat(4)0.14%
Max Revenue beat(4)3.35%
Revenue beat(8)5
Avg Revenue beat(8)0.51%
Revenue beat(12)7
Avg Revenue beat(12)0.28%
Revenue beat(16)10
Avg Revenue beat(16)0.81%
PT rev (1m)2.74%
PT rev (3m)5.42%
EPS NQ rev (1m)0.45%
EPS NQ rev (3m)20.96%
EPS NY rev (1m)0.28%
EPS NY rev (3m)8.27%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)4.29%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)2.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.71 | ||
| Fwd PE | 19.86 | ||
| P/S | 2.66 | ||
| P/FCF | 30.19 | ||
| P/OCF | 18.49 | ||
| P/B | 7.81 | ||
| P/tB | 12.49 | ||
| EV/EBITDA | 14.4 |
EPS(TTM)14.65
EY4.4%
EPS(NY)16.76
Fwd EY5.04%
FCF(TTM)11.02
FCFY3.31%
OCF(TTM)17.99
OCFY5.41%
SpS124.99
BVpS42.63
TBVpS26.64
PEG (NY)0.92
PEG (5Y)1.66
Graham Number118.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.63% | ||
| ROE | 33.08% | ||
| ROCE | 20.93% | ||
| ROIC | 16.88% | ||
| ROICexc | 24.07% | ||
| ROICexgc | 32.12% | ||
| OM | 15.22% | ||
| PM (TTM) | 11.28% | ||
| GM | 69.22% | ||
| FCFM | 8.82% |
ROA(3y)9.34%
ROA(5y)6.85%
ROE(3y)25.53%
ROE(5y)19.12%
ROIC(3y)13.65%
ROIC(5y)11.13%
ROICexc(3y)21.58%
ROICexc(5y)18.48%
ROICexgc(3y)31.01%
ROICexgc(5y)27.05%
ROCE(3y)16.93%
ROCE(5y)13.8%
ROICexgc growth 3Y5.94%
ROICexgc growth 5Y26.51%
ROICexc growth 3Y6.82%
ROICexc growth 5Y25.11%
OM growth 3Y1.83%
OM growth 5Y16.31%
PM growth 3Y2.83%
PM growth 5Y10.96%
GM growth 3Y0.92%
GM growth 5Y2.93%
F-Score8
Asset Turnover1.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 2.22 | ||
| Debt/EBITDA | 1.06 | ||
| Cap/Depr | 190.35% | ||
| Cap/Sales | 5.58% | ||
| Interest Coverage | 28.32 | ||
| Cash Conversion | 79.3% | ||
| Profit Quality | 78.16% | ||
| Current Ratio | 2.04 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | 5.9 |
F-Score8
WACC10.56%
ROIC/WACC1.6
Cap/Depr(3y)89.69%
Cap/Depr(5y)77.05%
Cap/Sales(3y)2.97%
Cap/Sales(5y)2.81%
Profit Quality(3y)104.73%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)31.74%
EPS 3Y13.92%
EPS 5Y13.66%
EPS Q2Q%49.21%
EPS Next Y24.73%
EPS Next 2Y16.58%
EPS Next 3Y14.89%
EPS Next 5Y8.84%
Revenue 1Y (TTM)12.32%
Revenue growth 3Y4.41%
Revenue growth 5Y2.82%
Sales Q2Q%16.49%
Revenue Next Year8.12%
Revenue Next 2Y6.48%
Revenue Next 3Y6.04%
Revenue Next 5Y3.86%
EBIT growth 1Y32.83%
EBIT growth 3Y6.32%
EBIT growth 5Y19.59%
EBIT Next Year41.82%
EBIT Next 3Y18.16%
EBIT Next 5Y10.4%
FCF growth 1Y24.41%
FCF growth 3Y22.89%
FCF growth 5Y16.04%
OCF growth 1Y44.8%
OCF growth 3Y19.94%
OCF growth 5Y10.36%
RALPH LAUREN CORP / RL FAQ
What is the ChartMill fundamental rating of RALPH LAUREN CORP (RL) stock?
ChartMill assigns a fundamental rating of 7 / 10 to RL.
What is the valuation status for RL stock?
ChartMill assigns a valuation rating of 4 / 10 to RALPH LAUREN CORP (RL). This can be considered as Fairly Valued.
How profitable is RALPH LAUREN CORP (RL) stock?
RALPH LAUREN CORP (RL) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for RL stock?
The Price/Earnings (PE) ratio for RALPH LAUREN CORP (RL) is 22.71 and the Price/Book (PB) ratio is 7.81.
Can you provide the expected EPS growth for RL stock?
The Earnings per Share (EPS) of RALPH LAUREN CORP (RL) is expected to grow by 24.73% in the next year.