RALPH LAUREN CORP (RL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RL - US7512121010 - Common Stock
369.11 USD
+5.86 (+1.61%)
Overall RL gets a fundamental rating of 7 out of 10. We evaluated RL against 45 industry peers in the Textiles, Apparel & Luxury Goods industry. RL gets an excellent profitability rating and is at the same time showing great financial health properties. RL has a correct valuation and a medium growth rate. This makes RL very considerable for quality investing!
1. Profitability
1.1 Basic Checks
RL had positive earnings in the past year.
RL had a positive operating cash flow in the past year.
RL had positive earnings in 4 of the past 5 years.
RL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RL has a Return On Assets of 11.63%. This is amongst the best in the industry. RL outperforms 91.11% of its industry peers.
RL has a Return On Equity of 33.08%. This is amongst the best in the industry. RL outperforms 88.89% of its industry peers.
RL has a Return On Invested Capital of 16.88%. This is amongst the best in the industry. RL outperforms 86.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RL is above the industry average of 11.59%.
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
RL has a better Profit Margin (11.28%) than 91.11% of its industry peers.
RL's Profit Margin has improved in the last couple of years.
The Operating Margin of RL (15.22%) is better than 86.67% of its industry peers.
In the last couple of years the Operating Margin of RL has grown nicely.
RL has a better Gross Margin (69.22%) than 95.56% 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.
Compared to 5 years ago, RL has less shares outstanding
RL has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.14 indicates that RL is not in any danger for bankruptcy at the moment.
RL has a Altman-Z score of 6.14. This is amongst the best in the industry. RL outperforms 91.11% 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.
Looking at the Debt to FCF ratio, with a value of 2.22, RL is in the better half of the industry, outperforming 77.78% 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.
The Debt to Equity ratio of RL (0.57) is worse than 64.44% 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 | 6.14 |
ROIC/WACC1.51
WACC11.2%
2.3 Liquidity
RL has a Current Ratio of 2.04. This indicates that RL is financially healthy and has no problem in meeting its short term obligations.
RL has a Current ratio of 2.04. This is comparable to the rest of the industry: RL outperforms 55.56% of its industry peers.
RL has a Quick Ratio of 1.35. This is a normal value and indicates that RL is financially healthy and should not expect problems in meeting its short term obligations.
RL's Quick ratio of 1.35 is fine compared to the rest of the industry. RL outperforms 68.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.04 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 31.74% over the past year.
The Earnings Per Share has been growing by 13.66% on average over the past years. This is quite good.
The Revenue has grown by 12.32% in the past year. This is quite good.
The Revenue has been growing slightly by 2.82% on average over the past years.
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
RL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.21% yearly.
The Revenue is expected to grow by 4.92% on average over the next years.
EPS Next Y28.71%
EPS Next 2Y18.51%
EPS Next 3Y16.36%
EPS Next 5Y10.21%
Revenue Next Year10.44%
Revenue Next 2Y7.7%
Revenue Next 3Y6.85%
Revenue Next 5Y4.92%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 25.20, RL can be considered very expensive at the moment.
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 27.25, which is the current average of the S&P500 Index.
RL is valuated rather expensively with a Price/Forward Earnings ratio of 21.32.
The rest of the industry has a similar Price/Forward Earnings ratio as RL.
The average S&P500 Price/Forward Earnings ratio is at 23.98. RL is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.2 | ||
| Fwd PE | 21.32 |
4.2 Price Multiples
60.00% of the companies in the same industry are cheaper than RL, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RL is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.52 | ||
| EV/EBITDA | 15.76 |
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.
The excellent profitability rating of RL may justify a higher PE ratio.
A more expensive valuation may be justified as RL's earnings are expected to grow with 16.36% in the coming years.
PEG (NY)0.88
PEG (5Y)1.84
EPS Next 2Y18.51%
EPS Next 3Y16.36%
5. Dividend
5.1 Amount
With a yearly dividend of 1.00%, RL is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.46, RL has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 1.92, RL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
5.2 History
The dividend of RL has a limited annual growth rate of 3.54%.
RL has paid a dividend for at least 10 years, which is 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 2Y18.51%
EPS Next 3Y16.36%
NYSE:RL (1/13/2026, 2:54:03 PM)
369.11
+5.86 (+1.61%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners101.16%
Inst Owner Change0.25%
Ins Owners3.54%
Ins Owner Change-0.3%
Market Cap22.38B
Revenue(TTM)7.57B
Net Income(TTM)854.30M
Analysts82.22
Price Target381.64 (3.39%)
Short Float %4.59%
Short Ratio2.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
Yearly Dividend3.22
Dividend Growth(5Y)3.54%
DP24.37%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
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%
PT rev (3m)9.7%
EPS NQ rev (1m)0.1%
EPS NQ rev (3m)8.18%
EPS NY rev (1m)0.07%
EPS NY rev (3m)3.48%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)3.62%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)2.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.2 | ||
| Fwd PE | 21.32 | ||
| P/S | 2.96 | ||
| P/FCF | 33.52 | ||
| P/OCF | 20.54 | ||
| P/B | 8.67 | ||
| P/tB | 13.87 | ||
| EV/EBITDA | 15.76 |
EPS(TTM)14.65
EY3.97%
EPS(NY)17.32
Fwd EY4.69%
FCF(TTM)11.01
FCFY2.98%
OCF(TTM)17.97
OCFY4.87%
SpS124.84
BVpS42.58
TBVpS26.61
PEG (NY)0.88
PEG (5Y)1.84
Graham Number118.48
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 | 6.14 |
F-Score8
WACC11.2%
ROIC/WACC1.51
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 Y28.71%
EPS Next 2Y18.51%
EPS Next 3Y16.36%
EPS Next 5Y10.21%
Revenue 1Y (TTM)12.32%
Revenue growth 3Y4.41%
Revenue growth 5Y2.82%
Sales Q2Q%16.49%
Revenue Next Year10.44%
Revenue Next 2Y7.7%
Revenue Next 3Y6.85%
Revenue Next 5Y4.92%
EBIT growth 1Y32.83%
EBIT growth 3Y6.32%
EBIT growth 5Y19.59%
EBIT Next Year47.21%
EBIT Next 3Y19.71%
EBIT Next 5Y12.28%
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 of RALPH LAUREN CORP (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.
What are the PE and PB ratios of RALPH LAUREN CORP (RL) stock?
The Price/Earnings (PE) ratio for RALPH LAUREN CORP (RL) is 25.2 and the Price/Book (PB) ratio is 8.67.
What is the financial health of RALPH LAUREN CORP (RL) stock?
The financial health rating of RALPH LAUREN CORP (RL) is 7 / 10.