RALPH LAUREN CORP (RL) Fundamental Analysis & Valuation
NYSE:RL • US7512121010
330.73 USD
-4.36 (-1.3%)
At close: Mar 13, 2026
330.03 USD
-0.7 (-0.21%)
After Hours: 3/13/2026, 8:04:00 PM
This RL fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
Taking everything into account, RL scores 7 out of 10 in our fundamental rating. RL was compared to 45 industry peers in the Textiles, Apparel & Luxury Goods industry. RL has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. RL is not valued too expensively and it also shows a decent growth rate. These ratings would make RL suitable for quality investing!
1. RL Profitability Analysis
1.1 Basic Checks
- In the past year RL was profitable.
- 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 better Return On Assets (11.75%) than 93.33% of its industry peers.
- Looking at the Return On Equity, with a value of 31.80%, RL belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
- RL has a better Return On Invested Capital (17.38%) than 88.89% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for RL is in line with the industry average of 11.74%.
- The last Return On Invested Capital (17.38%) for RL is above the 3 year average (13.65%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.75% | ||
| ROE | 31.8% | ||
| ROIC | 17.38% |
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 (11.73%) is better than 93.33% of its industry peers.
- RL's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 16.01%, RL belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
- RL's Operating Margin has improved in the last couple of years.
- The Gross Margin of RL (69.65%) is better than 95.56% of its industry peers.
- RL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.01% | ||
| PM (TTM) | 11.73% | ||
| GM | 69.65% |
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. RL Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RL is still creating some value.
- RL has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for RL has been reduced compared to 5 years ago.
- RL has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 5.81 indicates that RL is not in any danger for bankruptcy at the moment.
- RL has a Altman-Z score of 5.81. This is amongst the best in the industry. RL outperforms 88.89% of its industry peers.
- The Debt to FCF ratio of RL is 2.13, which is a good value as it means it would take RL, 2.13 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 2.13, RL is doing good in the industry, outperforming 75.56% of the companies in the same industry.
- A Debt/Equity ratio of 0.50 indicates that RL is somewhat dependend on debt financing.
- RL has a worse Debt to Equity ratio (0.50) than 62.22% of its industry peers.
- Even though the debt/equity ratio score it not favorable for RL, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 2.13 | ||
| Altman-Z | 5.81 |
ROIC/WACC1.63
WACC10.67%
2.3 Liquidity
- RL has a Current Ratio of 2.10. This indicates that RL is financially healthy and has no problem in meeting its short term obligations.
- RL has a Current ratio (2.10) which is in line with its industry peers.
- A Quick Ratio of 1.52 indicates that RL should not have too much problems paying its short term obligations.
- The Quick ratio of RL (1.52) is better than 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.1 | ||
| Quick Ratio | 1.52 |
3. RL Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an impressive 36.36% over the past year.
- 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.
- Looking at the last year, RL shows a quite strong growth in Revenue. The Revenue has grown by 12.71% in the last year.
- RL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.82% yearly.
EPS 1Y (TTM)36.36%
EPS 3Y13.92%
EPS 5Y13.66%
EPS Q2Q%29.05%
Revenue 1Y (TTM)12.71%
Revenue growth 3Y4.41%
Revenue growth 5Y2.82%
Sales Q2Q%12.25%
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.
- RL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.92% yearly.
EPS Next Y29.61%
EPS Next 2Y19.47%
EPS Next 3Y16.98%
EPS Next 5Y10.21%
Revenue Next Year13.32%
Revenue Next 2Y9.48%
Revenue Next 3Y7.87%
Revenue Next 5Y4.92%
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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. RL Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 20.61 indicates a rather expensive valuation of RL.
- RL's Price/Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 25.70, RL is valued at the same level.
- A Price/Forward Earnings ratio of 18.79 indicates a rather expensive valuation of RL.
- The rest of the industry has a similar Price/Forward Earnings ratio as RL.
- RL is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.84, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.61 | ||
| Fwd PE | 18.79 |
4.2 Price Multiples
- RL's Enterprise Value to EBITDA is on the same level as the industry average.
- RL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.83 | ||
| EV/EBITDA | 13.03 |
4.3 Compensation for Growth
- RL's 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.
- RL's earnings are expected to grow with 16.98% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.7
PEG (5Y)1.51
EPS Next 2Y19.47%
EPS Next 3Y16.98%
5. RL Dividend Analysis
5.1 Amount
- RL has a yearly dividend return of 0.96%, which is pretty low.
- RL's Dividend Yield is comparable with the industry average which is at 1.43.
- Compared to an average S&P500 Dividend Yield of 1.82, RL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
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
- 23.11% of the earnings are spent on dividend by RL. This is a low number and sustainable payout ratio.
- The dividend of RL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP23.11%
EPS Next 2Y19.47%
EPS Next 3Y16.98%
RL Fundamentals: All Metrics, Ratios and Statistics
330.73
-4.36 (-1.3%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)02-05 2026-02-05/bmo
Earnings (Next)05-20 2026-05-20/amc
Inst Owners101.16%
Inst Owner Change2.81%
Ins Owners3.54%
Ins Owner Change-3.32%
Market Cap20.02B
Revenue(TTM)7.83B
Net Income(TTM)918.50M
Analysts82.14
Price Target409.61 (23.85%)
Short Float %6.54%
Short Ratio3.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
Yearly Dividend3.22
Dividend Growth(5Y)3.54%
DP23.11%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.45%
Min EPS beat(2)3.93%
Max EPS beat(2)6.97%
EPS beat(4)4
Avg EPS beat(4)6.36%
Min EPS beat(4)3.93%
Max EPS beat(4)9.93%
EPS beat(8)7
Avg EPS beat(8)4.76%
EPS beat(12)11
Avg EPS beat(12)8.9%
EPS beat(16)15
Avg EPS beat(16)9.89%
Revenue beat(2)2
Avg Revenue beat(2)2.14%
Min Revenue beat(2)0.97%
Max Revenue beat(2)3.32%
Revenue beat(4)4
Avg Revenue beat(4)1.3%
Min Revenue beat(4)0.14%
Max Revenue beat(4)3.32%
Revenue beat(8)5
Avg Revenue beat(8)0.56%
Revenue beat(12)7
Avg Revenue beat(12)0.29%
Revenue beat(16)10
Avg Revenue beat(16)0.42%
PT rev (1m)2.7%
PT rev (3m)9.48%
EPS NQ rev (1m)15.52%
EPS NQ rev (3m)20.16%
EPS NY rev (1m)0%
EPS NY rev (3m)0.76%
Revenue NQ rev (1m)5.17%
Revenue NQ rev (3m)5.58%
Revenue NY rev (1m)2.27%
Revenue NY rev (3m)2.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.61 | ||
| Fwd PE | 18.79 | ||
| P/S | 2.56 | ||
| P/FCF | 28.83 | ||
| P/OCF | 17.7 | ||
| P/B | 6.93 | ||
| P/tB | 10.42 | ||
| EV/EBITDA | 13.03 |
EPS(TTM)16.05
EY4.85%
EPS(NY)17.6
Fwd EY5.32%
FCF(TTM)11.47
FCFY3.47%
OCF(TTM)18.68
OCFY5.65%
SpS129.39
BVpS47.71
TBVpS31.74
PEG (NY)0.7
PEG (5Y)1.51
Graham Number131.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.75% | ||
| ROE | 31.8% | ||
| ROCE | 21.55% | ||
| ROIC | 17.38% | ||
| ROICexc | 28.34% | ||
| ROICexgc | 38.88% | ||
| OM | 16.01% | ||
| PM (TTM) | 11.73% | ||
| GM | 69.65% | ||
| FCFM | 8.87% |
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
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 2.13 | ||
| Debt/EBITDA | 0.98 | ||
| Cap/Depr | 192.17% | ||
| Cap/Sales | 5.57% | ||
| Interest Coverage | 25.59 | ||
| Cash Conversion | 76.37% | ||
| Profit Quality | 75.61% | ||
| Current Ratio | 2.1 | ||
| Quick Ratio | 1.52 | ||
| Altman-Z | 5.81 |
F-Score8
WACC10.67%
ROIC/WACC1.63
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)36.36%
EPS 3Y13.92%
EPS 5Y13.66%
EPS Q2Q%29.05%
EPS Next Y29.61%
EPS Next 2Y19.47%
EPS Next 3Y16.98%
EPS Next 5Y10.21%
Revenue 1Y (TTM)12.71%
Revenue growth 3Y4.41%
Revenue growth 5Y2.82%
Sales Q2Q%12.25%
Revenue Next Year13.32%
Revenue Next 2Y9.48%
Revenue Next 3Y7.87%
Revenue Next 5Y4.92%
EBIT growth 1Y31.69%
EBIT growth 3Y6.32%
EBIT growth 5Y19.59%
EBIT Next Year54.09%
EBIT Next 3Y21.52%
EBIT Next 5Y12.28%
FCF growth 1Y-10.53%
FCF growth 3Y22.89%
FCF growth 5Y16.04%
OCF growth 1Y17.49%
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 20.61 and the Price/Book (PB) ratio is 6.93.
What is the financial health of RALPH LAUREN CORP (RL) stock?
The financial health rating of RALPH LAUREN CORP (RL) is 7 / 10.