RALPH LAUREN CORP (RL) Fundamental Analysis & Valuation
NYSE:RL • US7512121010
338.36 USD
-15.06 (-4.26%)
At close: Mar 6, 2026
338.4 USD
+0.04 (+0.01%)
After Hours: 3/6/2026, 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.
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. These ratings could make RL a good candidate for quality investing.
1. RL Profitability Analysis
1.1 Basic Checks
- RL had positive earnings in the past year.
- RL had a positive operating cash flow in the past year.
- Of the past 5 years RL 4 years were profitable.
- In the past 5 years RL always reported a positive cash flow from operatings.
1.2 Ratios
- With an excellent Return On Assets value of 11.75%, RL belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
- RL has a Return On Equity of 31.80%. This is amongst the best in the industry. RL outperforms 88.89% of its industry peers.
- RL has a Return On Invested Capital of 17.38%. This is amongst the best in the industry. RL outperforms 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 11.70%.
- 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
- RL's Profit Margin of 11.73% is amongst the best of the industry. RL outperforms 93.33% of its industry peers.
- RL's Profit Margin has improved in the last couple of years.
- RL has a Operating Margin of 16.01%. This is amongst the best in the industry. RL outperforms 86.67% of its industry peers.
- In the last couple of years the Operating Margin of RL has grown nicely.
- Looking at the Gross Margin, with a value of 69.65%, RL belongs to the top of the industry, outperforming 95.56% of the companies in the same industry.
- In the last couple of years the Gross Margin of RL has grown nicely.
| 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
- RL has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for RL has been reduced compared to 1 year ago.
- Compared to 5 years ago, RL has less shares outstanding
- Compared to 1 year ago, RL has an improved debt to assets ratio.
2.2 Solvency
- RL has an Altman-Z score of 5.95. This indicates that RL is financially healthy and has little risk of bankruptcy at the moment.
- RL has a Altman-Z score of 5.95. This is amongst the best in the industry. RL outperforms 91.11% of its industry peers.
- RL has a debt to FCF ratio of 2.13. This is a good value and a sign of high solvency as RL would need 2.13 years to pay back of all of its debts.
- RL's Debt to FCF ratio of 2.13 is fine compared to the rest of the industry. RL outperforms 75.56% of its industry peers.
- RL has a Debt/Equity ratio of 0.50. This is a neutral value indicating RL is somewhat dependend on debt financing.
- RL has a worse Debt to Equity ratio (0.50) than 62.22% of its industry peers.
- Although RL's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. 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 | 0.5 | ||
| Debt/FCF | 2.13 | ||
| Altman-Z | 5.95 |
ROIC/WACC1.62
WACC10.72%
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.
- The Current ratio of RL (2.10) is comparable to the rest of the industry.
- RL has a Quick Ratio of 1.52. 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 1.52 is fine compared to the rest of the industry. RL outperforms 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
- RL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 36.36%, which is quite impressive.
- RL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.66% yearly.
- Looking at the last year, RL shows a quite strong growth in Revenue. The Revenue has grown by 12.71% in the last year.
- Measured over the past years, RL shows a small growth in Revenue. The Revenue has been growing by 2.82% on average per year.
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.
- The Revenue is expected to grow by 4.92% on average over the next years.
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
- 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. RL Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 21.08, RL is valued on the expensive side.
- RL's Price/Earnings is on the same level as the industry average.
- RL's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.29.
- A Price/Forward Earnings ratio of 19.23 indicates a rather expensive valuation of RL.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of RL is on the same level as its industry peers.
- RL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.08 | ||
| Fwd PE | 19.23 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as RL.
- RL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.49 | ||
| EV/EBITDA | 13.78 |
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.
- RL has an outstanding profitability rating, which 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)0.71
PEG (5Y)1.54
EPS Next 2Y19.47%
EPS Next 3Y16.98%
5. RL Dividend Analysis
5.1 Amount
- With a yearly dividend of 0.96%, RL is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 1.40, RL has a dividend in line with its industry peers.
- 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
- RL pays out 23.11% of its income as dividend. This is a 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
338.36
-15.06 (-4.26%)
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 Change2.78%
Ins Owners3.54%
Ins Owner Change-3.4%
Market Cap20.48B
Revenue(TTM)7.83B
Net Income(TTM)918.50M
Analysts82.14
Price Target409.61 (21.06%)
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)4.36%
PT rev (3m)10.41%
EPS NQ rev (1m)15.52%
EPS NQ rev (3m)20.11%
EPS NY rev (1m)0.27%
EPS NY rev (3m)3.91%
Revenue NQ rev (1m)5.17%
Revenue NQ rev (3m)5.58%
Revenue NY rev (1m)2.46%
Revenue NY rev (3m)4.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.08 | ||
| Fwd PE | 19.23 | ||
| P/S | 2.62 | ||
| P/FCF | 29.49 | ||
| P/OCF | 18.11 | ||
| P/B | 7.09 | ||
| P/tB | 10.66 | ||
| EV/EBITDA | 13.78 |
EPS(TTM)16.05
EY4.74%
EPS(NY)17.6
Fwd EY5.2%
FCF(TTM)11.47
FCFY3.39%
OCF(TTM)18.68
OCFY5.52%
SpS129.39
BVpS47.71
TBVpS31.74
PEG (NY)0.71
PEG (5Y)1.54
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 | 5.95 |
F-Score8
WACC10.72%
ROIC/WACC1.62
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 21.08 and the Price/Book (PB) ratio is 7.09.
What is the financial health of RALPH LAUREN CORP (RL) stock?
The financial health rating of RALPH LAUREN CORP (RL) is 7 / 10.