RALPH LAUREN CORP (RL) Stock Fundamental Analysis
NYSE:RL • US7512121010
354.13 USD
-8.47 (-2.34%)
At close: Mar 2, 2026
354.13 USD
0 (0%)
After Hours: 3/2/2026, 8:04:00 PM
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 decent growth rate and is not valued too expensively. With these ratings, RL could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
- In the past year RL was profitable.
- In the past year RL had a positive cash flow from operations.
- RL had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years RL had a positive operating cash flow.
1.2 Ratios
- RL has a better Return On Assets (11.75%) than 93.33% of its industry peers.
- RL has a better Return On Equity (31.80%) than 88.89% of its industry peers.
- With an excellent Return On Invested Capital value of 17.38%, RL belongs to the best of the industry, outperforming 88.89% 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 11.67%.
- 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.
- In the last couple of years the Profit Margin of RL has grown nicely.
- RL's Operating Margin of 16.01% is amongst the best of the industry. RL outperforms 86.67% of its industry peers.
- In the last couple of years the Operating Margin of RL has grown nicely.
- With an excellent Gross Margin value of 69.65%, RL belongs to the best of the industry, outperforming 95.56% of the companies in the same industry.
- 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. 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.
- The debt/assets ratio for RL has been reduced compared to a year ago.
2.2 Solvency
- RL has an Altman-Z score of 6.01. This indicates that RL is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 6.01, RL belongs to the top of the industry, outperforming 91.11% of the companies in the same industry.
- 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.
- RL has a better Debt to FCF ratio (2.13) than 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.
- With a Debt to Equity ratio value of 0.50, RL is not doing good in the industry: 62.22% of the companies in the same industry are doing better.
- 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 | 6.01 |
ROIC/WACC1.64
WACC10.6%
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 comparable to the rest of the industry.
- A Quick Ratio of 1.52 indicates that RL should not have too much problems paying 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. Growth
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.
- 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 12.71% 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)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
- The Earnings Per Share is expected to grow by 10.21% on average over the next years. This is quite good.
- Based on estimates for the next years, RL will show a small growth in Revenue. The Revenue will grow by 4.92% on average per year.
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. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 22.06, which indicates a rather expensive current valuation of RL.
- RL's Price/Earnings ratio is in line with the industry average.
- When comparing the Price/Earnings ratio of RL to the average of the S&P500 Index (27.13), we can say RL is valued inline with the index average.
- With a Price/Forward Earnings ratio of 20.12, RL is valued on the expensive side.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of RL is on the same level as its industry peers.
- The average S&P500 Price/Forward Earnings ratio is at 28.11. RL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.06 | ||
| Fwd PE | 20.12 |
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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.87 | ||
| EV/EBITDA | 14.15 |
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)0.75
PEG (5Y)1.62
EPS Next 2Y19.47%
EPS Next 3Y16.98%
5. Dividend
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 1.39.
- With a Dividend Yield of 0.96, RL pays less dividend than the S&P500 average, which is at 1.82.
| 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 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
- 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%
354.13
-8.47 (-2.34%)
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 Cap21.44B
Revenue(TTM)7.83B
Net Income(TTM)918.50M
Analysts82.14
Price Target409.61 (15.67%)
Short Float %6.2%
Short Ratio3.49
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 | 22.06 | ||
| Fwd PE | 20.12 | ||
| P/S | 2.74 | ||
| P/FCF | 30.87 | ||
| P/OCF | 18.95 | ||
| P/B | 7.42 | ||
| P/tB | 11.16 | ||
| EV/EBITDA | 14.15 |
EPS(TTM)16.05
EY4.53%
EPS(NY)17.6
Fwd EY4.97%
FCF(TTM)11.47
FCFY3.24%
OCF(TTM)18.68
OCFY5.28%
SpS129.39
BVpS47.71
TBVpS31.74
PEG (NY)0.75
PEG (5Y)1.62
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 | 6.01 |
F-Score8
WACC10.6%
ROIC/WACC1.64
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 22.06 and the Price/Book (PB) ratio is 7.42.
What is the financial health of RALPH LAUREN CORP (RL) stock?
The financial health rating of RALPH LAUREN CORP (RL) is 7 / 10.