US7512121010 - Common Stock

**RL** gets a fundamental rating of **7** out of 10. The analysis compared the fundamentals against 51 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** has a decent growth rate and is not valued too expensively. These ratings would make **RL** suitable for quality investing!

In the past year **RL** was profitable.

Of the past 5 years **RL** 4 years were profitable.

Each year in the past 5 years **RL** had a positive operating cash flow.

Looking at the **Return On Equity**, with a value of **28.85%**, **RL** belongs to the top of the industry, outperforming **86.00%** of the companies in the same industry.

The 3 year average ROIC (**12.08%**) for **RL** is below the current ROIC(**13.18%**), indicating increased profibility in the last year.

Industry Rank | Sector Rank | ||
---|---|---|---|

ROA | 10.28% | ||

ROE | 28.85% | ||

ROIC | 13.18% |

ROA(3y)8.42%

ROA(5y)5.8%

ROE(3y)23.85%

ROE(5y)16.23%

ROIC(3y)12.08%

ROIC(5y)8.89%

Industry Rank | Sector Rank | ||
---|---|---|---|

OM | 12.67% | ||

PM (TTM) | 10.27% | ||

GM | 67.14% |

OM growth 3Y40.1%

OM growth 5Y1.65%

PM growth 3YN/A

PM growth 5Y7.38%

GM growth 3Y0.54%

GM growth 5Y1.6%

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), **RL** 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

The debt/assets ratio for **RL** has been reduced compared to a year ago.

An Altman-Z score of **4.85** indicates that **RL** is not in any danger for bankruptcy at the moment.

The Debt to FCF ratio of **RL** is **1.54**, which is an excellent value as it means it would take **RL**, only **1.54** years of fcf income to pay off all of its debts.

A Debt/Equity ratio of **0.59** indicates that **RL** is somewhat dependend on debt financing.

Looking at the **Debt to Equity ratio**, with a value of **0.59**, **RL** is doing worse than **66.00%** of the companies in the same industry.

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 | 0.59 | ||

Debt/FCF | 1.54 | ||

Altman-Z | 4.85 |

ROIC/WACC1.74

WACC7.59%

A Current Ratio of **2.19** indicates that **RL** has no problem at all paying its short term obligations.

Industry Rank | Sector Rank | ||
---|---|---|---|

Current Ratio | 2.19 | ||

Quick Ratio | 1.53 |

The **Earnings Per Share** has been growing slightly by **7.50%** on average over the past years.

Looking at the last year, **RL** shows a small growth in **Revenue**. The Revenue has grown by **3.06%** in the last year.

The **Revenue** has been growing slightly by **0.99%** on average over the past years.

EPS 1Y (TTM)21.09%

EPS 3Y83.51%

EPS 5Y7.5%

EPS Q2Q%15.38%

Revenue 1Y (TTM)3.06%

Revenue growth 3Y14.65%

Revenue growth 5Y0.99%

Sales Q2Q%1.05%

Based on estimates for the next years, **RL** will show a quite strong growth in **Earnings Per Share**. The EPS will grow by **9.88%** on average per year.

Based on estimates for the next years, **RL** will show a small growth in **Revenue**. The Revenue will grow by **3.34%** on average per year.

EPS Next Y12.89%

EPS Next 2Y12.22%

EPS Next 3Y12.29%

EPS Next 5Y9.88%

Revenue Next Year2.01%

Revenue Next 2Y3.11%

Revenue Next 3Y3.48%

Revenue Next 5Y3.34%

The EPS growth rate is accelerating: in the next years the growth will be better 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.

With a **Price/Earnings** ratio of **17.25**, **RL** is valued on the expensive side.

Compared to the rest of the industry, the **Price/Earnings** ratio of **RL** indicates a somewhat cheap valuation: **RL** is cheaper than 64.00% of the companies listed in the same industry.

Compared to an average S&P500 **Price/Earnings** ratio of **30.57**, **RL** is valued a bit cheaper.

Based on the **Price/Forward Earnings** ratio of **14.17**, the valuation of **RL** can be described as correct.

Based on the **Price/Forward Earnings** ratio, **RL** is valued a bit cheaper than the industry average as 64.00% of the companies are valued more expensively.

When comparing the **Price/Forward Earnings** ratio of **RL** to the average of the S&P500 Index (**22.04**), we can say **RL** is valued slightly cheaper.

Industry Rank | Sector Rank | ||
---|---|---|---|

PE | 17.25 | ||

Fwd PE | 14.17 |

Compared to the rest of the industry, the **Enterprise Value to EBITDA** ratio of **RL** indicates a somewhat cheap valuation: **RL** is cheaper than 64.00% of the companies listed in the same industry.

The rest of the industry has a similar **Price/Free Cash Flow** ratio as **RL**.

Industry Rank | Sector Rank | ||
---|---|---|---|

P/FCF | 12.43 | ||

EV/EBITDA | 10.04 |

PEG (NY)1.34

PEG (5Y)2.3

EPS Next 2Y12.22%

EPS Next 3Y12.29%

Compared to an average S&P500 **Dividend Yield** of **2.26**, **RL** has a dividend comparable with the average S&P500 company.

Industry Rank | Sector Rank | ||
---|---|---|---|

Dividend Yield | 1.88% |

The dividend of **RL** has a limited annual growth rate of **4.76%**.

Dividend Growth(5Y)4.76%

Div Incr Years3

Div Non Decr Years3

The dividend of **RL** is growing, but earnings are growing more, so the dividend growth is sustainable.

DP28.25%

EPS Next 2Y12.22%

EPS Next 3Y12.29%

**RALPH LAUREN CORP**

NYSE:RL (9/17/2024, 6:40:00 PM)

After market: 184.21 0 (0%)**184.21**

**+2.77 (+1.53%) **

Chartmill FA Rating

GICS SectorConsumer Discretionary

GICS IndustryGroupConsumer Durables & Apparel

GICS IndustryTextiles, Apparel & Luxury Goods

Earnings (Last)

Earnings (Next)

Inst Owners

Inst Owner Change

Ins Owners

Ins Owner Change

Market Cap11.41B

Analysts

Price Target

Dividend

Industry Rank | Sector Rank | ||
---|---|---|---|

Dividend Yield | 1.88% |

Dividend Growth(5Y)

DP

Div Incr Years

Div Non Decr Years

Ex-Date

Surprises & Revisions

EPS beat(2)

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EPS beat(16)

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Revenue beat(2)

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Revenue beat(8)

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Revenue beat(12)

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Revenue beat(16)

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PT rev (1m)

PT rev (3m)

EPS NQ rev (1m)

EPS NQ rev (3m)

EPS NY rev (1m)

EPS NY rev (3m)

Revenue NQ rev (1m)

Revenue NQ rev (3m)

Revenue NY rev (1m)

Revenue NY rev (3m)

Valuation

Industry Rank | Sector Rank | ||
---|---|---|---|

PE | 17.25 | ||

Fwd PE | 14.17 | ||

P/S | |||

P/FCF | |||

P/OCF | |||

P/B | |||

P/tB | |||

EV/EBITDA |

EPS(TTM)

EY

EPS(NY)

Fwd EY

FCF(TTM)

FCFY

OCF(TTM)

OCFY

SpS

BVpS

TBVpS

PEG (NY)1.34

PEG (5Y)2.3

Profitability

Industry Rank | Sector Rank | ||
---|---|---|---|

ROA | 10.28% | ||

ROE | 28.85% | ||

ROCE | |||

ROIC | |||

ROICexc | |||

ROICexgc | |||

OM | 12.67% | ||

PM (TTM) | 10.27% | ||

GM | 67.14% | ||

FCFM |

ROA(3y)

ROA(5y)

ROE(3y)

ROE(5y)

ROIC(3y)

ROIC(5y)

ROICexc(3y)

ROICexc(5y)

ROICexgc(3y)

ROICexgc(5y)

ROCE(3y)

ROCE(5y)

ROICexcg growth 3Y

ROICexcg growth 5Y

ROICexc growth 3Y

ROICexc growth 5Y

OM growth 3Y

OM growth 5Y

PM growth 3Y

PM growth 5Y

GM growth 3Y

GM growth 5Y

F-Score

Asset Turnover1

Health

Industry Rank | Sector Rank | ||
---|---|---|---|

Debt/Equity | 0.59 | ||

Debt/FCF | |||

Debt/EBITDA | |||

Cap/Depr | |||

Cap/Sales | |||

Interest Coverage | |||

Cash Conversion | |||

Profit Quality | |||

Current Ratio | 2.19 | ||

Quick Ratio | 1.53 | ||

Altman-Z |

F-Score

WACC

ROIC/WACC

Cap/Depr(3y)

Cap/Depr(5y)

Cap/Sales(3y)

Cap/Sales(5y)

Profit Quality(3y)

Profit Quality(5y)

High Growth Momentum

Growth

EPS 1Y (TTM)21.09%

EPS 3Y83.51%

EPS 5Y

EPS Q2Q%

EPS Next Y12.89%

EPS Next 2Y

EPS Next 3Y

EPS Next 5Y

Revenue 1Y (TTM)3.06%

Revenue growth 3Y14.65%

Revenue growth 5Y

Sales Q2Q%

Revenue Next Year

Revenue Next 2Y

Revenue Next 3Y

Revenue Next 5Y

EBIT growth 1Y

EBIT growth 3Y

EBIT growth 5Y

EBIT Next Year

EBIT Next 3Y

EBIT Next 5Y

FCF growth 1Y

FCF growth 3Y

FCF growth 5Y

OCF growth 1Y

OCF growth 3Y

OCF growth 5Y