RALPH LAUREN CORP (RL) Fundamental Analysis & Valuation

NYSE:RL • US7512121010

344.12 USD
+5.76 (+1.7%)
At close: Mar 9, 2026
344.12 USD
0 (0%)
After Hours: 3/9/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This RL fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

7

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 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 would make RL suitable for quality investing!


Dividend Valuation Growth Profitability Health

9

1. RL Profitability Analysis

1.1 Basic Checks

  • RL had positive earnings in the past year.
  • In the past year RL had a positive cash flow from operations.
  • RL had positive earnings in 4 of the past 5 years.
  • In the past 5 years RL always reported a positive cash flow from operatings.
RL Yearly Net Income VS EBIT VS OCF VS FCFRL Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M 800M 1B

1.2 Ratios

  • The Return On Assets of RL (11.75%) is better than 93.33% of its industry peers.
  • With an excellent Return On Equity value of 31.80%, RL belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 17.38%, RL belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
  • RL had an Average Return On Invested Capital over the past 3 years of 13.65%. This is in line with the industry average of 11.74%.
  • The 3 year average ROIC (13.65%) for RL is below the current ROIC(17.38%), indicating increased profibility in the last year.
Industry RankSector 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%
RL Yearly ROA, ROE, ROICRL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20

1.3 Margins

  • RL has a Profit Margin of 11.73%. This is amongst the best in 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 better Operating Margin (16.01%) than 86.67% of its industry peers.
  • 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.
  • In the last couple of years the Gross Margin of RL has grown nicely.
Industry RankSector 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%
RL Yearly Profit, Operating, Gross MarginsRL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40 60

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7

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.
  • RL has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, RL has an improved debt to assets ratio.
RL Yearly Shares OutstandingRL Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M
RL Yearly Total Debt VS Total AssetsRL Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

2.2 Solvency

  • An Altman-Z score of 5.88 indicates that RL is not in any danger for bankruptcy at the moment.
  • With an excellent Altman-Z score value of 5.88, RL belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
  • 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.
  • Looking at the Debt to Equity ratio, with a value of 0.50, RL is doing worse than 62.22% of the companies in the same industry.
  • 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 RankSector Rank
Debt/Equity 0.5
Debt/FCF 2.13
Altman-Z 5.88
ROIC/WACC1.64
WACC10.62%
RL Yearly LT Debt VS Equity VS FCFRL Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

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.
  • A Quick Ratio of 1.52 indicates that RL should not have too much problems paying its short term obligations.
  • RL has a Quick ratio of 1.52. This is in the better half of the industry: RL outperforms 77.78% of its industry peers.
Industry RankSector Rank
Current Ratio 2.1
Quick Ratio 1.52
RL Yearly Current Assets VS Current LiabilitesRL Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. RL Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 36.36% 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 12.71% in the past year. This is quite good.
  • 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

  • The Earnings Per Share is expected to grow by 10.21% on average over the next years. This is quite good.
  • 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.
RL Yearly Revenue VS EstimatesRL Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2B 4B 6B 8B
RL Yearly EPS VS EstimatesRL Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5 10 15 20 25

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4

4. RL Valuation Analysis

4.1 Price/Earnings Ratio

  • RL is valuated rather expensively with a Price/Earnings ratio of 21.44.
  • RL's Price/Earnings is on the same level as the industry average.
  • When comparing the Price/Earnings ratio of RL to the average of the S&P500 Index (26.45), we can say RL is valued inline with the index average.
  • A Price/Forward Earnings ratio of 19.55 indicates a rather expensive valuation of RL.
  • RL's Price/Forward Earnings ratio is in line with the industry average.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 24.65, RL is valued a bit cheaper.
Industry RankSector Rank
PE 21.44
Fwd PE 19.55
RL Price Earnings VS Forward Price EarningsRL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • RL's Enterprise Value to EBITDA is on the same level as the industry average.
  • 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 RankSector Rank
P/FCF 30
EV/EBITDA 13.4
RL Per share dataRL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80 100

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)0.72
PEG (5Y)1.57
EPS Next 2Y19.47%
EPS Next 3Y16.98%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. RL Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.96%, RL is not a good candidate for dividend investing.
  • RL's Dividend Yield is comparable with the industry average which is at 1.42.
  • Compared to an average S&P500 Dividend Yield of 1.82, RL's dividend is way lower than the S&P500 average.
Industry RankSector 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
RL Yearly Dividends per shareRL Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3

5.3 Sustainability

  • 23.11% 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.
DP23.11%
EPS Next 2Y19.47%
EPS Next 3Y16.98%
RL Yearly Income VS Free CF VS DividendRL Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M 800M 1B
RL Dividend Payout.RL Dividend Payout, showing the Payout Ratio.RL Dividend Payout.PayoutRetained Earnings

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RL Fundamentals: All Metrics, Ratios and Statistics

RALPH LAUREN CORP

NYSE:RL (3/9/2026, 8:04:00 PM)

After market: 344.12 0 (0%)

344.12

+5.76 (+1.7%)

Chartmill FA Rating
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)02-05
Earnings (Next)05-20
Inst Owners101.16%
Inst Owner Change2.81%
Ins Owners3.54%
Ins Owner Change-3.32%
Market Cap20.83B
Revenue(TTM)7.83B
Net Income(TTM)918.50M
Analysts82.14
Price Target409.61 (19.03%)
Short Float %6.54%
Short Ratio3.89
Dividend
Industry RankSector 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 RankSector Rank
PE 21.44
Fwd PE 19.55
P/S 2.66
P/FCF 30
P/OCF 18.42
P/B 7.21
P/tB 10.84
EV/EBITDA 13.4
EPS(TTM)16.05
EY4.66%
EPS(NY)17.6
Fwd EY5.11%
FCF(TTM)11.47
FCFY3.33%
OCF(TTM)18.68
OCFY5.43%
SpS129.39
BVpS47.71
TBVpS31.74
PEG (NY)0.72
PEG (5Y)1.57
Graham Number131.26
Profitability
Industry RankSector 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 RankSector 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 5.88
F-Score8
WACC10.62%
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 21.44 and the Price/Book (PB) ratio is 7.21.


What is the financial health of RALPH LAUREN CORP (RL) stock?

The financial health rating of RALPH LAUREN CORP (RL) is 7 / 10.