NYSE:RL

Stock Analysis Report

Executive Summary

Ralph Lauren Corporation designs, markets, and distributes lifestyle products in North America, Europe, Asia, and internationally.

Snowflake

Fundamentals

Excellent balance sheet established dividend payer.


Similar Companies

Share Price & News

How has Ralph Lauren's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

5.8%

RL

1.7%

US Luxury

0.07%

US Market


1 Year Return

-22.9%

RL

16.6%

US Luxury

8.9%

US Market

Return vs Industry: RL underperformed the US Luxury industry which returned 16.6% over the past year.

Return vs Market: RL underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

RLIndustryMarket
7 Day5.8%1.7%0.07%
30 Day6.1%8.7%-0.3%
90 Day-10.1%4.0%-1.6%
1 Year-21.0%-22.9%19.0%16.6%11.3%8.9%
3 Year7.8%0.8%61.7%54.4%46.3%36.8%
5 Year-32.1%-38.7%53.0%43.0%62.1%44.3%

Price Volatility Vs. Market

How volatile is Ralph Lauren's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Ralph Lauren undervalued compared to its fair value and its price relative to the market?

34.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RL ($98.6) is trading below our estimate of fair value ($149.82)

Significantly Below Fair Value: RL is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: RL is poor value based on its PE Ratio (17.9x) compared to the Luxury industry average (17.5x).

PE vs Market: RL is poor value based on its PE Ratio (17.9x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: RL is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: RL is overvalued based on its PB Ratio (2.5x) compared to the US Luxury industry average (1.6x).


Next Steps

Future Growth

How is Ralph Lauren forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

7.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RL's forecast earnings growth (7.6% per year) is above the savings rate (2.7%).

Earnings vs Market: RL's earnings (7.6% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: RL's earnings are forecast to grow, but not significantly.

Revenue vs Market: RL's revenue (3.1% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: RL's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RL's Return on Equity is forecast to be high in 3 years time (23.2%)


Next Steps

Past Performance

How has Ralph Lauren performed over the past 5 years?

-28.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: RL's earnings have declined by -28.1% per year over the past 5 years.

Accelerating Growth: RL's earnings growth over the past year (107.3%) exceeds its 5-year average (-28.1% per year).

Earnings vs Industry: RL earnings growth over the past year (107.3%) exceeded the Luxury industry 23.4%.


Return on Equity

High ROE: RL's Return on Equity (14.6%) is considered low.


Return on Assets

ROA vs Industry: RL's Return on Assets is below or equal to the Luxury industry average last year.


Return on Capital Employed

ROCE Improving: RL's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Ralph Lauren's financial position?


Financial Position Analysis

Short Term Liabilities: RL's short term assets ($3.7B) exceeds its short term liabilities ($1.6B)

Long Term Liabilities: RL's short term assets (3.7B) exceeds its long term liabilities (2.7B)


Debt to Equity History and Analysis

Debt Level: RL's debt to equity ratio (23.1%) is considered satisfactory

Reducing Debt: RL's debt to equity ratio has increased from 7.7% to 23.1% over the past 5 years.

Debt Coverage: RL's debt is well covered by operating cash flow (108%).

Interest Coverage: RL earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: RL has a high level of physical assets or inventory.

Debt Coverage by Assets: RL's debt is covered by short term assets (assets are 5.255420x debt).


Next Steps

Dividend

What is Ralph Lauren's current dividend yield, its reliability and sustainability?

2.79%

Current Dividend Yield


Dividend Yield vs Market

company2.8%marketbottom25%1.4%markettop25%3.7%industryaverage1.4%forecastin3Years3.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: RL's dividend (2.79%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: RL's dividend (2.79%) is low compared to the top 25% of dividend payers in the US market (3.68%).

Stable Dividend: RL's dividends per share have been stable in the past 10 years.

Growing Dividend: RL's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (46.5%), RL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RL's dividends in 3 years are forecast to be well covered by earnings (34.1% payout ratio).


Next Steps

Management

What is the CEO of Ralph Lauren's salary, the management and board of directors tenure and is there insider trading?

2.5yrs

Average management tenure


CEO

Patrice Jean Louvet (54yo)

2.3yrs

Tenure

US$13,851,684

Compensation

Mr. Patrice Jean Louis Louvet has been the Chief Executive Officer and President of Ralph Lauren Corporation since July 17, 2017. Mr. Louvet joined Ralph Lauren Corporation on July 3, 2017 and drives its s ...


CEO Compensation Analysis

Compensation vs. Market: Patrice Jean has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Insufficient data to compare Patrice Jean's compensation with company performance.


Management Age and Tenure

2.5yrs

Average Tenure

53.5yo

Average Age

Experienced Management: RL's management team is considered experienced (2.5 years average tenure).


Board Age and Tenure

10.3yrs

Average Tenure

71.5yo

Average Age

Experienced Board: RL's board of directors are seasoned and experienced ( 10.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$252,00007 Mar 19
Joyce Brown
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$126.00
SellUS$1,311,96013 Feb 19
Valérie Hermann
EntityIndividual
Shares10,400
Max PriceUS$126.15

Ownership Breakdown


Management Team

  • RL Lauren (79yo)

    Executive Chairman & Chief Creative Officer

    • Tenure: 22.8yrs
    • Compensation: US$22.22m
  • Avery Fischer (52yo)

    Executive VP

    • Tenure: 0yrs
  • David Lauren (47yo)

    Vice Chairman

    • Tenure: 3yrs
    • Compensation: US$2.48m
  • Andrew Smith

    Chief Commercial Officer

    • Tenure: 0.8yrs
  • Jane Nielsen (55yo)

    Executive VP

    • Tenure: 3.1yrs
    • Compensation: US$5.94m
  • Patrice Jean Louvet (54yo)

    President

    • Tenure: 2.3yrs
    • Compensation: US$13.85m
  • Roseann Lynch

    Executive VP and Chief People & Global Human Rights Officer

    • Tenure: 0yrs
  • Jonathan Bottomley

    Chief Marketing Officer

    • Tenure: 2.5yrs
  • Janet Sherlock (53yo)

    Chief Information Officer

    • Tenure: 1.2yrs
  • Corinna Van Ghinst

    Vice President of Investor Relations

    • Tenure: 0yrs

Board Members

  • John Alchin (71yo)

    Independent Director

    • Tenure: 12.7yrs
    • Compensation: US$310.95k
  • RL Lauren (79yo)

    Executive Chairman & Chief Creative Officer

    • Tenure: 22.8yrs
    • Compensation: US$22.22m
  • Frank Bennack (87yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$370.95k
  • Judith McHale (72yo)

    Independent Director

    • Tenure: 7.9yrs
    • Compensation: US$300.95k
  • Joel Fleishman (84yo)

    Independent Director

    • Tenure: 20.8yrs
    • Compensation: US$310.95k
  • Joyce Brown (73yo)

    Independent Director

    • Tenure: 18.4yrs
    • Compensation: US$305.95k
  • David Lauren (47yo)

    Vice Chairman

    • Tenure: 3yrs
    • Compensation: US$2.48m
  • Hubert Joly (60yo)

    Independent Director

    • Tenure: 10.3yrs
    • Compensation: US$315.95k
  • Mike George (58yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$250.00k
  • Patrice Jean Louvet (54yo)

    President

    • Tenure: 2.3yrs
    • Compensation: US$13.85m

Company Information

Ralph Lauren Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ralph Lauren Corporation
  • Ticker: RL
  • Exchange: NYSE
  • Founded: 1967
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: US$7.614b
  • Shares outstanding: 77.22m
  • Website: https://www.ralphlauren.com

Number of Employees


Location

  • Ralph Lauren Corporation
  • 650 Madison Avenue
  • New York
  • New York
  • 10022
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RLNYSE (New York Stock Exchange)YesClass A Common StockUSUSDJun 1997
PRLMUN (Boerse Muenchen)YesClass A Common StockDEUSDJun 1997
PRLDB (Deutsche Boerse AG)YesClass A Common StockDEEURJun 1997
0KTSLSE (London Stock Exchange)YesClass A Common StockGBUSDJun 1997

Biography

Ralph Lauren Corporation designs, markets, and distributes lifestyle products in North America, Europe, Asia, and internationally. The company offers apparel, including a range of men’s, women’s, and child ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:42
End of Day Share Price2019/10/22 00:00
Earnings2019/06/29
Annual Earnings2019/03/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.