NYSE:RL

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Solid track record with excellent balance sheet and pays a dividend.


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

Stable Share Price: RL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.6%

RL

13.7%

US Luxury

7.2%

US Market


1 Year Return

-44.0%

RL

-18.7%

US Luxury

-10.4%

US Market

Return vs Industry: RL underperformed the US Luxury industry which returned -18.7% over the past year.

Return vs Market: RL underperformed the US Market which returned -10.4% over the past year.


Shareholder returns

RLIndustryMarket
7 Day2.6%13.7%7.2%
30 Day-32.5%-14.5%-12.6%
90 Day-39.2%-27.8%-19.4%
1 Year-42.4%-44.0%-17.1%-18.7%-8.5%-10.4%
3 Year-1.5%-8.3%28.7%22.6%15.8%8.3%
5 Year-42.7%-48.8%10.0%2.4%35.8%21.0%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RL ($71.26) is trading below our estimate of fair value ($193.58)

Significantly Below Fair Value: RL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RL is good value based on its PE Ratio (8.3x) compared to the Luxury industry average (10.9x).

PE vs Market: RL is good value based on its PE Ratio (8.3x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: RL's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: RL is overvalued based on its PB Ratio (1.7x) compared to the US Luxury industry average (0.8x).


Next Steps

Future Growth

How is Ralph Lauren forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

-1.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RL's earnings are forecast to decline over the next 3 years (-1.7% per year).

Earnings vs Market: RL's earnings are forecast to decline over the next 3 years (-1.7% per year).

High Growth Earnings: RL's earnings are forecast to decline over the next 3 years.

Revenue vs Market: RL's revenue (4.1% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: RL's revenue (4.1% 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 (25.5%)


Next Steps

Past Performance

How has Ralph Lauren performed over the past 5 years?

-10.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RL has high quality earnings.

Growing Profit Margin: RL's current net profit margins (10.4%) are higher than last year (6.9%).


Past Earnings Growth Analysis

Earnings Trend: RL's earnings have declined by -10.3% per year over the past 5 years.

Accelerating Growth: RL's earnings growth over the past year (51.7%) exceeds its 5-year average (-10.3% per year).

Earnings vs Industry: RL earnings growth over the past year (51.7%) exceeded the Luxury industry 3.2%.


Return on Equity

High ROE: RL's Return on Equity (21.3%) is considered high.


Next Steps

Financial Health

How is Ralph Lauren's financial position?


Financial Position Analysis

Short Term Liabilities: RL's short term assets ($3.4B) exceed its short term liabilities ($1.8B).

Long Term Liabilities: RL's short term assets ($3.4B) exceed its long term liabilities ($2.6B).


Debt to Equity History and Analysis

Debt Level: RL's debt to equity ratio (22.3%) is considered satisfactory.

Reducing Debt: RL's debt to equity ratio has increased from 10.2% to 22.3% over the past 5 years.

Debt Coverage: RL's debt is well covered by operating cash flow (121.9%).

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 5x debt).


Next Steps

Dividend

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

3.86%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RL's dividend (3.86%) is higher than the bottom 25% of dividend payers in the US market (1.95%).

High Dividend: RL's dividend (3.86%) is low compared to the top 25% of dividend payers in the US market (5.4%).


Stability and Growth of Payments

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 (31.2%), 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 (30.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

Patrice Jean Louvet (54yo)

2.67s

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's total compensation ($USD13.85M) is above average for companies of similar size in the US market ($USD7.28M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Ralph Lauren
Executive Chairman & Chief Creative Officer23.17yrsUS$22.22m26.67% $1.4b
Patrice Jean Louvet
President2.67yrsUS$13.85m0.031% $1.6m
David Lauren
Vice Chairman3.42yrsUS$2.48m0.025% $1.3m
Jane Nielsen
Executive VP3.42yrsUS$5.94m0.030% $1.6m
Janet Sherlock
Chief Information Officer1.58yrsno datano data
Corinna Van Ghinst
Vice President of Investor Relationsno datano datano data
Avery Fischer
Executive VPno datano datano data
Jonathan Bottomley
Chief Marketing Officer2.83yrsno datano data
Roseann Lynch
Executive VP and Chief People & Global Human Rights Officerno datano datano data
Andrew Smith
Chief Commercial Officer1.17yrsno data0.057% $3.0m

2.8yrs

Average Tenure

53.5yo

Average Age

Experienced Management: RL's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ralph Lauren
Executive Chairman & Chief Creative Officer23.17yrsUS$22.22m26.67% $1.4b
Patrice Jean Louvet
President2.67yrsUS$13.85m0.031% $1.6m
David Lauren
Vice Chairman3.42yrsUS$2.48m0.025% $1.3m
John Alchin
Independent Director13yrsUS$310.95k0.026% $1.4m
Frank Bennack
Lead Independent Directorno dataUS$370.95k0.031% $1.6m
Judith McHale
Independent Director8.25yrsUS$300.95k0.0097% $510.8k
Joel Fleishman
Independent Director21.17yrsUS$310.95k0.015% $800.9k
Joyce Brown
Independent Director18.83yrsUS$305.95k0.0099% $519.7k
Hubert Joly
Independent Director10.67yrsUS$315.95k0.018% $925.4k
Michael George
Independent Director1.83yrsUS$250.00k0.0040% $208.1k

10.7yrs

Average Tenure

71.5yo

Average Age

Experienced Board: RL's board of directors are seasoned and experienced ( 10.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$5.255b
  • Shares outstanding: 73.74m
  • 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
PRLBRSE (Berne Stock Exchange)YesClass A Common StockCHCHFJun 1997
RL *BMV (Bolsa Mexicana de Valores)YesClass A Common StockMXMXNJun 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 children’s clothing accessories, which comprise footwear, eyewear, watches, fashion and fine jewelry, scarves, hats, gloves, umbrellas, and belts, as well as leather goods, such as handbags, luggage, small leather goods, and belts; home products consisting of bedding and bath products, furniture, fabrics and wallpapers, lightings, tabletops, floorcoverings, and giftware; and fragrances. It sells apparel and accessories under the Ralph Lauren Collection, Ralph Lauren Purple Label, Polo Ralph Lauren, Double RL, Lauren Ralph Lauren, Polo Golf Ralph Lauren, Ralph Lauren Golf, RLX Ralph Lauren, Polo Ralph Lauren Children, Chaps, Club Monaco, and other brand names; women's fragrances under the Ralph Lauren Collection, Woman by Ralph Lauren, Romance Collection, Ralph Collection, and Big Pony Women's brand names; and men's fragrances under the Polo Blue, Safari, Purple Label, Polo Red, Polo Green, Polo Black, Polo Supreme, Polo Sport, and Big Pony Men's brand names. The company’s restaurant concepts include The Polo Bar in New York City; RL Restaurant in Chicago; Ralph's in Paris; and Ralph's Coffee concept. It sells its products to department stores, specialty stores, and golf and pro shops, as well as directly to consumers through its retail stores, concession-based shop-within-shops, and its digital commerce sites. The company directly operates 501 retail stores and 653 concession-based shop-within-shops; and operates 108 Ralph Lauren stores, 39 Ralph Lauren concession shops, and 138 Club Monaco stores and shops through licensing partners. Ralph Lauren Corporation was founded in 1967 and is based in New York, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 00:36
End of Day Share Price2020/03/30 00:00
Earnings2019/12/28
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.