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RL

Ralph LaurenNYSE:RL Stock Report

Last Price

US$108.50

Market Cap

US$8.0b

7D

-5.5%

1Y

0.03%

Updated

21 Jan, 2022

Data

Company Financials +
RL fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance3/6
Financial Health5/6
Dividends4/6

RL Stock Overview

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

Ralph Lauren Competitors

Lululemon Athletica

NasdaqGS:LULU

US$40.5b

V.F

NYSE:VFC

US$26.7b

Tapestry

NYSE:TPR

US$10.1b

Under Armour

NYSE:UAA

US$8.3b

Price History & Performance

Summary of all time highs, changes and price drops for Ralph Lauren
Historical stock prices
Current Share PriceUS$108.50
52 Week HighUS$142.06
52 Week LowUS$99.92
Beta1.53
1 Month Change-2.78%
3 Month Change-11.88%
1 Year Change0.028%
3 Year Change-4.52%
5 Year Change23.34%
Change since IPO244.44%

Recent News & Updates

Jan 03
Is Ralph Lauren Corporation (NYSE:RL) Trading At A 29% Discount?

Is Ralph Lauren Corporation (NYSE:RL) Trading At A 29% Discount?

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Ralph Lauren...

Dec 21

Ralph Lauren: Valuation Improving After The Drop

Ralph Lauren is one of the worst-performing retail names this year, up just 3% vs. a 30% return for the Retail Sector. The company reported 26% revenue growth in its most recent quarter, and owned digital commerce growth of 35%, with digital margins being accretive to company margins. At a current share price of $108.00, its valuation is becoming more reasonable, with the stock trading at just 13x FY2023 earnings estimates vs. a historical multiple of 17. So, while I don't see the stock as a buy just yet, I would view pullbacks below $100.00 as buying opportunities from a swing-trading standpoint.

Dec 02
Why Ralph Lauren Corporation (NYSE:RL) Could Be Worth Watching

Why Ralph Lauren Corporation (NYSE:RL) Could Be Worth Watching

While Ralph Lauren Corporation ( NYSE:RL ) might not be the most widely known stock at the moment, it received a lot of...

Nov 15
Is Ralph Lauren (NYSE:RL) A Risky Investment?

Is Ralph Lauren (NYSE:RL) A Risky Investment?

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Shareholder Returns

RLUS LuxuryUS Market
7D-5.5%-4.6%-6.1%
1Y0.03%0.2%4.2%

Return vs Industry: RL matched the US Luxury industry which returned -0.6% over the past year.

Return vs Market: RL underperformed the US Market which returned 6.6% over the past year.

Price Volatility

Is RL's price volatile compared to industry and market?
RL volatility
RL Average Weekly Movement5.6%
Luxury Industry Average Movement6.1%
Market Average Movement6.7%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.4%

Stable Share Price: RL is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: RL's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
196716,200Patrice Jean Louvethttps://www.ralphlauren.com

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 and accessories, which comprise casual shoes, dress shoes, boots, sneakers, sandals, 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 bed and bath lines, furniture, fabric and wallcoverings, lighting, tabletop, floor coverings, 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, and Club Monaco brands; 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.

Ralph Lauren Fundamentals Summary

How do Ralph Lauren's earnings and revenue compare to its market cap?
RL fundamental statistics
Market CapUS$7.99b
Earnings (TTM)US$403.70m
Revenue (TTM)US$5.60b

19.8x

P/E Ratio

1.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RL income statement (TTM)
RevenueUS$5.60b
Cost of RevenueUS$1.88b
Gross ProfitUS$3.72b
ExpensesUS$3.31b
EarningsUS$403.70m

Last Reported Earnings

Sep 25, 2021

Next Earnings Date

Feb 03, 2022

Earnings per share (EPS)5.48
Gross Margin66.40%
Net Profit Margin7.21%
Debt/Equity Ratio57.1%

How did RL perform over the long term?

See historical performance and comparison

Dividends

2.5%

Current Dividend Yield

25%

Payout Ratio

Valuation

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

35.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RL ($108.5) is trading below our estimate of fair value ($167.39)

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


Price To Earnings Ratio

PE vs Industry: RL is poor value based on its PE Ratio (19.8x) compared to the US Luxury industry average (16.2x).

PE vs Market: RL is poor value based on its PE Ratio (19.8x) compared to the US market (16.7x).


Price to Earnings Growth Ratio

PEG Ratio: RL is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: RL is overvalued based on its PB Ratio (2.8x) compared to the US Luxury industry average (1.8x).


Future Growth

How is Ralph Lauren forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

6.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RL's forecast earnings growth (6.8% per year) is above the savings rate (2%).

Earnings vs Market: RL's earnings (6.8% per year) are forecast to grow slower than the US market (13.1% per year).

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

Revenue vs Market: RL's revenue (4.6% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: RL's revenue (4.6% 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 (26%)


Past Performance

How has Ralph Lauren performed over the past 5 years?

6.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RL has high quality earnings.

Growing Profit Margin: RL became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: RL's earnings have grown by 6.2% per year over the past 5 years.

Accelerating Growth: RL has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: RL has become profitable in the last year, making it difficult to compare its past year earnings growth to the Luxury industry (57.1%).


Return on Equity

High ROE: RL's Return on Equity (14.1%) is considered low.


Financial Health

How is Ralph Lauren's financial position?


Financial Position Analysis

Short Term Liabilities: RL's short term assets ($4.6B) exceed its short term liabilities ($2.3B).

Long Term Liabilities: RL's short term assets ($4.6B) exceed its long term liabilities ($3.1B).


Debt to Equity History and Analysis

Debt Level: RL has more cash than its total debt.

Reducing Debt: RL's debt to equity ratio has increased from 19.9% to 57.1% over the past 5 years.

Debt Coverage: RL's debt is well covered by operating cash flow (52.5%).

Interest Coverage: RL's interest payments on its debt are well covered by EBIT (15.7x coverage).


Balance Sheet


Dividend

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

2.53%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RL's dividend (2.53%) is higher than the bottom 25% of dividend payers in the US market (1.36%).

High Dividend: RL's dividend (2.53%) is low compared to the top 25% of dividend payers in the US market (3.55%).


Stability and Growth of Payments

Stable Dividend: RL's dividend payments have been volatile 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 (25.1%), 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 (40.4% payout ratio).


Next Steps

Management

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

5.0yrs

Average management tenure


CEO

Patrice Jean Louvet (56 yo)

4.5yrs

Tenure

US$12,063,568

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 ($USD12.06M) is above average for companies of similar size in the US market ($USD6.45M).

Compensation vs Earnings: Patrice Jean's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: RL's management team is seasoned and experienced (5 years average tenure).


Board Members

Experienced Board: RL's board of directors are considered experienced (6.5 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 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
  • Implied Market Cap: US$7.987b
  • Shares outstanding: 73.62m
  • Website: https://www.ralphlauren.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 23:38
End of Day Share Price2022/01/21 00:00
Earnings2021/09/25
Annual Earnings2021/03/27


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.