NYSE:RL

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: RL's weekly volatility (9%) has been stable over the past year.


Market Performance


7 Day Return

12.6%

RL

3.5%

US Luxury

2.1%

US Market


1 Year Return

-17.9%

RL

26.7%

US Luxury

19.8%

US Market

Return vs Industry: RL underperformed the US Luxury industry which returned 26.6% over the past year.

Return vs Market: RL underperformed the US Market which returned 19.7% over the past year.


Shareholder returns

RLIndustryMarket
7 Day12.6%3.5%2.1%
30 Day18.6%9.1%8.1%
90 Day23.8%20.3%6.0%
1 Year-16.6%-17.9%28.1%26.7%22.5%19.8%
3 Year-2.2%-7.8%83.6%75.2%46.5%36.8%
5 Year-19.1%-27.1%81.7%69.7%96.9%75.3%

Long-Term 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?

2.53x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: RL ($88.03) is trading above our estimate of fair value ($79.31)

Significantly Below Fair Value: RL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RL is unprofitable, so we can't compare its PE Ratio to the US Luxury industry average.

PE vs Market: RL is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RL is overvalued based on its PB Ratio (2.5x) compared to the US Luxury industry average (1.7x).


Next Steps

Future Growth

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

38.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RL is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: RL is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: RL's is expected to become profitable in the next 3 years.

Revenue vs Market: RL's revenue (9.6% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: RL's revenue (9.6% 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 (24%)


Next Steps

Past Performance

How has Ralph Lauren performed over the past 5 years?

-0.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RL is currently unprofitable.

Growing Profit Margin: RL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RL is unprofitable, and losses have increased over the past 5 years at a rate of 0.1% per year.

Accelerating Growth: Unable to compare RL's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: RL is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (-43.6%).


Return on Equity

High ROE: RL has a negative Return on Equity (-3.21%), as it is currently unprofitable.


Next Steps

Financial Health

How is Ralph Lauren's financial position?


Financial Position Analysis

Short Term Liabilities: RL's short term assets ($3.9B) exceed its short term liabilities ($1.6B).

Long Term Liabilities: RL's short term assets ($3.9B) exceed its long term liabilities ($3.7B).


Debt to Equity History and Analysis

Debt Level: RL's debt to equity ratio (64.1%) is considered high.

Reducing Debt: RL's debt to equity ratio has increased from 19.3% to 64.1% over the past 5 years.

Debt Coverage: RL's debt is well covered by operating cash flow (33%).

Interest Coverage: RL is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

2.82%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate RL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate RL's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if RL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RL's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: RL is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RL's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Patrice Jean Louvet (55 yo)

3.33yrs

Tenure

US$12,170,470

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 ($USD12.17M) is above average for companies of similar size in the US market ($USD6.86M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Ralph Lauren
Executive Chairman & Chief Creative Officer23.83yrsUS$13.04m27.27%
$ 1.8b
Patrice Jean Louvet
President3.33yrsUS$12.17m0.45%
$ 28.7m
David Lauren
Vice Chairman4.08yrsUS$2.03m0.041%
$ 2.7m
Jane Nielsen
CFO & COO4.17yrsUS$9.98m0.058%
$ 3.8m
Andrew Smith
Executive VP & Chief Commercial Officer1.83yrsUS$8.11m0.030%
$ 1.9m
Janet Sherlock
Chief Information Officer2.25yrsno datano data
Corinna Van Ghinst
Vice President of Investor Relationsno datano datano data
Avery Fischer
Executive VPno datano datano data
Jonathan Bottomley
Chief Marketing Officer3.58yrsno datano data
Roseann Lynch
Executive VP and Chief People & Global Human Rights Officerno datano datano data
Bill Campbell
Corporate Senior Vice President of Global Supply Chain & Inventory Management4.08yrsno datano data
Kevin Carrigan
Senior VP & Creative Director3.83yrsno datano data

3.8yrs

Average Tenure

54yo

Average Age

Experienced Management: RL's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ralph Lauren
Executive Chairman & Chief Creative Officer23.83yrsUS$13.04m27.27%
$ 1.8b
Patrice Jean Louvet
President3.33yrsUS$12.17m0.45%
$ 28.7m
David Lauren
Vice Chairman4.08yrsUS$2.03m0.041%
$ 2.7m
John Alchin
Independent Director13.75yrsUS$279.73k0.026%
$ 1.7m
Frank Bennack
Lead Independent Director3.83yrsUS$314.73k0.031%
$ 2.0m
Judith McHale
Independent Director9yrsUS$264.73k0.0098%
$ 631.8k
Joel Fleishman
Independent Director21.83yrsUS$299.73k0.014%
$ 929.4k
Hubert Joly
Independent Director11.42yrsUS$269.73k0.018%
$ 1.1m
Angela Ahrendts
Independent Director2.25yrsUS$230.04k0.0015%
$ 97.3k
Michael George
Independent Director2.5yrsUS$280.04k0.011%
$ 714.2k
Darren Walker
Independent Director0.33yrno datano data
Linda Kozlowski
Independent Director2.25yrsUS$245.04k0.0015%
$ 97.3k

4.0yrs

Average Tenure

60.5yo

Average Age

Experienced Board: RL's board of directors are considered experienced (4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: RL 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$6.440b
  • Shares outstanding: 73.10m
  • 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
RL *BMV (Bolsa Mexicana de Valores)YesClass A Common StockMXMXNJun 1997
R1LC34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 SHS UNSPONBRBRLJan 2020

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 Analysis2020/11/28 00:33
End of Day Share Price2020/11/27 00:00
Earnings2020/09/26
Annual Earnings2020/03/28


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.