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.

Risks

  • Ralph Lauren has significant price volatility in the past 3 months.

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

-9.1%

RL

-2.6%

US Luxury

-0.6%

US Market


1 Year Return

-31.9%

RL

-7.0%

US Luxury

0.7%

US Market

RL underperformed the Luxury industry which returned -7.2% over the past year.

RL underperformed the Market in United States of America which returned 0.7% over the past year.


Share holder returns

RLIndustryMarket
7 Day-9.1%-2.6%-0.6%
30 Day10.8%8.9%4.9%
90 Day-20.5%-1.9%1.7%
1 Year-30.4%-31.9%-5.0%-7.0%3.0%0.7%
3 Year-0.7%-6.9%36.9%30.9%44.8%35.4%
5 Year-38.3%-43.9%40.5%31.5%62.0%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

3 weeks ago | Simply Wall St

Are Investors Undervaluing Ralph Lauren Corporation (NYSE:RL) By 42%?

Valuation

Is Ralph Lauren undervalued based on future cash flows and its price relative to the stock market?

40%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Ralph Lauren's share price is below the future cash flow value, and at a moderate discount (> 20%).

Ralph Lauren's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Ralph Lauren is good value based on earnings compared to the US Luxury industry average.

Ralph Lauren is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Ralph Lauren is poor value based on expected growth next year.


Price Based on Value of Assets

Ralph Lauren is overvalued based on assets compared to the US Luxury industry average.


Next Steps

Future Growth

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

9.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Ralph Lauren's revenue is expected to grow by 3% yearly, however this is not considered high growth (20% yearly).

Ralph Lauren's earnings are expected to grow by 9.8% yearly, however this is not considered high growth (20% yearly).

Ralph Lauren's revenue growth is positive but not above the United States of America market average.

Ralph Lauren's earnings growth is positive but not above the United States of America market average.

Ralph Lauren's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Ralph Lauren is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


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

Ralph Lauren's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Ralph Lauren's 1-year earnings growth exceeds its 5-year average (107.3% vs -28.1%)

Ralph Lauren's earnings growth has exceeded the US Luxury industry average in the past year (107.3% vs 23.9%).


Return on Equity

Ralph Lauren has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Ralph Lauren used its assets less efficiently than the US Luxury industry average last year based on Return on Assets.


Return on Capital Employed

Ralph Lauren's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Ralph Lauren's financial position?


Financial Position Analysis

Ralph Lauren is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Ralph Lauren's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Ralph Lauren's level of debt (23.1%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (7.7% vs 23.1% today).

Debt is well covered by operating cash flow (108%, greater than 20% of total debt).

Ralph Lauren earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 5.3x debt.


Next Steps

Dividend

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

3.14%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Ralph Lauren before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Ralph Lauren's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Ralph Lauren's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.9x coverage).


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

Patrice Jean Louvet (54yo)

2.2yrs

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

Patrice Jean's remuneration is higher than average for companies of similar size in United States of America.

Insufficient data for Patrice Jean to compare compensation growth.


Management Age and Tenure

3.0yrs

Average Tenure

54yo

Average Age

The tenure for the Ralph Lauren management team is about average.


Board Age and Tenure

10.3yrs

Average Tenure

71.5yo

Average Age

The average tenure for the Ralph Lauren board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


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
Role
Senior Key Executive
President of Global Brands
Shares10,400
Max PriceUS$126.15

Ownership Breakdown


Management Team

  • RL Lauren (79yo)

    Executive Chairman & Chief Creative Officer

    • Tenure: 22.7yrs
    • Compensation: US$22.22m
  • Avery Fischer (52yo)

    Executive VP

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

    Vice Chairman

    • Tenure: 2.9yrs
    • Compensation: US$2.48m
  • Jane Nielsen (55yo)

    Executive VP

    • Tenure: 3yrs
    • Compensation: US$5.94m
  • Patrice Jean Louvet (54yo)

    President

    • Tenure: 2.2yrs
    • Compensation: US$13.85m
  • Valérie Hermann (56yo)

    President of Global Brands

    • Tenure: 3yrs
    • Compensation: US$6.59m
  • Roseann Lynch

    Executive VP and Chief People & Global Human Rights Officer

    • Tenure: 0yrs
  • Jonathan Bottomley

    Chief Marketing Officer

    • Tenure: 2.4yrs
  • Janet Sherlock (53yo)

    Chief Information Officer

    • Tenure: 1.1yrs
  • Corinna Van Ghinst

    Vice President of Investor Relations

    • Tenure: 0yrs

Board Members

  • John Alchin (71yo)

    Director

    • Tenure: 12.6yrs
    • Compensation: US$310.95k
  • RL Lauren (79yo)

    Executive Chairman & Chief Creative Officer

    • Tenure: 22.7yrs
    • Compensation: US$22.22m
  • Frank Bennack (87yo)

    Lead Independent Director

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

    Director

    • Tenure: 7.8yrs
    • Compensation: US$300.95k
  • Joel Fleishman (84yo)

    Independent Director

    • Tenure: 20.7yrs
    • Compensation: US$310.95k
  • Joyce Brown (73yo)

    Independent Director

    • Tenure: 18.3yrs
    • Compensation: US$305.95k
  • David Lauren (47yo)

    Vice Chairman

    • Tenure: 2.9yrs
    • Compensation: US$2.48m
  • Hubert Joly (60yo)

    Director

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

    Director

    • Tenure: 1.3yrs
    • Compensation: US$250.00k
  • Patrice Jean Louvet (54yo)

    President

    • Tenure: 2.2yrs
    • 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$7.179b
  • 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 Analysis2019/09/22 23:44
End of Day Share Price2019/09/20 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.