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Ralph Lauren (RL) Stock Analysis

Here is a fundamental analysis of Ralph Lauren (RL), benchmarking its profitability, financial strength, dividend and valuation against its industry group peers.

Performance

Cumulative Growth

RL
GSPC
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Ralph Lauren (RL) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Ralph Lauren (RL) and S&P 500 (GSPC). Returns over one year are annualized.

Performance at a Glance

Ralph Lauren (RL) metric values compared with Consumer Durables & Apparel industry-group medians
MetricCurrent stock: RLIndustry group median
1-Year Return52.96%19.21%

Risk

Drawdown

RL
GSPC
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Ralph Lauren (RL) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Risk at a Glance

Ralph Lauren (RL) metric values compared with Consumer Durables & Apparel industry-group medians
MetricCurrent stock: RLIndustry group median
1-Year Volatility34.64%42.84%
Beta1.331.26

Company Profile

Company profile fields for Ralph Lauren (RL)
Profile ItemRL
NameRalph Lauren Corporation
Country/RegionUnited States
GICS SectorConsumer Discretionary
GICS Industry GroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
GICS Sub-IndustryApparel, Accessories & Luxury Goods
Market Capitalization24.04 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateJune 12, 1997
Security TypeCommon Stock

Valuation

Price-to-Earnings Ratio (TTM)

Ralph Lauren (RL) trades at P/E ratio of 26.74, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

RL

Consumer Durables & Apparel industry group

26.74

Group distribution
Max
54.36
Q3
31.19
RL
26.74
Median
20.09
Q1
14.00
Min
6.58
Largest peers
TPR
45.08
NKE
29.56
RL
26.74
GRMN
26.60
SONY
19.19
DHI
14.47
PHM
11.91
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Where Ralph Lauren (RL) stands on P/E ratio within its Consumer Durables & Apparel peer group — the box is the group’s distribution and the dots its largest members.

Price-to-Sales Ratio (TTM)

Ralph Lauren (RL) trades at 2.96 on P/S ratio, in the higher sales-valuation quartile. Investors are paying up for each dollar of revenue, so stronger margins, growth, or revenue quality need to carry that price.

RL

Consumer Durables & Apparel industry group

2.96

Group distribution
Max
3.79
RL
2.96
Q3
1.94
Median
1.14
Q1
0.58
Min
0.01
Largest peers
GRMN
6.15
TPR
3.79
RL
2.96
NKE
1.43
PHM
1.39
DHI
1.31
SONY
0.01
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Where Ralph Lauren (RL) stands on P/S ratio within its Consumer Durables & Apparel peer group — the box is the group’s distribution and the dots its largest members.

Price-to-Book Ratio (MRQ)

Ralph Lauren (RL) trades at 8.48 on P/B ratio, in the higher book-value quartile. The market is paying a premium to book, so stronger ROE, cleaner assets, or a better growth profile need to justify it.

RL

Consumer Durables & Apparel industry group

8.48

Group distribution
Max
8.87
RL
8.48
Q3
4.57
Median
2.01
Q1
1.11
Min
0.60
Largest peers
TPR
43.71
RL
8.48
GRMN
4.95
NKE
4.72
SONY
2.40
DHI
1.86
PHM
1.81
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Where Ralph Lauren (RL) stands on P/B ratio within its Consumer Durables & Apparel peer group — the box is the group’s distribution and the dots its largest members.

Valuation at a Glance

Ralph Lauren (RL) metric values compared with Consumer Durables & Apparel industry-group medians
MetricCurrent stock: RLIndustry group median
Price-to-Earnings Ratio (TTM)26.7420.09
Price-to-Sales Ratio (TTM)2.961.14
Price-to-Book Ratio (MRQ)8.482.01
Free Cash Flow Yield2.73%4.74%

Profitability

Return on Equity (TTM)

Ralph Lauren (RL) posts ROE of 34.66%, in the upper peer quartile. That suggests the company earns more from each dollar of shareholders’ equity than most industry peers, a useful capital-efficiency signal.

RL

Consumer Durables & Apparel industry group

34.66%

Group distribution
Max
35.09%
RL
34.66%
Q3
17.65%
Median
9.44%
Q1
4.31%
Min
-12.26%
Largest peers
TPR
60.91%
RL
34.66%
GRMN
19.90%
PHM
16.18%
NKE
16.02%
DHI
13.08%
SONY
12.37%
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Where Ralph Lauren (RL) stands on ROE within its Consumer Durables & Apparel peer group — the box is the group’s distribution and the dots its largest members.

Net Profit Margin (TTM)

Ralph Lauren (RL) keeps 11.60% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.

RL

Consumer Durables & Apparel industry group

11.60%

Group distribution
Max
18.71%
RL
11.60%
Q3
8.47%
Median
4.93%
Q1
1.51%
Min
-6.30%
Largest peers
GRMN
23.26%
PHM
12.14%
RL
11.60%
DHI
9.51%
TPR
8.44%
NKE
4.84%
SONY
-2.62%
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Where Ralph Lauren (RL) stands on net margin within its Consumer Durables & Apparel peer group — the box is the group’s distribution and the dots its largest members.

Operating Profit Margin (TTM)

Ralph Lauren (RL) turns 13.37% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.

RL

Consumer Durables & Apparel industry group

13.37%

Group distribution
Max
27.58%
RL
13.37%
Q3
13.23%
Median
6.76%
Q1
3.58%
Min
-9.19%
Largest peers
GRMN
24.62%
TPR
22.42%
RL
13.37%
PHM
13.14%
DHI
11.26%
SONY
7.55%
NKE
6.94%
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Where Ralph Lauren (RL) stands on operating margin within its Consumer Durables & Apparel peer group — the box is the group’s distribution and the dots its largest members.

Profitability at a Glance

Ralph Lauren (RL) metric values compared with Consumer Durables & Apparel industry-group medians
MetricCurrent stock: RLIndustry group median
Return on Equity (TTM)34.66%9.44%
Return on Assets (TTM)10.88%5.20%
Net Profit Margin (TTM)11.60%4.93%
Operating Profit Margin (TTM)13.37%6.76%
Gross Profit Margin (TTM)69.87%40.92%

Financial Strength

Current Ratio (MRQ)

Ralph Lauren (RL) has current ratio of 2.13, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.

RL

Consumer Durables & Apparel industry group

2.13

Group distribution
Max
8.27
Q3
4.43
Median
2.38
RL
2.13
Q1
1.66
Min
0.78
Largest peers
PHM
7.14
DHI
6.37
GRMN
4.36
NKE
2.14
RL
2.13
TPR
1.84
SONY
1.18
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Where Ralph Lauren (RL) stands on current ratio within its Consumer Durables & Apparel peer group — the box is the group’s distribution and the dots its largest members.

Debt-to-Equity Ratio (MRQ)

Ralph Lauren (RL) has debt-to-equity ratio of 1.06, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.

RL

Consumer Durables & Apparel industry group

1.06

Group distribution
Max
2.92
Q3
1.30
RL
1.06
Median
0.54
Q1
0.20
Min
0.00
Largest peers
TPR
5.75
RL
1.06
NKE
0.79
DHI
0.27
SONY
0.20
PHM
0.19
GRMN
0.02
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Where Ralph Lauren (RL) stands on debt-to-equity ratio within its Consumer Durables & Apparel peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength at a Glance

Ralph Lauren (RL) metric values compared with Consumer Durables & Apparel industry-group medians
MetricCurrent stock: RLIndustry group median
Current Ratio (MRQ)2.132.38
Debt-to-Equity Ratio (MRQ)1.060.54
Net Debt / EBITDA0.621.68

Dividends

Dividend Yield (TTM)

Ralph Lauren (RL) has dividend yield of 0.93%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.

RL

Consumer Durables & Apparel industry group

0.93%

Group distribution
Max
4.45%
Q3
2.09%
RL
0.93%
Median
0.84%
Q1
0.00%
Min
0.00%
Largest peers
NKE
3.65%
GRMN
1.76%
DHI
1.17%
TPR
1.09%
RL
0.93%
PHM
0.84%
SONY
0.77%
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Where Ralph Lauren (RL) stands on dividend yield within its Consumer Durables & Apparel peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Ralph Lauren (RL) has payout ratio of 24.16%, within the industry’s typical payout band. The dividend shares profits with investors while leaving earnings coverage that looks normal for the peer group.

RL

Consumer Durables & Apparel industry group

24.16%

Group distribution
Max
99.29%
Q3
40.31%
RL
24.16%
Median
9.28%
Q1
0.00%
Min
0.00%
Largest peers
NKE
106.58%
TPR
47.26%
GRMN
40.18%
RL
24.16%
DHI
15.96%
SONY
14.25%
PHM
9.28%
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Where Ralph Lauren (RL) stands on payout ratio within its Consumer Durables & Apparel peer group — the box is the group’s distribution and the dots its largest members.

Dividends at a Glance

Ralph Lauren (RL) metric values compared with Consumer Durables & Apparel industry-group medians
MetricCurrent stock: RLIndustry group median
Dividend Yield (TTM)0.93%0.84%
Dividend Payout Ratio (TTM)24.16%9.28%