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
Trailing Returns
Performance at a Glance
| Metric | Current stock: RL | Industry group median |
|---|---|---|
| 1-Year Return | 52.96% | 19.21% |
Risk
Drawdown
Risk at a Glance
| Metric | Current stock: RL | Industry group median |
|---|---|---|
| 1-Year Volatility | 34.64% | 42.84% |
| Beta | 1.33 | 1.26 |
Company Profile
| Profile Item | RL |
|---|---|
| Name | Ralph Lauren Corporation |
| Country/Region | United States |
| GICS Sector | Consumer Discretionary |
| GICS Industry Group | Consumer Durables & Apparel |
| GICS Industry | Textiles, Apparel & Luxury Goods |
| GICS Sub-Industry | Apparel, Accessories & Luxury Goods |
| Market Capitalization | 24.04 billion USD |
| Currency | USD |
| Exchange | NYSE |
| Listing Date | June 12, 1997 |
| Security Type | Common 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
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
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
Valuation at a Glance
| Metric | Current stock: RL | Industry group median |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 26.74 | 20.09 |
| Price-to-Sales Ratio (TTM) | 2.96 | 1.14 |
| Price-to-Book Ratio (MRQ) | 8.48 | 2.01 |
| Free Cash Flow Yield | 2.73% | 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%
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%
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%
Profitability at a Glance
| Metric | Current stock: RL | Industry 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
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
Financial Strength at a Glance
| Metric | Current stock: RL | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 2.13 | 2.38 |
| Debt-to-Equity Ratio (MRQ) | 1.06 | 0.54 |
| Net Debt / EBITDA | 0.62 | 1.68 |
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%
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%
Dividends at a Glance
| Metric | Current stock: RL | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 0.93% | 0.84% |
| Dividend Payout Ratio (TTM) | 24.16% | 9.28% |