(RL) Ralph Lauren - Overview
Sector: Consumer Cyclical | Industry: Apparel Manufacturing | Exchange: NYSE (USA) | Market Cap: 21.658m USD | Total Return: 29% in 12m
Avg Turnover: 267M
EPS Trend: 99.2%
Qual. Beats: 6
Rev. Trend: 96.0%
Qual. Beats: 7
Warnings
Choppy Below Avwap Earnings
Tailwinds
Pead, Confidence
Ralph Lauren Corporation is a global designer and distributor of premium lifestyle products, spanning apparel, accessories, home goods, and fragrances. The company manages a diverse portfolio of brands including Polo Ralph Lauren, Ralph Lauren Purple Label, and Lauren Ralph Lauren. Its business model utilizes a multi-channel distribution strategy that combines wholesale accounts with direct-to-consumer sales through brick-and-mortar retail and e-commerce platforms.
Operating within the luxury goods sector, Ralph Lauren leverages high brand equity to maintain pricing power across international markets. The company further extends its brand identity through a hospitality division featuring restaurants and coffee shops in major global cities. Investors can explore historical valuation trends for the company on ValueRay.
Founded in 1967 and headquartered in New York, the firm maintains a significant presence in North America, Europe, and Asia. It utilizes licensing agreements to expand its retail footprint while maintaining direct control over its core luxury positioning and global supply chain.
- Direct-to-consumer digital expansion drives higher operating margins and brand control
- Strong revenue growth in China offsets slowing demand in North American wholesale
- Premium brand elevation strategy supports higher average unit retail and gross margins
- Fluctuating cotton prices and global freight costs impact apparel manufacturing expenses
- High sensitivity to discretionary consumer spending trends across luxury and lifestyle segments
| Net Income: 941.1m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.12 > 0.02 and ΔFCF/TA -2.87 > 1.0 |
| NWC/Revenue: 25.12% < 20% (prev 23.40%; Δ 1.73% < -1%) |
| CFO/TA 0.18 > 3% & CFO 1.15b > Net Income 941.1m |
| Net Debt (2.69b) to EBITDA (1.41b): 1.91 < 3 |
| Current Ratio: 2.10 > 1.5 & < 3 |
| Outstanding Shares: last quarter (62.3m) vs 12m ago -2.20% < -2% |
| Gross Margin: 69.87% > 18% (prev 68.55%; Δ 1.31% > 0.5%) |
| Asset Turnover: 120.3% > 50% (prev 100.4%; Δ 19.88% > 0%) |
| Interest Coverage Ratio: 21.73 > 6 (EBIT TTM 1.18b / Interest Expense TTM 54.2m) |
| A: 0.32 (Total Current Assets 3.89b - Total Current Liabilities 1.85b) / Total Assets 6.44b |
| B: 1.29 (Retained Earnings 8.31b / Total Assets 6.44b) |
| C: 0.17 (EBIT TTM 1.18b / Avg Total Assets 6.74b) |
| D: 0.79 (Book Value of Equity 2.84b / Total Liabilities 3.60b) |
| Altman-Z'' = 8.29 = AAA |
| DSRI: 0.70 (Receivables 491.7m/612.3m, Revenue 8.11b/7.08b) |
| GMI: 0.98 (GM 68.55% / 69.87%) |
| AQI: 1.16 (AQ_t 0.23 / AQ_t-1 0.20) |
| SGI: 1.15 (Revenue 8.11b / 7.08b) |
| TATA: -0.03 (NI 941.1m - CFO 1.15b) / TA 6.44b) |
| Beneish M = -3.09 (Cap -4..+1) = AA |
As of June 04, 2026, the stock is trading at USD 359.43 with a total of 486,372 shares traded.
Over the past week, the price has changed by -4.47%,
over one month by +1.45%,
over three months by -0.13% and
over the past year by +29.03%.
Ralph Lauren has received a consensus analysts rating of 4.42. Therefore, it is recommended to buy RL.
- StrongBuy: 12
- Buy: 4
- Hold: 2
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 427 | 18.8% |
P/E Trailing = 24.0993
P/E Forward = 20.3666
P/S = 2.669
P/B = 7.6223
P/EG = 1.6441
Revenue TTM = 8.11b USD
EBIT TTM = 1.18b USD
EBITDA TTM = 1.41b USD
Long Term Debt = 1.24b USD (from longTermDebt, last quarter)
Short Term Debt = 211.7m USD (from shortTermDebt, last quarter)
Debt = 4.76b USD (from shortLongTermDebtTotal, last quarter) + Leases 1.77b
Net Debt = 2.69b USD (calculated: Debt 4.76b - CCE 2.06b)
Enterprise Value = 24.4b USD (21.7b + Debt 4.76b - CCE 2.06b)
Interest Coverage Ratio = 21.73 (Ebit TTM 1.18b / Interest Expense TTM 54.2m)
EV/FCF = 32.64x (Enterprise Value 24.4b / FCF TTM 746.1m)
FCF Yield = 3.06% (FCF TTM 746.1m / Enterprise Value 24.4b)
FCF Margin = 9.19% (FCF TTM 746.1m / Revenue TTM 8.11b)
Net Margin = 11.60% (Net Income TTM 941.1m / Revenue TTM 8.11b)
Gross Margin = 69.87% ((Revenue TTM 8.11b - Cost of Revenue TTM 2.45b) / Revenue TTM)
Gross Margin QoQ = 69.68% (prev 69.90%)
Tobins Q-Ratio = 3.78 (Enterprise Value 24.4b / Total Assets 6.44b)
Interest Expense / Debt = 1.14% (Interest Expense 54.2m / Debt 4.76b)
Taxrate = 20.09% (236.6m / 1.18b)
NOPAT = 941.1m (EBIT 1.18b * (1 - 20.09%))
Current Ratio = 2.10 (Total Current Assets 3.89b / Total Current Liabilities 1.85b)
Debt / Equity = 1.68 (Debt 4.76b / totalStockholderEquity, last quarter 2.84b)
Debt / EBITDA = 1.91 (Net Debt 2.69b / EBITDA 1.41b)
Debt / FCF = 3.61 (Net Debt 2.69b / FCF TTM 746.1m)
Total Stockholder Equity = 2.71b (last 4 quarters mean from totalStockholderEquity)
RoA = 13.96% (Net Income 941.1m / Total Assets 6.44b)
RoE = 34.77% (Net Income TTM 941.1m / Total Stockholder Equity 2.71b)
RoCE = 29.85% (EBIT 1.18b / Capital Employed (Equity 2.71b + L.T.Debt 1.24b))
RoIC = 21.40% (NOPAT 941.1m / Invested Capital 4.40b)
WACC = 8.88% (E(21.7b)/V(26.4b) * Re(10.63%) + D(4.76b)/V(26.4b) * Rd(1.14%) * (1-Tc(0.20)))
Discount Rate = 10.63% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -98.88 | Cagr: -2.53%
[DCF] Terminal Value 71.14% ; FCFF base≈855.2m ; Y1≈750.0m ; Y5≈605.9m
[DCF] Fair Price = 166.1 (EV 8.95b - Net Debt 2.69b = Equity 6.25b / Shares 37.6m; r=8.88% [WACC]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: 99.16 | EPS CAGR: 27.34% | SUE: 2.26 | # QB: 6
Revenue Correlation: 95.97 | Revenue CAGR: 8.52% | SUE: 2.95 | # QB: 7
EPS current Quarter (2026-06-30): EPS=4.27 | Chg30d=+4.64% | Revisions=+75% | Analysts=14
EPS next Quarter (2026-09-30): EPS=4.03 | Chg30d=+2.14% | Revisions=+33% | Analysts=14
EPS current Year (2027-03-31): EPS=18.40 | Chg30d=+2.25% | Revisions=+67% | GrowthEPS=+10.9% | GrowthRev=+5.9%
EPS next Year (2028-03-31): EPS=20.37 | Chg30d=+1.80% | Revisions=+60% | GrowthEPS=+10.7% | GrowthRev=+5.1%
[Analyst] Revisions Ratio: +75%