RL Stock Analysis: Ralph Lauren | NYSE
Apparel Manufacturing | NYSE, USA | Market Cap: 22.636m USD | 12M Return: 26.3% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 206M
EPS Trend: 99.2%
Qual. Beats: 6
Rev. Trend: 96.0%
Qual. Beats: 7
Warnings
Tailwinds
Seasonality 11.6 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Ralph Lauren Corporation is a global lifestyle brand founded in 1967 and headquartered in New York City. The company designs, markets, and distributes apparel, footwear, accessories, home goods, and fragrances across North America, Europe, and Asia. Within the Consumer Discretionary sector, Ralph Lauren operates in the Apparel, Accessories & Luxury Goods sub-industry, where brand equity and intellectual property are the primary sources of economic value rather than manufacturing scale.
The company sells products through a multi-brand portfolio spanning multiple price tiers, including luxury labels such as Ralph Lauren Collection, Ralph Lauren Purple Label, and Double RL, as well as core lifestyle brands like Polo Ralph Lauren, Lauren Ralph Lauren, and Chaps. It also markets mens and womens fragrances under multiple sub-brands and operates a hospitality business that includes branded restaurants in New York, Chicago, Paris, Milan, and Chengdu, extending the brand into experiential retail.
Distribution follows a typical premium-apparel omnichannel model, combining wholesale to department stores, specialty stores, and golf and pro shops with direct-to-consumer sales through company-operated retail stores, concession-based shop-within-shops, and digital commerce sites. Ralph Lauren also extends its reach through licensing partners, a common approach in the luxury and lifestyle segment that allows the brand to enter adjacent categories and geographies without taking on full operating risk.
- Asia Pacific sales lift on China luxury demand recovery
- Direct-to-consumer channel expansion drives gross margin growth
- Tariff and consumer spending pressure compress North America margins
| 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: 0.97 (Receivables 677.7m/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 = -2.87 (Cap -4..+1) = A |
As of August 03, 2026, the stock is trading at USD 380.34 with a total of 438,766 shares traded. Over the past week, the price has changed by +1.81%, over one month by -4.49%, over three months by +7.62% and over the past year by +26.27%.
Current recommended Stop Loss: 362.30 (which is 4.7% or 1.4 ATR below the current price).
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 | 429 | 12.8% |
P/E Trailing = 25.1881
P/E Forward = 20.79
P/S = 2.7896
P/B = 7.9667
P/EG = 2.1895
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 = 25.3b USD (22.6b + Debt 4.76b - CCE 2.06b)
Interest Coverage Ratio = 21.73 (Ebit TTM 1.18b / Interest Expense TTM 54.2m)
EV/FCF = 33.95x (Enterprise Value 25.3b / FCF TTM 746.1m)
FCF Yield = 2.95% (FCF TTM 746.1m / Enterprise Value 25.3b)
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 = 3.93 (Enterprise Value 25.3b / 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 = 8.30% (E(22.6b)/V(27.4b) * Re(9.85%) + D(4.76b)/V(27.4b) * Rd(1.14%) * (1-Tc(0.20)))
Discount Rate = 9.85% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -96.24 | Cagr: -2.53%
[DCF] Terminal Value 73.10% ; FCFF base≈855.2m ; Y1≈750.0m ; Y5≈605.9m
[DCF] Fair Price = 186.8 (EV 9.73b - Net Debt 2.69b = Equity 7.03b / Shares 37.6m; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: 99.16 | EPS CAGR: 27.34% | SUE: 2.24 | # QB: 6
Revenue Correlation: 95.97 | Revenue CAGR: 8.52% | SUE: 2.95 | # QB: 7
EPS current Quarter (2026-06-30): EPS=4.30 | Chg30d=+0.74% | Revisions=+81% | Analysts=14
EPS next Quarter (2026-09-30): EPS=4.04 | Chg30d=+0.21% | Revisions=+40% | Analysts=14
EPS current Year (2027-03-31): EPS=18.46 | Chg30d=+0.24% | Revisions=+65% | GrowthEPS=+11.3% | GrowthRev=+6.3%
EPS next Year (2028-03-31): EPS=20.43 | Chg30d=+0.24% | Revisions=+67% | GrowthEPS=+10.7% | GrowthRev=+4.9%
[Analyst] Revisions Ratio: +74% (up=48, down=6)