RL Stock Analysis: Ralph Lauren | NYSE
Apparel Manufacturing | NYSE, USA | Market Cap: 20.967m USD | 12M Return: 10.8% | US7512121010 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 233M
EPS Trend: 99.5%
Qual. Beats: 7
Rev. Trend: 97.0%
Qual. Beats: 8
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: 982.9m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.14 > 0.02 and ΔFCF/TA 3.77 > 1.0 |
| NWC/Revenue: 23.45% < 20% (prev 26.25%; Δ -2.80% < -1%) |
| CFO/TA 0.17 > 3% & CFO 1.32b > Net Income 982.9m |
| Net Debt (2.83b) to EBITDA (1.48b): 1.91 < 3 |
| Current Ratio: 2.04 > 1.5 & < 3 |
| Outstanding Shares: last quarter (61.3m) vs 12m ago -1.92% < -2% |
| Gross Margin: 70.27% > 18% (prev 69.03%; Δ 1.24% > 0.5%) |
| Asset Turnover: 108.4% > 50% (prev 93.99%; Δ 14.44% > 0%) |
| Interest Coverage Ratio: 22.32 > 6 (EBIT TTM 1.24b / Interest Expense TTM 55.7m) |
| A: 0.26 (Total Current Assets 3.83b - Total Current Liabilities 1.88b) / Total Assets 7.66b |
| B: 1.11 (Retained Earnings 8.51b / Total Assets 7.66b) |
| C: 0.16 (EBIT TTM 1.24b / Avg Total Assets 7.71b) |
| D: 0.55 (Book Value of Equity 2.72b / Total Liabilities 4.94b) |
| Altman-Z'' = 6.96 = AAA |
| DSRI: 0.86 (Receivables 543.8m/548.5m, Revenue 8.36b/7.29b) |
| GMI: 0.98 (GM 69.03% / 70.27%) |
| AQI: 1.02 (AQ_t 0.19 / AQ_t-1 0.19) |
| SGI: 1.15 (Revenue 8.36b / 7.29b) |
| TATA: -0.04 (NI 982.9m - CFO 1.32b) / TA 7.66b) |
| Beneish M = -3.04 (Cap -4..+1) = AA |
As of September 02, 2026, the stock is trading at USD 340.82 with a total of 797,311 shares traded. Over the past week, the price has changed by -6.01%, over one month by -10.35%, over three months by -6.73% and over the past year by +10.76%.
Current recommended Stop Loss: 314.40 (which is 7.8% or 2.3 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 | 446.7 | 31.1% |
P/E Trailing = 22.1739
P/E Forward = 19.2678
P/S = 2.5095
P/B = 7.932
P/EG = 1.9446
Revenue TTM = 8.36b USD
EBIT TTM = 1.24b USD
EBITDA TTM = 1.48b USD
Long Term Debt = 1.24b USD (from longTermDebt, last quarter)
Short Term Debt = 248.9m USD (from shortTermDebt, last quarter)
Debt = 4.77b USD (from shortLongTermDebtTotal, last quarter) + Leases 1.76b
Net Debt = 2.83b USD (calculated: Debt 4.77b - CCE 1.94b)
Enterprise Value = 23.8b USD (21.0b + Debt 4.77b - CCE 1.94b)
Interest Coverage Ratio = 22.32 (Ebit TTM 1.24b / Interest Expense TTM 55.7m)
EV/FCF = 22.81x (Enterprise Value 23.8b / FCF TTM 1.04b)
FCF Yield = 4.38% (FCF TTM 1.04b / Enterprise Value 23.8b)
FCF Margin = 12.49% (FCF TTM 1.04b / Revenue TTM 8.36b)
Net Margin = 11.76% (Net Income TTM 982.9m / Revenue TTM 8.36b)
Gross Margin = 70.27% ((Revenue TTM 8.36b - Cost of Revenue TTM 2.48b) / Revenue TTM)
Gross Margin QoQ = 73.69% (prev 69.68%)
Tobins Q-Ratio = 3.11 (Enterprise Value 23.8b / Total Assets 7.66b)
Interest Expense / Debt = 1.17% (Interest Expense 55.7m / Debt 4.77b)
Taxrate = 20.86% (259.0m / 1.24b)
NOPAT = 984.1m (EBIT 1.24b * (1 - 20.86%))
Current Ratio = 2.04 (Total Current Assets 3.83b / Total Current Liabilities 1.88b)
Debt / Equity = 1.75 (Debt 4.77b / totalStockholderEquity, last quarter 2.72b)
Debt / EBITDA = 1.91 (Net Debt 2.83b / EBITDA 1.48b)
Debt / FCF = 2.71 (Net Debt 2.83b / FCF TTM 1.04b)
Total Stockholder Equity = 2.76b (last 4 quarters mean from totalStockholderEquity)
RoA = 12.76% (Net Income 982.9m / Total Assets 7.66b)
RoE = 35.64% (Net Income TTM 982.9m / Total Stockholder Equity 2.76b)
RoCE = 31.10% (EBIT 1.24b / Capital Employed (Equity 2.76b + L.T.Debt 1.24b))
RoIC = 17.53% (NOPAT 984.1m / Invested Capital 5.61b)
WACC = 8.30% (E(21.0b)/V(25.7b) * Re(9.98%) + D(4.77b)/V(25.7b) * Rd(1.17%) * (1-Tc(0.21)))
Discount Rate = 9.98% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -96.49 | Cagr: -2.90%
[DCF] Terminal Value 77.97% ; FCFF base≈931.4m ; Y1≈1.07b ; Y5≈1.57b
[DCF] Fair Price = 552.3 (EV 23.6b - Net Debt 2.83b = Equity 20.8b / Shares 37.7m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 99.49 | EPS CAGR: 28.48% | SUE: 3.39 | # QB: 7
Revenue Correlation: 97.03 | Revenue CAGR: 9.79% | SUE: 2.16 | # QB: 8
EPS current Quarter (2026-09-30): EPS=4.22 | Chg30d=+4.55% | Revisions=+81% | Analysts=15
EPS next Quarter (2026-12-31): EPS=6.87 | Chg30d=-0.44% | Revisions=-44% | Analysts=15
EPS current Year (2027-03-31): EPS=18.90 | Chg30d=+2.65% | Revisions=+83% | GrowthEPS=+13.9% | GrowthRev=+6.9%
EPS next Year (2028-03-31): EPS=20.91 | Chg30d=+2.47% | Revisions=+83% | GrowthEPS=+10.7% | GrowthRev=+5.1%
[Analyst] Revisions Ratio: +61% (up=46, down=10)