RL Stock Analysis: Ralph Lauren | NYSE
Apparel Manufacturing | NYSE, USA | Market Cap: 22.486m USD | 12M Return: 23% | US7512121010 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 180M
EPS Trend: 99.5%
Qual. Beats: 7
Rev. Trend: 97.0%
Qual. Beats: 8
Warnings
No concerns identified
Tailwinds
Seasonality 11.7 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 company that designs, markets, and distributes apparel, footwear, accessories, home products, and fragrances across North America, Europe, Asia, and other international markets. The company markets its products under a portfolio of owned labels, including Polo Ralph Lauren, Ralph Lauren Collection, Purple Label, Double RL, Lauren Ralph Lauren, RLX, Polo Ralph Lauren Children, and Chaps, alongside a range of branded mens and womens fragrances such as Polo Blue, Polo Red, Romance, and Ralphs Club.
The company operates a diversified distribution model that combines wholesale sales to department stores, specialty stores, and golf and pro shops with direct-to-consumer channels, including company-owned retail stores, concession-based shop-within-shops, and digital commerce sites, supplemented by licensed stores operated through partners. It also extends the brand into hospitality through a restaurant collection spanning New York, Chicago, Paris, Milan, and Chengdu. Founded in 1967 and headquartered in New York, Ralph Lauren is classified within the consumer discretionary sector, specifically the apparel, accessories, and luxury goods sub-industry, where brand equity, global wholesale relationships, and licensing income are central to the business model.
- China luxury demand recovery accelerates Asia segment growth
- Direct-to-consumer mix expansion drives operating margin gains
- Tariff and FX exposure pressures gross margin outlook
| 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 November 01, 2026, the stock is trading at USD 392.87 with a total of 526,297 shares traded. Over the past week, the price has changed by +4.10%, over one month by +10.38%, over three months by +2.09% and over the past year by +22.97%.
Current recommended Stop Loss: 379.90 (which is 3.3% or 1.3 ATR below the current price).
Ralph Lauren has received a consensus analysts rating of 4.44. Therefore, it is recommended to buy RL.
- StrongBuy: 11
- Buy: 5
- Hold: 1
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 446.2 | 13.6% |
P/E Trailing = 23.706
P/E Forward = 18.3824
P/S = 2.6913
P/B = 7.5761
P/EG = 1.8574
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 = 25.3b USD (22.5b + Debt 4.77b - CCE 1.94b)
Interest Coverage Ratio = 22.32 (Ebit TTM 1.24b / Interest Expense TTM 55.7m)
EV/FCF = 24.26x (Enterprise Value 25.3b / FCF TTM 1.04b)
FCF Yield = 4.12% (FCF TTM 1.04b / Enterprise Value 25.3b)
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 = 3.31 (Enterprise Value 25.3b / 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 = 7.67% (E(22.5b)/V(27.3b) * Re(9.10%) + D(4.77b)/V(27.3b) * Rd(1.17%) * (1-Tc(0.21)))
Discount Rate = 9.10% (= 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=-0.01% | Revisions=+81% | Analysts=15
EPS next Quarter (2026-12-31): EPS=6.86 | Chg30d=-0.31% | Revisions=-44% | Analysts=15
EPS current Year (2027-03-31): EPS=18.86 | Chg30d=-0.29% | Revisions=+85% | GrowthEPS=+13.7% | GrowthRev=+7.0%
EPS next Year (2028-03-31): EPS=20.83 | Chg30d=-0.66% | Revisions=+85% | GrowthEPS=+10.5% | GrowthRev=+5.2%
[Analyst] Revisions Ratio: +63% (up=50, down=10)