Ralph Lauren Corp - Class A
Exchange: NYSESector: Consumer CyclicalIndustry: Apparel Manufacturing
Ralph Lauren Corporation is a global leader in the design, marketing and distribution of luxury lifestyle products in five categories: apparel, handbags, footwear & accessories, home, fragrances, and hospitality. For nearly 60 years, Ralph Lauren has sought to inspire the dream of a better life through authenticity and timeless style. Its reputation and distinctive image have been developed across a wide range of products, brands, distribution channels and international markets. The Company's brand names — which include Ralph Lauren, Ralph Lauren Collection, Ralph Lauren Purple Label, Double RL, Polo Ralph Lauren, Lauren Ralph Lauren, Polo Ralph Lauren Children and Chaps, among others — constitute one of the world's most widely recognized families of consumer brands.
Current Price
$329.24
+2.67%GoodMoat Value
$342.92
4.2% undervaluedProfile
Valuation (TTM)
Market Cap$19.97B
P/E21.74
EV$20.59B
P/B7.71
Shares Out60.64M
P/Sales2.55
Revenue$7.83B
EV/EBITDA14.42
Ralph Lauren Corp - Class A (RL) Stock Analysis
GoodMoat Analysis
Ralph Lauren is a high-quality, iconic brand with a strong moat, evidenced by its exceptional 35.5% ROE. The stock is trading near its estimated fair value, presenting a neutral opportunity for value investors who require a significant margin of safety.
Read full analysis
Ralph Lauren Corp is a global leader in premium lifestyle products, including apparel, accessories, and home goods, built around its powerful, founder-led brand. Applying the GoodMoat framework, the company demonstrates a durable competitive advantage (moat) primarily through its Brand & Culture, which carries deep, essential relevance in its category. Supporting moat criteria likely include Pricing Power and Low Disruption Risk, as the brand's heritage and positioning protect it from commoditization. With a ROE of 35.5% far exceeding the 15-20% high-quality threshold and a solid 12.2% YoY revenue growth, the business passes the Moat & Quality Gate for further analysis. However, the valuation assessment is neutral. The current P/E of 22.8x is reasonable for its quality but does not offer a clear discount. The GoodMoat Target price of $342.92 is nearly identical to the current $345.93 stock price, indicating a Margin of Safety well below the 20% threshold required for a 'Favourable' rating under the Decision Framework. For a value investor, this suggests the company is a high-quality business but priced for that quality, warranting further investigation only if a more attractive entry point emerges. Analysis based on data as of 2024-05-15.
Market Cap$19.97B
Current Price$329.24
P/E Ratio21.74
Forward P/E—
PEG Ratio0.90
EPS$11.61
Book Value$42.69
P/B Ratio7.71
RL Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 9.0% FCF growth (CAGR)
Cash vs Debt
Net Debt: 725M
Revenue
6.3B
FY19
6.2B
FY20
4.4B
FY21
6.2B
FY22
6.4B
FY23
6.6B
FY24
7.1B
FY25
Net Income
431M
FY19
384M
FY20
—
FY21
600M
FY22
523M
FY23
646M
FY24
743M
FY25
RL 52-Week Range
$257.22
$389.52
50-Day MA: $352.76200-Day MA: $339.53
Did you know?
Profit margin stands at 11.7%.
Ralph Lauren Corp - Class A (RL) Financial Summary
Ralph Lauren Corp - Class A (RL) is a Consumer Cyclical company in the Apparel Manufacturing industry, listed on NYSE. The stock currently trades at $329.24 with a market capitalization of $19.97B.
Key valuation metrics include a P/E ratio of 21.74, price-to-book ratio of 7.71, and EPS of $11.61. The company reports a profit margin of 11.7% and return on equity of 35.5%.
RL Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $19.97B |
| P/E Ratio | 21.74 |
| EPS | $11.61 |
| P/B Ratio | 7.71 |
| P/S Ratio | 2.55 |
| EV/EBITDA | 14.42 |
| Dividend Yield | 1.01% |
| Profit Margin | 11.7% |
| Return on Equity | 35.5% |
| Debt/Equity | 1.02 |
RL Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $6.31B | $430.90M |
| FY20 | $6.16B | $384.30M |
| FY21 | $4.40B | $-121.10M |
| FY22 | $6.22B | $600.10M |
| FY23 | $6.44B | $522.70M |
| FY24 | $6.63B | $646.30M |
| FY25 | $7.08B | $742.90M |
Ralph Lauren Corp - Class A (RL) Valuation
Based on GoodMoat's DCF model, Ralph Lauren Corp - Class A has a fair value estimate of $342.92. At the current price of $329.24, the stock appears 4.0% undervalued relative to our intrinsic value estimate.
RL Quality Indicators
Ralph Lauren Corp - Class A maintains a profit margin of 11.7% and an operating margin of 13.2%. Return on equity stands at 35.5%. The current ratio is 1.78. Debt-to-equity ratio is 1.02.
About Ralph Lauren Corp - Class A
Ralph Lauren Corporation is a global leader in the design, marketing and distribution of luxury lifestyle products in five categories: apparel, handbags, footwear & accessories, home, fragrances, and hospitality. For nearly 60 years, Ralph Lauren has sought to inspire the dream of a better life through authenticity and timeless style. Its reputation and distinctive image have been developed across a wide range of products, brands, distribution channels and international markets. The Company's brand names — which include Ralph Lauren, Ralph Lauren Collection, Ralph Lauren Purple Label, Double RL, Polo Ralph Lauren, Lauren Ralph Lauren, Polo Ralph Lauren Children and Chaps, among others — constitute one of the world's most widely recognized families of consumer brands.
RL Free Cash Flow
Ralph Lauren Corp - Class A generated $1.02B in trailing twelve-month free cash flow, representing an FCF yield of 5.10%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
RL Shares Outstanding
Ralph Lauren Corp - Class A has 0.06 billion shares outstanding at a share price of $329.24, giving it a market capitalization of $19.97B.
RL Recent Insider Trades
Recent insider transactions at Ralph Lauren Corp - Class A include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Alagoz Halide (Chief Product & Merch. Officer) | SELL | 1,120 | $405440.00 |
| Louvet Patrice (President and CEO) | SELL | 421 | $146238.56 |