10Y annualized return is
positive but below market average
at 5.5% per year
RL has met or exceeded earnings expectations in
all
recent quarters (10/10)
Attractive Price-to-Earnings Ratio
Strong Price to Sales Ratio
Strong Return on Equity
Healthy Gross Profit Margin
Strong Current Ratio
Excellent Interest Coverage
🏆 Strong Brand Recognition
📈 Positive Financial Performance
🌎 Global Market Expansion
🚀 High Potential Growth Categories
🔧 Investment in Technology and Innovation
📊 Strong Marketing ROI
High Price-to-Book Ratio
Moderate Operating Profit Margin
High Debt-to-Equity Ratio
Ralph Lauren Corporation demonstrates a strong business model characterized by brand strength, financial performance, and strategic growth in key markets. The future prospect looks promising with targeted growth initiatives and technological investments. Overall, the company is well-positioned to sustain its competitive advantage and capitalize on emerging opportunities.
Analysis Date: February 6, 2025
Last Updated: March 12, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
Ralph Lauren Corporation is a company that creates and sells a wide variety of clothing and lifestyle products. They make clothes for men, women, and children, along with shoes, accessories like bags and jewelry, and even home items such as furniture and bedding. You can find their products in many stores and online, and they also run some popular restaurants. Founded in 1967 and based in New York, Ralph Lauren is known for its stylish and high-quality products.
Streams of revenue
Geographic Distribution
Core Products
Business Type
Business to Consumer
Competitive Advantages
Key Business Risks
Latest News
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Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$434.03
Current Market Price: $195.35
IV/P Ratio: 2.22x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
55.00000000000001%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for RL
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (17.53)
P/B ratio ≤ 1.5 (4.86)
Current ratio ≥ 2.0 (1.76x)
Long-term debt < Net current assets (1.21x)
Margin of safety (55.00000000000001%)
RL does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
28.76%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-30)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
68.08%
Higher values indicate better efficiency in production
TTM (as of 2025-04-30)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
10.14%
Higher values indicate better overall profitability
TTM (as of 2025-04-30)
A return on equity (ROE) of 28.76% indicates excellent efficiency in generating profits from shareholders' equity.
The gross profit margin of 68.08% reflects strong operational efficiency, suggesting the company retains a significant portion of revenue as profit.
An operating profit margin of 12.73% suggests that while the company is profitable, there may be room for improvement in controlling operating costs.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
1.06x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q3 2025
Current Ratio
Current assets divided by current liabilities
1.76x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q3 2025
A current ratio of 1.76 indicates good short-term liquidity, meaning the company can cover its short-term liabilities with its short-term assets.
An interest coverage ratio of 19.45 shows that the company has a strong ability to meet its interest obligations, indicating financial stability.
A debt-to-equity ratio of 1.06 indicates that the company relies significantly on debt financing, which may pose risks if not managed properly.
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
Ralph Lauren Corporation has cultivated a powerful brand that resonates across generations and geographies. This brand strength is further amplified by successful marketing campaigns and high-profile collaborations, which contribute to strong consumer engagement and loyalty.
The company reported an impressive 11% revenue growth and a 27% increase in operating profit during the third quarter, indicating strong financial health and effective expense management.
Ralph Lauren is effectively expanding its retail presence in key global markets, particularly in Asia and Europe, with strong sales growth and new store openings. This strategic focus on top cities enhances brand visibility and accessibility.
Ralph Lauren is strategically targeting high-potential categories such as women's apparel and handbags, which grew by 20% in the last quarter, indicating significant opportunities for sustained growth.
The company is investing in a next-gen transformation project to implement a global ERP system and predictive buying tools, which are expected to enhance operational efficiency and inventory management.
Ralph Lauren plans to continue increasing its marketing spend, currently at 7% of revenue, to drive further demand and customer acquisition, showcasing confidence in its brand strength and marketing effectiveness.