Stocks analysis

Analysis for RL

$391.07 +15.80 (+4.21%)
  • 📈 Growth — 25/30
  • 💰 Profitability — 18/20
  • 🏦 Financial Health — 18/20
  • 💵 Valuation — 12/20
  • ⚠️ Risk — 8/10
Overall Score: 75/100

Summary:


📈 Growth & Financial Trajectory

Over the eight quarters, Ralph Lauren shows a generally positive revenue trend from start around $1.70B (Q2 2025) to end around $1.96B (Q1 2027), a modest increase (~+15%). Net income grows from about $129M to about $262M, a strong improvement (+103%), albeit with volatility; peak revenue occurred in Q3 2026 at about $2.41B with net income of $361.6M, followed by a pullback in Q4 2026 before a rebound in Q1 2027. This points to a cyclical pattern with resilience in earnings.

💰 Margins & Cash Flow

Gross margin remains robust, generally in the high-60s to mid-70s percent range (e.g., Q3 2026: ~70%, Q1 2027: ~74%). Operating margin ranges mid-teens to upper-teens (roughly 16–24%), supporting a positive path in profitability despite quarterly noise. Net cash flow from operating activities is positive in most quarters, while investing and financing activities drive variability in total cash flow; several quarters show positive operating cash flow with modest or negative total cash flow due to financing/investing.

🛡️ Balance Sheet & Liquidity

Balance sheet strength is solid: Assets around $7.3–7.8B vs Liabilities around $4.3–5.0B, with Equity ~ $2.4–2.9B. Current assets exceed current liabilities by roughly 2:1, indicating liquidity resilience.

⚠️ Key Drivers & Risks

  • Drivers: Brand momentum in luxury apparel; holiday/seasonal demand; international exposure.
  • Risks: Earnings volatility and sensitivity to revenue mix; margin compression or FX/material cost shifts; cyclicality in discretionary consumer spend.

📊 Key Financial Fundamentals

Valuation Multiples
Market Cap $20.14B
P/E Ratio 20.49
Forward P/E 20.22
P/S Ratio 2.41
P/B Ratio 8.70
EV / EBITDA 13.68
Profitability & Returns
Gross Margin 70.27%
Operating Margin 14.94%
Net Margin 11.76%
ROE 35.63%
ROIC 23.22%
Financial Health & Liquidity
Current Ratio 2.04
Quick Ratio 1.35
Financial Scale & Cash Flow
Revenue $8.36B
Net Income $0.98B
FCF Yield 5.18%
Free Cash Flow $1.04B
Total Debt To Equity 0.54