Ralph Lauren Corp

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RL : NYSE : Consumer Goods
$96.90 -2.35 | -2.37%
Today's Range: 96.13 - 99.10
Avg. Daily Volume: 1,493,900
07/28/16 - 4:02 PM ET

Financial Analysis


RALPH LAUREN CORP's gross profit margin for the fourth quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. RALPH LAUREN CORP has strong liquidity. Currently, the Quick Ratio is 1.50 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 3.77% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q4 FY15 Q4 FY14
Net Sales ($mil)1871.01885.0
EBITDA ($mil)202.0275.0
EBIT ($mil)119.0200.0
Net Income ($mil)41.0124.0


Balance Sheet Q4 FY15 Q4 FY14
Cash & Equiv. ($mil)1102.01146.0
Total Assets ($mil)6213.06106.0
Total Debt ($mil)1000.0789.0
Equity ($mil)3744.03891.0


Profitability Q4 FY15 Q4 FY14
Gross Profit Margin54.5755.38
EBITDA Margin10.7914.58
Operating Margin6.3610.61
Sales Turnover1.191.25
Return on Assets6.3711.49
Return on Equity10.5718.04
Debt Q4 FY15 Q4 FY14
Current Ratio2.552.8
Debt/Capital0.210.17
Interest Expense7.05.0
Interest Coverage17.040.0


Share Data Q4 FY15 Q4 FY14
Shares outstanding (mil)82.986.3
Div / share0.50.5
EPS0.491.41
Book value / share45.1645.09
Institutional Own % n/a n/a
Avg Daily Volume1482223.01354935.0

Valuation


HOLD. This stock's P/E ratio indicates a discount compared to an average of 26.45 for the Textiles, Apparel & Luxury Goods industry and a discount compared to the S&P 500 average of 25.05. To use another comparison, its price-to-book ratio of 2.20 indicates a discount versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 5.95. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, RALPH LAUREN CORP proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
RL 21.47 Peers 26.45   RL 8.16 Peers 20.70

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

RL is trading at a discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

RL is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
RL 17.04 Peers 23.54   RL 1.31 Peers 2.30

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

RL is trading at a discount to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

RL trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
RL 2.20 Peers 5.95   RL -41.30 Peers 8.68

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

RL is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, RL is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
RL 1.11 Peers 2.37   RL -2.83 Peers 8.47

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

RL is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

RL significantly trails its peers on the basis of sales growth

 

 

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