Ralph Lauren Corp.

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RL : NYSE : Retail Trade
$109.15 | %
Today's Range: 107.87 - 110.25
Avg. Daily Volume: 970200.0
03/16/18 - 4:03 PM ET

Financial Analysis

RALPH LAUREN CORP's gross profit margin for the third quarter of its fiscal year 2017 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, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 5.60% 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 Q3 FY17 Q3 FY16
Net Sales ($mil)1641.81714.0
EBITDA ($mil)289.1297.0
EBIT ($mil)216.4219.0
Net Income ($mil)-81.882.0

Balance Sheet Q3 FY17 Q3 FY16
Cash & Equiv. ($mil)2051.41390.0
Total Assets ($mil)6199.05966.0
Total Debt ($mil)849.0863.0
Equity ($mil)3407.53610.0

Profitability Q3 FY17 Q3 FY16
Gross Profit Margin60.6858.17
EBITDA Margin17.617.32
Operating Margin13.1812.78
Sales Turnover1.01.17
Return on Assets-1.332.44
Return on Equity-2.424.04
Debt Q3 FY17 Q3 FY16
Current Ratio2.072.64
Interest Expense4.84.0
Interest Coverage45.0854.75

Share Data Q3 FY17 Q3 FY16
Shares outstanding (mil)81.382.2
Div / share0.50.5
Book value / share41.9143.92
Institutional Own % n/a n/a
Avg Daily Volume1049497.01340246.0


HOLD. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. To use another comparison, its price-to-book ratio of 2.51 indicates a discount versus the S&P 500 average of 3.27 and a significant discount versus the industry average of 6.64. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, RALPH LAUREN CORP proves to trade at a discount to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
RL NM Peers 35.63   RL 8.02 Peers 21.42

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

RL's P/E is negative making this valuation measure meaningless.


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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
RL 17.11 Peers 25.35   RL NA Peers 1.43

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 significant discount to its peers.


Neutral. 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.

Ratio not available.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
RL 2.51 Peers 6.64   RL -157.71 Peers 4.37

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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
RL 1.38 Peers 2.45   RL -10.63 Peers 5.92

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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