Ralph Lauren Corporation
Ralph Lauren Corporation designs, markets, and distributes lifestyle products in North America, Europe, Asia, and internationally. The company offers apparel, including a range of men's, women's, and children's clothing; footwear and accessories, which comprise casual shoes, dress shoes, boots, snea…
What to know about RL
Ralph Lauren Corporation is a large Consumer Cyclical company with a mixed financial profile. It scores well on health and profitability, but risk is worth keeping an eye on.
Should you consider RL?
Based on 31 financial metrics and sector comparison. Not financial advice.
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Ralph Lauren Corporation is a large-cap Consumer Cyclical company with a mixed overall financial profile — it is in the lower half of its Consumer Cyclical peers (38 of 54).
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Profitability is roughly average for the S&P 500 — not a standout in either direction.
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Valuation is in the middle of the pack — neither obviously cheap nor stretched.
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The company is growing at a reasonable pace — not the fastest, but consistently moving in the right direction.
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There is a small dividend (0.01%), but income-focused investors will likely find better yields elsewhere in the market.
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The stock is more volatile than most S&P 500 names — it can swing sharply in both directions. This suits investors comfortable with bigger short-term moves.
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Analyst sentiment is cautious and short interest is relatively elevated — meaning some professional investors are actively betting the price will fall. Worth understanding why.
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There are several areas of concern. This may suit investors with a higher risk tolerance or a specific contrarian view on the Consumer Cyclical sector.
At a glance
How it scores
We look at 31 different financial metrics and group them into categories. Here's how RL compares to the other S&P 500 stocks.
Dive deeper — all 31 metrics 9 categories · valuation, growth, health, dividends & more Show all Hide
Valuation
Is the stock cheap or expensive relative to its earnings, sales, and assets? Lower multiples often mean better value.
| Metric | Value | vs S&P 500 |
|---|---|---|
| P/E Ratio (Trailing) | 27.37 | Average |
| Forward P/E | 20.27 | Average |
| PEG Ratio | 2.34 | Average |
| Price to Sales | 3.03 | Above avg |
| Price to Book | 8.67 | Below avg |
| EV/EBITDA | 16.55 | Average |
| Earnings Yield | 3.65% | Average |
Profitability
How efficiently does the company turn revenue into profit? Higher margins mean more money kept from each dollar earned.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Gross Margin | 69.86% | Top 25% |
| Operating Margin | 13.37% | Average |
| Net Profit Margin | 11.60% | Average |
| Return on Equity | 34.66% | Top 25% |
| Return on Invested Capital | 10.88% | Top 25% |
Growth
How fast is the business expanding? Strong growth in revenue and earnings signals increasing market demand.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Revenue Growth (YoY) | 16.60% | Top 25% |
| Revenue Growth (3Y CAGR) | 7.99% | Above avg |
| EPS Growth (YoY) | 20.00% | Above avg |
| Free Cash Flow Growth | -30.82% | Below avg |
Health
Can the company cover its debts and obligations? A healthy balance sheet reduces the risk of financial trouble.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Current Ratio | 2.13 | Top 25% |
| Debt to Equity | 1.06 | Average |
| Interest Coverage | 22.73 | Top 25% |
| Altman Z-Score | 6.41 | Top 25% |
Dividends
Does the company pay shareholders, and is that payment growing and sustainable?
| Metric | Value | vs S&P 500 |
|---|---|---|
| Dividend Yield | 0.92% | Below avg |
| Payout Ratio | 24.16% | Above avg |
| Dividend Growth (5Y) | -15.05% | Below avg |
Cash Flow
Is real cash flowing into the business — not just accounting profits? Strong cash flow funds growth and dividends.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Free Cash Flow Yield | 2.87% | Average |
| OCF to Sales | 14.22% | Average |
Risk
How volatile is the stock compared to the broader market? Lower beta and volatility mean a smoother ride.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Beta (1-Year) | 1.37 | Below avg |
| Volatility (30-Day) | 55.12% | Below avg |
Sentiment
What do analysts and short-sellers think? High analyst ratings and low short interest signal broad confidence.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Short % of Float | 10.51% | Below avg |
| Avg. Analyst Rating | 1.63 | Top 25% |
| Target Upside % | 3.63% | Below avg |
Size
How large is the company by market value? Size affects stability, growth potential, and index inclusion.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Market Capitalization | 24.58B | Average |
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