RL
Ralph Lauren Corporation
$394.95
▼ 0.2%Updated Aug 7, 11:30 AM ET
RL at a glance — five pillars scored 0–100 from real filed financials.
Overall: Favorable · 70/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
▲ Up 54.2% over the last 12 months
Market Cap
$23.71B
P/E
24.99x
Forward P/E (est.)
19.2x
ROE
34.8%
Revenue Growth
14.6%
EPS Growth
30.1%
Profit Margin
11.6%
FCF Yield
2.8%
Debt / Equity
0.52x
ROIC
30.0%
Interest Coverage
21.76x
Current Ratio
2.13x
Dividend Yield
1.0%
Implied Growth (rev. DCF)
—
Rating Score
70/100
Ralph Lauren Corporation (RL) is a large-cap company in the Apparel, Accessories & Luxury Goods industry, part of the Consumer Discretionary sector of the S&P 500, with a market value around $23.71B.
In its latest reported year it generated about $8.11B in revenue and $941.10M in net profit.
Our model rates RL Favorable (70/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Evidence of durable competitive advantage in the filed financials (10 years of history).
The filed history looks like a business competitors struggle to attack: high and steady margins, revenue that grows through cycles, and strong returns on capital.
68.4% average over the last 3 years
±4.4 pts around 63.8% across 10 years
grew in 6 of the last 9 year-over-year periods
positive in 10 of 10 years
30.0% latest fiscal year
A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what RL's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. RL trades near $394.95, above its 50-day average ($373.45) and 200-day average ($353.90). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 53 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently negative — short-term momentum is fading.
Volatility — ATR. Average True Range is the typical daily move. RL's is $12.30 (~3.1% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month RL found buyers near $355.00 (support) and sellers near $421.60 (resistance); its 52-week range is $266.20–$421.60. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.9× the 20-day average — about normal. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
4Y CAGR
6.9%
Revenue moved from $6.65B in 2017 to $8.11B in 2026, a 2.2% compound annual growth rate. The most recent year grew a steady 14.6% year over year. Consistent top-line growth is one sign of healthy demand.
Gross Margin
69.9%
Operating Margin
14.5%
Net Margin
11.6%
ROE
34.8%
Ralph Lauren Corporation keeps about 11.6% of each sales dollar as net profit, with a 69.9% gross margin and 14.5% operating margin. Return on equity is 34.8% and return on invested capital about 30.0%. Margins are moderate — typical of a competitive but profitable business.
Total Debt
$300.00M
Net Debt
-$1.69B
Net cash position
Net Debt / EBITDA
-1.43x
Debt / Equity
0.52x
Leverage: debt-to-equity is 0.5x, and operating profit covers interest about 21.8x, with a current ratio of 2.1x. That is a moderate, manageable debt load for most businesses. It carries roughly $300.00M of total debt against $1.99B of cash.
Operating CF
$1.15B
Free Cash Flow
$1.15B
FCF Margin
14.2%
In the latest year Ralph Lauren Corporation produced about $1.15B of operating cash flow and $1.15B of free cash flow after capital spending. That is a free-cash-flow yield of about 2.8% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.
Can the payout survive a bad year? Scored from filed cash flow, earnings coverage, and the raise/cut record.
The dividend is being paid, but coverage or consistency is thinner than an income investor should rely on without a closer look.
Dividend yield
1.0%
Per share (latest FY)
$3.65
Total paid (latest FY)
$216.50M
History on record
10 years
dividend uses 19% of free cash flow
23% of net income paid out
total dividends increased 2 years in a row
payout was cut at least once in the last 10 years
Coverage uses the latest fiscal year as filed with the SEC; the streak counts total dollars paid (per-share figures can carry split artifacts). Educational information, not income advice.
P/E
24.99x
P/S
2.98x
P/B
6.76x
EV / EBITDA
—
RL trades at 25.0x trailing earnings (about 19.2x on estimated forward earnings), 3.0x sales, and 6.8x book value. That is a fairly typical valuation for a profitable company.
Where RL sits versus its Consumer Discretionary sector peers in the S&P 500.
Bands show the middle half (25th–75th percentile) of the 85 Consumer Discretionary companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
How RL stacks up against its Consumer Discretionary peers — valuation, profitability, and growth versus the sector median.
In the Consumer Discretionary sector (158 S&P 500 companies), RL ranks #5 of 158 by our overall rating. It trades at roughly in line versus the sector on earnings (25x P/E vs. 25.8x median) with a higher return on equity (34.8% vs. 26.2%) and faster revenue growth (14.6% vs. 6.8%).
P/E vs sector
25x
median 25.8x
ROE vs sector
34.8%
median 26.2%
Growth vs sector
14.6%
median 6.8%
Sector rank
#5
of 158 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Consumer Discretionary companies by sub-industry and size. Sector median is across all 158 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$0.00 – $0.00
vs. $394.95 today · expected CAGR 4% – 16%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $9.33B | $10.73B | $12.34B | $14.19B | $16.32B |
| Net income | $1.12B | $1.29B | $1.48B | $1.70B | $1.96B |
| EPS | $18.65 | $21.45 | $24.67 | $28.37 | $32.63 |
| Share price (low) | $279.82 | $321.79 | $370.06 | $425.57 | $489.41 |
| Share price (high) | $466.37 | $536.32 | $616.77 | $709.28 | $815.68 |
| CAGR (low–high) | -29% / 18% | -10% / 17% | -2% / 16% | 2% / 16% | 4% / 16% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for RL:
- Revenue is growing 14.6% a year, a sign of real demand.
- Strong return on equity (34.8%) shows capital is put to work well.
- Our model's overall read is Favorable (70/100).
The case against RL:
- Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the fundamentals screen favourably: Ralph Lauren Corporation is a large-cap consumer discretionary business still growing nicely, with modest profitability, and a sound balance sheet. It trades at 25.0x earnings, which our model scores Favorable (70/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Analyst Ratings
What 28 Wall Street analysts covering RL recommend (August 2026). Consensus is a useful sanity check — not a substitute for your own homework.
Analysts have turned more positive over the last three months (+4 pts of buy ratings).
Latest SEC Filings
RL's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen.
In the Idea Lab
RL — frequently asked questions
Is RL a good stock to buy?
We don't give buy or sell advice. Our model rates Ralph Lauren Corporation Favorable (70/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is RL's rating on The Stocks School?
Ralph Lauren Corporation currently scores 70/100 (Favorable) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does RL's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from Ralph Lauren Corporation's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for RL calculated?
It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.
Is this RL analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell RL. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.