RLRalph Lauren Corporation
Is the business good?
A genuinely good business: 8 of 9 health tests passed, earnings fully cash-backed (1.3×), and margins widening.
High fundamental quality. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
A balanced mix of margins, efficiency, and leverage. ROE 34% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is RL?
Ralph Lauren Corporation earns 49% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 40 points above what the capital costs: growth creates value
- Operating margin
- 15%
Operating margin · Apparel Manufacturing median 7.3% · 12 months to Q1 2027
- Cash conversion
- 1.33×
Cash conversion · 1.45× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −1.9%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2021 | −0.99% |
| FY2022 | 13% |
| FY2023 | 11% |
| FY2024 | 11% |
| FY2025 | 13% |
| FY2026 | 15% |
Details›
- Gross margin12 months to Q1 2027
- 70%
- Operating margin12 months to Q1 2027
- 15%
- Net margin12 months to Q1 2027
- 12%
- Free cash flow margin
- 13%
- Revenue, trailing twelve months
- $8.36B
- Free cash flow, trailing twelve months
- $1.05B
- Net income, trailing twelve months
- $983M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 49%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Apparel Manufacturing
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