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Ralph Lauren (RL) Stock Fundamentals, Analysis & Risk Signals

Health score, competitive moat, risk signals, and key metrics at a glance.

NYSE•Consumer Cyclical•Apparel Manufacturing
B
GoodMetricSide Score: 79/100
ProfitabilityProfit20/30
GrowthGrowth25/25
Balance SheetBalance25/25
Cash QualityCash9/20
Price & Volume
Market Cap $24.21B

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, sneakers, sandals, eyewear, watches, fashion and fine jewelry, scarves, hats, gloves, and umbrellas, as well as leather goods comprising handbags, luggage, small leather goods, and belts; home products, such as bed and bath lines, furniture, fabric and wall coverings, lighting, dining, floor coverings, decorative accessories, and giftware; and fragrances. The company sells apparel and accessories under the Ralph Lauren Collection, Ralph Lauren Purple Label, Polo Ralph Lauren, Double RL, Lauren Ralph Lauren, RLX Ralph Lauren, Polo Ralph Lauren Children, and Chaps brands; women's fragrances under the Ralph Lauren Collection, Woman by Ralph Lauren, Romance Collection, and Ralph Collection brand names; and men's fragrances under the Ralph's Club, Purple Label, Polo Blue, Polo Red, Polo Green, Polo Black, Polo 67, Safari, Polo Sport, and Big Pony Men's brand names. Its restaurant collection includes The Polo Bar in New York City; RL Restaurant in Chicago; Ralph's in Paris; The Bar at Ralph Lauren located in Milan; Ralph's Bar located in Chengdu, China; and Ralph's Coffee concept. The company sells its products to department stores, specialty stores, and golf and pro shops, as well as directly to consumers through its retail stores, concession-based shop-within-shops, and its digital commerce sites. It operates retail stores and concession-based shop-within-shops; and operates Ralph Lauren stores and shops through licensing partners. Ralph Lauren Corporation was founded in 1967 and is based in New York, New York.

Moat Signals

Competitive analysis based on 64 quarters of fundamental data

Pricing Power

Strong Moat

Operating margins are expanding at ~13.6%, suggesting durable pricing power and cost discipline.

Competitive Advantage

Strong Moat

Consistently high ROE averaging 30.4% suggests a durable competitive advantage and efficient capital allocation.

Cash Generation

Moderate Moat

6 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.

Demand Durability

Strong Moat

TTM revenue has grown consistently (7 of 7 quarters up), with ~22.1% growth over the period. Strong demand durability.

Risk Signals

Data-driven red flags and warnings across 64 quarters

Some Concerns

Margin Pressure

Healthy

Margins are stable or improving at ~14.3% — no sign of cost or pricing stress.

Earnings Quality

Red Flag

FCF consistently trails net income (avg 0.8x) — earnings may be inflated by non-cash items or aggressive accounting.

Leverage Risk

Watch

Debt-to-equity has risen 51.9% recently — increasing financial risk even if the current ratio is manageable.

Revenue Decline

Healthy

Revenue is stable or growing over recent quarters — demand appears durable.

Cash Burn

Watch

FCF turned negative in 2 of the last 8 quarters — occasional cash consumption.

Share Dilution

Healthy

Shares decreased 3.8% — net buybacks are reducing shares outstanding and boosting per-share value.

Metrics at a Glance

as of March 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue
$8.11B
14.6%
Q. Revenue
$1.98B
TTM EBITDA
$1.41B
22.6%
TTM Op. Income
$1.18B
26.5%
Q. Op. Income
$188.60M
TTM Net Income
$941.10M
26.7%
Q. Net Income
$151.60M
EPS
$2.493
Shares Out.
$60.80M
2.1%
$8.11B in TTM revenue grew 14.6% YoY, reaching $1.98B last quarter. TTM EBITDA of $1.41B and TTM operating income of $1.18B shows growth is flowing through. Net income of $941.10M TTM confirms the company is converting revenue into profit. Revenue is growing at a healthy pace — a signal to hold.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin
69.7%
1.5%
EBITDA Margin
12.6%
Op. Margin
9.5%
4.4%
Net Margin
7.7%
0.8%
Op. margin of 9.5% is up 0.4% YoY — cost efficiency is improving. Net margin at 7.7% and gross margin of 69.7% — earnings take a bigger bite when COGS stays lean..

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio
25.7x
P/S Ratio
3.0x
P/B Ratio
8.5x
At 25.7x P/E, the stock trades in line with market averages — fairly valued. P/S of 3.0x and P/B of 8.5x provide additional context. Assess whether the current multiple is justified by the company's growth and profitability trajectory.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets
$7.74B
Cash
$1.99B
Long-Term Debt
$1.24B
Book Value
$2.84B
D/E Ratio
0.4
Debt/EBITDA
5.0
With $7.74B in assets and $1.24B in long-term debt, the D/E of 0.4and book value of $2.84B — shows a conservative capital structure — the company has a strong financial cushion to weather downturns.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow
$145.30M
Free Cash Flow
$93.90M
122.0%
FCF Margin
1.2%
FCF / Net Income
0.6
FCF of $93.90M on $145.30M in operating cash flow. The FCF / Net Income ratio of 0.1x indicates partial cash conversion — earnings quality needs attention.

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