$200.64
arrow_drop_up0.37%Is RL a Buy or Sell based on AI Analysis?
Fundamental Analysis
Ralph Lauren Corp has a strong dividend yield of 1.62%, with an annual dividend per share of $3. The company has a payout ratio of 31.55%, indicating a healthy balance between distributing profits to shareholders and retaining earnings for growth. Ralph Lauren's historical dividend yield average is 2.14%, showcasing consistent dividend payments over time. Additionally, the company's return on assets stands at 6.62%, highlighting its efficiency in generating profits from its assets. The net margin of 8.11% further demonstrates Ralph Lauren's ability to translate revenue into net income effectively. From a financial perspective, Ralph Lauren Corp has a solid balance sheet with a current ratio of 2.17, indicating the company's ability to cover its short-term liabilities with its current assets. The debt-to-equity ratio of 1.07 suggests a balanced capital structure, with a moderate level of debt compared to equity. The enterprise value to revenue ratio of 1.92 reflects the company's valuation relative to its revenue, providing insight into its market value. Moreover, the price-to-sales ratio of 1.79 indicates that investors are willing to pay $1.79 for every dollar of the company's sales, which could suggest confidence in Ralph Lauren's revenue-generating abilities. Overall, these fundamental indicators paint a positive picture of Ralph Lauren Corp's financial health and performance.
Positive Development
The company's e-commerce business is encouraging, with increased digital marketing spending and the rollout of buy online and pick up in store across its outlets. The company's stock has been highlighted as a strong buy in the Consumer Discretionary sector. The company's gross margin and operating margin are relatively strong, indicating efficient operations.
Negative Development
The company's stock has been listed as a Zacks Bull and Bear of the Day, indicating potential volatility. The company's inventory turnover is relatively low, which could indicate overstocking. The company's long-term debt to total equity ratio is relatively high, indicating a higher debt burden.
Technical Analysis
Ralph Lauren Corp (RL) has a technical rating of "SELL" based on various indicators such as Relative Strength Index (RSI), Commodity Channel Index (CCI), Williams %R (WILLR), and Stochastic Relative Strength Index (STOCHRSI). The company's stock price has experienced a decline of 3.68% recently, with a seven-day price change percentage of -5.02%. The technical analysis also highlights that there are 4 sell indicators, 3 hold indicators, and only 1 buy indicator for the month. Additionally, the stock is currently trading below its 50-day moving average (DMA), indicating a bearish trend in the short term. Furthermore, Ralph Lauren Corp's stock has a beta of 1.55, suggesting that it is more volatile compared to the market. The stock's price-to-earnings (PE) ratio is 20.97, and the price-to-book ratio is 4.6. The company's technical analysis also shows that the stock is currently trading below its historical dividend yield average. Moreover, with a trailing annual dividend yield of 1.62% and a payout ratio of 31.55%, investors may consider the stock as a potential dividend investment. Overall, the technical analysis provides key insights into the stock's price movements and indicators for potential buying or selling opportunities.
Conclusion and recommendation
Based on the data provided for Ralph Lauren Corp, it is evident that the company is currently facing a downward trend in its stock price, with a decrease of -3.68% from the previous close. The company's technical rating is labeled as "SELL," indicating that investors may want to exercise caution when considering investing in this stock. Furthermore, the analyst forecast predicts a further decline in the stock price by -18.91%, with a neutral recommendation from analysts. Despite these challenges, Ralph Lauren Corp has a solid financial foundation, with a market cap of $6.96B, a strong dividend yield of 1.62%, and a return on equity of 23.33%. The company also boasts a healthy balance sheet, with a current ratio of 2.17 and a debt to equity ratio of 1.07, suggesting that it is well-positioned to weather market fluctuations. In conclusion, while Ralph Lauren Corp may be experiencing a temporary setback in its stock price, the company's strong financial fundamentals indicate that it has the potential for long-term success. Investors should closely monitor the stock performance and consider the analyst forecast before making any investment decisions. Overall, with a solid market position in the consumer cyclical sector and a history of delivering consistent dividends to shareholders, Ralph Lauren Corp presents an attractive investment opportunity for those looking for a stable and established company in the fashion industry.