April 25, 2025 a 03:31 pm
RL: Dividend Analysis - Ralph Lauren Corporation
Ralph Lauren Corporation offers an attractive dividend profile for investors seeking stable income. With a solid history of dividend payments and a prudent payout ratio, the company demonstrates a commitment to returning value to shareholders. The past years have shown consistent increases, highlighting a robust income generation capability.
📊 Overview
Ralph Lauren Corporation operates in the fashion and lifestyle sector with a focus on long-term shareholder returns. Below is a snapshot of its dividend performance.
| Parameter | Value |
|---|---|
| Sector | Fashion and Lifestyle |
| Dividend Yield | 1.53% |
| Current Dividend per Share | 2.98 USD |
| Dividend History | 23 years |
| Last Cut or Suspension | None |
📉 Dividend History
A stable dividend history is crucial as it indicates the company's ability to generate consistent cash flows. Ralph Lauren's 23-year history of paying dividends showcases its robust financial health and commitment to shareholders.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 0.825 |
| 2024 | 3.225 |
| 2023 | 3.00 |
| 2022 | 2.9375 |
| 2021 | 2.0625 |
📈 Dividend Growth
Observing dividend growth over several years can provide insight into a company's financial progression and shareholder value enhancement.
| Time | Growth |
|---|---|
| 3 years | 16.07% |
| 5 years | 3.71% |
The average dividend growth is 3.71% over 5 years. This shows moderate but steady dividend growth, reflecting the firm's ongoing profitability and fiscal policy.
✅ Payout Ratio
Analyzing the payout ratio is critical in evaluating the sustainability of dividends relative to company earnings and cash flows.
| Key Figure | Ratio |
|---|---|
| EPS-based | 26.47% |
| Free cash flow-based | 17.43% |
With an EPS-based payout ratio of 26.47% and a FCF-based payout ratio of 17.43%, the company's dividend payments are well covered by profits and cash flow, pointing to good earnings quality.
💸 Cashflow & Capital Efficiency
Assessing cash flow and capital efficiency gives insight into the company's operational effectiveness and investment capability.
| 2024 | 2023 | 2022 |
|---|---|---|
| Free Cash Flow Yield: 7.39% | 2.45% | 6.71% |
| Earnings Yield: 5.27% | 6.62% | 7.33% |
| CAPEX to Operating Cash Flow: 15.41% | 52.92% | 23.31% |
| Stock-based Compensation to Revenue: 1.50% | 1.17% | 1.31% |
| Free Cash Flow / Operating Cash Flow Ratio: 84.59% | 47.08% | 76.69% |
The data indicates Ralph Lauren's strong cash flow generation and prudent capital investment strategies, reinforced by consistent free cash flow conversion and low CAPEX requirements.
🏦 Balance Sheet & Leverage Analysis
This analysis exposes the financial structure and risk associated with the company's use of debt.
| 2024 | 2023 | 2022 |
|---|---|---|
| Debt-to-Equity: 1.0918 | 1.1774 | 1.3297 |
| Debt-to-Assets: 40.52% | 42.15% | 43.65% |
| Debt-to-Capital: 52.19% | 54.07% | 57.08% |
| Net Debt to EBITDA: 0.95 | 1.66 | 1.45 |
| Current Ratio: 2.29 | 2.23 | 1.87 |
| Quick Ratio: 1.68 | 1.51 | 1.44 |
| Financial Leverage: 2.69 | 2.79 | 3.05 |
The balance sheet shows controlled leverage with healthy ratios pointing to a strong financial position, able to sustain business shocks and fund future expansions.
📊 Fundamental Strength & Profitability
Understanding a company's fundamental strength ensures insight into profit conversion and operational efficiency.
| 2024 | 2023 | 2022 |
|---|---|---|
| Return on Equity: 26.38% | 21.51% | 23.66% |
| Return on Assets: 9.79% | 7.70% | 7.77% |
| Margins: Net: 9.75%, EBIT: 12.36%, EBITDA: 16.00%, Gross: 66.83% | Net: 8.11%, EBIT: 11.36%, EBITDA: 12.44%, Gross: 64.65% | Net: 9.65%, EBIT: 13.00%, EBITDA: 16.77%, Gross: 66.70% |
| R&D to Revenue: 0% | 0% | 0% |
Ralph Lauren boasts strong profitability metrics such as return on equity and high margins, underlining its competitively advantageous position.
🌟 Price Development
🔍 Dividend Scoring System
| Category | Score (1-5) | Score Bar |
|---|---|---|
| Dividend Yield | 3 | |
| Dividend Stability | 5 | |
| Dividend Growth | 4 | |
| Payout Ratio | 5 | |
| Financial Stability | 4 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 5 | |
| Balance Sheet Quality | 4 |
Total Score: 35/40
🗣️ Rating
Ralph Lauren Corporation garners a favorable position in the dividend arena, given its solid track record and sustainable financial policies. With a high total dividend score, it remains a promising option for income-focused investors seeking reliable returns coupled with growth potential.