RL (Ralph Lauren) Profitability Rank: 8 (As of Mar. 2026) — Near Median

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Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

RL Ralph Lauren Corp RL
89 GF Score
Price $378.48
GF Value $265.50
Valuation Significantly Overvalued
! 1 Warning Sign
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What is Ralph Lauren Profitability Rank?

Ralph Lauren RL +1.83% 89 Profitability Rank is 8 as of Mar. 2026, which is at its 10-year median of 8.00. GuruFocus rates RL with a GF Score™ of 89/100 and a GF Value™ of $265.50 (Significantly Overvalued). The stock has 1 warning sign investors should review.

Ralph Lauren has the Profitability Rank of 8. It has a higher profitability and may stay that way.

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It is rated on a scale of 1 to 10 and is based on these factors:

1. Operating Margin %
2. Piotroski F-Score
3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank

A higher score indicates superior profitability, with companies rated 7 or above considered to have more robust and sustainable profit generation. Conversely, a score of 3 or lower suggests challenges in generating consistent profits.

Ralph Lauren's Operating Margin % for the quarter that ended in Mar. 2026 was 11.03%. As of today, Ralph Lauren's Piotroski F-Score is 8.


Ralph Lauren Profitability Rank Related Terms


RL vs LEVI, VFC, KTB: Profitability Rank Comparison

For the Apparel Manufacturing subindustry, Ralph Lauren's Profitability Rank, along with its competitors' market caps and Profitability Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Ralph Lauren Profitability Rank vs Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Ralph Lauren's Profitability Rank distribution charts can be found below:

* The bar in red indicates where Ralph Lauren's Profitability Rank falls into.


RL
89GF Score
Ralph Lauren Corp RL
Profitability Rank is just one metric. See GF Score™, valuation, warning signs, and more.
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Ralph Lauren Profitability Rank Calculation

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.

The rank is rated on a scale of 1 to 10. A higher score indicates superior profitability, with companies rated 7 or above considered to have more robust and sustainable profit generation. Conversely, a score of 3 or lower suggests challenges in generating consistent profits.

Ralph Lauren has the Profitability Rank of 8. It has a higher profitability and may stay that way.

Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.

Profitability Rank is based on these factors:

1. Operating Margin %

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Ralph Lauren's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2026 ) / Revenue (Q: Mar. 2026 )
=218.3 / 1978.7
=11.03 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

2. Piotroski F-Score

Good Sign:

Piotroski F-Score is 8, indicates a very healthy situation.

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Ralph Lauren has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.

Good Sign:

Ralph Lauren Corp operating margin is expanding. Margin expansion is usually a good sign.

4. Consistency of the profitability

5. Predictability Rank

Frequently Asked Questions Learn more about Profitability Rank →
What does a Profitability Rank of 8 mean?
Ralph Lauren (RL) has a Profitability Rank of 8 as of Mar. 2026. Profitability and Growth ranks a company based on its profit margins and earnings growth. View historical data on Ralph Lauren and its competitors. This is near median its historical median of 8.00. Over the past decade, Ralph Lauren's Profitability Rank has ranged from 7.00 to 8.00.
Is Ralph Lauren's Profitability Rank too high?
Ralph Lauren's current Profitability Rank of 8 is near median its 10-year median of 8.00. Over the past 10 years, this metric has ranged from a low of 7.00 to a high of 8.00. Overall, Ralph Lauren has a GF Score™ of 89/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ralph Lauren's Profitability Rank compare to LEVI and VFC?
Ralph Lauren's Profitability Rank of 8 can be compared against companies in the Manufacturing - Apparel & Accessories industry. Historically, Ralph Lauren's own Profitability Rank has ranged from 7.00 to 8.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Profitability Rank for a Manufacturing - Apparel & Accessories company?
A good Profitability Rank depends on the Manufacturing - Apparel & Accessories industry context. However, Profitability Rank should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Profitability Rank mean?
A high Profitability Rank can signal that a stock is expensive relative to its fundamentals. Profitability and Growth ranks a company based on its profit margins and earnings growth. View historical data on Ralph Lauren and its competitors. Ralph Lauren's current Profitability Rank is 8, which is near median its own 10-year median of 8.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ralph Lauren stock overvalued right now?
Based on GuruFocus' analysis, Ralph Lauren (RL) is currently considered Significantly Overvalued. The stock's GF Value™ is $265.50, compared to a current price of $378.48 — trading 42.6% above its estimated fair value. The current Profitability Rank is 8, which is near median its 10-year median of 8.00. Ralph Lauren's overall GF Score™ is 89/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Profitability Rank calculated?
Profitability Rank is calculated from a company's financial statements. For Ralph Lauren (RL), the current Profitability Rank is 8 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Ralph Lauren (RL) Overvalued in 2026?

Based on GuruFocus' analysis, Ralph Lauren stock appears to be overvalued. The current stock price of $378.48 is trading 42.6% above its estimated GF Value™ of $265.50. GuruFocus considers Ralph Lauren to be Significantly Overvalued.

Key valuation signals for RL:

  • Profitability Rank: 8 (near median its 10-year median of 8.00)
  • GF Value™: $265.50 vs. price of $378.48 (42.6% above fair value)
  • GF Score™: 89/100 with 1 warning sign

No single metric tells the full story. See the RL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Ralph Lauren Business Description

Address 650 Madison Avenue, New York, NY, USA, 10022
Founded by designer Ralph Lauren (current executive chairman and chief creative officer) in 1967 in New York City, Ralph Lauren Corp. designs, markets, and distributes lifestyle merchandise in North America (41% of fiscal 2026 sales), Europe (31%), and Asia (26%). Best known for its iconic polo shirts, its products also include other types of apparel, footwear, eyewear, jewelry, handbags, home goods, and fragrances. The company's brands include Ralph Lauren Collection, Polo Ralph Lauren, and Lauren Ralph Lauren. Distribution channels for Ralph Lauren include wholesale (department stores and specialty stores), retail (company-owned retail stores and e-commerce), and licensing.
89GF Score

Get the complete analysis for RL

Profitability Rank is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$378.48
Price
$265.50
GF Value